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Dedicated hosting is steadily increasing in revenue growth due to its high reliability. In the following article, we will review some important statistics for dedicated server hosting in 2023, comparing the latest stats, predictions and trends, and why the industry will keep growing thanks to big companies.
The demand for dedicated is increasing not because how expensive it is, but for its benefits and absolute efficiency. Small to medium businesses avoid it, but let us peak into what reasons does enterprises have to keep going with dedicated servers.
What Is Dedicated Hosting?
Dedicated server hosting or also popular under dedicated hosting, is an Internet hosting solution in which a physical server is entirely dedicated to one customer or business. The customer has total control over the machine, and could optimise it to suit specific requirements or needs, such as performance improvements or security enhancements.
Dedicated hosting is great when you need to have full control over the server, privacy and customization, as well as specific hardware requirements. The hosting provider supplies the physical server and environment, including all associated services and management for physical and technical support.
One of the main benefits of dedicated hosting is that you will have no slowdowns as you enjoy fast connectivity and quick upload times. Another benefit is having root access and the ability to entirely customise the environment to serve your requirements, including the operating system.
The greatest benefit is to have your hosting solution on management. Check out the Best Managed Dedicated Server Hosting solutions and why that benefit is worth it.
The unlimited power and other dedicated resources, such as infinite storage space, SSD drives, root access, modern security system are all beneficial features that you would get with a Dedicated Server on a really high-end level.
Dedicated Hosting Statistics
Businesses keep growing and as corporations, firms and companies begin making more web traffic, they change hosting solution types. Typically, they opt in for a dedicated hosting one due to the fact that they need to manage a high amount of traffic.
Another reason for going with a dedicated hosting solution is the budget availability as the cost associated with it is quite high. While being out of budget for small to medium organisations, Dedicated Hosting is a go-to service for bigger businesses. High-end security and uninterrupted uptime being of the highest beneficial factors that dedicated hosting offers is expected to contribute to a steady growth rate of this host segment type.
By 2026, the global hosting industry is expected to reach $152.7 Billion net worth.
Corresponding to an increase in demand, all hosting services worldwide will increase their net worth yearly, grossing higher numbers as time progresses. Dedicated services show less CAGR than more popular options such as shared and VPS hosting, but will grow massive nonetheless.
Growth in the dedicated hosting segment is readjusted to a revised 11.1% CAGR by 2026.
Large enterprises have maximum adoption of website hosting services to manage their large business operations. As it stands, such businesses hold a considerable share in the market, while usually opting for a premium and highly secured web hosting such as dedicated hosting. Most e-commerce websites also prefer dedicated hosting services due to the enhanced security features.
In 2020, the dedicated web hosting market share reached $6.53 billion.
According to research by ReportLinker on the Compound Annual Growth Rate (CAGR) of the hosting industry, it will be 13.2% until the year of 2026.
Dedicated hosting is also expected to expand rapidly with a rate of 11.1% as the demand for enhanced security and reliable, fast-loading services rises. Managed Dedicated Server Hosting is increasing in popularity as well.
Dedicated Server Operating System Statistics
The dedicated server hosting market can be classified into Linux and Windows-based on the underlying operating system. The choice of operating system depends on the software utilized by subscribers to facilitate and administer their websites.
According to the market report, released by Maximizemarketresearch.com. Projections indicate that the Linux-based dedicated server hosting sector will command a significant market share over the forecast period.
This can be attributed to the widespread adoption of Linux, an open-source platform, renowned for its cost-effectiveness and scalability in hosting dedicated servers. Conversely, Windows requires the acquisition of an operating system license, making it a distinct choice in the market.
Data Centers Consumption Statistics
Data centers consume about 2% of the electricity of the USA.
As of January 2023, around 2,751 data centres (where data servers and other equipment is located) were in the United States, with a further 484 data centres located in Germany. The United Kingdom ranked third among countries in terms of the number of data centres with 458, while China recorded 447.
Most data centers still use Hydrofluorocarbons, including R-134a and R-410A refrigerants.
Data centers should use CO2 or other, greener solutions, instead. More eco-friendly renewable energy sources for data centers are to be built in the future.
