STATE OF DOMAIN NAME INDUSTRY IN INDIA 2018 - This is based on data for 2017 - India Domain Name ...
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STATE OF
DOMAIN
NAME
INDUSTRY
IN INDIA
2018
This is based on data for 2017.
This report covers all the key aspects of Domain Name Industry in
India and its evolution in the last 18 months
A sequel to our 2016 study on State of the Domain Name Industry in India
Scope of Research
Key Industry Domain Name Key Industry
Drivers Market Size & Growth Players
Regional Domain Name SMB
Trends Solutions & Growth Preferences
Domain Name Industry forms one of the most integral elements of the growing Internet ecosystem in the country.
2
A healthy mix of Expert Discussions & Detailed Research has been
done to decode the Domain Name Industry in India
Research Methodology
Scanned 1.98 Mn domain names1 to check
usage by products, penetration by states, etc.
Secondary research on ICANN, Company
Websites (Registry & Registrars), RegistryOwl,
InternetliveStats, nTLDstats, and so on
In depth discussions with 10+ industry experts
Detailed interactions with 200 SMBs across
major metro cities
Note: 1. Considered domain names that were created and were active as of 31st Dec 2017 3
Internet continues to transform the Business and Consumer
landscape, backed by a robust Domain Name System
Inception Exploration Evolution (Phase 1) Evolution (Phase 2)
Social Media
Shift from basic Inception & privatization of Online shopping introduced Thriving App Economy
machine-to- machine Domain Name Industry Democratization of search Domain name entering into
interactions to network of Global Internet Users: country-specific languages
networks, also called as Global Internet Users: Global Internet Users:
0.8 Bn (2003)
Internet 0.01 Bn (1993)
4.0 Bn (2018)
Apranet Domain Name System originates Amazon.com Facebook, YouTube, Uber,
1969 1983 1994 WhatsApp, Chrome
2004-09
First four IDN ccTLDs2 implemented
Yahoo, eBay
Egypt, Saudi Arabia, UAE, & Russia
FTP & TCP/IP Firstever.com registration. 1995
2010
1973 First registered CcTLD1 - .us, .uk,.iL
1985 1500+ valid TLDs
Google Over 3.5 Mn apps on PlayStore
1998 2017
Ethernet WWW Domain Providers (Registry) 4.01 Bn Global Internet Users, up 7% YoY
1976 1990 & Domain Seller (Registrars) 3.2 Bn Active Social Media Users, up 13% YoY
businesses separated
5.1 Bn mobile phone users, up 4% YoY
1999 1.77 Bn people bought consumer goods via
Internet Domain Name System privatized Skype, WordPress eCommerce
1982 1993 2003 2018
Sources: Secondary Research, Zinnov Analysis
Notes: 1. Refers to country-level top-level domain such as .in, .us, .uk, etc. 4
2. IDN ccTLD refer to country-level domain extension in non-latin languages
Growing Internet Penetration to Power the Technological
Revolution in India
Infrastructure Enablers Domain Name Consumers
Internet Users Booming Tech Start-ups & Growing Online Commerce
Government Initiatives
SMB Ecosystem
Flagship programmes being run by the Increasing Internet users and ease of Expanding tech start-up ecosystem Internet has created a new economy;
