Published on March 29th, 2019
IPv4 prices have continued to rise in 2018. As shown in Figure 1, the price increases have been almost linear in nature from 2015 to the present. As of the beginning of March 2019, prices were at a minimum of $20 USD for block sizes of a /16 to a /21.
To determine whether the price increase will continue, it is necessary to look at what is driving it. Supply vs demand is certainly the underlying principle. Supply is driven by the available pool that remains to be sold, especially legacy IPv4 addresses. It would seem that this supply has steadily shrunk over time. Demand is driven by business growth and business need, which continues to be relevant regarding IPv4 addresses. Simply put, less supply and more demand have driven the price increase.
Will there be a tipping point where price increases stop? Probably. There must be a maximum price at which point companies will switch to a cheaper alternative. Companies will use carrier grade NAT and other IPv4 extensions more and more. But also, a disruptive technology will emerge. Whether this is IPv6, which seems to be at 20% market penetration, remains to be seen.
In the meantime, prepare to pay more and more for IPv4 addresses.
What these insights mean to you as the owner of IPv4 address blocks, is that right now is the time to sell for optimal prices. Because there is low availability, buyers are willing to pay more to purchase the IP address they need. It also means that for buyers, they can depend on IPv4 Market Group to connect them to trustworthy sellers who offer blocks at fair market prices. We work with owners that are registered with the American Registry for Internet Numbers (ARIN), Asia-Pacific Network Information Centre (APNIC) and Réseaux IP Européens (RIPE, or European IP Networks). Since the price increase trend seems to continue, it is in the best interest of growing businesses to buy the IPv4 address blocks now before prices hike up even higher.
As a liaison between the seller and buyer, IPv4 Market Group takes care of every step of the transfer process. We draft the Asset Purchase Agreement contracts and keep records of the negotiations and invoices. Part of the transaction is for us to hold the payment in escrow while the transfer is finalized and then release the funds to the seller. If you’re a growing business in need of additional address blocks, you can be sure that the entire process is efficient and secure for all parties involved. The low availability of IPv4 address blocks means that demand is up and there are plenty of companies ready to buy. Contact us today to join the IPv4 marketplace.
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