Data Processing and Hosting Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Data Processing and Hosting Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Data Processing and Hosting Services Market is expected to register a CAGR of over 3.58% during the forecast period (2021 - 2026). With the growing data processing services, there has been an increase in the requirement of new servers to keep the data up-to-date, which is expected to drive the market during the forecast period.

Key Highlights

• Businesses across the emerging markets have increasingly outsourced their IT infrastructure needs, thereby directly benefiting the hosting operators, further driving the market demand.
• The deployment of big data analytics has elevated the stakes for successful data preparation from many sources utilizing multiple data analysis techniques, thereby maintaining substantial ROI cleaning, combining, and transforming the unstructured data. Though Artificial intelligence (AI) may have familiarized big data, applications such as the internet of things (IoT) are taking it to the next level. The need to analyze large datasets to develop insights and increase internet traffic is increasing the demand for data processing and storage services
• In mid-2019, there were over 4.5 billion Internet users globally, which is 58.8% of the global population with Internet access, and the numbers are growing as internet penetration improves, according to Internet World Stats. This indicates that data traffic will continue to grow even more, with the 2020 crisis unfolding worldwide.
• Also, players in the market are launching new and advanced solutions, for instance in 2020, Khoros, a digital-first customer engagement software, announced the launch of its newest data hosting location in Sydney, Australia, which is anticipated to allow the company to offer enhanced software performance and data privacy confidence for its customers in Australia and New Zealand.
• The COVID-19 pandemic is spurring the adoption of cloud services across all industries as they rapidly pivot to support remote work and collaboration. This is particularly true for healthcare providers at the front line as they leverage remote access and cloud analytics to scale operations.
• Other types of media, such as video games, have also been growing in popularity. According to Verizon, video game usage during peak hours had shot up by approximately 75% a mere week after the quarantine was imposed. These surges for entertainment options have left many ISPs globally unable to cope with the increased traffic, which has been directing the need for the market studied.

Key Market TrendsWeb Hosting is Gaining Traction Due to Emergence of Cloud-based Platform

• Web hosting services are gaining traction to cater to the rising demand from the client requirement that is suitable as per the type of web hosting service is selected. The shared hosting services are suitable for a website with low traffic but if the website with high traffic, using dedicated servers is suitable for the hosting services. Further, the colocation hosting services are experiencing the highest demand owing to its reasonable cost structure.
• The emergence of the cloud has been monumental in modernizing data management and hosting services, as it is a cost-effective method, for companies to take advantage of modern technology and architecture, without the enormous upfront cost to purchase, install, and configure the required hardware, software, and infrastructure.
• Also, the large enterprises were able to adapt to an evolving data-driven marketplace very quickly, with the help of their existing resources and capabilities to manage them very effectively.
• The substantial presence of BFSI across the emerging regions of North America and Europe has driven an increased penetration of digital services at a substantial rate, that is generating massive demand for analyzing enormous data generated through multiple data processing techniques, thereby fueling the market demand during the forecast period.
• While there are still data processing and hosting companies in United States, the rise of Indian companies such as Infosys and US businesses' propensity to outsource their work abroad is creating a more globalized industry. Data processing and hosting companies will have their sales and client relationship in the United States while outsourcing the main operation abroad at a lower cost.

Asia Pacific to Register as the Largest Growth During the Forecast Period

• The Asia-Pacific region has witnessed high growth for the market studied, owing to the 50.7% of the World Internet Population in the region. There is increased activity in terms of data center services in the region. Besides international market vendors like IBM and Amazon setting up shop in the region, some homegrown giants like Huawei Investment & Holding Company are transforming the IT landscape.
• Growing demand from enterprises is expected to propel cloud computing and other associated data services in the country. Also, advancements in data center technology and its integration with other associated services are the key driving factors for China's growth.​​
• According to the measure of data center space per user, the number of internet data centers in China would increase to at least twenty-two times that of the United States, or at least ten times the current space of Japan. Along with the continuous growth of gaming, online streaming, and e-commerce, the Internet industry contributes the most significant demand for the data center market in China. ​​
• Strong government backing and substantial private sector investments are boosting the cloud computing industry's growth. The South Korean government has deployed cloud computing technologies to improve its e-government services, banking on the country's super-fast internet connectivity, and stable LTE availability. This is expected to contribute to the market's growth positively over the forecast period. ​
• Also, the region is expected to hold a significant share during the forecast period. This is due to various factors, such as rapid growth in the number of data centers in the region supplemented with the government's initiatives mandating the deployment of data centers in the region.
• Additionally, the region is expected to witness growth, owing to small and medium organizations' investments. SMEs are investing to increase the adoption of cloud-based and technologically advanced solutions.
• For instance, according to recent data from the Ministry of Micro, Small, and Medium Enterprises, India has 50 million MSMEs that make it among the world's largest MSMEs. Given that the government and MSMEs are relying on scalable IT systems and solutions, it is understandable that they shift their processes and sensitive information to the cloud​.

Competitive Landscape

The Data Processing and Hosting Services Market is moderately competitive and consists of a few major players such as GoDaddy Operating Company LLC., Bluehost (Endurance International Group), HostGator.com LLC, Hostinger International, Ltd., Amazon Web Services Inc. In terms of market share, some of the players currently dominate the market. However, with the advancement in the hosting solutions across the professional services, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.

• November 2020 - GoDaddy Inc., the world's largest domain name registrar, announced the launch of GoDaddy Corporate Domains, a domain management solution for large companies. The launch builds off of GoDaddy's acquisition of Brandsight in February 2020. It provides a full suite of services including domain name strategy development and portfolio rightsizing.
• May 2020 - IBM Corporation announced an upgrade of its existing solution. IBM Product Master, formerly known as IBM InfoSphere Master Data Management Collaborative Edition, provides trusted product information management (PIM) and master data management (MDM) capabilities. IBM Product Master Collaborative Edition V12.0 brings the following enhancements to the persona user interface: Secondary spec support and Capability to hide empty collaboration areas and steps.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

GoDaddy Operating Company LLC.
Bluehost (Endurance International Group)
HostGator.com LLC
Hostinger International, Ltd.
Amazon Web Services Inc.
SiteGround Hosting Ltd.
A2Hosting
DreamHost LLC.
GreenGeeks.com

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