Businesses' mounting demand for internet presence has supported sales growth
Los Angeles, CA (PRWEB) May 29, 2013
The Web Domain Name Sales industry has thrived over the five years to 2013, despite a spending slowdown during the recession. Businesses' mounting demand for internet presence, coupled with individuals' increasing desire for personal web space, has driven revenue growth over the period. Companies choose to establish web domains as part of their branding and market expansion strategies. Since 2008, demand from the Internet Publishing and Broadcasting industry (IBISWorld report 51913b) has climbed at an annualized rate of 9.4%. With the percent of services conducted online jumping from 8.5% of all services in 2008 to 9.8% in 2013, says IBISWorld industry analyst Nikoleta Panteva, “the need for online presence has continuously strengthened.” As a result, industry revenue is expected to grow at an average annual rate of 2.9% to $3.3 billion by the end of 2013.
Moreover, “individuals have been increasingly registering personal domain names over the past five years,” says Panteva, “because personal websites can serve as displays of work or as a portal to a small business.” Also, as personal disposable income levels have grown (albeit slowly), demand for personal domain name registrations has increased.
With recently announced expansion of web domain name suffixes, the Web Domain Name Sales industry is set to flourish even further over the five-year period to 2018. In 2013, the Internet Corporation for Assigned Names and Numbers (ICANN) announced the introduction of new suffixes that will be rolled out throughout through the rest of the year. This move essentially increases industry operators' available inventory, creating potential for higher sales volumes and stronger revenue growth. Coupled with mounting demand from internet publishing and broadcasting and growing demand for personal domain names, industry revenue is anticipated to continue growing over the five years to 2018.
On the contrary, smaller or aspiring industry operators may not benefit from the opportunities that lie ahead of the Web Domain Name Sales industry. Large companies like GoDaddy.com will be better able to leverage their brand recognition and resources to expand their market presence, while less prominent companies struggle to compete in the increasingly saturated environment. Smaller industry leaders include eNom Inc., Network Solutions LLC and Tucows Inc. For more information, visit IBISWorld’s Web Domain Name Sales in the US industry report page.
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IBISWorld industry Report Key Topics
This industry sells internet domain names. Companies in this industry do not provide internet access services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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