DNS Services Market Size, Share & COVID-19 Impact Analysis, By Type (Primary and Secondary), By Enterprise Type (SMEs and Large Enterprises), By Industry (BFSI, IT & Telecom, Healthcare, Retail & E-Commerce, Education, and Others), and Regional Forecast, 2023 – 2030

The global DNS services market size was valued at USD 424.6 million in 2022. The market is projected to grow from USD 500.7 million in 2023 to USD 1,698.0 million by 2030, exhibiting a CAGR of 19.1% during the forecast period.

In the scope of work, the report includes solutions offered by companies such as IBM Corporation, Oracle Corporation, Cloudflare, Inc., Amazon Web Services, Inc., Microsoft Corporation, DigiCert, Inc., Akamai, Allied Telesis, Inc., Efficient IP, BlueCat Networks, and others.

DNS services provide a secure and reliable mechanism for managing DNS records and resolving domain names from VPC without adding a custom DNS solution. DNS services allow users to create private DNS zones that are only resolvable through private networks in the cloud, perform forward and reverse DNS lookups, allow private and public DNS zones, and configure the zone name in a split-horizon view.

COVID-19 IMPACT

Increased High-Speed Data Processing and Big Data Fueled Market Growth During Pandemic

The global COVID-19 crisis had a major impact on the market, resulting in significant sales losses across most industries. However, there was a tremendous increase in the need for high-speed data processing and big data in multiple verticals. Lockdowns around the world increased services in various events, such as daily updates on the status of the pandemic, directly impacting DNS traffic activity. This scenario provided the market with several opportunities to increase the global demand for DNS.

DNS Services Market Trends

Increased Adoption of DNS Security by SMEs Recognized as a Significant DNS Services Market Trend

Increasing adoption of managed DNS services among small and medium-sized businesses is driving the market growth. Increasing investments by SMEs in developing new methods to improve network performance are significantly contributing to market growth. Additionally, expansion in application areas and the prevalence of managed DNS services among small and medium-sized companies are expected to support market growth throughout the evaluation period. Managed DNS service providers offer DNS management at very affordable prices, allowing small and medium-sized businesses to manage their DNS without additional costs.

DNS Services Market Growth Factors

Increased Usage of Cloud Computing by Major Companies Recognized as a Significant Driver

The increasing usage of cloud computing is a major factor driving the market growth. DNS is a distributed database that allows IP addresses and other data to be stored and searched by name. Cloud-based DNS eliminates the need to manage dedicated DNS servers, offering both private and public DNS zones. DNS service providers utilize large anycast networks with several points of presence (PoPs) around the world. These providers accelerate DNS resolution by inevitably routing queries to the closest PoP, ensuring a consistent user experience everywhere. Enterprises are moving applications and workloads to the cloud as they offer benefits such as stability, scalability, faster time to market, cost efficiency, and resilient architectures. Cloud computing services enable the use of automation tools that are more scalable and agile, allowing businesses to achieve the appropriate level of automation.

RESTRAINING FACTOR

Privacy Concerns Regarding DNS Can Hamper the Growth of the Market

One of the most significant drawbacks of DNS lies in its centralized management by a single entity, which could slow the DNS services market's revenue growth. The DNS registry is managed by only one entity, ICANN. This exclusive management by a single organization could potentially pose challenges or drawbacks. Additionally, DNS queries typically do not provide information about the client that initiated the name resolution. As a result, this server can detect the IP address of the DNS server and can be manipulated by hackers, which may hamper the market's growth. The original DNS address has the potential to be replaced with a fake address. This action redirects consumers to fraudulent websites, posing a severe threat to cybersecurity and potentially leading to the compromise of sensitive information such as tape account information. Such security vulnerabilities can adversely impact market revenue growth.

DNS Services Market Segmentation Analysis

By Type Analysis

Rising Need for Hosting the Authoritative DNS Zones Driving Primary DNS Growth

Based on type, the market is bifurcated into primary and secondary.

Primary DNS captured the highest market share in 2022. Primary DNS servers are responsible for managing and hosting the authoritative DNS zones for a domain, offering the initial translation of domain names to IP addresses contributing to the segmental growth.

The secondary DNS segment will grow at the highest CAGR during the forecast period. It provides a backup for the other DNS when the network has issues. The availability of secondary DNS decreases the load on the primary DNS, which makes it easier for customers to access the servers.

By Enterprise Type Analysis

Large enterprises Segment Dominated the Market owing to Increased DDoS Attacks on Large Enterprises

Based on enterprise type, the market is classified as SMEs and large enterprises.

Large enterprises held a major market share in 2022. Large businesses are typically the preferred targets for DDoS attacks. Various DNS security providers have launched products for large enterprises that can protect against damage caused by DDoS attacks. For instance, in April 2023, Akamai Technologies opened two new cleaning centers in Mumbai and Chennai, India, as part of its global investment strategy. These next-generation centers offer superior performance and DDoS protection to Indian businesses and global organizations.

