Global domain market set to surge to $3.47 billion by 2032, says Hostinger report

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The global domain name market is set to grow from $2.35 billion in 2023 to $3.47 billion by 2032, according to a report by Hostinger.

The growth is attributed to the rising demand for strategic branding and the adoption of new technologies, as domain names increasingly play a critical role in driving business and economic growth.

Hostinger’s report emphasizes the evolving significance of domain names, which have transformed from functional tools into valuable strategic assets in the digital economy.

Aurimas Gudavičius, Head of SEO at Hostinger, said, “With the emergence of Web3, blockchain domains, and decentralized web models, the digital landscape will continue to evolve, offering new opportunities for investment and innovation.”

Premium domain names are not only a lucrative investment but also an economic boon for nations leveraging their country-code top-level domains (ccTLDs).

In 2023, the .ai domain generated $32 million for Anguilla, a small Caribbean island with 15,000 residents, contributing nearly 20% of the nation’s government revenue. Similarly, Tuvalu’s .tv domain accounts for about 8.4% of its government income.

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Businesses, too, are feeling the pressure to secure premium domain names, facing an average of more than 35 impersonation attempts per brand. This has made domain ownership both a defensive strategy and a long-term investment.

The competition for premium domains has also led to multimillion-dollar transactions, such as the $15.5 million sale of Chat.com in 2024, further underscoring the increasing value of digital real estate.

The report traces the historical evolution of the domain name market, noting how early sales like Business.com for $7.5 million in the late 1990s set the stage for the industry’s current billion-dollar valuation.

Business.com’s value is now estimated at $350 million, reflecting the growth of the digital economy and the rising demand for premium web addresses.

However, geopolitical issues present potential challenges to domain stability. The recent transfer of the .io domain from the UK to Mauritius has raised concerns about the future of this widely used extension.

The possible removal of the “IO” country code by the International Organization for Standardization (ISO) could disrupt tech companies reliant on .io domains, forcing them to find alternatives.

The report also highlights emerging trends in the domain name market, such as domain hacks and personalized domains that allow businesses to incorporate their brand names into web addresses.

Despite these creative innovations, the rise of lookalike domains poses significant cybersecurity threats, as scammers exploit new top-level domains (TLDs) to mimic trusted brands.

As internet access continues to expand globally, particularly in regions with rapid digital growth, the demand for domain names and hosting services is expected to rise.

Hostinger’s research, which combines market analysis, expert interviews, and reviews of industry reports, underscores the vital role of domain names as drivers of innovation, economic development, and competitive advantage in the digital age.