5 Factors Driving IPv4 Address Prices

5 Factors Driving IPv4 Address Prices

IPv4 addresses are in high demand, but their supply is nearly gone. Prices have surged from $20–$25 per address in 2020 to $45–$50 in 2025. Why? Here are the 5 key factors:

  • Supply Shortage: With only 4.3 billion IPv4 addresses ever created, they’ve been fully allocated since 2011, creating a persistent scarcity.
  • Slow IPv6 Adoption: Despite being introduced over 20 years ago, IPv6 adoption remains slow, with only 43% of global internet traffic using it.
  • Regional Pricing Differences: Policies and demand vary by region, with Asia-Pacific seeing the highest prices due to restrictive rules, while Africa offers the lowest.
  • Economic Growth and Industry Demand: Expanding industries like IoT, AI, and cloud computing are driving up demand for IPv4 addresses.
  • Regulatory Changes: Regional Internet Registries (RIRs) have different policies that influence availability and pricing, with some regions restricting transfers and monetization.

Quick Comparison of Regional IPv4 Lease Prices (2024)

Region Lease Price Range Key Factors Influencing Prices
North America $0.41–$0.47 Balanced policies, moderate IPv6 adoption
Europe $0.43 (stable) Flexible transfer policies
Asia-Pacific $0.60–$0.83 High demand, restrictive policies
Latin America $0.46–$0.72 Emerging market, moderate IPv6 adoption
Africa $0.30–$0.45 Lowest prices, slow IPv6 adoption

IPv4 scarcity, slow IPv6 adoption, and regional differences are keeping prices high. Leasing is becoming a popular, cost-effective alternative to buying. Dive into the full article to explore these factors in detail.

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1. Supply and Demand Imbalance

One of the biggest factors driving the value of IPv4 addresses is the imbalance between supply and demand. Simply put, there aren’t enough IPv4 addresses to meet the needs of a growing internet population. By April 2022, the number of global internet users had already surpassed the total pool of 4.3 billion IPv4 addresses, creating a persistent shortage that continues to push prices higher.

The Effect of IPv4 Address Scarcity

The exhaustion of IPv4 addresses has been an issue since IANA made its final allocation back in 2011. Since then, the demand for these addresses has only grown, fueled by the expansion of businesses’ digital footprints and the rise of new technologies.

The growth of IoT, cloud computing, and the continued reliance on older systems have all played a role in intensifying the need for IPv4 addresses. Devices like smart home systems, industrial sensors, and other connected technologies all require unique IP addresses to function. At the same time, many older systems remain tied to IPv4 because they’re not compatible with the newer IPv6 standard.

Adding to the problem is the issue of address hoarding. Around 20% of the world’s IPv4 addresses – roughly 800 million – are currently unused, often held by companies that acquired them before scarcity became a concern. Paulius Judickas, VP of Strategic Sales at IPXO, comments on this issue:

"One would think that companies sitting on unused IP resources would either monetize or sell them, but that hasn’t been the case. In fact, there are still over 800 million unused IPs, mostly held by companies that obtained resources when IPv4 scarcity wasn’t an issue. New companies, on the other hand, are suffering from the IPv4 shortage."

This limited availability is a major driver behind the rising costs of IPv4 addresses.

How This Impacts Pricing

The mismatch between supply and demand has created significant price fluctuations in the IPv4 market. Back in the mid-2010s, IPv4 addresses sold for just $5–$10 each. Fast forward to today, and those same addresses can fetch between $45 and $60. In fact, prices surged by nearly 250% between 2020 and 2021.

The market reached its peak in late 2021 and 2022, with addresses allocated by RIPE NCC and ARIN selling for as much as $60.70 each. While prices have since stabilized somewhat, they remain high. By late 2024, large blocks (/16 and larger) were trading at around $35 per address, with smaller blocks priced between $32 and $35.

These trends highlight how global market dynamics and regional variations play a role in shaping IPv4 pricing.

Regional and Global Market Dynamics

While the global supply-demand imbalance continues to push prices upward, regional factors also influence the IPv4 marketplace. In 2021, 36 million IPv4 addresses were traded worldwide, and trading volumes increased further in 2022. However, by the end of Q3 2024, the number of available transfers had dropped sharply to 18.6 million addresses, compared to 44.8 million in 2015.

Demand varies significantly by region. The Asia-Pacific region, for example, experiences extremely high demand due to rapid technological development. In contrast, North America benefits from a more established secondary trading market. Meanwhile, Europe’s flexible transfer policies – such as RIPE NCC’s lack of justification requirements for transfers – make it easier for buyers to acquire addresses.

Despite these regional differences, the global nature of IPv4 trading helps balance prices. Addresses can be transferred across regions, such as from APNIC to ARIN, creating opportunities for arbitrage and ensuring that shortages in one area affect global pricing trends. This interconnected system keeps the market somewhat aligned, even as local conditions vary.

2. Slow IPv6 Adoption Rates

Even after more than two decades, IPv6 adoption remains sluggish, keeping the demand for IPv4 addresses high. As of early 2025, only about 43% of global IPv6 traffic reaches Google, according to their data. This slow pace of transition is a key reason IPv4 addresses continue to fetch high prices.

Impact on IPv4 Address Scarcity

The slow shift to IPv6 perpetuates IPv4 scarcity by maintaining strong demand. With IPv6 adoption growing at a modest 3–4% annually, it could take until 2045 to achieve universal adoption. This extended timeline ensures businesses will keep competing for IPv4’s finite pool of 4.3 billion addresses.

A major hurdle in this transition is the lack of backward compatibility between IPv4 and IPv6. This incompatibility forces organizations to adopt dual-stack networks, which increases operational costs. Leslie Daigle, former Chief Internet Technology Officer for the Internet Society, summed it up well:

"The lack of real backward compatibility for IPv4 was the single critical failure."

Additionally, technologies like Network Address Translation (NAT) and Classless Inter-Domain Routing (CIDR) have stretched IPv4’s usability, reducing the urgency to fully transition to IPv6.

The continued reliance on IPv4 has had a direct impact on its market pricing. With demand staying artificially high, IPv4 prices have risen rather than decreased, as one might expect during a typical technology shift. Jake Brander of Brander Group explains the economic reasoning behind this:

"Even at $50 an IP, it was still worth it to purchase the IP addresses because it’s a streamlined process. You don’t have to buy new gear, there’s no learning curve, and there’s no backwards compatibility issues."

For many organizations, the cost and complexity of transitioning to IPv6 outweigh the expense of purchasing IPv4 addresses at premium rates. This dynamic further reinforces the price trends, which also vary by region.

Regional and Global Relevance

IPv6 adoption rates differ widely across regions, creating uneven pressures in IPv4 markets. For example, France has seen higher adoption rates thanks to strong support from mobile network operators and Internet Service Providers (ISPs). In contrast, ISP reluctance has slowed adoption in the United States. Regional Internet Registries also reflect these disparities: RIPE NCC has allocated 23.65% of its available IPv6 addresses, while AFRINIC has allocated just 1.05%. These regional variations suggest that IPv4 scarcity – and the high prices it generates – will persist globally until IPv6 adoption significantly accelerates.

3. Regional Market Differences

IPv4 pricing isn’t uniform across the globe – it shifts depending on regional policies, local economic factors, and the state of digital infrastructure. These differences create a dynamic landscape where scarcity plays a significant role in shaping price variations.

Impact on IPv4 Address Scarcity

Regional Internet Registry (RIR) policies heavily influence IPv4 availability. For instance, the Asia-Pacific region, governed by APNIC, faces significant supply constraints due to restrictive policies that limit the monetization of IPv4 resources.

"Meanwhile, APNIC commanded premium rates (peaking at $0.83 in May) due to severe supply constraints – despite growing demand in the Asia-Pacific region, registry policies effectively prohibit most organizations from monetizing their resources, limiting monetization options. This has created a situation where companies in APNIC regions often announce IPs just to keep them marked as ‘in use’ rather than monetizing them through leasing."

On the other hand, RIPE NCC (Europe) and ARIN (North America) operate under more flexible policies that allow full monetization of IPv4 addresses. This flexibility has resulted in a significant supply imbalance, with over 95% of IPv4 addresses in major marketplaces coming from RIPE NCC and ARIN regions.

