How Fluctuating Demand Might Affect IPv4 Prices

18 November 2024

Where is the IPv4 Market Headed?

The IPv4 address market continues to experience significant fluctuations throughout 2024, with periods of both increased demand and relative downturns. Despite this, the overall trend has been notably positive when compared to the previous 2 years. This shift highlights several factors driving the demand for IPv4 addresses, as well as challenges and opportunities that carriers, service providers, clouds and other types of businesses face in the ongoing transition to IPv6.

At the start of the year, demand for IPv4 addresses surged, particularly with organizations looking to acquire small to mid-sized IPv4 subnets. As more companies expand their digital footprints globally, the need for IPv4 addresses to support Internet of Things (IoT) devices, new mobile networks, and regional expansion efforts has spiked. However, this demand hasn’t been consistent. Economic uncertainty and oversupply of available IPv4 addresses, led to dips in the market throughout the year. Throughout this however, prices stayed consistent and seem to be the rise.  Let’s take a deeper dive into the transfer request data to shed some light on the market.

October had the highest number of transfer requests of the year at 172.  In fact, this is the highest demand we have seen since March of 2022. As compared to the consistent average of 143 transfer requests per month in 2024, October experienced a significant increase of +20%.

The ongoing scarcity of IPv4 addresses has maintained upward pressure on prices, pushing companies to seek out and purchase available blocks before they are gone. As a result, the demand for IPv4 addresses has increased year-over-year compared to 2023. This trend reflects the growing recognition that IPv6 adoption, while critical for the future of the internet, is still a long-term process. Many businesses still rely on IPv4 to maintain their operations, particularly in regions where IPv6 infrastructure is less developed.

Looking ahead, the demand for IPv4 is expected to remain strong, albeit with ongoing fluctuations. Companies are investing in IPv4 addresses while they continue to plan to dual stack with IPv6 in the long-term. For now, however, the IPv4 market is in a positive position, benefiting from both the lingering reliance on IPv4 and the rising costs of obtaining these increasingly scarce resources.