Market Insights Technology IT Services IT Outsourcing

Web Hosting - China

China

The Web Hosting market in China is expected to experience significant growth in the coming years.
According to projections, the revenue in this market is estimated to reach €7.35bn by 2024.
This growth is further expected to continue at a compound annual growth rate (CAGR) of 18.36% from 2024 to 2029, resulting in a market volume of €17.07bn by 2029.
Furthermore, it is noteworthy that the average Spend per Employee in the Web Hosting market is projected to reach €9.34 in 2024.
This indicates a positive trend in terms of increased investment and productivity within the industry.
In a global comparison, it is anticipated that United States will generate the highest revenue in the Web Hosting market, with an estimated value of €53,500.00m in 2024.
This demonstrates the dominance of the US market in the web hosting industry.
Overall, these numbers illustrate the promising future of the Web Hosting market in China, with significant revenue growth and a positive outlook for the coming years.
China's rapidly growing e-commerce sector has fueled a surge in demand for web hosting services, making it a highly lucrative market for IT service providers.

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

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Analyst Opinion

Web Hosting market in China has experienced significant growth in recent years. With over 900 million internet users, China is the world's largest online market. The country's web hosting market is driven by the increasing number of businesses, rising demand for cloud computing services, and the growing number of internet users.

Customer preferences: Chinese customers prefer local web hosting providers due to data security and compliance issues. They are more likely to trust local providers with their data as they are subject to Chinese regulations. Additionally, customers prefer web hosting providers that offer reliable and fast services at an affordable price.

Trends in the market: The web hosting market in China is witnessing a shift towards cloud-based services. Businesses are increasingly adopting cloud computing services due to their flexibility, scalability, and cost-effectiveness. The demand for Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) is growing as businesses look to reduce their IT infrastructure costs.Another trend in the market is the increasing demand for managed hosting services. Managed hosting providers offer a range of services, including server management, security, backup, and monitoring. This trend is driven by the growing complexity of IT infrastructure and the need for businesses to focus on their core competencies.

Local special circumstances: The Chinese government has strict regulations on web hosting providers. All web hosting providers must be licensed by the government, and they are required to store all data within China. This has led to the rise of local web hosting providers that are compliant with Chinese regulations.Additionally, the Great Firewall of China, a system of internet censorship, has led to the development of a separate Chinese internet ecosystem. This has resulted in the rise of domestic web hosting providers that are tailored to the Chinese market.

Underlying macroeconomic factors: China's growing economy and increasing number of internet users are driving the growth of the web hosting market. The country's GDP has been growing at an average rate of 6% over the past decade, and this growth is expected to continue in the coming years. Additionally, the number of internet users in China has been growing at an average rate of 10% per year, reaching over 900 million in 2021.In conclusion, the web hosting market in China is driven by the increasing number of businesses, rising demand for cloud computing services, and the growing number of internet users. The market is witnessing a shift towards cloud-based services and managed hosting services. Local web hosting providers are preferred due to data security and compliance issues, and the Chinese government has strict regulations on web hosting providers. The country's growing economy and increasing number of internet users are underlying macroeconomic factors driving the growth of the 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.