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Executive Summary
The evolving role of the Internet has resulted in a paradigmatic shift in the way trade and
commerce is now conducted. More and more businesses are going online; the past decade has
witnessed an explosive growth in the number of businesses and individuals who have
invested in a personal webspace. As a result, demand for domain names have increased. As
per the domain name stats, domain name counts were recorded to be 408.5 million across all
top-level domains (TLDs) in May 2020. ccTLDs accounted for 37% of the total registrations
(149.6 million). Amongst gTLDs, .com and .net continue to be market leaders. They have a
combined total of approximately 183.9 million registrations. For new gTLDs, recorded
registrations were 62 million as on May 2020, accounting for approximately 15% of the total
TLDs, with popular ones being. .icu, .top, .xyz, .site and .online
On the back of a vibrant Internet ecosystem in India, thrives a rapidly growing domain name
market. Domain name registrations counts in India increased by 7.1% during the period
2016-17 and recorded a total of 5 million in May 2020. Registrations in India, however,
account for only 1.24 percent of the global market. The popularity of “.com” is also
observable in India. As a legacy TLD it commands almost 51% of the domain name market
in India followed by .in and .org with their respective share being 31.14% and 4.41%
respectively. The preferred nTLDs are .xyz and .online and .ooo. The market shares and
rankings of TLDs change over time, even though the top choices have always remained .com
and .in. The primary reason for this order of preference to is that of the domain reflecting the
activity or the business location. Further familiarity, easy recognition, trust, price
affordability and resale value of the domain also influence the decisions of registrants.
Very similar and interesting findings were revealed in the enterprise and individual survey
analysed in the report. The survey elicited notable trends in usage patterns, industry priorities,
and market perceptions, and also delved into currently underutilised, yet high potential,
categories such as Internationalised Domain Names (IDNs). Price, brand reputation,
recommendation from friends and colleagues, offering free provision of the domain along
with other services by registrars and advertisements influences registrant’s decisions of
buying domain name from a registrar. In terms of awareness, while individual and enterprises
both could recognise the ngTLDs, they were not aware about the nomenclature. Similar but
far more pronounced was the case with IDNs.
The industry trends and findings from the survey has showcased the under penetrated market
of the domain names in India. India presents a huge opportunity for the domain name market
as online businesses trickle down to Tier 2 and Tier 3 cities. However, to help this industry
achieves its maximum potential, marketing strategies of registries and registrars have to be
well aligned. India has seen a steady rise in the number of registries, registrars and resellers
that drive the supply side. While several stakeholders have entered the market, there have
also been prominent exits among registrars and several resellers have shut shop. The ability
of players to enter and exit the market is an indicator of competitiveness and is applicable
universally. The domain name market in India is deeply layered. Besides registrars, there is a
distribution network of resellers and registrants. A priori, the market seems to be competitive.