government to hasten the adoption of access, resulting in higher demand and 50 Mn+ SMBs would form the key several businesses are going online to
digital services and utilization of digital services base driving digitalization of services acquire customers and retain them
Digital Spend Rapid Growth of Internet
Surge in SMBs Rising Online Commerce
Users (15% CAGR)
Spend on Digital Amazon, an eCommerce
~55 Mn
USD 19 Bn by the Indian 730 Mn marketplace, has over 0.3 Mn
government 481 Mn
~51 Mn sellers in India, adding 0.1 Mn
Development of 100 smart sellers in less than a year
cities 2017 2020(E)
2015 2017
Tech-influenced SMBs to
Zomato, an online restaurant
Broadband Access to 200 Mn grow from 55% in 2017 to discovery and food ordering
rural Indians in 0.25 Mn 90% in 2020 platform, has a partner network
villages Smartphone Users growth of more than 25,000
@ 23% CAGR restaurants
0.5 Mn WiFi hotspots
providing broadband access to SMBs have over 2Mn pages
2017 350 Mn
50 Mn citizens in rural India Rising # of Start-ups on Facebook in India
2020(E) 650 Mn
Free WiFi hotspots at over 250 India is the 3rd largest
railway stations in India start-up nation with 5000+ Nearly 21 Mn listings on
technology product Justdial, an online search
Exponential Growth in Data start-ups, growing at 7% YoY directory. Over 2.8 Mn
~150,000 Km Optic fibre laid Consumption manufacturers and exporters
Average data consumption are listed on TradeIndia, a
Over 170,000 Common
@3.5 GB per user per month, B2B search directory
service centers operational
across India, helping drive growing by 500%, whereas
Internet usage prices dropped by ~97%
Source: Secondary Research, Zinnov Analysis 5
Domain name count in India continues to witness a stronger growth
as compared to global markets
Domain Name Count – Global & India
GLOBAL 332.4 Mn
329.3 Mn
www
www 0.9 %
INDIA
5.3 Mn
4.95 Mn
www
www 7.1 %
Dec 31, 2016 Dec 31, 2017
Sources: Verisign DNIB Q4’2017, Verisign DNIB Q4’2016, ICANN Dec 2017 Report (result published in Apr 2018), Primary Research, Zinnov Analysis 6
.Com had ~57% share of the Indian Domain Name industry in 2017
Domain Name Count by TLDs Domain Name Split by TLDs
Global & India (as of Dec 31, 2017) India (as of Dec 31, 2017)
TLD Registry Global (Mn) India (Mn)
0.2%
.com
Verisign
131.9 3.02
2.7% 1.2% 0.8% 0.6%
3.1%
.net 14.15 0.24 4.5% 3.5%
26.4%
.org PIR 10.3 0.18
.info 6.4 0.06
Afilias 56.9%
.mobi 0.5 0.04
.in Nixi 2.0 1.40
.biz Neustar 2.1 0.03
.asia DotAsia 0.2 0.01
New TLDs 23.9 0.17
Others 140.51 0.142
.com .in .net .org New Others .info .mobi .biz .asia
Grand Total 332.4 5.30 TLDs
Despite India being one of the 59% of the SMBs bought 48% of the domain names
fastest growing digital economies, their domain names directly were used for Websites in
it accounted for 1.6% of the global from Registrars (GoDaddy, India last year
domain name registrations in 2017 BigRock, etc.)
Sources: Verisign DNIB Q4’2017, Verisign DNIB Q4’2016, ICANN Dec 2017 Report (result published in Apr 2018), Primary Research, Zinnov Analysis
Notes: 1. Others for Global include CcTLDs and other TLDs such as edu, nic, us, live, etc. 7
