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Web hosting has been a necessary service even before the pandemic, as it keeps the internet alive. Every website––big or small––that is up and running today has web hosting to thank for its existence.
As businesses and organizations transition to remote setups, web hosting has become more of a necessity. People are doing more of research and shopping online, pushing firms to maintain a solid online presence. Around 71 percent of small businesses already have and manage a company website for advertising their products and interacting with customers.
2021 Trends Are Here to Stay
Last year's analysis of web hosting trends still rings true. All the items on the list remain relevant in the industry today, such as attempts at going green, the popularity of cloud hosting, HTTPS as the norm, and lower prices.
Analysts predict that the web hosting industry will have an annual growth rate of 14.53 percent, with a market value reaching US$140.30 billion by 2026. Let's look at the trends driving the industry this year.
DIY Website Builders
Building and maintaining a professional website from scratch could be difficult, time-consuming, and expensive, especially for smaller enterprises. Due to this, do-it-yourself (DIY) website builders have experienced a rise in popularity, especially in recent years.
DIY website builders are straightforward and intuitive. Users can drag and drop different elements into their web pages, creating functional websites without coding expertise.
These platforms often have a freemium setup, meaning users can create their websites for free but have to pay for exclusive or unique domain names. Finding an appropriate web hosting service would be the next step, though most website builders also offer hosting services.
In 2019, the website builder market had a value of US$1.46 billion, which is expected to reach US$2.62 billion by 2027.
Targeting Markets
Running a web hosting service casts a pretty wide net. There are hundreds of website niches, and it could be challenging to compete with larger and more established web hosting companies.
As a solution, web hosting companies have created micro-niches within the industry. Instead of marketing their service to the internet at large, they market to specific businesses or platforms, such as tech-heavy websites or WordPress hosting.
Managed Web Hosting
Today's web hosting market isn't exclusive to software engineers and web designers. Not every web hosting client has the technical expertise to manage their website or hire a team to do it.
Managed web hosting is an additional service that helps less knowledgeable clients effectively run their websites. Aside from hosting services, some companies now also offer website management. This service is an attractive option for companies or organizations that prefer to minimize their IT workload.
Managed web hosting and other similar services are experiencing significant growth. In 2021, it had a market value of US$242.9 billion, which analysts expect to increase to US$354.8 billion by 2026.
Security Protocols
The number of data breaches has experienced an alarming increase in the past years. In 2021, there were 1,862 data compromises in their record, which was 68 percent higher than the figures in 2020.
As the pandemic has encouraged more and more people online, consumers are becoming more concerned about information security. Around 80 percent of Americans value their data privacy over keeping social media free.
With this increase in awareness and concern toward data security, hosting services would benefit in prioritizing their clients' data security and promoting themselves as a secure service.
Facing the Future
There is no question that the web hosting industry faces years of growth. Still, companies need to optimize their arsenal and consider consumer needs to stay at the forefront of the business. The popularity of additional services, such as DIY website builders and managed hosting, also opens new opportunities for hosting companies to fill and succeed in.