Managed DNS Services Market - By Services (Anycast Network, DDoS Protection, GeoDNS), By Enterprise Size (Large Enterprises, SME), By Deployment Model (On-Premises, Cloud), By End-User & Forecast 2024 – 2032

Managed DNS Services Market Size

Managed DNS Services Market was valued at USD 525.2 million in 2023 and is estimated to register a CAGR of over 17% between 2024 & 2032. The growth of the market can be attributed to the growing security concerns and DDoS mitigation. According to All About Cookies, in 2022, not only did the frequency of DDoS attacks escalate, but their duration also extended significantly. Compared to 2021, when the average attack lasted 30 minutes, by the same period in 2022, the average duration of DDoS attacks surged to 50 hours. Similarly, based on StormWall’s DDoS Year-in-Review report, in 2022, there was a substantial 74% year-over-year increase in the total count of DDoS attacks. Throughout the year, the potency of botnets experienced a notable surge, enabling DDoS attacks that reached over 2 Tbit/s and endured for up to three days.
 

As cyber threats and distributed denial of service (DDoS) attacks become more sophisticated, businesses are increasingly turning to managed DNS services for enhanced security. These services often include features like DDoS mitigation, threat intelligence, and advanced security protocols to protect against DNS-based attacks, contributing to the managed DNS services industry growth.
 

Increasing Internet usage and online presence will be a key factor shaping the market outlook. According to the International Telecommunication Union, approximately 5.3 billion individuals, constituting 66% of the global population, were using the Internet in 2022. This reflects a growth rate of 6.1 percent compared to 2021, surpassing the 5.1 percent growth observed from 2020 to 2021. In regions such as Europe, the Americas, and the Commonwealth of Independent States (CIS), internet usage ranges from 80% to 90% of the population, approaching near-universal adoption. Universal use, defined practically as an internet penetration rate of at least 95 percent, is within reach in these regions.
 

The growing number of internet users and the expanding online presence of businesses have led to an increased demand for reliable and efficient DNS services. Managed DNS services play a crucial role in ensuring the availability and accessibility of websites, applications, and online services.  
 

However, the management of DNS involves handling critical information related to domain names and network configurations. Concerns about data security and privacy may restrain some organizations from adopting managed DNS services, particularly if they have stringent data protection requirements or concerns about the potential exposure of sensitive information.
 

Managed DNS Services Market Trends

Increased use of AI and Automation will emerge as a prominent trend across the managed DNS services industry. The incorporation of artificial intelligence (AI) and automation in managing DNS services can streamline operations, improve efficiency, and enable quicker responses to dynamic network conditions. AI may be utilized for traffic analysis, anomaly detection, and automated decision-making in optimizing DNS configurations.
 

Against this backdrop, in July 2023, Vercara, a prominent provider of cloud-based solutions ensuring online security, introduced an enhanced integration of its enterprise-level cloud-based authoritative DNS service, UltraDNS, with HashiCorp’s Consul-Terraform-Sync (CTS). This multi-platform tool is specifically designed for automating tasks traditionally managed manually by networking operators across various network devices. Termed as UltraDNS-CTS, this integration builds upon the success of Vercara's earlier collaboration with the UltraDNS Terraform Provider in 2022. The accomplishment establishes Vercara as an official technology partner of HashiCorp.
 

Managed DNS Services Market Analysis

Based on the enterprise size, the market is divided into large enterprises and SME. In 2023, the SME segment accounted for a market share of around 55%. The escalating demand for managed DNS services among small and medium enterprises (SME) is propelled by the crucial need for reliable and efficient domain management. SME, often lacking dedicated IT resources, turn to managed DNS to ensure seamless website accessibility, bolster security against cyber threats, and enhance overall online performance. As SME expand their digital presence, the convenience of outsourcing DNS management becomes evident, enabling them to focus on core business activities while benefiting from the expertise and infrastructure provided by managed DNS services.
 

Based on end-user, the market is categorized into BFSI, media & entertainment, retail & consumer goods, education, e-commerce, government, healthcare, and others. In 2023, the BFSI segment accounted for a market share of around 28%. In the BFSI sector, the adoption of managed DNS services is favored by the critical emphasis on security, reliability, and regulatory compliance. The BFSI industry demands robust DNS solutions to ensure uninterrupted online services, safeguard against cyber threats, and meet stringent compliance standards. Managed DNS services offer the required infrastructure and expertise, allowing financial institutions to fortify their digital presence while ensuring compliance with industry regulations. The scalable and resilient nature of managed DNS aligns with the BFSI sector's need for a secure and high-performance online environment.
 

North America dominated the global market with a major share of around 35% in 2023. The North America managed DNS services market is thriving due to several key factors. The region's advanced technological infrastructure, in line with a high internet penetration, fuels the demand for efficient DNS management. The increasing frequency and sophistication of cyber threats prompt businesses to invest in secure and reliable DNS services. North American enterprises, including those in the United States and Canada, recognize the critical role of DNS in ensuring online presence and security. As a result, there is a growing inclination towards adopting managed DNS services to mitigate risks, enhance performance, and comply with industry standards, driving the market growth in the region.
 

Managed DNS Services Market Share

Amazon Web Services Inc. and Akamai Technologies hold a significant market share of over 15% in the managed DNS services industry. Amazon Web Services Inc. leverages its extensive cloud infrastructure to provide scalable and reliable Managed DNS services through Amazon Route 53. The integration with other AWS services allows seamless management of DNS alongside cloud-based applications and resources. This helps the company to maintain their high share in the market.
 

Akamai Technologies places a strong emphasis on security, offering DDoS protection, threat intelligence, and secure DNS solutions. The strategy addresses the increasing cybersecurity threats associated with DNS, ensuring the availability and integrity of DNS services.
 

Managed DNS Services Market Companies

Major players operating in the managed DNS services industry are:

• Akamai Technologies
• Amazon Web Services, Inc.
• Cloudfare Inc.
• Google LLC
• Microsoft Corporation
• Neustar Inc.
• Oracle Corporation
• Rackspace U.S Inc.
• Stackpath
• Thousandeyes, Inc.
• Verisign, Inc.
   

Managed DNS Services Industry News

• In February 2023, Neustar Security Services unveiled UltraPlatform, an innovative solution harnessing three pivotal offerings from Neustar Security Services. These components play a crucial role in safeguarding the online assets and infrastructure of organizations, encompassing an authoritative domain name system (DNS) service, defense mechanisms against distributed denial-of-service (DDoS) attacks, and a robust web application firewall (WAF). This comprehensive solution reflects Neustar's commitment to providing organizations with an integrated suite of security services to ensure the resilience and protection of their digital assets and online presence.
   
• In June 2022, Neustar Security Services, a prominent provider of cloud-centric security solutions facilitating the success of global online businesses, is unveiling UltraDNS2. This comprises dual DNS resolution global anycast networks designed to seamlessly collaborate, ensuring enhanced redundancy and increased availability of DNS resolution services. The exclusive availability of the second network, UltraDNS2, is restricted to UltraDNS customers and can only be procured as part of a bundled offering. This strategic initiative aims to provide customers with an integrated and robust DNS solution, reinforcing Neustar's commitment to delivering comprehensive and reliable cloud-oriented security services for thriving online enterprises.
   

The managed DNS services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Services

• Anycast network
• DDoS protection
• GeoDNS
• Others

Market, By Enterprise Size

• Large Enterprises
• SME

Market, By Deployment Model

• On-Premises
• Cloud

Market, By Application

• BFSI
• Media & entertainment
• Retail & consumer goods
• Education
• E-commerce
• Government
• Healthcare
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA