Procurement Market Intelligence Report
Internet Domain Names
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Internet Domain Names Global Overview
Definition
Summary
Internet domain name registrars assign websites unique domain names in accordance with their customers’ preferences, given that the requested name is not already registered. The Internet Corporation for Assigned Names and Numbers (ICANN) accredits registrars to assign generic and country-code top-level domain names. This report focuses mainly on initial domain name registration, although the domain aftermarket is included as well. Suppliers in the market are domain registrars that also often provide web hosting and other IT solutions. Buyers of internet domain names can range from individuals to large corporations. This report does not cover website creation tools or services.
This Report Includes:
- Initial Domain Name Registration
- Domain Aftermarket
Not in this Report:
- Website Creation Tools
- Website Creation Services
Global Internet Domain Names Procurement Trends
Discover the top international trends affecting procurement in the global Internet Domain Names market.
Warning Trends
United States announces additional tariffs on China
- In February 2025, the United States announced 10.0% tariffs on imports from China. The tariffs took effect on February 4, 2025.
- The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions.
- In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars. The tariff executive orders indicate retaliatory tariffs could lead to further escalation in rates.
- Providers in this market rely on inputs often sourced from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
United States postpones plans for sweeping tariffs on Canada and Mexico
- In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico.
- Though initially set to take effect on February 4, 2025, the implementation of tariffs on Canada and Mexico has been postponed 30 days to allow for further negotiation.
- The tariff plan initially proposed by the US applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place, with limited exceptions.
- Providers in this market rely on input costs often sourced from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
Positive Trends
The DOJ proposes Google breakup in latest tech antitrust action
- In August, Google was found guilty of operating as a monopoly and engaging in anti-competitive practices through the operation of its search engine business.
- In response to this ruling the Department of Justice (DOJ) has stated it will seek a breakup of Google’s business segments, among other similarly harsh penalties. While the actual penalty Google receives must be approved by the judge, the DOJ’s proposed penalties signal a zero-tolerance policy toward tech monopolies.
- During the last few years, the Federal government has significantly increased its enforcement actions against major technology companies in an effort to contest the high level of market share concentration in this sector.
- These actions include high-profile anti-trust lawsuits against Amazon, Apple, and Meta, in addition to the case against Google. Consequently, the results of these lawsuits could significantly affect the structure of a wide range of tech markets.
Global Internet Domain Names Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1Europe | 1,025 |
| #2Oceania & Southeast Asia | 970 |
| #3India | 955 |
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Geography Drilldown - US
Average Cost of Internet Domain Names
United States
2025 Market Pricing$2.00 to $XX.XX
per domain name per yearAverage Price
Prices in the Internet Domain Names market range from $2.00 to $XX.XX, depending on Top-level Domains (TLDs) Popularity, Security Services and Customer Service. For example, lower prices are associated with Less popular TLDs, .info and .biz, whereas higher prices are associated with More popular TLDs, .com and .org.
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Internet Domain Names Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Internet Domain Names market, prices in the US have grown 1.3% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
1.3%
Compound Annual Growth RateUnited States (2025-2028)
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Internet Domain Names
Total cost of ownership is High in the Internet Domain Names market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Downtime may raise the total cost of ownership unexpectedly.
Negotiated Before
Set Up Fees
Billed During
Additional Fees
Unforeseen
Downtime
Hidden Fees
Buyer Power in Procurement Negotiations
In 2025, buyer power amounts to -0.0 in the United States. Buyer power is most positively impacted by Price Driver Volatility. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer Manufacturers
- Internet Service Providers
- Software Publishers
2nd
Tier Suppliers
- Semiconductor & Circuit Manufacturers
- Wired Telecom Carriers
- Telecom Networking Equipment Manufacturers
- Intellectual Property Licensing Firms
Biggest Internet Domain Names Suppliers in the US by Revenue
The largest Internet Domain Names vendors by revenue in the US are Webcentral Group Limited, Web.com Group Inc. and DreamHost LLC. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Namecheap Inc. | Global | Phoenix, AZ | 501-1,000 | 15-20 | ||||
| Godaddy Inc. | Global | TEMPE | 1,001-10,000 | 25+ | ||||
| Alphabet Inc. | Global | MOUNTAIN VIEW | >10,000 | 5-10 | ||||
| Donuts Inc. | Global | Bellevue, WA | 101-250 | 5-10 | ||||
| Shopify Inc. | Global | OTTAWA | >10,000 | < 5 | ||||
| United Internet AG | Global | Montabaur, DE | 1,001-10,000 | < 5 | ||||
| CentralNic Group PLC | Global | London, UK | 1,001-10,000 | < 5 | ||||
| Webcentral Group Limited | US | < 5 | ||||||
| Web.com Group Inc. | Global | Jacksonville, FL | 1,001-10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Internet Domain Names market is 4.8% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Larger companies can spend large sums on advertising through media outlets, such as prime-time television, and will continue monopolizing the casual domain name user market, thus mitigating the increased exposure of smaller registrars. Overall, this reduces competition in this market, thereby hindering buyers.
