Hosting the competition: Greater demand for cloud services has driven industry revenue growth

The Internet Hosting Services industry runs internet servers from data centres, which host content that people can store and access through the internet. Enhanced domestic web accessibility and advancements in internet hosting technology have been the key drivers behind revenue growth over the past five years. Both businesses and government agencies have increasingly used the internet as a distribution channel for their products and services, which has boosted their operational efficiencies.Industry profitability has risen over the past five years, as revenue growth outstripped the rise in costs required to facilitate increased demand for internet hosting services. A...read more.

Industry Statistics & Market Size
Revenue
$553m
Annual Growth 14-19
3.2%
Forecast Growth 19-24
Profit
Employment
1,838
Businesses
177

Industry Threats & Opportunities

  • Enhanced domestic web accessibility and government cost cutting have supported revenue
  • The average wage has increased due to strong competition for IT professionals
  • Demand from government entities will likely support industry revenue over the next five years
  • Industry Report - Starting a New Business Chapter

    The industry is characterised as having moderate barriers to entry. The cost of establishing industry operations is relatively high due to the initial cost of capital equipment and the need for skilled staff. For hosting companies, the leasing of space on other companies' servers may offer a short-term economical solution.With equipment costs declining while providing faster processing power, the industry's reliance on technology implies the possibility of increasing capital investment as a way to enhance competitiveness. However, the knowledge barrier required for industry operations has increased steadily over the past five years, due to the growing complexity of cloud hosting and cybersecurity software. Thi...purchase to read more.

    Additional Insights for the Internet Hosting Services Industry

    IBISWorld has determined the most important Key Success Factors for the Internet Hosting Services are:

  • Ability to quickly adopt new technology
  • Having a good reputation
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Demand from online shopping and Business confidence index in the Internet Hosting Services industry impact industry performance..

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    What's in this report

    What is the Internet Hosting Services Industry?

    Industry firms run internet servers from data centres, which allow content to be stored and accessed through the internet. Hosting covers a range of online storage options, including web hosting, email hosting and DNS hosting.

    Industry Products
  • Co-location hosting services
  • Cloud hosting services
  • Managed and dedicated hosting services
  • Industry Activities
  • Providing web hosting services
  • Providing cloud hosting services
  • Providing email hosting services
  • Providing other internet hosting services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from online shopping
  • Business confidence index
  • Demand from financial and insurance services
  • Government consumption expenditure
  • Mobile telecommunications density

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Internet Hosting Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Internet Hosting Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Financial and Insurance Services
  • Public Administration and Safety

  • Key Selling Industries
  • Call Centre Operation
  • Computer and Computer Peripheral Wholesaling
  • Computer System Design Services
  • Data Storage Services
  • Telecommunications Services

  • Products & Services
  • Cloud hosting services
  • Co-location hosting services
  • Managed and dedicated hosting services
  • Chart: Internet Hosting Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Financial services sector
  • Government sector
  • Other sectors
  • Retail sector
  • Manufacturing sector
  • Chart: Major Market Segmentation for the Internet Hosting Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Utilities
  • Rent
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Internet Hosting Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Internet Hosting Services Industry

  • Industry Globalization
    Macquarie Telecom Group Limited, Arq Group Limited, IBM A/NZ Holdings Pty Limited,
  • Table: Macquarie Telecom Group Limited - financial performance
  • Table: Arq Group Limited - financial performance
  • Table: IBM A/NZ Holdings Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Internet Hosting Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Internet Hosting Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cloud Computing
  • Computing model in which companies' computer applications are hosted in outside services accessible via the internet.
  • Cybersecurity
  • An umbrella term referring to the body of technologies, processes and practices designed to protect networks, computers, and data from theft, damage or unauthorised access.
  • Infrastructure As A Service (Iaas)
  • Where computing capacity, such as data space and transfer speeds, is provided as a service over an internet connection.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Internet Hosting Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Internet Hosting Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Internet Hosting Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Internet Hosting Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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