The carbon footprint of the Internet accounts for 3.7% of global greenhouse emissions
Gaining renewable energy certificates (REC) or carbon offset certificates (VER) are key into decreasing this footprint and making the services more eco-friendly.
Spending on data center systems worldwide reached $237 billion in 2021
Decreasing the number of data centers is the second step in handling servers and electricity in a smarter way. In 2023, there are 2923 data centers currently in the world. The decrease is in fact, due to the migration of tinier, in-house centers to data centers operated by bigger hosting providers during the period 2017-2023.
Dedicated Server Hosting: More Statistics and Facts
Dedicated hosting, cloud and VPS hosting are all faster services thanks to edge computing. Edge computing is where data is stored and computed where it was initially received from a device. This offers more speed and reliability, for more of a premium price tag.
The technology is named that way as it relies on edge devices to do all computing shortening the distance between physical servers. Both AMD dedicated servers and Intel dedicated servers use edge computing locations to be top tier. This helps the revenue growth and interest in Dedicated Server Hosting.
1-second delay can reduce conversion rates by as much as 7% across US businesses.
Edge computing is a decentralised service reducing latency and increasing performance of applications. The impact of any delays is costing the US economy $500 million on yearly basis due to slow loading websites and web pages.
Dedicated Server Statistics 2023: Regions, Servers, Market Value
Global Linux operating system market size worth USD 22.15 billion by 2029.
Many companies are turning to Linux-based servers which allow them to offer better and more automatic services to their users. The Linux kernel with its KVM-virtualization technology allows for full virtualisation which is hardware bound, more flexibility, and added security. CAGR of 19.8% is forecasted for Global Linux OS revenue of the market by 2029.
GoDaddy’s network consists of over 37,000 servers located around the globe.
GoDaddy is the leader of the Web Hosting category in market shares, totaling 12% or 7,774,375 websites registered across the globe. A now close second is Cloudflare with 9.1% or 5,915,708 websites.
The servers are situated in 9 GoDaddy facilities – the company owns only one, while the rest of them are leased from wholesale providers. The facility owned by GoDaddy is in Phoenix, Arizona with a size of 270,000 square feet. In comparison, Cloudflare servers are located in over 200 cities, based in more than 90 countries.
40.2% of all websites use Apache hosting servers.
Nginx is the second most preferred option at 2.67%. The OS with most users worldwide is Windows Server (11.26%), followed by UNIX at 2.23%.
Compared to Dedicated Servers, Shared web hosting holds the biggest share of the market with 37.64% in total, currently. Dedicated server hosting follows it with 27.9% market shares, tied with Collocated hosting with also 27.9%, Reseller with 13.6%, and VPS with 10.3%. Dedicated Servers will keep holding a big chunk of the market, as seen in the chart:
There are over 340,000 web hosting service providers worldwide.
The United States accounting for over 101 million hosted domains, more than any other country, while China has over 22 million registered domains. By 2027, China should be in the second spot in the World for number of domains hosted.
The volume of the Internet will grow from 33 zettabytes in 2018 to 175 zettabytes by 2025.
Ultimately, dedicated hosting will keep increasing its market growth thanks to its reliability, benefits and resources it provides, keeping a CAGR of 11.1% until 2026, and will keep relying on huge enterprises that do not have a budget for hosting services.
Conclusion on Dedicated Hosting Statistics 2023
In conclusion, the dedicated hosting market is projected to experience growth and innovation in 2023. Both Linux and Windows-based options are expected to thrive, catering to different customer needs. Linux remains a popular and cost-effective choice, while Windows addresses specific requirements with its licensed operating system.
Hosting providers must adapt to changing trends, prioritize security, and deliver high performance to meet customer demands. Overall, dedicated hosting offers reliable solutions for businesses to establish a strong online presence and drive success in the digital landscape of 2023.
References List with web resources used for our research:
1. Reportlinker.com
2. Finance.yahoo.com
3. Globenewswire.com
4. Findstack.com
5. Truelist.co
6. Ssldragon.com
7. Blog.ssdnodes.com
8. Scalahosting.com
9. Techjury.net
10. Financesonline.com
11. Hostingadvice.com
12. Gminsights.com
13. Maximizemarketresearch.com