IBM is the market-share leader in the growing web hosting market, according to a new report from Tier 1 Research.

The firm said IBM is the “biggest market share gainer in the industry and is clearly reaping substantial benefits from its investments in e-business infrastructure.”

Tier 1 estimates the web hosting market will increase 15 percent, to $7.65 billion, this year. The $1.74 billion spent on web hosting in the final quarter of 2002 was a record amount, it added.

Tier 1 Research: