Latin America Domain Name Registrar Market Size, Share & Trends Analysis Report By Type (Generic Top-Level Domains , Country Code Top Level Domains ), By Deployment (On-Premises, Cloud ), By End-User (Enterprises, Non-Profit Organizations, Others) and By Country(Brazil, Mexico, Argentina, Chile, Colombia, Rest of LATAM) Forecasts, 2023-2031

Market Overview

The Latin America domain name registrar market size was valued at USD 43 million in 2022 and is projected to reach a value of USD 70 million by 2031, registering a CAGR of 5.5% during the forecast period 2023-2031.

Highlights

• Generic top-level domains dominated the market by type. 
• Cloud dominated the market based on deployment
• Enterprises dominated the market by end-user.

Businesses can register their preferred, distinctive website domain names through a domain name registrar. Customers pay the domain name registrar a one-time or ongoing cost to register the website to obtain the web address. The systems used by domain name registrars then convert IP addresses into instantly recognizable domain names.

The Internet Corporation accredits the Assigned Names and Numbers (ICANN). ICANN, a private non-profit organization, has overseen the Domain Name System and IP address allocation. Top-level domain names (TLDs) like .com, .net, and .org and country-code top-level domain names (ccTLDs) like some domain name registrars may sell .us,.ca, and .eu.

Market Dynamics

Latin America Domain Name Registrar Market Drivers

Rapidly Growing Internet Users

Increased access to technology, the adoption of mobile devices, and improved internet infrastructure are just a few of the reasons contributing to the rapid growth of internet usage in Latin America in recent years. According to a survey by the Economic Commission for Latin America and the Caribbean (ECLAC), the region's internet penetration rate was estimated to reach about 70% in 2020, with roughly 460 million users. After Asia, Europe, and North America, Latin America is now the fourth-largest internet market in the world. Brazil and Mexico have the largest internet markets in the area, followed by Argentina, Colombia, and Peru. The majority of Latin American internet users reside in these nations. However, internet usage is also rising significantly in other nations in the region, including Chile, Costa Rica, and Uruguay. As cell phones become more accessible and affordable, they are becoming the dominant method of internet access throughout Latin America. In Latin America, there are anticipated to be 450 million unique mobile customers by 2025, up from 370 million in 2020, according to a report by GSMA Intelligence.

Latin America Domain Name Registrar Market Restraints

Vulnerability to Domain Phishing

Attacks using domain phishing techniques are particularly harmful to organizations since they can result in a loss of clientele, harm to their reputation, and financial losses. Due to security concerns, organizations and individuals may be reluctant to register domain names or have an online presence, limiting market growth for domain name registrars. Latin America is particularly susceptible to domain phishing assaults due to several variables. One of the key causes is the region's sizable and expanding internet user population, which gives hackers a sizable target. Additionally, users in the area frequently lack cybersecurity awareness, making them more vulnerable to phishing attacks. Another aspect is the region's generally low level of investment in cybersecurity training and infrastructure. Due to this, businesses and individuals may find it more challenging to defend themselves against domain phishing attacks and other cybersecurity dangers.

Latin America Domain Name Registrar Market Opportunities

Growth of SMEs in the Region

Many SMEs have embraced digital tools as technology adoption has grown throughout the region to enhance operations and attract new clients. This has opened up new growth opportunities and allowed smaller enterprises to compete with larger ones. Many SMEs have embraced digital tools as technology adoption has grown throughout the region to enhance operations and attract new clients. This has opened up new growth opportunities and allowed smaller enterprises to compete with larger ones. 

Mexico has a fast-expanding SME sector with more than 4 million small firms. Many companies want to create an online presence to expand their customer base. Due to this, there is now considerable demand for domain names and services related to domain name registration.

Regional Analysis

The Latin America domain name registrar market is analyzed by country into Brazil, Mexico, and the Rest of Latin America. Brazil is expected to dominate the market, registering the highest CAGR of 5.9% over the forecast period.

Latin America has much room to grow because new local internet content and websites are constantly being developed, which ultimately depends on more people purchasing domain names from domain name registrars. There are more prospects because some nations in this region still have problems with the infrastructure, expensive costs, and sluggish Internet speeds. The region still has a lot of promise for domain name registrars, but businesses and governments must take proactive measures.

According to ICANN, only 40% of the companies in the area have websites. Furthermore, this region has a significant market opportunity for domain name registrars because many SMEs still do not use email to communicate with their customers and suppliers. To promote the website and domain name uptake, domain name registrars might participate in business fairs, trade associations' communication channels, and trade ministries.

Segmental Analysis

The Latin America domain name registrar market is segmented based on type, deployment, and end-user.

The market is further segmented by type into generic and country code top-level domains.

The Generic top-level domains segment dominates the market and is expected to grow at a CAGR of 4.9% during the forecast period.

By deployment, it is further segmented into on-premises and cloud.

The cloud dominated the market and is expected to register a CAGR of 6.2% over the forecast period.

The market is further segmented by end-user into enterprises, non-profit organizations, and others.

The enterprise segment dominates the market and is expected to grow at a CAGR of 5.8% during the forecast period.

Impact of covid-19

Recent Developments

• May 2023- Microsoft and GoDaddy collaborated to Enable Payments for Online Meetings.
• In 2021- More responsive designs and new features like e-commerce integration and SEO tools were added to ATAK Domain Hosting.