IP address market prices are estimated to increase by as much as 100% in the next five years, turning the remaining IPv4 resources into a tradable commodity and creating a newfound demand for IP leasing services.
The growth of prices in the IP market is a result of rapidly depleting IPv4 addresses, while IPv6 is not yet market-ready. Throughout last year, the cost of a single address has risen by 35%, reaching prices up to $20 to $25 per IP.
“Since the IPv4 market is scarcity-driven, it poses a real challenge for businesses looking to scale their operations, especially in foreign markets,” says Vincentas Grinius, CEO of Heficed. “The available resources are rapidly depleting. If the trend continues, over the next five years we could see a drastic increase in IP pricing, perhaps even doubling its current market value.”
The shortage of IPv4s and continuously increasing prices has raised the public’s demand for IP leasing services. As acquiring the necessary IP addresses can be an expensive endeavor, leasing can provide a cost-efficient and timely solution for businesses seeking to expand their services into new target markets.
According to Grinius, there are around 822-million unused IP addresses. “In reality, there are millions of unused IPs, owned by corporations that fail to recognise its current market value.
“IPv4s will become irrelevant in the next decade or so, as the market moves to IoT and IPv6 integration, so there’s a limited window to monetise owned resources. By leasing IP addresses for as little as $2.50 per year, companies could earn up to 15% return on investment,” he adds.
Leasing could also slow down the accelerating inflation by enabling previously mismanaged IPs to re-enter the market. Simultaneously, this could speed up internet penetration, which was impacted by high IP prices.