Middle East and Africa Domain Name Registrar Market

Market Overview

The Middle East and Africa domain name registrar market size was valued at USD 64 million in 2022 and is projected to reach a value of USD 110 million by 2031, registering a CAGR of 6.1% 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.

Domain name registrars let businesses register the unique domain names they want for their websites. Customers pay a flat or monthly fee to the domain name provider to register the site and get the web address. The domain name registrars then turn IP numbers into domain names that are easy to remember.

The Internet Corporation backs assigned Names and Numbers (ICANN). ICANN is a private, non-profit organization that gives out IP numbers and runs the Domain Name System. Some domain name providers can sell top-level domain names (TLDs) like .com, .net, and .org, and country-code top-level domain names (ccTLDs) like .us, .ca, and .eu.

Market Dynamics

Middle East and Africa Domain Name Registrar Market Drivers

Increasing Internet Penetration

With millions of new users joining the internet each year, the Middle East and Africa are among the regions with the fastest-growing internet penetration. This offers domain name registrars excellent chances to grow their clientele and provide new services to corporations and people. With 28.7 million internet users, Saudi Arabia is expected to have a 73.8% internet penetration rate in 2020. The nation's e-commerce industry is well-developed, and many companies and people need domain names and other internet services to have an online presence. Furthermore, as of January 2021, there were an estimated 34.9 million internet users in South Africa, with a relatively high internet penetration rate of 56.2%. The nation's digital economy is expanding, and many startups and established companies need domain names and other digital services to connect with clients online. Thus, this may allow for market expansion.

Middle East and Africa Domain Name Registrar Market Restraints

Limited Infrastructure

Although the region's internet penetration rates are rising, there may still be issues with the availability of high-speed broadband and dependable mobile networks. This may restrict how much people and companies use domain name registrar services. According to a World Bank report, many sub-Saharan African nations have broadband penetration rates below 10%, which may restrict how easily businesses and individuals can access online domain name registrar services. For instance, only 1% of Ethiopians have access to fixed broadband, making it challenging for businesses to register and maintain their domain names online. Additionally, there may be limitations on the availability of domain names in general or restrictions on particular domain name types in some Middle Eastern and African nations. For instance, only Saudi Arabian firms and organizations can register domain names with the .sa extension, which can restrict the ability of foreign companies to create a local internet presence there.

Middle East and Africa Domain Name Registrar Market Opportunities

Growth of SMEs in the Region

SMEs play a sizable and expanding role in the economies of many Middle Eastern and African nations. By providing reasonably priced and simple-to-use domain name registration services, coupled with other value-added services like website builders and online marketing tools, domain name registrars might target this market group. They might assist SMEs in growing their businesses and building a solid online presence by doing this. For instance, SMEs account for over 94% of all businesses in the United Arab Emirates, and the government has introduced several programs to assist their expansion. In the emirate of Dubai, for instance, the "Dubai SME" initiative offers funding and support to SMEs. The "Abu Dhabi Catalyst Partners" program does the same for startups and SMEs in Abu Dhabi.

Segmental Analysis

The Middle East and Africa 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 5.6% 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 6.9% 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 6.5% during the forecast period.

Regional Analysis

The Middle East and Africa domain name registrar market is analyzed by country across Saudi Arabia, Qatar, and the Rest of the Middle East and Africa. The rest of the Middle East and Africa is expected to dominate the market, registering the highest CAGR of 5.9% over the forecast period.

Over 2.9 million domain names are registered in the Middle East, with 1.5 million ccTLDs, 1 million gTLDs hosted in the region, and 0.4 million gTLDs hosted outside the region.

The Internet and Communications Technology (ICT) Roadshow is making more of an effort to promote and raise knowledge of the domain name system. The local registrar market is not strong, and most major international firms do not have a significant presence in this region. This creates a significant opening for additional registrars to enter the market.

Recent Developments

• In 2021- More responsive designs and new features like e-commerce integration and SEO tools were added to ATAK Domain Hosting.

Middle East and Africa Domain Name Registrar Market Segmentation

By Type 

• Generic Top-Level Domains
• Country Code Top-Level Domains

By Deployment 

• Cloud
• On-Premises

By End-User 

• Enterprises
• Non-Profit Organizations
• Others

 By Country

• Saudi Arabia
• Qatar
• Rest of the Middle East and Africa