Market Overview
The global domain name registrar market size is expected to grow at a CAGR of 5.18% during the forecast period, i.e., 2023–2031.
All the Websites have their unique name. Domain name registrar aids these websites in registering their name at some monthly or annual fees. It needs to be accredited by the generic top-level domain registry or country code top-level domain registry. The domain name registries provide guidelines within which the registrar works. Some of the well-known domain registrars around the globe are GoDaddy, Namecheap Inc., Bluehost Inc., HiChina, Network Solutions LLC, etc.
Market Dynamics
A Growing Number of Internet Users to Enlarge the Market
The number of internet users is gradual because of the advent of social media apps like Facebook, Instagram, and LinkedIn. For a business to survive in today's world, having their websites and social media has become a compulsion. Most of the world's population is shifting towards e-commerce sites because of their convenience and feasibility.
ITU assessed that toward the finish of 2020, approximately 4 billion individuals were utilizing the Internet; of this aggregate, 92.6% (4.32 billion) got to the Internet using cell phones. With new ways of generating income like blogging, drop shipping, e-commerce sales, digital marketing, the need for websites is increasing. The growth of the rising number of internet users and the consequent rise of online identities of individuals and companies will boost the domain registrar market in the coming years.
The new coming of age Web Protocol Version 6(IPv6) can take care of the billions of web clients and associated gadgets. The development of the rising number of web clients and the subsequent ascent of online personalities of people and organizations will help the area enlistment center market. The domain registrar market will be booming shortly.
A Rise in Website Hijacking to Challenge the Global Domain Name Registrar Market
Domain hijacking is one of the most significant restraints in the market. It is a form of theft that gives unauthorized access to the domain registrar and transfers it to another. The hackers can access all the databases once the registrar is hijacked. Most registrars provide SSL (Secure Socket Layer) certificates to secure the client's websites. These are highly essential to prevent Hijacking or attacking the Website.
The denial-of-service-attack (DDoS) are changing in nature. The methods to prevent the conventional DDoS like the bandwidth over-provisioning, firewalls, and intrusion prevention system (IPS) devices are no longer trustworthy. Due to advancements in technology and the increased efficiency of hackers protecting networks, applications, and other web-based activities is increasingly difficult.
The arrival of Third-party expert DDoS mitigations services should help many TLD operators to help bridge the technology gap in defending their networks from an ever-widening array of threats and challenges. These factors are the main threats to the global domain registrar market.
Small Businesses to Increase the Need for Domain Registrars
Small and medium-sized enterprises (SMEs) assume a huge part in most of the economic growth of the developing nation. The increasing small-scale industries in these emerging economies play a massive role in expanding internet-based activities. According to the World Labor Organization, around 420-510 million SMEs are available worldwide. Out of these, just 9% are present in developed nations. The remaining 80% to 95% have been established in the lower and middle-income class regions.
With the quickly developing web and cell phones entrance around the world, laying out an online presence to be up to par with the competitors has turned essential for businesses. A survey by GoDaddy saw that more than 60% of the small and medium industries have no web-based presence. With the growing need for digitalization and the enlargement of the e-commerce industry, the potential of the global domain registrar market is increasing.
Impact of Web 3.0 on Domain Name
The ascent of web 3.0 will significantly impact the worldwide market in the following few years. With it, domain names become can connect to a more extensive network. Sharing of the information will become safer, and it will enhance the overall website experience. It will benefit the domain name companies to connect the users better and securely share the data.
Web 3.0 has progressively come developed its prominence. Each gadget will have an exciting ID connected to its blockchain address, making content conveyance, utilization, and installment, payment tracking consistent. Web 3.0 has a unique ID that focuses on the user ID. It also incorporates a yearly expense with a high gas charge. Gas charges are like transaction charges, depending on computational complexity and time. With this technology, secure transactions and data transfer will be convenient. Third-party providers like Unstoppable Domains help provide private registries, so users have privately owned ENS domains rather than top-level .eth names.
The ENS is an open-source, decentralized naming system based on the Ethereum blockchain. Human-readable names to addresses are assigned using the Ethereum network. However, the network does not work directly with the Internet. To maintain control of the ENS names, there is a need to install a unique browser or plugins so that it is easily connected to only the network of your choice.
The third-party providers facilitate the private registries to help users have privately Owned ENS names than the top-level names like eth. ENS is an open-source, decentralized naming framework based on the Ethereum blockchain. Human-readable names to the addresses can be assigned with its help. A unique browser needs to be installed to connect only to the network of your choice.
A .com is most widely used and irreplaceable because the extension has no same results. Although sometimes it may cause some browser compatibility issues, the benefits of web 3.0 surpass this concern.
Regional Analysis
Increasing uses of the Internet are causing a problem pf the availability of domain names. There is a race in the market to get the specific domain name to increase the web's presence.
Significant Growth in North America and Asia-Pacific
North America offers opportunities to register internet domains in almost all countries with minimum requirements that vary depending on the regulations of the local registries. North America acquired the largest share of the market and is expected to grow at a CAGR of 6.51%.
The domain name '.asia' is the top-level domain name framework for the mainland of the Asia Pacific region. China is one of the quickly developing business sectors for space name recorders in the Asia Pacific district. The advancement of the Chinese-language space name market is displaying extraordinary potential before long.
Critical domain name registrars, including GoDaddy, Namecheap, and HiChina, have a solid presence in Asia-Pacific. GoDaddy is expected to tap the developing number of SMEs in India to build their web-based presence through incredible promoting efforts.
Segmental Analysis
Based on domain types, the global domain name registrar market is categorized into generic top-level domains and country-code top-level domains. The country code top-level domain can be used to identify the user's country code. The generic top-level domains consist of domains like .com, .info, .net, .org. The country code top-level domain has acquired more than 50% of the market and is predicted to grow at a CAGR of 5.58% by 2027.
By deployment, the market is segmented into on-cloud and on-premise. Domain names on the Internet are like intangible assets to the company. Cloud has acquired a more significant part of the market than the on-premise domain names in this segment. It is expected to grow at a CAGR of 6.52%. On-cloud is primarily adopted by the cloud storage industry, creative professionals, online retailers, and bloggers.
The global domain name registrar market is segmented into enterprises, non-profit organizations, and others by end-users. Having a unique domain name can cost a lot, but the enterprises believe it is essential to create dominance on the World Wide Web. The enterprises capture 60% of the domain name registrar market and are expected to grow at a CAGR of 5.48% during the forecast period.
