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The landscape of Internet Protocol version 4 (IPv4) addresses is dynamic and complex, reflecting a world where digital real estate is as valuable as its physical counterpart. In 2024, several notable market trends have emerged, shaping investment strategies and operational decisions across the digital spectrum.
The IPv4 market has witnessed significant shifts since the beginning of 2023, particularly in the cost associated with different categories of address blocks. Notably, there has been a marked decrease in the price of address blocks, specifically those ranging from /24 to /20. This shift can largely be attributed to an oversupply, triggered by an influx of Local Internet Registry (LIR) companies entering the market.
Address Block Size | 2022-2023 Price Range/Address | 2023-2024 Price Range/Address | Trend |
/15 | $51 – $57 | – | – |
/16 | $52 – $56 | $50 – $51 | ↓ |
/17 | $47 – $52 | $34 – $39 | ↓ |
/18 | $40 – $50 | $34 – $43 | ↓ |
/19 | $40 – $52 | $30 – $41 | ↓ |
/20 | $35 – $52 | $29 – $42 | ↓ |
/21 | $38 – $53 | $28 – $50 | ↓ |
/22 | $35 – $55 | $27 – $46 | ↓ |
/23 | $38 – $58 | $28 – $47 | ↓ |
/24 | $40 – $60 | $29 – $52 | ↓ |
The significant drop in prices for IP address blocks is a direct result of an oversaturated market, dominated by LIRs offloading excess inventory. This scenario presents unique investment opportunities, particularly for savvy investors and businesses looking to capitalize on lower costs for short-term needs or leasing strategies.
With the current market dynamics, investing in IP address blocks at reduced prices and leasing them could yield significant returns, especially considering the high rental costs. However, potential investors should navigate this terrain with caution, understanding that the IPv4 market’s volatility is influenced by numerous factors, including economic conditions and technological shifts.
The IPv4 address market’s volatility underscores the importance of a nuanced approach to investment and operational strategies. Stakeholders must stay informed about technological changes, regulatory policies, and market supply-demand dynamics to adapt and thrive.
For businesses looking to meet growing IP address demands without substantial capital investment, leasing emerges as a viable and cost-effective solution. The current market conditions make leasing significantly cheaper than purchasing, offering a flexible and scalable approach to digital expansion.
As the IPv4 market continues to evolve, businesses and investors alike must stay agile, informed, and strategic. The trends of 2024 have brought to light the intricacies of supply and demand, the impact of market saturation, and the potential for innovative investment strategies. By understanding these dynamics and remaining vigilant to shifts in the market, stakeholders can navigate the complexities of IPv4 pricing effectively, ensuring their digital assets align with their long-term goals and operational needs.
In conclusion, whether you’re considering investment opportunities or exploring operational strategies, the key to success in the IPv4 market lies in a deep understanding of its trends and an adaptive approach to its challenges.
Alexander Timokhin
COO