In simple words - Web hosting is a storage for your website files.
Whenever you create a website it should be accessible from all over the globe. Website or server hosting means website owner keep all the files on server (web host) and then point the domain to that host so that whenever any user open the website it'll open the files located on server.
Web hosting services work by storing your website files in high-powered computers (web servers) connected to a very fast network. Web hosting refers to a service that puts your website on the Internet. In other words, it makes your website available to your users.
The vast majority of web sites are run from hosting provider facilities with banks of computers and a high speed internet connection, costs can range from $3/mo for a space on a shared server with 10o0+ other sites to $500+ a month for a dedicated server, larger corporations and tech services operate their own site file server, a tiny number of dedicated tech geeks use their personal computer as a file server, the technical headaches and reliability issues, and slow outgoing data rates of many home connections limit the practicality of these.