Policy differences lead to stark pricing disparities between regions, sometimes exceeding 100%. For example, AFRINIC (Africa) offers the lowest prices, averaging $0.42 throughout 2024, while APNIC in the Asia-Pacific region saw rates peak at $0.83 in May 2024.

Here’s a clearer look at how pricing and market characteristics vary by region:

Region Monthly Cost Range Market Characteristics
North America $0.50–$0.70 Mature markets with strong business and cloud demand
Europe $0.45–$0.65 Flexible transfer policies with diverse industry demand
Asia-Pacific $0.60–$0.80 High demand coupled with supply challenges
Latin America $0.35–$0.50 Emerging market with moderate demand and supply
Africa $0.30–$0.45 Lower demand but growing digital infrastructure

RIPE NCC, with its lenient monetization policies, maintained the most stable pricing throughout 2024, averaging $0.43. This stability makes European IPv4 addresses an attractive option for businesses aiming for predictable costs. These pricing trends also reflect broader economic conditions across regions.

Regional and Global Relevance

Economic development and infrastructure advancements often drive up IPv4 prices. The Asia-Pacific region, for instance, faces intense competition for IPv4 resources due to rapid internet growth and IoT expansion.

Currency fluctuations and inflation also add complexity to pricing. For example, a /24 block costs between $0.30 and $0.45 in Africa, while the same block ranges from $0.60 to $0.80 in Asia-Pacific markets. These differences are likely to persist as IPv4 depletion continues to accelerate in more developed regions.

To manage costs and ensure resource availability, businesses are increasingly leasing IPv4 blocks from multiple regions. Latin America and Africa are becoming key players in this strategy, offering lower costs alongside growing investments in digital infrastructure. However, transfer restrictions in some regions create artificial scarcity, further driving up leasing costs and amplifying price gaps.

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4. Economic and Industry Demand

The rising costs of IPv4 addresses aren’t just about supply shortages or the slow adoption of IPv6. Economic growth and industry trends also play a major role, with expanding businesses and emerging technologies driving demand and, consequently, prices.

Impact on IPv4 Address Scarcity

The rapid growth of IoT (Internet of Things) is a big factor in the increasing demand for IPv4 addresses. By 2030, the number of IoT devices worldwide is projected to hit 25 billion. This explosive growth highlights the challenge of meeting both current and future connectivity needs.

Some major players have already secured large chunks of IPv4 addresses. Between 2017 and 2019, Amazon acquired 28 million addresses, including 8 million from MIT, 16 million from General Electric, and 4 million from AMPRNet. Similarly, Google obtained a /12 block, which includes 1,048,576 IP addresses. Industries like cloud computing, telecommunications, and IoT are heavily reliant on these resources, further driving demand . This intense competition for a limited supply is a key factor in rising IPv4 prices.

Economic conditions have a direct impact on IPv4 pricing. When economies are thriving and technology is advancing, IPv4 prices tend to climb. A clear example of this occurred in early 2021, as the world began recovering from the COVID-19 pandemic. With network expansions back on track, IPv4 demand surged, causing prices to more than double that year.

By 2024, the average price of an IPv4 address hovered in the low-to-mid $30s. However, prices can vary significantly depending on block size and market conditions, ranging from $28 per IP address to as much as $99 for certain blocks. Jake Brander, Founder of Brander Group, explains the root of this pricing trend:

"The number of entrances into the market that want to sell IP addresses is decreasing at a faster rate than the demand for IPs is increasing."

This imbalance between supply and demand is expected to push prices even higher in both purchasing and leasing markets.

Regional and Global Relevance

Regional economic factors also shape IPv4 demand and pricing. For example, AI companies are becoming a significant group of buyers. Paulius Judickas, VP of Strategic Alliances at IPXO, notes:

"AI is influencing the market, and more requests are coming from AI companies to collect data."

Smaller subnets, like /24 blocks, have also seen a surge in demand, dominating the leasing market. However, economic uncertainties – such as inflation and recession fears in 2022 – complicated the market. Many companies scaled back investments, slowing network growth plans. Despite these challenges, IPv4 transfer volumes at RIPE and ARIN grew significantly in 2022 compared to the previous year.

