Internet Hosting Services in the US Industry Market Research Report from IBISWorld Has Been Updated


New York, NY (PRWEB) April 10, 2015

The Internet Hosting Services industry has benefited from surging business demand for an online presence over the past five years, as an increasing amount of commerce is being conducted online. The industry specializes in providing leased server space to individuals and organizations to make their websites accessible over the internet but also provides a number of additional services like selling domain names, email hosting and search engine optimization. According to IBISWorld Industry Analyst Stephen Morea, Increasing internet penetration and the proliferation of mobile devices has changed the way that consumers discover and transact with businesses, leading to greater demand for industry services from small and medium-sized businesses. As a result, the industry has fared well over the period, with revenue estimated to grow substantially.

The Internet Hosting Services industry is highly fragmented, with the top four companies controlling a very small percent of the overall market. 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, in 2012, Endurance International Group purchased HostGator, one of the biggest web-hosting companies in the United States at the time, for $ 299.8 million. Likewise, in 2011, Web.com Group purchased Net Sol Parent LLC, a provider of domain names, web hosting and online marketing, as well as Register.com LP, a provider of domain names and web services.

The industry is fragmented, with the top four industry operators capturing a small percentage of the industry’s total revenue in 2015. There are a number of large, publicly-listed companies, including Endurance International Group, United Internet, Web.com Group, Inc., that have cornered certain segments of the market. While market share concentration is low, it is gradually increasing as the larger players snap-up smaller operators. For example, in 2012, Endurance International Group purchased HostGator, which was one of the biggest web hosting companies in the United States, for $ 299.8 million. Likewise, Web.com Group purchased Net Sol Parent LLC, owner of Network Solutions, a provider of domain names, web hosting and online marketing in 2011, as well as Register.com LP, another provider of domain names and web services. There is also rising competition from conglomerates like Amazon, Google and Microsoft, all of which provide web-hosting and other cloud-based services, as well as domain name registration services.

Industry revenue is expected to grow impressively over the five years to 2020. As the technology required to process and host websites becomes increasingly complex, the level of expertise needed to effectively manage large data centers will increase, says Morea. Small and medium-sized businesses will require more complex websites that serve both desktop, mobile and tablet interfaces, meaning they are likely to require value-added website design and management services from industry operators in addition to web hosting.

For more information, visit IBISWorlds Internet Hosting Services in the US industry report page.

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IBISWorld industry Report Key Topics

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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About IBISWorld Inc.

Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.







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