$54.4bn
$X.Xbn
130k
2,716
$XX.Xbn
As the internet becomes ever more a part of the everyday experience, the Internet Hosting Services industry has benefited immensely. Industry operators specialize in providing leased server space and design tools to individuals and organizations. As a result, customers can make scalable, professional websites with minimal code. Industry operators also provide several add-on services, such as selling domain names, email hosting and search engine optimization. Increasing internet penetration and the proliferation of mobile devices have changed the way that consumers discover and transact with businesses, leading to greater demand for industry services from small- and mid-sized businesses (SMBs). As a result, the industry has grown steadily, with revenue expected to grow at a CAGR of 9.0% to $54.4 billion over the five years to 20223, including an anticipated 10.0% increase in 2023 alone, when profit, measured as earnings before interest and taxes, is estimated to comprise 6.0% of revenue. Despite the pandemic, industry revenue increased 8.5% in 2020 as internet usage increased significantly.The industry is highly fragmented. While industry competition is high, providing services is relatively straightforward. Industry concentration is rising as larger, publicly listed companies acquire smaller brands to boost subscriber numbers. For example, GoDaddy Inc. and Endurance International Group have both made significant acquisitions over the past decade. Still, the average operator employs fewer than 10 people, highlighting the industry's fragmentation. The Internet Corporation for Assigned Names and Numbers (ICANN) also guides the internet and thus, operations in internet hosting.Internet hosting revenue is expected to grow at a CAGR of 7.2% to $77.0 billion over the five years to 2028. The expertise needed to manage large data centers effectively will increase as the technology required to process and host websites become increasingly complex. SMBs will likely require more complex websites that serve desktops and phones with interactive content, meaning they will likely need value-added website design and management services from industry operators. Competition among operators is expected to intensify as more companies enter. As a result, IBISWorld anticipates hosting providers to differentiate by increasing marketing expenditures to boost brand recognition. Still, the looming threat of recession will pull companies back from spending on websites.
Industry revenue has grown at a CAGR of 9.0 % over the past five years, to reach an estimated $54.4bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Godaddy Inc. | 809.1 | 87.6 | 10.8 |
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Internet Hosting Services in the US
Industry revenue is measured across several distinct product and services lines, including Hosting services, Website builder products and Security, e-mail and business features. Hosting services is the largest segment of the Internet Hosting Services in the US.
Hosting services are at the center of any provider's product offerings
This industry provides internet hosting services to third parties. These services most commonly take the form of website hosting, where industry operators provide leased server space and internet connectivity to individuals and organizations to make their websites accessible over the internet. Operators also provide application-specific services, such as email application hosting and game hosting.
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NAICS 51821 - Internet Hosting Services in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Internet hosting companies are a lynchpin for individuals and small businesses to interact with the digital world. Businesses spend significantly on these technologies, which...
Learn about an industry's products and services, markets and trends in international trade.
All other offerings orbit core hosting services. Expensive hosting plans may drive cost-conscious businesses to competitors, voiding future revenue-generation opportunities.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
In the age of remote work, location is relatively unimportant for internet hosting services. So long as a hosting provider can retain developers and support staff, a physical...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Competition is relatively aggressive in the internet hosting services marketplace. Competitors differentiate on technical capacity, support quality and brand recognition.
Learn about the performance of the top companies in the industry.
The Internet Corporation for Assigned Names and Numbers (ICANN)’s control of top-level domains on the internet ensures some smaller country-level companies can sell exclusive ...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Internet hosting services are relatively exempt from laws affecting the websites they host. This abstraction applies only to internet providers with comprehensive, commercial...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Purchase costs demand significant spending from hosting providers. Intelligent coders must run servers and create applications for coders.
Including values and annual change:
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Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
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IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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The market size of the Internet Hosting Services in the US industry in United States is $54.4bn in 2024.
There are 2,716 businesses in the Internet Hosting Services in the US industry in United States, which has grown at a CAGR of 7.7 % between 2019 and 2024.
The market size of the Internet Hosting Services in the US industry in United States has been growing at a CAGR of 9.0 % between 2019 and 2024.
Over the next five years, the Internet Hosting Services in the US industry in United States is expected to grow.
The biggest company operating in the Internet Hosting Services market in United States is Godaddy Inc.
Dedicated website hosting and Shared hosting are part of the Internet Hosting Services in the US industry.
The company holding the most market share in United States is Godaddy Inc..
The level of competition is high and steady in the Internet Hosting Services in the US industry in United States.