DDI Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud and On-premise), By IP Version (IPv4 and IPv6), By Enterprise Type (SMEs and Large Enterprise), By Industry (IT & Telecom, BFSI, Government, Healthcare, Manufacturing, Retail, and Others), and Regional Forecast, 2023-2030

The global DDI market size was valued at USD 638.2 million in 2022 and is projected to grow from USD 700.9 million in 2023 to USD 1,485.4 million in 2030, at a CAGR of 11.3% during 2023-2030. North America dominated the global market with a share of 27.95% in 2022.

DDI, an abbreviation for Domain Name System (DNS), Dynamic Host Configuration Protocol (DHCP), and IP address management (IPAM), is a complete suite of network management protocols and developments that work together to enable smooth operations, continuous connectivity and enhanced security. It assists operators in enhancing their network operations, delivering services to subscribers, and staying forward in the evolving telecommunications industry.

These solutions are gaining traction due to the growing demand for new IP addresses, driven by the rise of IoT devices connected to enterprise networks. In addition, the conversion from IPv4 to IPv6 and the uptake of virtualization and public cloud further contribute to the market growth. For instance,

• In January 2023, Cygna Labs acquired NCC Group’s DDI business. This acquisition would include the buying of the DDI Guard, a platform for DDI clients and support professionals. The company ensured continuous integration of the DDI platform for NCC Group customers while supporting its team to help its global client base.

Moreover, the paradigm shifts brought by IoT, mobility, and cloud have revolutionized connectivity and business operations. IoT is experiencing notable growth in transportation, manufacturing, energy, and retail, necessitating reliable connectivity, high availability, and fast response times. This increase in demand underscores the need for solutions that simplify and optimize the management and control of distributed environments.

The market study thoroughly examines DDI solutions offered by market players such as Infoblox, BlueCat Networks, EfficientIP, Cygna Labs Corp., MEN&MICE, Cisco Systems, and others.

COVID-19 IMPACT

Increased Remote Working and Internet Usage amid COVID-19 Pandemic Fueled Market Growth

The pandemic completely changed the cybersecurity landscape around the world. The sudden shift to remote working led to an increase in online activity and internet usage, causing a surge in DNS traffic. Neustar’s ‘Online Traffic and Cyber Attacks During COVID-19’ report indicated a virtual escalation of the number and severity of attacks from March to mid-May 2020, with a notable spike in DNS-related attacks.

With employees working from home, the increase in the number of attacks indicated that WFH offered a bigger target for hackers to take advantage of. In addition to the increase in the raw number of DNS attacks, DNS-based threat vectors, previously considered niche concern, also increased as a proportion of the whole. For instance,

• According to IDC's Worldwide COVID-19 Impact on IT Spend 2020 Survey, the C-suite prioritized business resilience and customer experience as the top priorities of their organization, driven by increasing demand for IoT and a shift to working from home. In this survey, securing IoT (41%) and operational technologies (40%) were the top 2 technology concerns for security professionals, followed by edge security (32%) and the introduction of 5G and its security inferences on the network (17%).

Thus, the COVID-19 pandemic positively impacted the market due to increased demand for DDI technologies and better network experiences.

LATEST TRENDS

Rising Adoption of Internet of Things (IoT) and BYOD across the Workplace to Propel Market Growth

The advancements in technology are fostering global connectivity, ensuring that interconnected devices are accessible to everyone at all times. The development of Bring Your Own Device (BYOD) has empowered employees to use their own devices to access company information and applications, prompting mobility and streamlined business operations.

In addition, the implementation of Internet of Things (IoT) platforms across a significant number of devices, frameworks, and IP services requires a robust and dynamic solution. DDI solutions are integrated into IoT platforms, providing valuable operational advantages to vendors deploying automated DNS, managed IoT platforms, or varied IPv6 solutions. This trend is expected to boost the demand for the market as the reliance on IoT platforms continues to grow.

Thus, IoT initiatives and security management with a central framework to manage large-scale IP addresses are likely to drive the DDI market growth during the forecast period.

DDI MARKET GROWTH FACTORS

Adoption of Internet Protocol Address Management (IPAM) Solutions Across Organizations to Aid Market Growth

Internet Protocol Address Management (IPAM) involves tracing and modifying information related to an Internet Protocol (IP) network address. It streamlines and automates various administrative tasks involved in IP space management, including the configuration of DNS and DHCP settings.

Various organizations integrate IPAM solutions, which help businesses avoid IP conflicts, streamline their network administration processes, and improve network security. Moreover, the integration of IPAM solutions helps operators streamline IP address management, advance network efficiency, reduce operational costs, improve customer satisfaction, and prepare for future growth and technology evolutions. For instance,

• In June 2023, BlueCat Networks acquired Indeni, a network automation and cloud security software developing company. This acquisition aimed to develop BlueCat’s DDI management platform by integrating it with Indeni’s network operations (NetOps) platform. This integration enabled customers to gain an understanding of their core DDI system, specific DNS and DHCP services, and configuration best practices.

With the adoption of IPAM solutions, users can track IP addresses and automate tasks to maintain a smooth workflow, thereby contributing to market growth.

RESTRAINING FACTORS

Lack of Technical Knowledge and Low Network Latency in DNS Operation May Hamper Market Growth

Low latency is one of the most critical requirements for 5G to unlock its full potential. Ineffective and non-integrated DNS architectures lead to slower network performance and a lower user experience. Moreover, with older solutions, it is harder for administrators to manage and prohibit DNS operations teams from responding to changes faster and scale efficiently in the 5G world.

Organizations are concerned about the increasing risk of new vulnerabilities in security, cost, compliance, efficiency, and potential data issues linked to cloud residence. Modern infrastructure creates more complex and interconnected networks, leading to failures across all services.

Therefore, lack of knowledge and low network latency is a major restraining factor that could dent market growth.

SEGMENTATION

By Deployment Analysis

Increasing Adoption and Deployment of Cloud-based Solutions to Drive Cloud Segment Growth

Based on deployment, the DDI market is bifurcated into cloud and on-premise. Business and workplace transformation is expanding across organizations worldwide, driven by the rapid increase in mobility and cloud solutions that have changed how businesses operate. The solutions are deployed through the cloud and on-premises.

The cloud segment holds the highest CAGR during the forecast period as businesses increasingly adopt Software as a Service (SaaS) and cloud-based applications to provide an optimal end-user experience. Integrating resources deployed in the cloud with a DDI solution helps organizations rationalize security, ensuring aligned security policy enforcement across the entire infrastructure. This integration facilitates business scaling and provides greater operational flexibility. For instance,

• In September 2023, Cygna Labs launched new software, Diamond IP DDI software, IPControl version 15.0, aimed at streamlining DDI management. The single DDI modernized graphical user interface would allow network engineers to manage cloud DNS data and DNS information deployed in virtual private clouds, thereby reducing errors.

Owing to this, organizations shifted their network architecture to the cloud to address the reliability, visibility, and management problems with their distant locations. This shift creates growth opportunities for this market.

By IP Version Analysis

Increasing Demand for IPv6 Version Solution to Drive IPv6 Segment Growth

Based on the IP version, the market is categorized into IPv4 and IPv6.

The IPv6 segment is expected to grow at the highest CAGR during the forecast period due to the exponential increase in the use of mobile and IoT devices. This surge in devices creates demand for IP addresses to maintain connectivity. IPv6 has been developed to foster the expansion of the internet, connect various hosts, and facilitate the transition of total data traffic. IPv6 offers unlimited unique addressing for data centers, eliminating the address insufficiency that exists in IPv4.  For instance,

• In March 2023, KeyCDN, a high-performance content delivery network provider, announced the content delivery network (CDN) supports IPv6. This upgrade in the internet protocol was seamlessly incorporated into all zones.

However, the IPv4 version is projected to witness a significant decline due to address exhaustion and the transition to IPv6. Various businesses are focusing on integrating IPv4 and IPv6 addresses as a dual-stack model. Thus, the transition to IPv6 is essential for ensuring the market viability of companies, enabling global communication, and creating growth opportunities for the market.

By Enterprise Type Analysis

Increasing Demand for DDI Solutions to Propel Large Enterprises Segment Growth

Based on the enterprise type, the market is analyzed into SMEs and large enterprises.

The large enterprises segment captures the highest market share due to investments in enterprise DNS solutions. The capabilities of enterprise DNS solutions replace traditional DNS plans and services, offering custom solutions to meet the diverse demands of modern businesses with expansive networks. Enterprises improve digital customer experiences and efficiency through security measures, regulatory compliance, and complementing sensitive data protection.

Various organizations require highly available, scalable DNS solutions to safeguard their online services. This enables them to proficiently handle large volumes of traffic, allocating it across multiple servers to ensure minimal downtime.

The deployment of solutions by small and medium-sized enterprises (SMEs) is gradually growing, as these organizations help in several ways. Implementing such solutions empowers SMEs to direct traffic to the closest servers, significantly improving user experience and minimize latency. This contributes to smoother online operations and improved user experiences, providing optimal service. Thus, SMEs are anticipated to grow significantly during the forecast period.

By Industry Analysis

Increasing Network Security Across IT & Telecom Industries Propels IT & Telecom Segment Growth

Based on the industry, the market is categorized into IT & telecom, BFSI, government, healthcare, manufacturing, retail, and others.

The IT & telecom segment dominates the market in terms of share. It would record the highest CAGR over the forecast period. This is driven by the operating teams dealing with complex networks that demand regular updates to keep up with the business’ requirements, thereby necessitating effective solutions and services. Protecting DNS servers against malicious activities, high resilience, and centralized network administration and monitoring are essential components of the IT and telecom industry, which account for a large portion of the DDI business. Moreover, the adoption of IoT devices and IPv6 addresses in organizations effectively creates provision and manages a vast number of IP addresses, creating growth opportunities for the market.

REGIONAL INSIGHTS

Geographically, the market is categorized into five key regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America holds the highest DDI market share and is expected to continue its dominance due to the presence of key regional market players. Government organizations are encountering various malicious attacks, necessitating measures to prevent unauthorized access to sensitive data in government databases. For instance,

• In January 2023, Cloudflare, Inc., an IT service management company, signed a deal of USD 7.2 million with the Cybersecurity and Infrastructure Security Agency (CISA), a government agency. This move would provide registry and DNS services to enhance the availability and security of DNS services for .gov domain users.

Europe is expected to witness substantial growth during the forecast period due to government support and investments, along with contributions from network security providers across the region. These efforts aim to create a valuable environment for network development and support cooperative experiences. For instance,

• In March 2023, Cygna Labs acquired Nokia Corporation, integrating their VitalQIP platform. This acquisition would enable Cygna Labs to integrate VitalQIP into its DDI business, providing insights and security for cloud and hybrid environments.

Asia Pacific region is expected to hold the highest CAGR over the forecast period due to significant growth in the domain name system (DNS) services and an increase in internet users. Moreover, with the rising adoption of 5G technology, DNS services are growing significantly. In addition, increased usage of IoT prompts organizations to integrate DDI solutions for managing and securing their IoT networks. The demand for DDI solutions is anticipated to rise in India, China, South Korea, and other countries where businesses are actively tracking and managing IP addresses.

The growing DDoS attacks mainly drive the market in the Middle East and South America. The increasing number of connected devices and internet connectivity motivates various players to strengthen their presence through regional investment. Therefore, this helps accelerate network security. For instance,

• In June 2022, AmiViz, the Middle East region’s first enterprise B2B marketplace, partnered with EfficientIP. This partnership helped AmiViz to enable EfficientIP’s DDI and DNS security solutions across its channel partners in Egypt through the AmiViz web portal or the mobile app.

KEY INDUSTRY PLAYERS

Market leaders Focus on Expanding their Product Offerings to Gain Competitive Edge

Key players in the market, such as Infoblox, BlueCat Networks, EfficientIP, Cygna Labs Corp., MEN&MICE, Cisco Systems, and others, are focused on expanding their geographic boundaries by upgrading the existing products and technological advancements through investment in research and development.

List of Key Companies Profiled in DDI Market:

• Infoblox (U.S.)


• BlueCat Networks (Canada)


• EfficientIP (U.S.)


• Cygna Labs Corp. (U.S.)


• MEN&MICE (Iceland)


• Cisco Systems, Inc. (U.S.)


• FusionLayer (Finland)


• PC Network Inc. (U.S.)


• ApplianSys (U.K.)


• SolarWinds Worldwide, LLC. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2023: BlueCat Networks partnered with Grupo Dice to address the challenges of network complexity for enterprises in Latin America and Mexico regions. The BlueCat would cooperate with IT systems networking integrators and IT experts to provide tailored DDI management solutions to enterprises.


• June 2023: Cygna Labs launched its new product release to support VitalQIP customers after acquiring the VitalQIP business. The product VitalQIP would integrate with Cygna Radar to provide advanced threat protection for DNS and extensive DDI visibility, forensics, and reporting.


• May 2023: BlueCat Networks acquired Men&Mice, a network management solution provider. This acquisition aimed to strengthen BlueCat’s advanced portfolio and address the complex requirements of multi-cloud, hybrid cloud, and on-premises environments, transforming strategies across mid-market and enterprise organizations.


• February 2023: ApplianSys partnered with Radio Televisyen Malaysia (RTM), a public-service broadcaster, deploying multiple DNSBOX appliances to secure its DDI system and deliver network availability. This partnership enabled RTM to deploy a four-appliance, high-availability solution consisting of two DNSBOX primaries and two secondaries to deliver imposing DNS and DHCP, as well as offering unlimited IPAM authorizations.


• January 2023 – EfficientIP launched its new DNS-based Data Exfiltration Application, made available for free to partners and enterprises. The application was designed as an active web tool that enabled organizations to conduct security checks on their DNS system securely and identify potential vulnerabilities in their networks.

REPORT COVERAGE

The DDI market report includes prominent regions across the globe to gain a better understanding of DDI. Furthermore, it provides insights into the most recent industry and market trends, along with an analysis of network security. It also emphasizes growth-stimulating factors and constraints, allowing the reader to obtain a thorough understanding of the industry.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2017-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2017-2021
Growth Rate	CAGR of 11.3% from 2023 to 2030
Unit	Value (USD Million)
Segmentation	By Deployment Cloud On-premise By IP Version IPv4 IPv6 By Enterprise Type SMEs Large Enterprise By Industry IT & Telecom BFSI Government Healthcare Manufacturing Retail Others (Education, Energy & Utilities) By Region North America (By Deployment, IP Version, Enterprise Type, Industry, and Country) U.S. Canada Mexico Europe (By Deployment, IP Version, Enterprise Type, Industry, and Country) U.K. Germany France Italy Spain Russia Benelux Nordics Rest of Europe Asia Pacific (By Deployment, IP Version, Enterprise Type, Industry, and Country) China India Japan South Korea ASEAN Oceania Rest of Asia Pacific Middle East & Africa (By Deployment, IP Version, Enterprise Type, Industry, and Country) Turkey Israel GCC North Africa South Africa Rest of the Middle East & Africa South America (By Deployment, IP Version, Enterprise Type, Industry, and Country) Brazil Argentina Rest of South America