Key players driving IPv4 demand include internet service providers, cloud companies, IoT firms, and hosting providers, all of which need these addresses to expand and manage their networks. The Brander Group’s 2024 performance demonstrates this demand: they facilitated 724 IPv4 transfers worldwide, totaling 3,426,304 IP addresses, with sales revenues reaching $154 million – a 39% increase in transfer volume compared to the previous year.

As industries continue to digitize, the need for IPv4 addresses shows no signs of slowing. While companies explore solutions like IPv6 adoption, IP leasing, and Network Address Translation (NAT) to ease the shortage, the fundamental gap between supply and demand persists. This ongoing imbalance underscores the importance of strategic IPv4 management in a market shaped by both economic and technological pressures.

5. Regulatory and Transfer Policy Changes

The rules set by Regional Internet Registries (RIRs) play a major role in how IPv4 addresses are transferred and priced. These policies don’t just regulate the transfer process – they also influence the market by controlling supply and dictating who can profit from unused IPv4 addresses.

Impact on IPv4 Address Scarcity

The five main RIRs – ARIN (North America), RIPE NCC (Europe and the Middle East), APNIC (Asia-Pacific), LACNIC (Latin America), and AFRINIC (Africa) – each enforce different policies for transferring and leasing IPv4 addresses. These differences directly impact the availability of IPv4 addresses in their respective regions, sometimes creating scarcity in one area while allowing more flexibility in another.

Take APNIC, for example. Its restrictive policies limit the ability of organizations in the Asia-Pacific region to monetize IPv4 resources, except for legacy address space. This has led many companies to announce IP addresses as “in use” simply to avoid losing them, rather than leasing them out for revenue. This approach has made IPv4 addresses particularly scarce in the region, despite strong demand.

On the other hand, RIPE NCC and ARIN have adopted more flexible policies that encourage organizations to monetize unused IPv4 addresses. This is why over 95% of IPv4 addresses available in major marketplaces come from these two registries. Clearly, the regulatory framework in place determines whether organizations can turn their unused IPv4 assets into a source of income.

These regional policy differences also drive significant variations in IPv4 pricing. In 2024, the global average leasing price stood at $0.50 per address, but regional disparities told a different story. APNIC’s restrictive policies created a supply crunch that drove prices up to $0.83 per address in May 2024 – 66% higher than the global average. Paulius Judickas, VP of Strategic Alliances at IPXO, highlighted the connection between policy and pricing:

"Meanwhile, APNIC commanded premium rates (peaking at $0.83 in May) due to severe supply constraints – despite growing demand in the Asia-Pacific region, registry policies effectively prohibit most organizations from monetizing their resources, with the exception of legacy space. This has created a situation where companies in APNIC regions often announce IPs just to keep them marked as ‘in use’ rather than monetizing them through leasing."

In contrast, AFRINIC maintained an average price of $0.42 per address in 2024, 16% below the global average, thanks to policies that promote competitive pricing. Meanwhile, RIPE NCC offered the most stable pricing, averaging $0.43 per address with minimal fluctuations throughout the year. Larger IPv4 blocks (/16) also saw a notable price drop of 30%, from $50 to $35 per address, reflecting policy shifts that impacted market dynamics. While outright purchases experienced these fluctuations, the leasing market remained steadier, offering a more predictable, policy-compliant alternative.

Cross-border transfer requirements add another layer of complexity to these pricing trends.

Regional and Global Relevance

Regulatory policies don’t just influence supply and demand; they also shape the conditions for cross-border IPv4 transfers. Each RIR imposes unique requirements for documentation, needs assessment, and recipient qualifications, making international transfers more time-consuming and costly compared to regional transfers.

RIR Transfer Policy Leasing Policy Average 2024 Lease Price
ARIN Pre-approval required, needs justification Allowed with regional restrictions $0.41–$0.47
RIPE NCC Full documentation and recipient qualification Transparency and contract compliance required $0.43 (consistent)
APNIC Need-based criteria, limited monetization Must remain within region $0.83 (peak)
LACNIC Needs-based evaluation Regional use policies apply $0.46–$0.72
AFRINIC Restricted, detailed justification required Strict compliance requirements $0.42 (average)

These differences create opportunities for arbitrage but also present compliance challenges. Factors like hold periods, needs assessments, and transfer restrictions directly influence the timing and cost of transfers.

