Procurement Market Intelligence Report
Web Hosting Services
Sourcing Guide & Market Intelligence
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Web Hosting Services Global Overview
Definition
Summary
This report is intended to assist buyers of web hosting services, which use remote servers and software that enable websites to be shared online. Servers are stored and typically owned by suppliers, which include web service providers. Buyers are mainly advertising agencies, financial firms and healthcare companies, among others. Dedicated web hosting allows for application and video use as well as higher traffic volumes. Shared web hosting has certain limitations regarding bandwidth usage but offers cost savings for businesses.
This Report Includes:
- Dedicated Hosting Services
- Shared Hosting Services
Not in this Report:
- Domain Name Sales
- Website Design
- Other Website & Internet Services
Global Web Hosting Services Procurement Trends
Discover the top international trends affecting procurement in the global Web Hosting Services market.
Positive Trends
The DOJ proposes Google breakup in latest tech antitrust action
- In August, Google was found guilty of operating as a monopoly and engaging in anti-competitive practices through the operation of its search engine business.
- In response to this ruling the Department of Justice (DOJ) has stated it will seek a breakup of Google’s business segments, among other similarly harsh penalties. While the actual penalty Google receives must be approved by the judge, the DOJ’s proposed penalties signal a zero-tolerance policy toward tech monopolies.
- During the last few years, the Federal government has significantly increased its enforcement actions against major technology companies in an effort to contest the high level of market share concentration in this sector.
- These actions include high-profile anti-trust lawsuits against Amazon, Apple, and Meta, in addition to the case against Google. Consequently, the results of these lawsuits could significantly affect the structure of a wide range of tech markets.
Global Web Hosting Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Oceania & Southeast Asia | 42,285 |
| #2 India | 14,670 |
| #3 Europe | 13,135 |
Explore supplier concentration across the globe
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2
Geography Drilldown - US
Average Cost of Web Hosting Services
United States
2026 Market Pricing$3.00 to $XXX.XX
per monthAverage Price
Prices in the Web Hosting Services market range from $3.00 to $XXX.XX, depending on Server Management, Bandwidth, Random-Access Memory (RAM) and Storage Capacity. For example, lower prices are associated with Shared hosting, whereas higher prices are associated with Managed hosting and Virtual private server hosting.
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Web Hosting Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Web Hosting Services market, prices in the US have grown 1.6% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Web Hosting Services
Total cost of ownership is Low in the Web Hosting Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Downtime may raise the total cost of ownership unexpectedly.
Billed During
Maintenance
Membership fees
Unforeseen
Downtime
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.2 in the United States. Buyer power is most positively impacted by Recent Price Trend. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- IT Consultants
- Software Publishers
- Computer & Server Manufacturers
- Internet Service Providers
2nd
Tier Suppliers
- Communication Equipment Manufacturers
- Intellectual Property Licensing Firms
- Semiconductor & Circuit Manufacturers
- Wire & Cable Manufacturers
- Telecom Network Equipment Manufacturers
Biggest Web Hosting Services Suppliers in the US by Revenue
The largest Web Hosting Services vendors by revenue in the US are Endurance International Group Holdings, Inc., Microsoft Corporation and Aptum Technologies. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Alphabet Inc. | Global | MOUNTAIN VIEW | >10,000 | 10-15 | ||||
| Godaddy Inc. | Global | TEMPE | 1,001-10,000 | 15-20 | ||||
| Amazon.Com, Inc. | Global | Seattle | >10,000 | 5-10 | ||||
| Endurance International Group Holdings, Inc. | Global | BURLINGTON, MA | 1,001-10,000 | 5-10 | ||||
| Microsoft Corporation | Global | Redmond | >10,000 | < 5 | ||||
| United Internet AG | Global | Montabaur, DE | 1,001-10,000 | < 5 | ||||
| Rackspace Technology Inc. | Global | SAN ANTONIO, US | 1,001-10,000 | < 5 | ||||
| Aptum Technologies | Global | Toronto, CA | 501-1,000 | < 5 | ||||
| InMotion Hosting Inc. | National | El Segundo, CA | 251-500 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Web Hosting Services market is 6.1% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Market share concentration is moderate, having a neutral effect on buyers. Buyers can expect some elevated negotiation leverage when dealing with smaller vendors that may operate more competitively in order to capture greater market share, but will experience diminished buyer power against the tech giants in the market.
The moderate pace of regulatory change increases the cost of compliance for hosting companies, forcing them to pass these costs onto buyers.
