The United States domain name registrar market size was valued at USD 247 million in 2022 and is projected to reach a value of USD 357 million by 2031, registering a CAGR of 4.2% during the forecast period 2023-2031.
A domain name registrar is a company that oversees and manages domain name reservations, permits customers to buy and lease domain names for a set period, assigns I.P. addresses for those domains, and enables customers to renew, transfer, or close domain name registration.
Today's market is flooded with domain registrars who can register a domain name in the name of the proprietor of a certain commercial website. All domain registrars comply with the guidelines established by the local Registry in each jurisdiction. They must pay a fee to the Registry to obtain a domain name, which they subsequently give to a customer. Domain registrars offer various services, such as domain name registration, hosting, website creation tools, business email, etc.
The market for domain name registrars has expanded as a result of the rising popularity of the internet. The need for domain names has increased as more people use the internet for commerce, communication, and entertainment. The market for domain name registrars has been significantly influenced by the growth of e-commerce in the United States. Online retailers need a domain name to create their storefront and reach clients. Businesses like Amazon, Walmart, and Target have registered several domain names to safeguard their brands and increase online visibility. For many Americans, social media platforms have largely taken over daily life. Many businesses have aimed to create a presence on social media. It has become increasingly popular to connect with customers and market their goods and services by assisting companies in securing domain names that accurately reflect their social media profiles and sites; domain name registrars have offered a crucial service to businesses, thus, promoting the market's expansion.
The security and integrity of domain names can be compromised by cybersecurity risks like phishing, domain hijacking, and distributed denial-of-service (DDoS) attacks, which can also cause considerable reputational and financial harm to registrars and their clients. A data breach at the domain name registrar GoDaddy in 2020 exposed approximately 28,000 customers' account information. A phishing attack that deceived GoDaddy employees into giving login information for customer accounts led to the breach. The attackers then utilized this access to update DNS records and seize control of numerous domains, including the website of WordPress plugin maker CodeCanyon and bitcoin exchange Liquid. This hack serves as a reminder of the serious cybersecurity dangers that domain name registrars are exposed to and the possible consequences for both registrars and their clients. GoDaddy had to contend with a lawsuit from unhappy customers, regulatory review from agencies, including the California Attorney General's office, and loss of customer trust and brand harm.
The demand for domain names and domain registration services has dramatically expanded as more companies and individuals want to establish an online presence. This tendency will probably persist as more businesses seek to increase their online presence. The COVID-19 epidemic, more e-commerce, digital marketing, and remote employment have all contributed to the rising demand for online presence in the U.S. Having an online presence is crucial for small businesses in the U.S. to stay competitive and attract a larger audience. Over 30 million small businesses operate in the United States, according to the Small Business Administration. Many of these companies have turned to domain name registrars to get domain names that accurately represent their brands and make them stand out online
The United States 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 3.6% 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 4.8% 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 4.5% during the forecast period.
Internet usage has heightened public concern about the current method of registering and administering domain names, particularly those with well-known and memorable names. Businesses and individuals who want the United States Association on their website frequently utilize it. As it conveys the identity and nature of the company, the market is among the most well-known domain names in the United States. For instance, ‘ Market' appears in the domain names of nearly 167,000 American companies. The American government passed the Anti-Cybersquatting Consumer Protection Act to combat the cybersquatting of domain names, including.com and.us. By filing for trademark protection, a domain name is protected. A domain name may be registered with the USPTO as a trademark or service mark to specify the source of provided products or services. However, given how unpredictable the industry is, these regulations will stay the same in 2020.
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