IPv6 Market (2024 - 2030)

As of 2023, the IPv6 Market attained a value of USD 1.70 billion and is estimated to achieve a market size of USD 10.90 billion by 2030. During the forecast period spanning from 2024 to 2030, the market is poised to expand at a Compound Annual Growth Rate (CAGR) of 30.4%.

GLOBAL IPV6 INDUSTRY OVERVIEW

The latest version of the Internet Protocol, referred to as IPv6, serves to pinpoint connected devices within a network. Irrespective of their nature, all internet-connected devices possess unique IP addresses enabling their identification and facilitating communication. The established IPv4, utilizing a 32-bit addressing method, has managed the connectivity of 4.3 billion devices over the internet for an extensive duration. However, the continuous expansion of the internet into crucial regions and the robust sales of personal computers and mobile devices indicate the necessity for additional addresses.

Given the explosive growth of the Internet of Things (IoT), adopting strategies to address the IP address shortage has become increasingly imperative. IPv6 was introduced in 1998 in anticipation of this scenario, roughly two decades after the Internet Engineering Task Force (IETF) foreseen the need. Unlike IPv4, which employs a 32-bit addressing scheme, IPv6 features a 128-bit addressing system capable of accommodating over 340 trillion devices. Moreover, this next-generation internet protocol holds promise in enhancing security, enhancing performance, and optimizing packet processing efficiency. Internet Service Providers (ISPs) can streamline the size and hierarchical structure of their routing tables more efficiently. However, the utilization of IPv6 has been somewhat constrained by Network Address Translation (NAT). NAT allows an enterprise machine with a private IP address to communicate with machines possessing public IP addresses situated outside their private network by translating the private IP address of such computers to a public IP address. This enables businesses with numerous internet-connected devices or systems to connect with computers beyond their network without requiring a significant number of public IPv4 addresses. NAT has delayed IPv4 address exhaustion, impacting the expansion of this market to some extent. Nonetheless, the market demonstrates robust growth, as evidenced by the predicted 32.40% compound annual growth rate throughout the forecast period.

COVID-19 IMPACT ON THE IPv6 MARKET

The increased adoption of IPv6 amidst the COVID-19 crisis is undeniably advantageous for the Internet sector as a whole. Additionally, there is a notable trend towards investing in cloud networking technologies and cloud-native applications as data centers and corporate headquarters become less accessible and remote work becomes more prevalent. Despite these challenging circumstances, enterprises stand to benefit significantly from the scalability, flexibility, and agility offered by cloud technology. However, the transition to a remote workforce has resulted in a surge in network demand globally.

MARKET DRIVERS:

Rising Number of IoT Devices and IP Address Requiring Equipment

The growing adoption of IoT devices globally necessitates internet service providers (ISPs) to allocate IP addresses to these devices. The limitations of IPv4 address systems (nearly 4.2 billion) pose challenges for ISPs in meeting the demand for IP addresses, thereby expectedly driving the demand for the IPv6 market throughout the forecast period.

Declining Adoption of IPv4 Technology

The Asia-Pacific Network Information Centre (APNIC) reports a significant decline in IPv4 delegations from 444,000 in 2015 to 167,000 in 2019. As IPv4 delegations decrease, consumer demand for a new internet protocol numbering scheme rises. The increasing demand for IP address allocations contributes to the rising cost of IPv4, while the cost of IPv6 is expected to decrease. Consequently, the IPv6 market is anticipated to expand over the forecast period.

Enhanced Security Measures

The heightened security features offered by IPv6 present numerous business expansion opportunities. IPv6 incorporates IPSec, providing authentication, data integrity, and confidentiality. Unlike IPv4, where corporate firewalls often block ICMP packets due to malware concerns, ICMPv6, utilized in IPv6, may be allowed as IPSec can be applied to ICMPv6 packets.

MARKET RESTRAINTS:

Slow Adoption of IPv6

The gradual shift from IPv4 to IPv6, which remains widely used, is impeded by the time and effort required for migration. Users incur costs to replace IPv4 devices with IPv6-compatible ones, as IPv4 devices cannot access IPv6. Consequently, the sluggish adoption of IPv6 is expected to hinder market growth during the forecast period.

Drawbacks of IPv6

The complexity of IPv6 implementation, including difficulties in recalling IPv6 addresses, poses challenges. Furthermore, direct interaction between devices running IPv4 and IPv6 is not feasible, which may pose a substantial challenge to the industry during the forecast period.

High Deployment Costs

Most globally-used internet access hardware relies on IPv4 technology and lacks IPv6 compatibility. The significant shift to IPv6 technology is expected to escalate deployment costs for customers, acting as a barrier to the expansion of the IPv6 industry.

IPv6 MARKET – BY ENTERPRISE SIZE

• Small and Medium Enterprises (SMEs)
• Large Enterprises

The IPv6 market is segmented based on enterprise size, encompassing Small and Medium Enterprises (SMEs) and Large Enterprises. Large enterprises have emerged as the dominant force within this market segment. Forecasts suggest a global utilization of 26.3 billion networked devices by the year's end, largely propelled by the rapid expansion of the Internet of Things (IoT) worldwide. The IoT technology holds transformative potential in reshaping human interaction with the environment. Leveraging IoT capabilities enables individuals to make data-driven decisions, thereby enhancing quality of life, optimizing system efficiencies, and saving time for both individuals and enterprises. As sensor integration proliferates across various physical assets, end-users can anticipate streamlined processes ranging from equipment monitoring across facilities to maritime vessel tracking. The IoT stands poised to significantly enhance machine performance and longevity while empowering users to explore innovative configurations to maximize equipment utility.

IPv6 MARKET - BY REGION

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East
• Africa

Regionally, the IPv6 market is categorized into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. Notably, North America and Europe lead the IPv6 adoption curve, attributed to their status as early technology adopters. These regions are poised for further market expansion due to robust competition and advanced infrastructure. Conversely, the Asia Pacific IPv6 market anticipates significant growth, buoyed by nations such as China and South Korea renowned for their ICT equipment production. India and Japan also contribute substantially to the IPv6 landscape. Despite South America, the Middle East, and Africa accounting for a portion of the industry, their growth trajectory may be comparatively slower due to various factors, including the global COVID-19 pandemic. Disruptions caused by the pandemic, including widespread lockdowns and increased remote work arrangements, have driven up the demand for internet-dependent devices, albeit with some impact on IPv6 investments. Nevertheless, resilient market investments are expected to persist, paving the way for robust growth post-pandemic.

IPv6 MARKET - BY COMPANIES

Key players in the IPv6 market include:

1. NTT COMMUNICATIONS CORPORATION
2. KDDI CORPORATION
3. SOFTBANK CORP.
4. RELIANCE JIO INFOCOMM LTD.
5. VERIZON
6. T‑MOBILE USA, INC.
7. AT&T INTELLECTUAL PROPERTY
8. TATA TELESERVICES LIMITED
9. CHINA TELECOM GLOBAL LIMITED
10. ALE INTERNATIONAL (U.S.)
11. APPLE INC.
12. CISCO SYSTEMS INC.
13. D-LINK CORPORATION
14. HEWLETT PACKARD ENTERPRISE DEVELOPMENT LP
15. HITACHI, LTD.
16. IBM
17. MATRIXSTREAM TECHNOLOGIES, INC.
18. MICROSOFT
19. MICRO FOCUS

NOTABLE HAPPENING IN THE IPv6 MARKET

EXPANSION - IPv6 adoption is witnessing global proliferation. Jean-Charles Bisecco, an ARCEP expert and IPv6 Task Force member, highlights the evolving IPv6 landscape in France, influenced by regulatory frameworks, network dynamics, and service evolution. Projections indicate that by 2024, over two-thirds of terminals and more than 90% of fixed operator networks in France will transition to IPv6, driven by regulatory mandates and technological advancements.

EXPANSION - EANTC, an international testing facility, underscores the promising trajectory of SRv6 technology. Following comprehensive multi-vendor SRv6 testing validating its scalability, the organization's endorsement positions SRv6 as "ready for prime time."