Small and medium enterprises (SMEs) segment will grow at the highest CAGR during the forecast period. SMEs are exposed to many types of cyberattacks, including DNS tunneling and ransomware. The increasing frequency of these attacks on SMEs is driving the adoption of DNS services. For instance, in February 2023, according to a report published by Vodafone Business, there was a significant increase in cyber-attacks against U.K. small and medium-sized businesses.  In 2022, more than half (54%) of these small enterprises experienced cyberattacks. This escalating trend of cyber-attacks highlights the growing vulnerability of small and medium-sized businesses, especially as remote work and reliance on digital technologies become increasingly common.

By Industry Analysis

Economic Changes in the BFSI Sector Propel the Adoption of DNS Services

By industry, the market is categorized into BFSI, IT & telecom, healthcare, retail & e-commerce, education, and others (travel & transportation).

BFSI held the maximum DNS services market share in 2022. It is a vital industry that deals with financial data. Economic changes have a significant impact on banks, insurance companies, and other financial sector players. Industry leaders constantly face pressure to achieve desired goals and, therefore, require a more reliable, robust network that contributes to market growth.

Healthcare is expected to grow at the highest CAGR in upcoming years. DNS security plays an essential role in ensuring the security of healthcare services. DNS Security Extensions (DNSSEC) is a group of specifications for authenticating DNS responses and requests using cryptographic digital signatures that will contribute to industry growth.

REGIONAL INSIGHTS

By region, the market has been analyzed across five major regions, namely North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America holds a significant share of the market. This is due to the increased demand for network services in the DNS network industry, the lower cost of deploying cloud infrastructure, the development of converged cloud infrastructure, and competition among network providers. For instance, on June 16, 2022, DigiCert, Inc. acquired DNS Made Easy, a provider of enterprise-class managed domain name systems "DNS" service. This acquisition improves the security of certificate validation, enables future validation automation, and paves the way for certificate lifecycle management automation.

Europe is expected to register the fastest revenue growth rate. The region is expected to exhibit considerable growth in DNS services. Germany and the U.K. are increasing their efforts to invest in the development of European Union (EU)-based managed DNS service platforms. For instance, on January 19, 2022, the EU officially declared that it would build its own managed DNS infrastructure called DNS4EU with built-in filtering. The EU said DNS4EU would include filtering capabilities to prevent DNS name resolution for unwanted domains, including phishing websites, domains hosting malware, and other cybersecurity threats.

Asia Pacific is estimated to grow at the highest CAGR during the forecast period. This is due to increased data traffic, digitalization, and DDoS attacks in the region. Additionally, the increasing number of DDoS attacks in India and China is driving the usage of the product, contributing significantly to regional revenue growth.

South America and the Middle East & Africa are anticipated to grow at a considerable CAGR during the forecast period. The key factors driving the market are increasing virtualization in IT departments, rising data security concerns across data-sensitive enterprises, and “Bring Your Device” in enterprises. Additionally, increasing usage of Internet of Things(IoT) technology, data analytics, and data volume are key factors fueling market growth in these regions.

List of Key Companies in DNS Services Market

Key Players Emphasize on Advanced Services to Strengthen Their Market Positions

The global market has a vibrant startup ecosystem. More than 100 startups are expected to develop and innovate DNS services in the market. Such a fragmented market can lead to increased competition as existing companies need to improve their products and introduce new developments continually. Increasing competition may lead to market expansion and provide more opportunities for market participants.

List of Key Companies Profiled:

• IBM Corporation (U.S.)


• Oracle Corporation (U.S.)


• Cloudflare, Inc. (U.S.)


• Amazon Web Services, Inc. (U.S.)


• Microsoft, Inc. (U.S.)


• Digicert, Inc. (U.S.)


• Akamai Technologies (U.S.)


• Allied Telesis, Inc. (U.S.)


• Efficient IP (U.S.)


• BlueCat Networks (Canada)

KEY INDUSTRY DEVELOPMENTS:

• September 2023: IBM expanded its DNS capabilities with the introduction of NS1 Connect. The NS1 Connect product includes several stability and security improvements made by NS1.


• September 2023: CISA launched a DNS resolver for federal agencies with general availability, facilitated by the efforts of CISA's cybersecurity shared services office. The perspectives of these early adopters helped CISA create services that meet the needs of the FCEB community.


• August 2023: F-Secure announced a partnership with European communications service providers (CSPs). This strategic partnership would enable F-Secure DNS security into carriers' mobile networks to protect residential customers.


• August 2023: Meter collaborated with Cloudflare to implement DNS security. Through this partnership with Cloudflare, Meter can expand its capabilities to fulfill the needs of IT professionals at industrial warehouses, security companies, educational institutions, and more.


• February 2023: Neustar Security Services launched UltraDDR (DNS Detection and Response), a DNS-based protection service. The service aimed to prevent ransomware, network compromise, phishing, and supply chain compromise attacks and enforce corporate usage policies against users.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation