The type of web hosting you should pick entirely depends on the requirements of your website. Some of the factors you can consider are -
Traffic volume you expect on your website
Kind and growth of your website
Type of applications you wish to run
Amount of data you need to store, etc.
In a nutshell, newbies and small-scale websites can pick the shared server hosting plans. For medium-scale websites or those who require dedicated resources and better server control, virtual private server hosting is the right choice. Whereas dedicated server hosting is an ideal choice for users who need the entire server space and high availability as well as scalability of resources to host their website or online business.