As IPv4 addresses grow in value, stricter regulations are likely on the horizon. RIRs may implement tighter controls to ensure transparency and prevent monopolization. At the same time, there could be a push for standardized global policies to simplify cross-border transfers and reduce legal risks.

For organizations managing IPv4 assets, understanding these regulatory landscapes is crucial. Companies like V4 Capital Partner specialize in navigating this complex environment, helping businesses maximize their IPv4 investments while staying compliant with transfer and leasing policies. These regulatory factors tie into broader discussions on scarcity, adoption, and economic demand, all of which drive IPv4 pricing trends.

Regional IPv4 Price Comparison

The IPv4 address market reveals noticeable price differences across regions. These variations stem from factors like transfer policies, IPv6 adoption rates, and local demand. For organizations looking to source or monetize IPv4 assets, these dynamics are crucial to consider. Let’s dive deeper into how IPv6 adoption, policies, and market structures shape regional pricing.

Current Market Pricing by Region

Data from 2024 highlights significant regional disparities in IPv4 leasing prices across the major Regional Internet Registries (RIRs). APNIC, for instance, recorded the highest rates, with lease prices reaching $0.83 per address in May 2024 – approximately 66% above the global average of $0.50. On the other hand, AFRINIC offered more competitive rates, averaging $0.42 per address, which is about 16% below the global average. RIPE NCC maintained steady pricing, averaging $0.43 per address throughout the year.

ARIN saw a gradual increase in lease prices, starting at $0.41 in January and climbing to $0.47 by December 2024. Meanwhile, LACNIC experienced more volatility, with prices fluctuating between $0.46 and $0.58 for most of the year, peaking at $0.72 in July.

Here’s a breakdown of regional pricing trends:

RIR 2024 Lease Price IPv6 Adoption Rate Transfer Policy Impact
APNIC Peaked at $0.83 in May Moderate (varies by country) Restrictive policies limit supply, inflating prices
RIPE NCC Consistently around $0.43 High (e.g., 75% in Germany) Open policies encourage market stability
ARIN $0.41 to $0.47 Moderate (~50% in the U.S.) Needs-based allocation keeps pricing balanced
LACNIC $0.46 to $0.72 (peak in July) Lower adoption rates Equity-driven policies influence availability
AFRINIC Averaged $0.42 Lowest (1.05% IPv6 allocation) Competitive pricing in a less developed market

IPv6 Adoption and Its Role in Pricing

The adoption of IPv6 plays a significant role in shaping IPv4 costs. Countries like Germany and France, with adoption rates of around 75% and 80% respectively, benefit from stable IPv4 pricing under RIPE NCC. Similarly, India, with a 74% adoption rate, faces higher IPv4 leasing costs due to APNIC’s restrictive transfer rules. In the United States, where IPv6 adoption stands slightly above 50%, ARIN offers moderate pricing through its balanced resource management. In regions like Latin America and Africa, where IPv6 uptake is slower, demand for IPv4 addresses remains strong, keeping prices relatively elevated.

Concentration of IPv4 Addresses and Policy Impacts

The availability of IPv4 addresses is heavily concentrated in certain registries, which influences market behavior. Paulius Judickas, VP of Strategic Alliances at IPXO, notes:

"Over 95% of IP addresses in the IPXO Marketplace come from RIPE NCC and ARIN due to these registries’ more lenient sustainability policies that fully allow IP monetization. This supply concentration explains why RIPE NCC maintained the most consistent pricing (averaging $0.43) throughout 2024."

This concentration underscores the importance of policy flexibility in maintaining stable pricing and supply.

The purchase market in 2024 presented a different picture compared to leasing. Prices for large IPv4 blocks (/16) dropped from $50 per address at the start of the year to about $35 by December. Medium-sized blocks (/17-/19) held steady between $35 and $38 per address, while smaller blocks (/20-/24) ranged from $32 to $35 per address. These fluctuations highlight leasing as a more stable option, especially for cross-border transfers.

