Writer: Jordan Sprogis
Editor: Lillian Castro
Reviewer: Cristian Lopez
Key Takeaways
The U.S. internet hosting service market is soaring so high that P&S Intelligence thought they were looking at a bird or a plane. It turned out to be neither — just another successful year.
P&S Intelligence released its 2024-2032 report, U.S. Internet Hosting Service Market Size & Share Analysis, and found the web hosting market may reach $99 billion by 2032 (8.1% CAGR).
Behind these numbers is a fragmented landscape. Research showed that since hosting providers are catering to a variety of customers, they’re also creating new market segments.
Still, a handful of hyperscalers dominate, including Cloudways, DreamHost, Bluehost, and GoDaddy. In the cloud sector, the Big Three (AWS, GCP, Azure) are still top players.
The report also emphasized how fast hosting is changing thanks to AI-powered automation, edge computing, and green data centers, creating a “digital business support system.”
With that in mind, there are more key takeaways from the report that offer insight into what hosting providers should watch for in 2025.
No matter what, providers will need to roll up their sleeves.
Hybrid Cloud Is on the Rise
Nearly 90% of companies have already embraced multicloud setups, proving that businesses are shifting to cloud-based hosting, automation, and XaaS.
Interestingly, public cloud still holds the largest share at 55%, but hybrid cloud is the fastest-growing model, with an 8.5% CAGR.
Its growth is driven by the added data security and disaster recovery options it offers — something critical for companies that must comply with compliance requirements.
Customers Prefer Pay-As-You-Go
Although the subscription model remains a classic (45% of the pricing models category), it looks like the pay-as-you-go method will soon take over with an 11% CAGR between 2025-2032.
Budgets are being tightened, so companies are cutting costs where they can, and pay-as-you-go allows them to scale resources up or down as much as they want.
Enterprises Dominate…For Now
Dedicated hosting is expected to grow the fastest (9% CAGR) through 2032, largely driven by enterprises that control 60% of the market.
Enterprises require scalable, custom-built infrastructures, which often span multiple locations and demand reliable connectivity, which dedicated hosting can provide.
Meanwhile, small and medium enterprises (SMEs) are growing faster (10.5% CAGR) because of the affordability and scalability of shared and VPS hosting.
Shared hosting, which captured most of the market (35%) in 2024, will continue to attract startups, bloggers, and small businesses this year.
Keep an Eye on the South
The U.S. Northeast region has the largest market share (45%), mainly due to the heavy concentration of tech companies, banks, and universities, which require a resilient infrastructure.
And yet, the Southern U.S. is growing the fastest with a 9.5% CAGR.
As the East and West Coasts get stacked up, companies are beginning to look south, where cities like Atlanta and Austin are already emerging as major tech hubs.
