{"id":61612,"date":"2021-05-26T08:05:09","date_gmt":"2021-05-26T14:05:09","guid":{"rendered":"https:\/\/www.scalahosting.com\/blog\/?p=61612"},"modified":"2025-11-11T09:48:13","modified_gmt":"2025-11-11T15:48:13","slug":"covid-19s-impact-on-the-web-hosting-industry","status":"publish","type":"post","link":"https:\/\/www.scalahosting.com\/blog\/covid-19s-impact-on-the-web-hosting-industry\/","title":{"rendered":"Covid-19’s Impact on the Web Hosting Industry"},"content":{"rendered":"\n

The first part of the 21<\/strong>st<\/sup><\/strong> century<\/strong> saw the World Wide Web <\/strong>grow at break-neck speeds. The number of active internet users shot up, and so did the number of hours people spend online. In light of all this, you probably won’t be too surprised to find that the web hosting industry was also doing rather well.<\/p>\n\n\n\n

In early 2020, <\/strong>however, the Covid-19 pandemic<\/strong> took over the world and ruined quite a lot of people’s plans.<\/p>\n\n\n\n

But how did this affect the hosting business?<\/p>\n\n\n\n

Today, we are taking a closer look at one of the hottest topics in the last two years.<\/p>\n\n\n\n

Covid-19 Global Business Impact<\/strong><\/h2>\n\n\n\n

It’s been well over a year since China registered the first Coronavirus cases, but we’re still very much affected by it. It’s anyone’s guess when the pandemic will be over, which is far from ideal if you’re a business trying to survive an unprecedented crisis.<\/p>\n\n\n\n

Regardless of the industry it works in, no company has gone through the pandemic without a scratch, and quite a few small and medium-sized businesses<\/strong> paid the ultimate price – going bankrupt.<\/p>\n\n\n\n

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Many businesses are in a pretty dire state right now. Hosting providers, however, may not be among them…<\/p>\n\n\n\n

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Web Hosting in the Midst of a Global Pandemic<\/strong><\/h2>\n\n\n\n

To better understand how the coronavirus crisis has changed the web hosting game, you need to consider the specific effects on businesses and individuals as a whole.<\/p>\n\n\n\n

Social distancing rules meant retailers had to close their brick-and-mortar stores. Suddenly, having an online store<\/strong><\/a> wasn’t just an additional source of revenue and a way to reach more people – it became the only viable monetization option. In such an environment, it’s no surprise the ecommerce industry grew by approximately 50% in 2020<\/strong>.<\/p>\n\n\n\n

As for individual users, they now get to spend a lot more time at home, in front of their internet-connected devices. As a result, existing online services registered a lot more traffic<\/strong>. <\/p>\n\n\n\n

We have also seen a rising demand for new online projects<\/strong> to fill up the long hours spent in social isolation. The same social isolation also gives entrepreneurs the chance to start work on ideas they’ve had for a while but couldn’t find the time to bring to life.<\/p>\n\n\n\n

These are just a few of the major consequences of the Covid-19 pandemic, and it’s fair to say that they all work in favor of the hosting providers. <\/p>\n\n\n\n

According to a report from Fortune Business Insights<\/strong>, the hosting industry’s market value at the end of 2020 <\/strong>stood at just over $75 billion. Still, the<\/strong> pandemic and the increasing demand for hosting services has forced the experts to readjust their Compound Annual Growth Rate (CAGR) to 18%<\/strong>. <\/p>\n\n\n\n

They now believe that by 2028,<\/strong> the industry will be worth a whopping $267 billion<\/strong>. From that perspective, you could argue the Covid-19 pandemic is more of a blessing than a curse for the hosting industry. <\/p>\n\n\n\n

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How is Covid-19 Changing Web Hosting?<\/strong><\/h2>\n\n\n\n

The pandemic is far from over, but it has already changed quite a few rules. Both new and existing providers now have a unique set of challenges to deal with, and overcoming them will be anything but easy.<\/p>\n

Here are some of them:<\/p><\/p>\n\n\n\n