Domain Name Registrar Market

Market Overview

The global domain name registrar market size was valued at USD 2.35 billion in 2023. It is estimated to reach USD 3.47 billion by 2032, growing at a CAGR of 4.43% during the forecast period (2024–2032). As internet penetration continues to expand globally, there is a growing demand for domain names, driving the need for domain registrar services. Emerging markets, in particular, are witnessing rapid internet adoption, fueling demand for domain registration.

Moreover, the proliferation of e-commerce businesses requires companies to establish their online presence through domain names. As more businesses move online, there is a corresponding increase in the demand for domain registration services.

A domain name registrar is a business or organization accredited by the Internet Corporation for Assigned Names and Numbers (ICANN) to manage domain name registrations. Registrars enter agreements with both registry operators and ICANN to offer domain name registration services. A domain name works as a unique identifier for accessing a website and typically consists of a string of letters followed by a top-level domain (TLD), such as .com, .org, or .net.

Domain registrars handle various tasks related to domain management, including checking availability, processing registration requests, and maintaining registration data. They oversee renewals, transfers, and other aspects of domain maintenance. Registrars offer a range of services, such as domain name registration, transfers, expiration protection, and domain privacy. Some registrars extend their services beyond domain management, providing offerings like web hosting, website design, internet marketing, and email services.

Highlights

• Generic Top-Level Domains dominate the type segment
• Cloud dominates the deployment segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Domain Name Registrar Market Drivers:

Developing an Online Identity and E-Commerce Initiatives

The surge in digital marketing campaigns, the rise of e-commerce platforms, and the proliferation of online businesses have significantly heightened the demand for domain name registration services. Individuals and businesses recognize the critical importance of establishing a robust online presence, starting with a memorable and relevant domain name. In today's competitive landscape, having a distinct domain name is fundamental for businesses aiming to stand out and effectively represent their brand and offerings. This necessity is underscored by the increasing reliance on online channels for brand visibility and customer engagement.

Moreover, the trend toward online entrepreneurship is further fueling this demand as more people and small businesses venture into digital realms. For example, the U.S. Small Business Administration (SBA) acknowledges the pivotal role of e-commerce and a robust online presence for businesses across all scales. A memorable and relevant domain name serves as the cornerstone for building brand recognition and attracting customers in the dynamic digital marketplace. Similarly, the need for domain name registration services is predicted to increase steadily as long as companies continue to realize how important a strong online presence is to their expansion and success. This underscores the vital role that domain registrars play in facilitating the establishment and growth of businesses in the digital era.

Global Domain Name Registrar Market Restraint:

Saturation of Domain Names in Popular Top Level Domains

The domain name market is experiencing an oversupply, particularly in popular top-level domains (TLDs) like .com, .net, and .org. This abundance of registered domain names makes it increasingly challenging for individuals and businesses to secure short, memorable, and relevant domain names. Desirable possibilities become scarcer as registered domain names rise, resulting in a shortage of desirable domain names. This saturation in the domain name space has several implications. Firstly, it drives up prices for premium or aftermarket domains, which become coveted assets due to scarcity. Secondly, new registrants face a limited pool of options when seeking domain names, especially within well-established TLDs. This scarcity can present a significant barrier for companies looking to establish an online presence, potentially causing frustration and complicating finding suitable domain names.

Global Domain Name Registrar Market Opportunities:

Increasing Call for Internet and Digital Technology Adoption

The increasing utilization of the internet and digital technologies has spurred a surge in the demand for domain names. With more companies and individuals establishing their presence online, the need for domain names continues to grow steadily. This trend presents a lucrative opportunity for domain name registrars to expand their clientele and revenue streams. As the demand for domain names is expected to persistently rise, registrars stand to benefit from a steady market. However, to fully capitalize on this opportunity, registrars must differentiate themselves by offering competitive pricing, attractive packages, and superior services to attract and retain customers.

For example, a recent Forbes article highlights the unprecedented spike in domain name registrations, underscoring the increasing significance of online visibility for businesses. This trend underscores the critical role that domain registrars play in facilitating the digital transformation of businesses and individuals alike. Domain name registrars can position themselves as leaders in an evolving industry landscape by staying attuned to market trends, delivering exceptional value propositions, and providing top-notch customer service.