Providers’ financial risk largely stems from the increasing risk of hackers disrupting services through malicious means. However, vendors in this market generally have a low level of risk due to the lack of competitive substitutes and sustained demand for internet domain names.
Supply chain risk for internet domain names is low due to this market's lack of physical inputs. This means more consistency and reliability in the availability of domain names.
The United States is a net importer of computers, meaning it imports more computers than it exports. This fact impacts US buyers’ procurement strategies in the market by encouraging them to source globally and engage in trade relationships with foreign manufacturers to fulfill their demand.
Supplier Information
Namecheap Inc.
Namecheap Inc. is a private company operating globally in the information sector. The company's offerings include internet domain names. Founded in 2000, the company is currently headquartered in Phoenix, Arizona, United States of America with an estimated 950 employees. Subscribe to learn more
Godaddy Inc.
GoDaddy Inc. is a domain name registration provider to small businesses, organizations, web design professionals, domain investors, and individuals. It enables its customers to establish a digital presence, connect with their customers, and manage their ventures. It organizes its business into two segments:... Subscribe to learn more
Donuts Inc.
Donuts Inc. is a private company operating globally in the information sector. The company's offerings include internet domain names. Founded in 2011, the company is currently headquartered in Bellevue, Washington, United States of America with an estimated 175 employees. Subscribe to learn more
Alphabet Inc.
Alphabet Inc. is an Internet technology company offering various products, services, and solutions spanning computing, search, cloud, and online advertising technologies. It organizes its business into three segments: the Google Services Segment, which includes ads, Android, Chrome, hardware (including Fitbit,... Subscribe to learn more
Tucows Inc.
Tucows Inc. is a public company operating internationally in the information sector. The company's offerings include internet domain names. Founded in 1993, the company is currently headquartered in TORONTO M6K 3M1 with an estimated 1020 employees. Subscribe to learn more
DreamHost LLC
DreamHost LLC is a private company operating globally in the information sector. The company's offerings include internet domain names. Founded in 1997, the company is currently headquartered in Brea, California, United States of America with an estimated 175 employees. Subscribe to learn more
Web.com Group Inc.
Web.com Group Inc. is a private company operating globally in the information sector. The company's offerings include internet domain names. Founded in 1997, the company is currently headquartered in Jacksonville, Florida, United States of America with an estimated 5500 employees. Subscribe to learn more
Webcentral Group Limited
Webcentral Group Limited is a private company operating in the information sector. The company's offerings include internet domain names. Founded in 2018, the company is currently headquartered in United States of America. Subscribe to learn more
CentralNic Group PLC
CentralNic Group PLC is a public company operating globally in the information sector. The company's offerings include internet domain names. Founded in 1996, the company is currently headquartered in London, Saarland, United Kingdom with an estimated 5500 employees. Subscribe to learn more
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Procurement Management KPIs for the Internet Domain Names Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Customer Retention Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Accessibility and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time | Total resolution time Number of resolved tickets | The average resolution time represents the average amount of time it takes to resolve a support ticket. The average resolution time can be used to determine a company’s support responsiveness. The average resolution time indicates the vendor's responsiveness and effectiveness in addressing critical issues relating to the website's uptime and security. | |
| Customer Retention Rate | Number of customers at start of period Number of customers added within period | The customer retention rate represents the number of customers a company is able to retain over a set time frame. The customer retention rate can be used to determine the extent to which a company’s customer base fluctuates over time. A declining customer base may indicate a greater frequency of disputes with customers relating to service performance or price escalations. | |
Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Security
Have companies using your services ever been victim to malicious domain rerouting? If so, how did you assist in resolving the situation?
What past incidents have you had and how were they resolved?
Customer Service
How do you evaluate customer satisfaction and how frequently? Is this made available to clients?
How have you changed your service in response to customer complaints and suggestions?
Value-Added Services
What type of web-hosting deals can you provide with the purchase of a domain name?
What additional features/services do clients purchase most often?
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Internet Domain Names RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization.
Buyers should explain the purpose of the new website in the context of their organization.
Statement Of Need
Buyers should specify the domain desired (e.g. .com, .co or .org).
Buyers should detail any desired features, such as support for internationalized domain names or second-level domain registration.
Project Budget
Buyers should state their budget for internet domain registration.
Buyers should indicate if they are purchasing any additional features or services and their respective budgets.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
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- Geographic wage rates
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- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
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