Rising IPv4 Address Prices Create Opportunities for Industry Players

Four years after ARIN run out of its IPv4 address supply, the prices of these addresses are at a never-seen-before high. Thanks to the secondary market, the high demand for IPv4 addressesand the relative scarcity of these addresses, the prices have been on an upward trend lately.

Almost 45 million addresses were transferred last year, which is the highest figure since the secondary market started. IPv4 supplies in regional registries namely RIPE, APNIC and ARIN depleted and in others are low. So, 2019 appears to be poised to outperform last year with regards to the number of addresses changing hands. The price for each address is rising too.

The average rate of an address last year was about $17, a bigger number than the per address price of $6 in 2015. Pricing in this market is a different ball game from other fields. Industry experts reckon that the average rate last year was already higher than the earlier years, but it is yet to peak. Regional internet registries and industry experts predict that $35 might be the rate of one address down the road.

The exhaustion plays a big part in these recent developments, but other factors have to be considered as well. Companies that work in the cybersecurity and cyber privacy and business intelligence segments have been growing. So, a steady IPv4 address supply is needed constantly, and this will continue to be the case.

The IPv4 market is by and large scattered throughout a variety of brokers, so the trade does not work as conveniently as picking fresh produce at a supermarket. Nonetheless, IPv4 brokers make the buying and selling processes easier for companies in need of the addresses and those that want to free up their surplus stock. They create value for these addresses, and without their expert assistance, the market would not function the way it is today.

As per the latest information, over 800 million unused IPv4 addresses are available. Regional internet registries depleted their supply, and many providers own these addresses do not use them. So the industry needs a transparent platform on which the owners could monetize their resources that remain unused.

The comprehensive migration to the sixth version of IPv6 is pending even today, but the secondary market is busy with the trade not showing any signs of declining. Growing demand, coupled with decreasing supply, makes opportunities for address owners, brokers and progressive IP-related platform creators.


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