Supply chain risk in the web hosting services market is moderate. The main source of supply chain risk in this market comes from the computer and server manufacturers that supply the equipment used to host websites.
Financial risk for the average vendor of web hosting services is moderate as a result of low profit margins. This level of vendor financial risk indicates a higher probability that a chosen supplier will exit the market during the contract term.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises
Supplier Information
Alphabet Inc.
Alphabet Inc. is an Internet technology company offering various products, services, and solutions spanning computing, search, cloud, and online advertising technologies. It organizes its business into three segments: the Google Services Segment, which includes ads, Android, Chrome, hardware (including Fitbit,... Subscribe to learn more
Godaddy Inc.
GoDaddy Inc. is a domain name registration provider to small businesses, organizations, web design professionals, domain investors, and individuals. It enables its customers to establish a digital presence, connect with their customers, and manage their ventures. It organizes its business into two segments:... Subscribe to learn more
Amazon.Com, Inc.
Amazon.com, Inc. is a global e-commerce company that offers a range of consumer products and services through online and physical stores. It resells merchandise and content and offers products from third-party sellers. It also manufactures and sells electronic devices and develops and distributes media content.... Subscribe to learn more
Endurance International Group Holdings, Inc.
Endurance International Group Holdings, Inc. is a public company operating globally in the information sector. The company's offerings include web hosting services. Founded in 1997, the company is currently headquartered in BURLINGTON, Massachusetts, United States of America with an estimated 3762 employees.... Subscribe to learn more
Aptum Technologies
Aptum Technologies is a private company operating globally in the information sector. The company's offerings include web hosting services. Founded in 1999, the company is currently headquartered in Toronto, Ontario, Canada with an estimated 175 employees. Subscribe to learn more
InMotion Hosting Inc.
InMotion Hosting Inc. is a private company operating nationally in the information sector. The company's offerings include web hosting services. Founded in 2001, the company is currently headquartered in El Segundo, California, United States of America with an estimated 375 employees. Subscribe to learn more
Liquid Web Inc.
Liquid Web Inc. is a private company operating globally in the information sector. The company's offerings include web hosting services. Founded in 1997, the company is currently headquartered in Lansing, Michigan, United States of America with an estimated 750 employees. Subscribe to learn more
Microsoft Corporation
Microsoft Corporation is a technology company offering digital technology and artificial intelligence (AI) to businesses and individuals worldwide. It develops cloud-based solutions that deliver customers with software, services, platforms, and content and provides solution support and consulting services.... Subscribe to learn more
New Dream Network LLC
New Dream Network LLC is a private company operating globally in the information sector. The company's offerings include web hosting services. Founded in 1996, the company is currently headquartered in Brea, California, United States of America with an estimated 175 employees. Subscribe to learn more
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Procurement Management KPIs for the Web Hosting Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Current Ratio (Assets/Liabilities). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Availability and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
|
Total Resolution Time Number of Resolved Tickets |
The average resolution time represents the average amount of time it takes to resolve a support ticket. The average resolution time can be used to determine a company’s support responsiveness. |
| Current Ratio (Assets/Liabilities) |
|
Current Assets Current Liabilities |
The current ratio represents a company’s liquidity. The current ratio can be used to determine a company’s ability to pay its short-term obligations. The current ratio can be used to determine a company’s ability to utilize its current assets to satisfy its current liabilities. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Customer Service
How large is your customer support staff?
Do you offer around-the-clock technical support? What is the technical expertise of your support staff?
Supply Chain Risk
Will measures taken to combat the spread of the coronavirus affect the ability of your team to provide customer service or software updates?
Are you offering any free resources for businesses like mine during the coronavirus pandemic?
Technology
Do you manage your own servers or do you lease them from another supplier?
Where are your web servers located?
The ultimate prep for procurement negotations
View all 33 negotiation questions for this category when you subscribe.
Web Hosting Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide the details of their organization, including their office locations and the industries they are associated with.
Buyers should state their reasons for purchasing web hosting services and state the benefits they expect to receive from the service.
Statement Of Need
Buyers should state the features of web hosting services that are desired, such as DDOS (Distributed Denial of Service) protection and full root access.
Buyers should specify their required technical specifications, such as speed, storage, RAM and bandwidth.
Project Budget
Buyers should specify their budget for the service.
Buyers can reference the Price Environment section of this report for assistance in creating a budget.
The RFP process made easy
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
