United States
US 54118835 | Procurement

Web Hosting Services in the US Procurement Price, Data and Insights

IW
IBISWorld Research Department
Analyst New York
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.

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What’s included in this market coverage

IBISWorld's research coverage on the Web Hosting Services procurement and pricing environment in the United States includes market dynamics, buyer power scores, supply chain vendors with pricing trends and forecasts.

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About this Market

What’s this procurement report about?

This procurement coverage of the Web Hosting Services market in the United States includes Shared web hosting, Virtual private server (VPS) hosting, Dedicated web hosting, Managed WordPress hosting, Cloud web hosting, Reseller hosting, WordPress VPS hosting, Colocated dedicated server, Storage-optimized hosting and High-availability cluster hosting. Standard coding in this coverage includes ISIC-6311-Data processing, hosting and related activities, NACE-63.11-Data Processing, Hosting And Related Activities, NAICS-518210-Computing infrastructure providers, data processing, web hosting, and related services and UNSPSC-81112105-World wide web WWW site operation host services.

What common market terminology is included?

Common market terminology included in the Web Hosting Services procurement coverage includes Virtual Private Server (Hosting on a virtual private server (VPS) falls in between dedicated hosting and shared hosting. With VPS hosting, a website will share the same physical server as other websites, but a portion of the server's resources (e.g. storage, bandwidth and processing power) will be set aside just for that individual website.), Content Delivery Network (A network of servers distributed around the globe, which speeds up a website by storing content closer to users.), Managed Hosting (Server hosting in which the web host supplier helps maintain the web server and performs software upgrades. Managed hosting is typically more expensive than unmanaged hosting.) and Unmanaged Hosting (Server hosting in which the buyer is responsible for maintenance, including installing upgrades, patches and ensuring server uptime.).

What companies are included as top suppliers?

The top companies covered in the Web Hosting Services procurement report as suppliers are Rackspace Technology Inc., Liquid Web Inc., Aptum Technologies, United Internet Ag and Microsoft Corporation.

Opportunity Assessment

What’s included in the Opportunity Assessment chapter?

The Opportunity Assessment chapter provides a comprehensive market analysis of the Web Hosting Services market in the United States category, including buyer power scoring, market pricing trends, vendor landscape, cost structure, and strategic negotiation levers.

The market pricing trends include the Market Price (2026) per month, a five year price forecast and a supply chain risk score. Vendor coverage includes a market share and cost structure breakdown.

Analysis includes a comprehensive SWOT analysis of and recent developments impacting the Web Hosting Services market environment.

Buyer Power Score

What’s included in the Buyer Power Score chapter?

The Buyer Power Score chapter assesses key components impacting Web Hosting Services procurement including the recent price trend, forecast price trend, availability of substitutes, switching costs, product specialization, average vendor risk, market share concentration, supply chain risk, price driver volatility and recent price volatility.

These components generate a Buyer Power Score that ranges from -5 (strongly favoring sellers) to +5 (strongly favoring buyers) plus a recommended strategy for procurement specialists.

Price Environment

What’s included in the Price Environment chapter?

The Price Environment chapter covers detailed pricing analysis and datasets on Web Hosting Services market environment. This includes insights into market pricing Market Price (2026), price forecasts, volatility, specialization, substitutes and switching costs.

Datasets in the Price Environment chapter include vendor cost structure, breakdowns of wage rates by geography and specialty, key external economic and labor drivers impacting the market and market pricing models.

Supply Chain & Vendors

What’s included in the Supply Chain & Vendors chapter?

The Supply Chain & Vendors chapter covers the concentration, risk and diversity of the Web Hosting Services market. This includes datasets on the market’s top suppliers, detailed analysis on the key sourcing risks and supply chain dynamics, with environmental, social and governance (ESG) considerations and scores.

Business Requirements

What’s included in the Business Requirements chapter?

The Business Requirements chapter covers vendor relationships, qualifications, service level agreements and key performance indicators. These inputs provide insight into the planning process through the buying lead time, vendor relationship and vendor qualifications. The sourcing process include key RFP elements like an organizational overview, project budget, selection criteria, project schedule, proposal format, inventory control, cost containment, regulation, quality control, distribution and key contract clauses.

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Frequently Asked Questions

What is the current market price for Web Hosting Services?

The 2026 benchmark market price for Web Hosting Services is $241 per month. Prices have increased at a CAGR of 1.13 from 2023-26.

Who are the top vendors in the Web Hosting Services market?

The top vendors in the Web Hosting Services market include Rackspace Technology Inc., Liquid Web Inc., Aptum Technologies, United Internet Ag and Microsoft Corporation.

What industries supply the Web Hosting Services market?

The top industries supplying the Web Hosting Services market are Computer Manufacturing in the US, Semiconductor & Circuit Manufacturing in the US, Wire & Cable Manufacturing in the US, Internet Service Providers in the US, Telecommunication Networking Equipment Manufacturing in the US, IT Consulting in the US, Communication Equipment Manufacturing in the US, Software Publishing in the US and Intellectual Property Licensing in the US.

What is the supply chain risk for Web Hosting Services?

Moderate market concentration and vendor risk create balanced sourcing opportunities. The US web hosting market is moderately concentrated, and vendors present medium operational and financial risk. Buyers have a reasonable range of supplier options but must remain vigilant for potential service disruptions or dependency on a few key providers. Buyers should monitor vendor stability, maintain diversified supplier relationships where possible, and structure contracts to include contingency measures, ensuring resilience against supplier-specific risks without sacrificing cost efficiency.

What factors affect the price of Web Hosting Services?

The volume of data transferred to and from servers determines transit costs charged by carriers. Providers with extensive peering agreements or CDN partnerships can offer lower rates.

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