9.4.6.4Vertical

Web Hosting & Shared Hosting

Providers offering web hosting and domain registration services.

Market snapshot

These figures describe Managed Hosting & Cloud Infrastructure (9.4.6), the segment that Web Hosting & Shared Hosting sits within. They are not figures for Web Hosting & Shared Hosting on its own.

Market size
~$329B
Growth
~15.9%CAGR (2017–22, nominal)
Companies
~11,482 firms
Firms by employee count

77.6% of firms have fewer than 20 employees: 8,911 micro-businesses, below most mandates.

The investable universe2,571 firms with 20+ employees
20–99
1,34952%
100–499
65225%
500+
57022%

The largest single segment in technology services, and the one that quietly reorganized the rest of it, since hyperscale cloud now carries the infrastructure that enterprises used to buy and run themselves. Revenue more than doubled in five years, but the concentration matters more than the growth: three providers hold most of it, so the acquirable businesses here are the specialists and resellers positioned around them rather than the platforms.

NAICS 518210. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Managed hosting and cloud-infrastructure subscriptions

Key economics

Revenue per firm
$28,694,139
Revenue per employee
$500,449
Employees per firm
49.7
Recurring revenue
High

recurring hosting/infrastructure contracts

EBITDA margin
Strong

recurring infrastructure-services economics

Capex intensity
Moderate

Characteristics

  • Scale-driven: payroll is only 24% of revenue, so the cost base is assets, not headcount
  • Deep strategic-buyer pool: 570 firms exceed 500 employees, so a scaled asset has trade buyers
  • Managed hosting, private cloud, and infra operation.
  • Bridges traditional hosting and public cloud.
  • Hybrid/private-cloud management demand.

NAICS 518210. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Geographic concentration

AlabamaAlaskaArizonaColoradoFloridaGeorgiaIndianaKansasMaineMassachusettsMinnesotaNew JerseyNorth CarolinaNorth DakotaOklahomaPennsylvaniaSouth DakotaTexasWyomingConnecticutMissouriWest VirginiaIllinoisNew MexicoArkansasCaliforniaDelawareHawaiiIowaKentuckyMarylandMichiganMississippiMontanaNew HampshireNew YorkOhioOregonTennesseeUtahWashingtonWisconsinNebraskaSouth CarolinaIdahoNevadaVermontLouisianaRhode IslandDistrict of ColumbiaVirginia

The District of Columbia and Virginia: Northern Virginia carries more data-center capacity than any other market in the world, built on cheap power, fiber density and proximity to the federal cloud buyer.

District of ColumbiaVirginia

U.S. Census Bureau, 2022 Statistics of U.S. Businesses (firms by state), NAICS 518210. Concentration shown by location quotient.

M&A deal context

Deal activityModerate

Who’s acquiring

  • Managed-hosting & cloud providers
  • Data-center & infrastructure operators
  • PE-backed platforms

What’s driving deals

  • Hybrid and private-cloud management.
  • Managed-infrastructure outsourcing.
  • Provider consolidation.

Find Web Hosting & Shared Hosting acquisition targets

Search Acquisera’s index for companies classified under Web Hosting & Shared Hosting (9.4.6.4) and build a targeted deal pipeline.

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