Web Hosting is a service that allows individuals and organizations to post a web page or website onto the internet. A web host provides the services and technologies which are needed for the webpage or website to be viewed on the internet. All these websites are stored in a special computer called servers. The hosting companies offer various type of services such as website builders, VPS, shared, collocated, dedicated, and cloud hosting which further help to host user’s websites.
The Southeast Asia web hosting market is expected to reach USD 4.67 billion by 2025 on account to rapid penetration of internet which has brought a tremendous increase in digitalization rate in this region. With a, growing affluence, younger population and people that are increasingly tech-savvy, the internet population in Southeast Asia is expected to spur from 260.0 million to 480.0 million between 2015 and 2020 Due to digitalization growth, many new companies have started setting up in Southeast Asian countries, Moreover, the region has expanded opportunities for various technology companies. Five related technologies such as big data, internet, internet of things (IoT), cloud technology and the automation knowledge work, have modernized almost all sectors across Southeast Asia and drive major productivity improvements.
Features such as storage, database support, shell access, language support, site backup, free AdWords, free domain have ensured to improve the performance, scalability, and flexibility of websites performance. Such features are expected to fuel the market over the forecast period. Services such as shared hosting, dedicated hosting, VPS hosting, cloud hosting are gaining momentum pertaining to raising awareness for data security and need for backup. Furthermore, supporting government initiatives and regulations regarding implementation of web hosting services are expected to drive the market over the forecast period. For instance, the Philippines government offer web hosting services named as the Integrated Government Philippines (iGovPhil) Program. This service offers web hosting services to all government entities, which includes financial institutions, government agencies, government-owned and controlled corporations, and interagency collaborations, projects, and programs. This has enabled government website housed under one roof.
Further, investment in Southeast Asian countries has increased the number of large enterprises, which further lead to the demand for dedicated, cloud and VPS server hosting. Large enterprises require huge setup for web hosting, as they cater to a huge customer base. Hence they require dedicated servers, with an appropriate backup. These factors are expected to result in an increasing demand for web hosting in the Southeast Asia region. Web hosting companies are implementing data security solutions to minimize security breach.
Key Segments of the Southeast Asia Web Hosting Services Market
Product Overview, 2015-2025 (USD Billion)
- Web-Site Builders
- Shared Hosting
- Dedicated Hosting
- Collocation Hosting
- VPS Hosting
- Cloud Hosting
Application Overview, 2015-2025 (USD Billion)
- IT & Telecom
- Aerospace & Defence
- Government & Utilities
- Consumer Electronics
Organization Size Overview, 2015-2025 (USD Billion)
- Large enterprises
Countries Overview, 2015-2025 (USD Billion)
- Rest of Southeast Asia
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the Southeast Asia web hosting industry.
- Increasing digitalization in the APAC region is driving the need for Southeast Asia web hosting services market.
- To keep a watch on the emerging trends of Southeast Asia web hosting services, one should read this project.
What does the report include?
- The study on the Southeast Asia web hosting services market includes qualitative factors such as drivers, restraints, and opportunities.
- The study covers the qualitative and quantitative analysis of the market segment on the basis of organization size, product, application and region. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
- The study includes the profiles of key players in the market with a significant global and/or regional presence.
Who should buy this report?
This study is suitable for industry participants and stakeholders in the Southeast Asia web hosting services market. The report will benefit:
- Executives of Southeast Asia web hosting service providers
- Various end-user industry such as healthcare, industrial and others
- Managers within financial institutions looking to publish recent and forecasted statistics pertaining to web hosting services
- Venture capitalist looking into investing capital
- Government organizations, regulatory authorities, policymakers and financial organizations looking for innovative solutions in the web services sector
- Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies
Web hosting is an internet hosting that enables businesses and individuals to make their online presence in the form of a website, accessible to the public via the internet. A website requires two things to be hosted or to become accessible to everybody i.e. Web space and bandwidth. Website files, HTML codes, images and everything else is stored in web space and in the web hosting industry, bandwidth denotes the amount of data, which can be transferred to and from a server or a website. It is the allocated internet bandwidth, which makes a website manageable and accessible to everybody online. The higher the bandwidth leads to better network services, connection, and system. Bandwidth requirements are directly proportional to the numeral of visitors, visiting the site. More hits on websites mean more bandwidth is required. Southeast Asia web hosting market was valued at USD 1.55 billion in 2017 and is projected to grow at a CAGR of 14.6% during the forecast period.
Dedicated web hosting typically offers an exclusive server along with builds and maintains the server, which further eliminates a business upfront cost. Dedicated web hosting guarantees maximum uptime for the user’s website by providing more stability and reliability. These factors further enhanced performance and security than any other hosting services like shared, VPS. This server has its own unique IP address. This service is mostly preferable by large running e-commerce sites such as Amazon, Alibaba that requires SSL for credit card processing. Dedicated web hosting service market is anticipated to grow at CAGR 14.7% during the forecast year.
