Application Hosting Market is Expected To Reach USD 130.12 Billion By 2028

Continuous expansion of cloud computing opening new arenas of operation for the service, availability of varied complementing services for comprehensive hosting solutions are some of the factors boosting the application hosting market. 

Application Hosting Market Size – USD 57.66 Billion in 2020, Market Growth – CAGR of 10.60%, Market Trends –The rising demand for cloud hosting.

The global application hosting market is forecast to reach USD 130.12 Billion by 2028, according to a new report by Reports and Data. Application hosting services can be considered as cloud-based solutions that allow business applications to be virtualized. By implementing the cloud, enterprises can resolve issues and make an update to their web applications in a simple manner. Cloud-hosted solutions allow several users to access content from across the globe, providing a secure solution that has limited dependency on hardware that is soon to be outdated. There are various uses of this service, which either directly benefit the user or the enterprise itself. One of such mentionable application is associated with web development. The service is directly associated with developing mobile/desktop sites and mobile apps, wherein it helps in providing a secure solution along with an enhanced user experience. Thus, there is a wide arena of applications of the service in the operation of different end-users, which are contributing to its growing popularity and expansion of the market. In regards to region, Europe can be seen to occupy a dominant market position. The market position held by the region is attributed to the continuous development of the IoT devices & systems, rising investment by the government in broadband infrastructures, availability of faster mobile data connection speed, and expansion of the healthcare sector.

Key participants include IBM, AWS, Google, Rackspace, Microsoft, Liquid Web, DXC, Sungard as, Apprenda and Navisite.

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Further key findings from the report suggest

  • The application hosting market held a market share of USD 57.66 Billion in the year 2020 and forecasted to grow at a rate of 10.60% during the forecast period.
  • In regards to Hosting Type, the Managed Hosting segment generated the highest revenue of USD 25.33 Billion in 2020, with a growth rate of 11.2% during the forecast period. The effectiveness of this hosting type in enhancing the control, security & performance of applications along with allowing enterprises to emphasize on their core business activities have resulted in its high preference among end-users, which contributes to the revenue generated by this segment. Furthermore, the fact that this type of hosting is beneficial for enterprises in minimizing cost and achieve optimized uptime for the applications also contributes to its elevated preference.
  • In regards to Organization size, the Large Enterprises segment yielded a higher revenue of USD 31.78 Billion in 2020, with a CAGR of 10.3% during the forecast period. The revenue generated by the Large Enterprises segment is resultant of high emphasis on data security and associated compliances in these enterprises that have resulted in its high investment in protecting eternal hosting set-up and related services and associated high dependence on the application hosting services.
  • In regards to the Application, the Web-Based application segment can be seen to occupy a larger market share of 62.0% in 2020, with a growth rate of 10.7% during the forecast period. The market dominance of this segment is attributed to its extensive applications and preference among end-users due to its benefits like high reliability & uptime, enhanced website security, better technical support, and improved site performance.
  • In context to region, Asia Pacific is projected to witness the fastest growth rate of 12.2% during the forecast period, which is expected to occupy 24.8% of the market by 2028. The growth rate experienced by the region is attributed to its digital transformation, well-developed cloud infrastructure, and government initiatives like Digital India.

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For the purpose of this report, Reports and Data have segmented the global application hosting market based on Hosting Type, Organization Size, Application Type, End-user, and region:

Hosting Type Outlook (Revenue, USD Billion; 2020-2028)

  • Managed Hosting
  • Colocation Hosting
  • Cloud Hosting

Organization Size Type Outlook (Revenue, USD Billion; 2020-2028)

  • Large Enterprises
  • Small and Medium-Sized Enterprises

Application Type Outlook (Revenue, USD Billion; 2020-2028)

  • Web-Based
  • Mobile-Based

End-user Type Outlook (Revenue, USD Billion; 2020-2028)

  • Telecommunications and IT
  • Banking, Financial Services, and Insurance
  • Retail and Ecommerce
  • Media and Entertainment
  • Manufacturing
  • Healthcare
  • Energy and Utilities
  • Others

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Regional Outlook (Revenue, USD Billion; 2020-2028)

  • North America
  • Europe
  • Asia Pacific
  • MEA
  • Latin America


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