2. Others for India include TLDs such as edu, nic, us, live, etc.
India suffers from low domain penetration but offers huge potential
Domain Penetration ratio
Domain penetration ratio (DPR) is defined as no. of domain registered per internet user
Country DPR (%) -2016 DPR (%) -2017 Domain Count (Mn) 2017 Internet Users (Mn) 2017
India 1.1% 1.12% 5.3 481
US 43.6% 38.3% 109.9 287
France - 6.5% 3.7 56
Australia - 6.3% 1.4 22
UK 5.0% 5.0% 3.1 62
Japan 4.3% 4.5% 5.4 119
China 3.6% 3.3% 25.6 772
Russia 1% 0.7% 0.8 110
US continues to lead in terms of DPR DPR in India improved marginally from 1.1%
amongst other key global economies in 2016 to 1.12% in 2017; it still remains
minuscule as compared to the US
Sources: IAMAI Report (India), Internetlivestats (Global), Registrarowl (Global), Zinnov Analysis 8Domain name growth has been the highest in Maharashtra,
Tamil Nadu, and Gujarat
Share of Domain Names Share of Domain Names by Key States
(as of Dec 31, 2017)
by Region (as of Dec 31, 2017)
120
North
Number of Internet Subscribers per 100 population
105 DELHI
32% 90
75
30% 7% (2016-17) 60
HP PUNJAB KERALA
East KARNATAKA
West 45
GUJARAT
TN
WB
J&K AP MAHARASHTRA
30
31% ASSAM MP
15 HARYANA UP
RAJASTHAN
BIHAR
ODISHA
South 0
0.0% 2 .0 % 4 .0 % 6.0 % 8.0 % 1 0.0 % 1 2 .0 % 14 .0 % 1 6.0 % 18.0 % 2 0.0 % 2 2 .0 %
State-wise Domain Name Share (2017)
Legend : NORTH SOUTH WEST EAST
Sources: Data.Gov.in (Ministry of Communications and Information Technology), Zinnov Analysis;
9
Note: Percentage represents the service distribution of the overall domain name market on the basis of analysis of 1.98 Mn domain names in India in 2017Majority usage of domain names is limited to Websites
and Professional Emails
Domain Name Universe in India - Split by Key Attached Services1,2 (2016 vs. 2017)
48%
40% 2016 2017
Leading
Professional
25-30% Email services
Redirect to Redirect to
leading Social leading Trade
Media Platforms Portals
11-13% 10-12%
9-11% 8-10%
3-4% 1-2%Top 10 states in India accounted for over 80% of domain
names used for Websites
Distribution of Domain Names used for Website Distribution by TLDs – 2016 vs. 2017 1
Websites by State Share (as of Dec 31, 2017) .com continues to be the most preferred
domain for websites
54%
53%
2016 2017
39%
36%
3% 4% 3% 4% 4% 2%
.com .in .net .org Others
Website Distribution by Content Management
System 2016 vs 2017 1 2 ,
WordPress continues to gain further prominence
90-93% in 2017 over other CMS solutions
85-90%
2016 2017
Legend:
10%
5-6% 1-2% 3-5% 3-4% 1-3% 1-3% 1-2%.com continues to be the most preferred top-level domain within
SMBs in India, followed closely by .in domain
Bought a specific domain name on the basis of their ‘Company Name’
75%
59% Bought their domain names directly from Registrars (GoDaddy, BigRock, etc.)
Searched for a .com domain name first, giving it a preference over
73% other available Top-level Domains (TLDs)
77% Were able to find their primary choice of Top-level Domain (TLD)
Key Takeaways
(SMB Survey)
80% Cost not a concern for buying a domain name
85% Used digital payment methods (Debit/ Credit Cards/ Netbanking) to
53% purchase the domain names
Have additional free pages on Social Media for business use specially
Sources: Insights from 200 Pan-India SMB surveys, Zinnov Analysis 12Domain name awareness is high within the SMB segment in India
Domain Name Awareness Level Reasons for choosing a Domain Name
4 in 5 Top-rated TLDs
across parameters
SMBs are aware/have
Most recognized/ 44% .com .in
heard about domain trusted domain
names and their usage
Global Standard 23% .com
Domain Name Registration Process
15% Portrayed professional
59% through IT Service image
17% .com .in
bought Providers
directly from
Registrars
(GoDaddy, 14% Relevant Locally 11% .in
Big Rock, through Website
etc.) Developers
Economical 5% .in .com
12%
Others (like assistance
from a friend)
Sources: Insights from 200 Pan-India SMB surveys, Zinnov Analysis 13Conclusion: Domain Name Industry in India witnessed a
moderate growth in 2017
332.4 Mn Total domain 5.3 Mn Total domain 57% Market share of .com1,
name count globally1, name count in India1, making it the most preferred
witnessing a growth of witnessing a growth of TLD in India
0.9% YoY 7.1% YoY
73% SMBs preferred .com
48% Of domain names1 over other TLDs owing to
bought used for websites Trust, Global Standards,
and Professional Image
Source: Zinnov Analysis;
14
Notes: 1. Zone data as of Dec 31 2017www.zinnov.com info@zinnov.com
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