The United Kingdom domain name registrar market size was valued at USD 32 million in 2022 and is projected to reach USD 51 million by 2031, registering a CAGR of 5.2% during the forecast period 2023-2031.
Domain registrars are essential to the management of domain names. A non-profit body known as ICANN (International Corporation for Assigned Names and Numbers) that effectively creates policies, chooses domain extensions, maintains DNS, I.P. addresses, etc., is responsible for accrediting domain registrars. The duties of a domain registrar extend beyond simply offering domains. Additionally, it provides its clients with convenience and security services.
The number of online companies has significantly increased over the past several years, which is anticipated to continue. As a result, there is an increase in demand for domain names from companies looking to build an online presence and engage with customers. The percentage of retail purchases conducted online in the U.K. hit a record high of 36.2% in November 2020, up from 19.1% in February of the same year, according to a recent study by the Office for National Statistics (ONS). As businesses look to establish their online presence and sell their goods and services to customers, the rise in online retail has increased the demand for domain names. E-commerce sites like Amazon and eBay are also driving the market. These platforms enable companies to sell online products without requiring a separate website. As it gives them more control over their online presence and enables them to establish a stronger brand, many businesses still favor having their domain name and website.
When a cybercriminal acquires unauthorized access to a domain name and modifies its registration information, they are said to be engaging in domain name hijacking. Businesses may suffer severe reputational and financial losses as a result of this. Numerous high-profile domain name hijacking incidents have occurred in the U.K., which have prompted businesses to worry about the security of their online assets. Up to 22,000 users were potentially impacted by a data breach in 2019 at the U.K. domain name registrar Nominet. A few of Nominet's systems were compromised in the incident, allowing an unauthorized entity to access client contact information and encrypted passwords. All impacted customers were informed by Nominet, who also gave them password reset instructions. The incident made it clear how crucial it is to have robust cybersecurity procedures to guard against data breaches.
The expansion of small and medium-sized businesses (SMEs) in the U.K. market offers domain name registrars numerous chances to grow their clientele. The growth of SMEs has increased demand for domain names, which has caused the number of domain names registered in the U.K. to rise significantly in recent years. Additionally, due to increased competition among domain name registrars, prices for domain name registration and other services are now competitive. Domain name registrars now have more options to expand their businesses by providing value-added services like website design, e-commerce solutions, and marketing services. This is due to the expanding SME market. Domain name registrars have created new tools and technologies to assist SMEs in managing their online presence, leading to innovation and technology development in the sector. As more SMEs enter the market, for instance, there is a rise in the demand for domain names to create their online presence. As a result, the number of domain name registrations in the U.K. has significantly increased in recent years. According to Nominet's annual report, the number of domain names registered in the U.K. increased by 2.8% in 2020, with SMEs contributing significantly to this expansion.
The United Kingdom domain name registrar market is segmented based on type, deployment, end-user, and country.
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 4.7% 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 5.9% 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 5.6% during the forecast period.
The European Commission anticipates canceling all 300,000. E.U. domains with U.K. registrants after the United Kingdom leaves the European Union. Over 317,000. E.U. domains, or about ten percent of the registry's total, are registered in the U.K., according to the currently available data. Additionally, businesses use. The cancellation of these domains would greatly impact E.U. and EURid. Several competitors compete for market share in the fiercely competitive U.K. domain name registrar market. However, a small number of significant companies with a sizable market share dominate the sector. With over 13 million domain names already registered, Nominet, for instance, is the biggest domain name registrar in the U.K. As of February 2021, 13.6 million domain names were registered in the U.K., according to Nominet. This shows the rising demand for domain names in the U.K., a significant increase from 10.9 million in 2016. Regarding market trends, there is an increasing emphasis on technological advancement and innovation, with domain name registrars providing fresh tools and services to assist companies in managing their online presence. Furthermore, there is a greater focus on cybersecurity, with domain name registrars providing strong security measures to shield individuals and businesses from online threats.
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