Private Cloud Server Market Analysis Report By Hosting Type, By Organization Type, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global private cloud server market size was accounted for USD 30.24 billion, in 2018. It is projected to grow at a CAGR of 29.6% over the forecasted period, 2019 to 2025. Growing issues regarding data security and recovery along with increasing mobile workforce deployment are anticipated to boost the market growth. Moreover, the rising trend of real-time data access is also supporting market growth. Private cloud provides benefits such as the ability to perform complex computational operations, scalability and agility are gaining traction among consumers. These server systems offer a single-tenant platform that helps businesses to utilize the public cloud server system in a better way. It includes customized resource management for networking and storage. 

Increasing demand for dynamic computing is boosting the need for private-cloud-based server systems. Moreover, changing demand with computing resources and workforce expansion is influencing organizations to use a private cloud system. Furthermore, technological advancements in threat monitoring, firewalls, and storage capacity are projected to create huge opportunities for the market.

Big data solutions need real-time data access for managing business unit information in the organization. Big data solutions hosted with a private cloud server system provide enhanced resource usage, high scalability, and low costs. Thus, the public and private clouds systems have greater demand from consumers. In addition, these benefits are anticipated to bolster the growth of the industry. 

However, data security and safety are expected to remain the main concern in organizations. Thus, enterprises are taking care of wireless or wired solutions before deploying hosted platforms. Moreover, private cloud servers offer better security over public clouds. Hence, big IT companies are adopting these systems owing to their high benefits. 

Hosting Type Insights

Based on the type of hosting, the private cloud server market is divided into provider hosting, and user hosting. In 2018, the user hosting type segment held the highest share of over 51.0% in the overall market. This solution provides a hosted environment for the organization. It requires an in-house center for data management. These solutions provide better protection to an organization's infrastructure. 

In Provider hosting, services are provided to users from data centers. This solution allows users to expand their storage ability at low costs. In addition, provider hosting systems offer a user-friendly dashboard and high scalability. These key factors are expected to contribute to segmental growth. 

Organization Type Insights

The large enterprise segment has led the market with over 82.0%, in 2018. It is projected to propel at the fastest CAGR over the forecasted period. Big data and large information are exchanged through large organizations; thus, data security becomes very important. The big companies require reliable and secured services. Due to these factors, organizations prefer private cloud-based server systems.

Private cloud systems provide tailor-made solutions with low costs. Moreover, the companies are encouraging medium and small enterprises to utilize these systems. In addition, companies are offering affordable services and scalable solutions suitable for SMEs. These server solutions allow business with no need for any IT support as it offers 24x7 assistance. 

Regional Insights

In 2018, the North American region led the private cloud server market with the highest market share of over 48.0% in the overall market. It has been observed that the companies in the U.S. are focusing on enhancing their IT infrastructure by opting for hosted services. For example, Walmart Inc. has collaborated with Microsoft to boost its retail solutions through digital transformation.

The Asia Pacific is projected to propel at the fastest CAGR of more than 36.0% during the forecasted period. Governments across China and India are adopting hosted server technologies, which is projected to foster the demand for these solutions. In addition, the increasing utility of these systems in Japan and South Korea along with technological innovations is encouraging businesses to deploy hosted solutions. For example, in 2017, in Malaysia, MSC Council has launched the Cloud First strategy. Similarly, GovCloud initiatives are introduced in the Philippines. These key initiatives are expected to proliferate the demand for the industry.

Impact of COVID-19

Amid the COVID-19 crisis various industries including IT, Healthcare business is working remotely to maintain social distancing. The coronavirus crisis is projected to accelerate the growth of cloud infrastructure across all industries. Thus, small & medium scale businesses are now moving towards private cloud servers. During the lockdown, several companies have already shifted their estimated hardware budget for adopting cloud server systems.

Furthermore, technology advancement and utility of connectivity tools such as Email, Drive, Zoom, Slack, and others are expected to offer huge growth opportunities for this market.

Private Cloud Server Market Share Insights

The market is highly competitive in nature wherein the leading five players constitute the majority of the market share. Leading players in the market include Dell Inc.; VMware; Cisco Systems Inc.; Hewlett Packard Enterprise and Amazon.com.

The companies in the market engage in strategic acquisitions, new product development, and collaborations to remain competent in the market. For example, in 2019, Dell, Inc., has launched the Dell technologies cloud for infrastructure solutions. Similarly, in 2019, VMware Inc., has partnered with Google cloud to extend its product portfolio.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global private cloud server market report on the basis of hosting type, organization type, and region:

• Hosting Type Outlook (Revenue, USD Billion, 2015 - 2025)
    • User Hosting
    • Provider Hosting

• Organization Type Outlook (Revenue, USD Billion, 2015 - 2025)
    • SME
    • Large Enterprise

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa