Market Insights Technology IT Services IT Outsourcing

Web Hosting - CIS

The Web Hosting market in the CIS region is expected to experience significant growth in the coming years.
It is projected that by 2024, the revenue in this market will reach US$1.40bn.
Furthermore, a steady annual growth rate of 16.39% (CAGR 2024-2029) is anticipated, resulting in a market volume of US$2.99bn by 2029.
In terms of the average Spend per Employee in the Web Hosting market, it is estimated to be US$12.08 in 2024.
This indicates the level of investment and resources allocated to each employee in order to sustain and expand the market.
In comparison to other countries, United States is expected to generate the highest revenue in the Web Hosting market.
It is projected that by 2024, the revenue United States will reach a staggering US$58,300.00m.
This highlights the dominance of the United States in this market segment.
These numbers demonstrate the potential and significance of the Web Hosting market in the CIS region.
With a projected increase in revenue and market volume, it is clear that this sector is poised for substantial growth in the coming years.
In the CIS region, the web hosting market has experienced significant growth due to the increasing number of local businesses digitizing their operations.

Key regions: Spain, Brazil, Japan, India, China

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Analyst Opinion

The Web Hosting market in CIS has been experiencing steady growth in recent years, driven by a number of factors unique to the region.

Customer preferences: Customers in CIS tend to prioritize affordability and reliability when choosing a web hosting provider. As such, providers that offer low-cost plans with reliable uptime and customer support tend to perform well in the market.

Trends in the market: One trend that has emerged in the CIS Web Hosting market is the increasing popularity of cloud hosting. As more businesses in the region move their operations online, cloud hosting provides a scalable and cost-effective solution for hosting their websites and applications.Another trend in the market is the growing demand for localized hosting solutions. With concerns over data privacy and security on the rise, many businesses in CIS are opting for hosting providers that offer servers located within the region.

Local special circumstances: One unique factor in the CIS Web Hosting market is the prevalence of state-owned or state-affiliated hosting providers. These providers often have a strong presence in the market, which can make it challenging for international providers to gain a foothold.

Underlying macroeconomic factors: The CIS region has seen significant economic growth in recent years, which has contributed to the growth of the Web Hosting market. Additionally, the region is home to a growing number of tech startups and small businesses, which has created a strong demand for web hosting services. However, political instability and economic sanctions in some countries within the region can also pose challenges for businesses operating in the Web Hosting market.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.