Regional Analysis

North America Dominates the Global Market

Based on region, the global domain name registrar market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America is the most significant global domain name registrar market shareholder and is expected to expand substantially during the forecast period. North America commands a significant 30–35% market share in the global domain name registrar market, primarily due to the extensive usage of domain names in the United States. American companies frequently incorporate keywords related to their business in their domain names, contributing to the large volume of domain registrations. This practice enhances brand visibility and helps attract customers. Moreover, the region benefits from robust internet usage, enabling the registration and management of domain names with memorable and recognizable names. Advanced IT infrastructure, favorable regulatory policies, and robust cybersecurity capabilities further bolster the growth of the domain name registrar market in North America. The proliferation of small and medium-sized enterprises (SMEs) in the region drives the demand for domain name registration services as these businesses seek to establish a prominent online presence.

Europe holds approximately 25–29% of the global domain name registrar market share, making it the second-largest market in the world. The region boasts over 50 countries, each offering a diverse selection of distinct domain name extensions. As per the Internet Corporation for Assigned Names and Numbers (ICANN), more than half of European businesses and individuals prefer 'com' domains. Further, '.eu' domain registrations are prominent in key European nations such as the UK, Germany, the Netherlands, France, and Poland. Moreover, major European domain registration market players include GoDaddy, Gandi.com, 1&1 IONOS, and Namecheap. Gandi.com, in particular, stands out as one of the earliest registrars approved by ICANN for multiple domain extensions. The presence of such established players and the widespread adoption of domain names across various European countries contribute to the region's substantial market share in the domain name registrar market.

Segmental Analysis

The global domain name registrar market is bifurcated into type, deployment, and end-user.

Based on the type, the global domain name registrar market is segmented into generic top-level domains and country code top-level domains.

The generic top-level domains segment dominates the global market. The global market for domain names is predominantly dominated by generic top-level domains (gTLDs), which encompass various extensions such as .com, .net, and .org. Conversely, a subset of gTLDs exists that are sponsored by official bodies and restricted to specific registrants. These sponsored gTLDs include domains established early in the domain name system's history. The expansion of gTLDs has significantly broadened the landscape for domain name registrars, allowing them to provide more specialized services to their clientele.

New extensions such as .blog, .shop, and .app have emerged, catering to specific industries or interests, enabling registrars to meet the diverse needs of their customers. As per the Internet Corporation for Assigned Names and Numbers (ICANN), by 2020, 1,232 gTLDs had been allocated. Among the 1,930 applications submitted, 624 were withdrawn, and 46 were rejected. However, ICANN is actively developing a program to streamline the process of establishing new gTLDs or extensions of the Internet, which is expected to further contribute to expanding the domain name market.

Based on deployment, the global domain name registrar market is segmented into on-premises and cloud.

The cloud segment owns the largest market share. This is due to the various advantages offered by cloud-based solutions. Cloud-based domain name registrars provide affordability, scalability, and flexibility, making them increasingly attractive to businesses of all sizes. One of the key benefits of these solutions is their inherent scalability. Domain name registrars leveraging cloud infrastructure can easily adjust their resources up or down in response to fluctuating business demands. This flexibility enables registrars to efficiently manage their operations and effectively meet the needs of their customers.

Moreover, cloud-based solutions often operate on a subscription-based model, allowing businesses to optimize costs by paying only for the services they utilize. This pay-as-you-go approach lowers overall expenses and enhances financial predictability and budget management for businesses. In addition to cost-effectiveness and scalability, cloud-based domain registrars offer consistent and reliable performance compared to traditional on-premise deployments.

Based on these end-users, the global domain name registrar market is bifurcated into enterprises, non-profit organizations, and others.

The enterprises category is expected to capture the largest market share. This is primarily attributed to businesses' substantial need for domain names to facilitate their operations and establish a robust online presence. Businesses rely on domain names as essential identifiers for their online presence, encompassing websites, email communications, and various digital platforms. The proliferation of digital marketing initiatives, e-commerce platforms, and online services necessitates businesses to secure multiple domain names to effectively engage with their target audience and have a competitive advantage in the digital landscape.

Furthermore, the global industry is changing due to digital transformation, and for businesses of all kinds, having a strong online presence is becoming increasingly important. This heightened emphasis on digitalization is expected to drive sustained growth in the Domain Name Registrar market as businesses prioritize securing domain names to support their evolving digital strategies and meet the demands of an increasingly interconnected world.

Recent Developments

• January 2024- MeitY unveiled a domain registration platform for educational organizations. The Ministry of Electronics and Information Technology has established an integrated website for educational institutions. The ERNET portal will provide educational institutions with domain registration, DNS, and value-added services such as Website as a Service (WaaS) and Learning Management as a Service (LMaaS).
• February 2024- Registered Agents Inc. (RAI) bought controversial domain registrar Epik in order to expand its service offerings to small businesses and entrepreneurs. Epik, the host of the 8chan and Parler domains, has been bought again.