The increasing scarcity of IPv4 addresses has caused significant economic impacts, particularly on small businesses that rely on digital infrastructure to operate and grow. With the global pool of IPv4 addresses depleted, the cost of acquiring or leasing addresses has surged. Small and medium-sized enterprises (SMEs) find themselves particularly vulnerable to these changes, as they face rising costs, operational limitations, and competitive disadvantages.
As IPv4 address availability decreases, the prices in the secondary market for purchasing or leasing these addresses have skyrocketed. Large companies, with their greater financial resources, are often able to absorb these costs or make the transition to IPv6 infrastructure. For small businesses, however, the financial burden of obtaining IPv4 addresses is much higher. IPv4 address blocks that were once relatively inexpensive are now a significant expenditure, cutting into the already thin margins of smaller enterprises.
Key Statistics:
- According to reports, the average cost of an IPv4 address has increased from approximately $15 in 2015 to over $60 per address in 2024 . This makes it increasingly difficult for small businesses to afford the addresses they need to operate.
| Year | Average Cost of an IPv4 Address (USD) |
| 2015 | $15 |
| 2020 | $35 |
| 2024 | $60 |
With fewer addresses available for sale, many small businesses have turned to leasing IPv4 addresses as a temporary solution. While this helps mitigate the immediate need for address space, leasing adds recurring costs that can become unsustainable in the long term. IPv4 leasing has become a business model for many organizations that hold large address blocks, but for SMEs, the need to continuously pay for leases adds a recurring expense that can strain financial resources.
In addition, leasing arrangements are often short-term, which means businesses must regularly renegotiate leases, often at higher prices as demand continues to outstrip supply. This financial uncertainty poses risks to small businesses that rely heavily on stable IP address availability for growth, digital services, or e-commerce.
IPv6, which offers a nearly limitless pool of IP addresses, is widely viewed as the long-term solution to IPv4 exhaustion. However, adoption of IPv6 has been slow, especially among smaller businesses, due to the technical complexity and costs associated with transitioning from IPv4-based infrastructure. Many SMEs are hesitant to invest in IPv6 because their existing systems, software, and network configurations are built around IPv4. The costs of upgrading these systems can be significant, especially for businesses with limited IT budgets.
While larger companies may have the resources to handle these transitions smoothly, SMEs often lack the financial and technical capacity to do so quickly, leaving them more dependent on expensive and scarce IPv4 addresses.
The disparity in IPv4 access has created competitive disadvantages for small businesses. Larger enterprises with deeper pockets are better able to acquire the necessary IPv4 resources, either through purchases or leases, and they are also more capable of transitioning to IPv6. This places small businesses at a disadvantage, particularly those that depend on digital services, e-commerce, or connected devices, as they struggle to maintain adequate network resources.
For example, businesses that require multiple IP addresses to manage a range of services—such as web hosting, email servers, or cloud services—may find it difficult to scale operations without sufficient IPv4 addresses. The lack of affordable IP address space directly limits their ability to compete with larger companies that have the financial means to acquire or lease more addresses.
To cope with IPv4 scarcity, SMEs have several options:
| Strategy | Benefits |
| Leasing IPv4 Addresses | Immediate access to addresses without capital investment |
| IPv6 Transition Planning | Long-term solution that eliminates dependency on IPv4 |
| Optimizing IP Usage | Maximizes the utility of existing IPv4 resources |
The scarcity of IPv4 addresses presents significant economic challenges for small businesses. Rising costs, operational difficulties, and competitive disadvantages make it increasingly difficult for SMEs to maintain and grow their online presence. By adopting strategies such as leasing, transitioning to IPv6, and optimizing their existing IP resources, small businesses can mitigate some of the impacts of IPv4 scarcity and remain competitive in an increasingly digital economy.
Addressing these challenges is critical for the long-term sustainability of small businesses, particularly those that rely heavily on digital infrastructure and online services.
Alexander Timokhin
COO
Having a clear understanding of the different types and purposes of IP addresses
the rights to manage blocks of IP addresses are constantly faced with a dilemma.
In 2011, RIPE announced the depletion of IPv4 addresses. IPv4 addresses continue
addresses are trite. The allocation from the Primary IPv4 Registry, begun by John
unique identifier that points to each device on the internet and allows them to communicate
One of the possible ways to support the development of the IT sector is the effective
Even if you don’t plan to sell your IPv4 network, there are still ways to make
InterLIR GmbH is a marketplace solution that aims to solve network availability problems
l IPv4, where is possible only 4,3 billion combination of the numbers.
The increasing demand for IP blocks has driven up prices and transformed overused