The introduction of new gTLDs promotes competition and the global domain name market enters a period of adjustment

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10 Apr 2025 11:49:58 AM
As a large number of new gTLD domain names expire in the first year of registration, the price of domain name holding will increase significantly, and some domain name registrants will choose not to renew. Since the second half of 2017, the

As a large number of new gTLD domain names expire in the first year of registration, the price of domain name holding will increase significantly, and some domain name registrants will choose not to renew. Since the second half of 2017, the bubble has been further squeezed out, and the scale of new gTLD registration will shrink. It is estimated that by December 2017, the number of new gTLD domain name registrations worldwide will be 23.45 million, a year-on-year decrease of 14.8%.

Since October 2013, more than 1,200 new gTLDs applied by various parties around the world have been approved by ICANN and incorporated into the root. As of June 2017, the new gTLD application approval process has come to an end, 866 new gTLDs have started commercial operations, and the number of new gTLD domain name registrations has reached 26.337 million, returning to normal development from the explosive growth in 2015 (190.8%) and 2016 (143.4%), with the growth rate falling to 14.9%. The new gTLD market size accounts for 7.8% and 13.5% of the global domain name registration market and the global gTLD domain name registration market, respectively, up 4.2 and 7 percentage points from 2015.

As a large number of new gTLD domain names expire in the first year of registration, the price of domain name holding will increase significantly, and some domain name registrants will choose not to renew. Since the second half of 2017, the bubble has been further squeezed out, and the scale of new gTLD registration will shrink. It is estimated that by December 2017, the global new gTLD domain name registration volume will be 23.45 million, a year-on-year decrease of 14.8%.

The introduction of new gTLDs has promoted market competition. As of June 2017, the growth rate of traditional gTLD7 and ccTLD domain name registration volume has further declined, by 0.5% and -3.8%, respectively, and the market size has reached 169 million and 144 million, accounting for 49.7% and 42.5% of the global domain name registration market.

The slowdown in the growth of traditional top-level domains and the decrease in the number of new gTLD domain name registrations drove the global gTLD domain name registrations to grow by only 2.2% year-on-year to 195 million; the total number of global domain name registrations fell by 0.4% year-on-year to 339 million, a slight increase of 288,000 from the end of 2016. It is estimated that by December 2017, the global domain name registrations will be 339 million, a slight increase of 0.1% year-on-year; among them, the gTLD and ccTLD domain name registrations will be 194 million and 145 million respectively.

Global domain name market concentration weakened

As of June 2017, the top ten top-level domains in terms of global domain name registrations include 4 traditional gTLDs and 6 ccTLDs, and no new gTLDs are on the list. However, the overall rapid growth of new gTLDs has caused the share of the top ten top-level domains to drop by 0.8 percentage points year-on-year to 72%, a decrease of 3.7 percentage points from 2015.

In addition to the free top-level domain ".TK", ".COM" and ".CN" still rank first and second in the global domain name registration market. Although their share of the global domain name market increased by 0.7 and 0.6 percentage points respectively, reaching 38.9% and 6.3%, the year-on-year growth rate of domain name registrations of the two top-level domains (1.4% and 9.7%) decreased by 2.3 and 16.2 percentage points respectively compared with 2016, and decreased by 5 and 37.8 percentage points compared with 2015. It can be seen that the introduction of new gTLDs has promoted market competition, and its rise has weakened the trend of concentration of top-level domain distribution.

In addition, as of June 2017, the top five top-level domain name registrations in the global new gTLD domain name registration market accounted for 51.6% of the new gTLD domain name registration market, a year-on-year decrease of 1.2 percentage points. The top ten new gTLD domain name registrations accounted for 63.9% of the new gTLD domain name registration market, with a growth rate of 5.1 percentage points higher than the average growth rate of the new gTLD domain name registration market, and the market share increased by 2.7 percentage points year-on-year.

The global domain name market is concentrated in different regions

Due to the natural correlation between domain name services and the development of the Internet, the development of domain name services in countries or regions with developed Internet is relatively high, and the scale of domain name services is also relatively large.

From the distribution of domain name registration volume8, global domain name registration is mainly concentrated in the United States, China, Germany and other countries. Emerging economies such as China, India and Brazil continue to play an important driving role in the development of global domain names. Among them, China is the world's second largest domain name registration market and gTLD market, and the largest new gTLD market and ccTLD market.

As of June 2017, the top five countries in the global domain name registration market9 are still the United States, China, Germany, the United Kingdom10 and Canada, accounting for more than 60% of the total global domain name registrations, and the degree of concentration has further increased; India continues to rank seventh.

From the distribution of domain name practitioners, the introduction of new gTLDs has made the geographical distribution of domain name registries and domain name registration service agencies more diverse, covering more than 60 countries and regions in five continents of North America, Europe, Asia-Pacific, South America and Africa, but the United States still has an absolute advantage.

Among them, the top five countries in terms of the number of gTLD domain name registration agencies are the United States, the United Kingdom, Ireland, Japan and Germany, with a total of 898 agencies, accounting for 72% of the total number of gTLD domain name registration agencies (1,248) approved by ICANN; the number of domain name registration agencies from the United States accounts for 48.7%, and my country and India rank seventh and twelfth respectively.

The top five countries and regions in terms of the number of gTLD domain name registration service agencies are the United States, China, Canada, Germany and the United Kingdom, with a total of 2,842 agencies, accounting for 89.5% of the total number of gTLD domain name registration service agencies (3,177) certified by ICANN; the number of domain name registration service agencies from the United States is as high as 2,535, accounting for 79.8%, the same as in 2015; my country and India rank second and sixth respectively.

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