Large Enterprise has invested heavily in web hosting services as these services have assisted them to manage their large business in the simplest and efficient way. Large enterprises require to manage huge traffic and web space to manage an extensive database. Due to which they have surged in demand. Thus large enterprise are anticipated to grow at CAGR of 14.1% during the forecast period.
Thailand web hosting market has seen a steady growth rate and is anticipated to grow at a CAGR of 14.4% during the forecast period. Increase in a number of tourist in Thailand has positively impacted the demand for websites in the travel and tourism sector. Owing to which, web hosting service market has surged in demand as they have successfully streamlined travel and tourism, BFSI in Thailand web hosting service market was thus valued at USD 111.7 million in 2017.
1.3.1 Segmental Findings
• IT & Telecom segment is valued USD 273.7 million in the year 2017 and projected to reach USD 733.6 million in the year 2025, with a growing CAGR of 12.9%. IT & Telecom segment has played a vital role in the development of web hosting service market in Southeast Asia. For instance, ASEAN invested heavily in mobile infrastructure during 2014, which helped the ASEAN community to rank third globally for mobile connectivity. Moreover, the growth of this sector has been extraordinary. According to the ‘We Are Social’ Global Digital Report 2018, the average mobile connectivity in Southeast Asia was 141% as of January 2018, enabling 81% mobile broadband penetration. These figures are higher than global averages (connectivity 112 % mobile broadband 63 %). Moreover, ASEAN mobile subscriptions grew by 2.2 % in 2017, reaching 4 billion. The inclination for multi-SIM ownership is driving further organic growth in IT & Telecom. All these factors have directed this region towards digitalization, which promoted website expansion, and a further rise in the demand for web hosting servers.
• Large Organization size segment is expected to rise South East Asia Web Hosting Market by USD 2.23 billion in the year 2025 at growing CAGR of 14.1%. Growing urbanization has increased trade and investment due to integration and emerging new business models like e-commerce, travel, and tourism. These factors have shifted the whole traditional method of doing business in a large enterprise into the online platform. Moreover, the online platform has raised the demand for website and servers for expanding customer base and retaining old customers. Therefore to expand the growth of large enterprises, the demand for web hosting services have increased notably for dedicated web services, VPS and cloud hosting services.
• Cloud hosting segment is projected to reach USD 1.08 billion in the year 2025 and expected to grow at CAGR of 19.2%. Cloud hosting provides ease of scalability by expanding up the possibility for infrastructure to encompass multiple servers to provide extra capacity. Thereby it reduces and avoids the unexpected traffic surges, hence increasing availability for their customers. Moreover, cloud hosting makes disaster recovery much easier, particularly if the user deploying a multi-server hosting architecture.
1.4 Countries analysis
Digitalization has offered tremendous opportunities for Southeast Asian Countries, such as the growth of reasonable and economic products and services, opening up possibilities to develop social welfare, and transform numerous sectors (IT & Telecom, Retail, and Healthcare) in the economy. Digital technologies related to automation, connectivity and digital customer interfaces, Big Data, foster innovation and encourage the creation of new businesses. In an individual level, digitalization offers the establishment of large corporates in the Southeast Asia region. The development of corporate and MNCs have supported the growth of both rural and urban households, further reducing income inequality. At the business level, digitization helps in scaling operation, improve innovation and its efficiency, it also supports the value creation and offer new opportunities for revenue diversification. Moreover, digitalization has switched the traditional way of doing business into online businesses. This factor has increased the demand for web hosting services in Southeast Asian countries.
Furthermore, the government of this region has embraced the importance of digitalization, and hence they have started taking initiatives for implementing it. For instance, Thai government has drawn a 20 years strategic digital ambition plan. Their digital vision includes "a transformed country that makes the most of the use of digital technologies in socioeconomic activities", in order to "advance, human capital, innovation, data, infrastructure and other digital resources that will eventually drive the country in the direction of wealth, sustainability and stability ". There is already an improvement in executing the digital vision. This includes the development of digital master plans, implementation of smart city pilots, and ICT infrastructure improvements.
Thailand has witnessed a huge growth in tourism in recent years which has led to the rise of economic and technology development in the country. Tourism has increased the number of travel agency in the country. These companies attract tourist through their website. Hence, this website must be appealing and flexible at the time of high traffic in order to expand the customer base. Further, to make the website attractive, and traffic free these companies prefer to take assistance from web hosting companies. This factor has increased the market size of web hosting services in Thailand.