Here’s a pie chart showing the market share of the major players in the web hosting industry as of July 2024:
Here are the percentage numbers in tabular form:
| Web Host | Market Share (%) |
|---|---|
| GoDaddy | 30% |
| Hostinger | 17% |
| Bluehost | 14% |
| HostGator | 9% |
| SiteGround | 8% |
| A2 Hosting | 4% |
| InMotion Hosting | 3% |
| Others | 15% |
Key Findings
Here are the key takeaways from the data.
GoDaddy is the Biggest Leader
Although GoDaddy is perceived negatively in the web hosting community, it has a massive market share, almost double its nearest competitor. This is attributed to GoDaddy’s branding power, for which it spent $116 million in marketing in just the first quarter of 2022, according to public statements filed with the SEC.
Low-Cost Brands Dominate the Market Share
Web hosting is a very price-sensitive market. Because of this, low-cost brands like Hostinger, Bluehost, and HostGator are very prominent. GoDaddy is an outlier because it’s expensive, but they market themselves as a low-cost web host.
Branding in Web Hosting is the Key
Probably the most significant factor impacting market share in web hosting is branding. Especially for newcomers, web hosting can be challenging to understand, with many moving parts. So people initially always gravitate toward well-known brands.
And because of the difficulty in switching web hosts, people tend to stay with the brand they initially chose, even if they’re dissatisfied with the results. Customers are willing to tolerate an astonishing amount of negative experiences like slow servers and poor customer service to avoid the pain of migrating to a new web host.
People Mostly Use the Same Web Host and the Same Domain Registrar
If someone purchases a domain name with a company, they will likely use the same company for web hosting. The domain hosting checkout process makes adding a hosting package easy. Some customers new to hosting might not even realize that you can use a web host different from the domain registrar.
Because of this, many web hosts are happy to give out free domains for the first year along with their web hosting packages.
India is a Major Hub for Hosting
One surprising finding is the number of people hosting from India. These individuals don’t necessarily need web servers in India itself, and they don’t mind servers located in the United States, for example. But India is a robust market for web hosting, and it’s destined to be a high-growth area as more people come online.
SiteGround has an Impressive Market Share Despite Being Expensive
Thanks, in large part, to its marketing efforts, SiteGround has grabbed a considerable market share for itself. Even though SiteGround is very expensive, and while they have unique features, several good SiteGround alternatives are better.
SiteGround also jealously guards its branding. They sent me a notice to remove an article I wrote that wasn’t even particularly critical of their service. I was able to fight them off, but it’s an indication of how carefully they scour the Internet to keep their image intact.
Newfold Digital Has a Nice Grip on the Market
Newfold Digital is the result of a merger between the spun-off Endurance Web Presence and Web.com. They now own some of the most well-known brands in the web hosting industry, like Bluehost, HostGator, and even Yoast.com – the popular SEO plugin for WordPress.
While it hasn’t merged the infrastructure of its subsidiary brands yet, they all share the same management.
Final Thoughts
The web hosting market is in constant flux, especially now, with Newfold Digital gobbling up as many subsidiaries as possible. GoDaddy’s position as market leader is unsurpassed as of now. We’ll see how whether the others can snatch up some market share.
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