For businesses navigating these regional markets, understanding both the pricing landscape and policy frameworks is essential. Firms like V4 Capital Partner specialize in helping organizations identify cost-effective strategies for acquiring and monetizing IPv4 assets while ensuring compliance with the varying policies of different RIRs. By staying informed, companies can make smarter decisions in this evolving market.

Conclusion

The IPv4 market operates under the influence of five major factors: a supply-demand imbalance with less than 1% of addresses still available, delayed adoption of IPv6 keeping demand high, regional policy differences driving price disparities, pressures from new technologies affecting the economy and industries, and regulatory changes shaping market accessibility.

These dynamics have already impacted pricing trends. By late 2024, prices for large IPv4 blocks stabilized at around $35 per address, while leasing rates remained steady at an average of $0.50 per address across all Regional Internet Registries (RIRs). However, declining supply continues to outpace demand growth, keeping upward pressure on entry prices.

In this intricate landscape, professional IPv4 asset management and brokerage services are becoming indispensable. Companies like V4 Capital Partner offer specialized expertise to help organizations optimize their IPv4 resources. Their services include strategic brokerage, investment consulting, and tailored marketplace solutions, all of which are critical for navigating varied RIR policies, determining fair market values, and ensuring compliance during transfers across regions.

Leasing remains an attractive option, offering substantial cost savings – over 42% for a five-year period compared to purchasing. Many organizations are now adopting hybrid strategies, combining ownership and leasing to meet their operational needs while adapting to fluctuating market conditions.

As healthy utilization rates surpass 81% heading into 2025, effective IPv4 management – whether through buying, leasing, or leveraging expert brokerage services – remains vital. This approach ensures global connectivity and positions IPv4 as a cornerstone of internet infrastructure planning in an ever-evolving market.

FAQs

Why has IPv6 adoption been so slow, even after more than 20 years?

IPv6 adoption has faced hurdles due to a mix of costs, technical challenges, and a sense of complacency. Upgrading existing infrastructure and training IT staff to work with IPv6 often comes with a hefty price tag, making many organizations hesitant to take the leap. On top of that, plenty of Internet Service Providers (ISPs) still operate dual-stack networks, which support both IPv4 and IPv6. While this approach helps maintain compatibility, it also complicates the transition to IPv6.

Another sticking point is the lack of immediate, tangible benefits for businesses. For many, IPv4 continues to handle their needs just fine, reducing the urgency to switch. As a result, IPv6 adoption globally hovers at about 40%, and experts predict it could take several more decades before the transition is fully realized.

How do regional policies and economic conditions affect IPv4 address prices worldwide?

Regional policies and economic conditions significantly influence the pricing of IPv4 addresses. The rules set by Regional Internet Registries (RIRs) directly affect how available and transferable IPv4 addresses are, which can create noticeable price differences across various regions. For instance, stricter transfer regulations or a limited supply in certain areas often drive up prices due to increased competition among buyers.

Economic factors also play a big role in these price variations. In regions like North America, where the demand for internet services is high, IPv4 addresses typically cost more compared to areas with lower demand. Additionally, a region’s overall economic health impacts how much businesses are willing to spend on IPv4 resources. Broader global economic trends can further shape pricing as companies adjust their strategies to align with changing market conditions.

For businesses trying to navigate these complexities, having expertise in IPv4 address management can make a big difference. Firms such as V4 Capital Partner specialize in helping organizations make the most of their IPv4 assets while tackling the challenges brought on by shifting market dynamics.

What are the benefits of leasing IPv4 addresses instead of buying them?

Leasing IPv4 addresses offers businesses a practical way to stay flexible while keeping costs under control. One major perk? Lower upfront costs. This makes leasing a budget-friendly choice, especially for companies with short-term projects or fluctuating needs. Instead of tying up large amounts of capital, businesses can better manage their cash flow and avoid the hefty price tag that comes with purchasing IP addresses outright.

Another big plus is scalability. Leasing allows companies to adjust their IP resources as needed – whether it’s scaling up during a growth phase or scaling down when demand slows. In a fast-moving digital world, this kind of adaptability is invaluable. Plus, leasing often means faster access to IPv4 addresses, which can be a game-changer for businesses looking to expand operations or tap into new markets without unnecessary delays.

For companies looking to stay agile and minimize financial risks, leasing IPv4 addresses is a smart and efficient option.

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