Is IPv4 Availability Becoming Scarce in 2024?

Due to a two-month delay of ARIN providing IPv4 data, our team has been eagerly waiting to analyze the latest transfer statistics which have finally been released! The good news is that the market has continued to stabilize and even outperformed the average transfers requests from both 2022 and 2023.

In recent years, the IPv4 market has been on a relentless upward trajectory, defying expectations, and confounding skeptics. Despite occasional setbacks and bouts of volatility, the overall trend has been undeniably bullish. But what exactly is driving this sustained optimism, and what does it mean for the network infrastructure industry?

In this blog post, we will investigate factors such as the continued bullishness of the stock market while also exploring what Internet service providers, hosting companies and cloud providers should keep in mind as they navigate these constantly shifting market conditions. For starters, at the heart of the IPv4 market’s bullish run are strong underlying fundamentals. Factors such as strong economic growth, network expansions, IPv4 scarcity, and access to government subsidies collectively contributed to driving IPv4 prices higher. Additionally, technological advancements with The Internet of Things, Artificial Intelligence, and rural network development initiatives along with the lack of IPv6 adaption helped to fuel long term market confidence. Let’s break down the numbers and take a deeper dive.

As of January, February, and March in 2024, IPv4 transfer requests have been 155, 139 and 157 respectively for each month.  With an average of 150 transfer requests per month in 2024, the industry has seen a +6% increase over 141 averages in 2023 and a +12% increase over the 134 averages in 2022.  The current trend seems to be indicative of the bullish market we experienced in 2021, with an average of 156 transfer requests per month. While we occasionally compare the IPv4 industry to normal markets, it is important to remember that not all markets are the same.  IP addresses are unique because offer true utility in today’s growing technological landscape.

This asset class is designed to keep the global economy growing at the rapid rates we have become accustomed to over the years. The undeniable rarity and the fact that availability of IPv4 continues to deplete at a rapid rate year over year, is an indicator that demand will rise once again. Aside from a temporary pullback in IPv4 prices, the value will most likely increase again purely based on the fundamentals of decreased supply and increased demand.  The question then becomes, when exactly will the pendulum swing to even higher prices?