Growth of .com can be attributed in large part due to it being the first widely used & recognised extension and also the de facto extension for the US.
These two factors are the main reason for the growth of registrations and value of .com domain names.
However things are now changing. US internet penetration is nearing 75% and the emerging markets is where we should look for internet and therefore domain growth.
Let's consider two of the biggies - China and India. Internet penetration stands at 16% and 6% respectively with a combined population of about 2.5 billion, ten times the population of the US.
So, when this penetration starts to ramp up (which it is already doing), more and more businesses and individuals will 'go online' and create websites.
Billions of them.
We need to consider what they will do when considering a domain name (I'm talking end users here). Naturally they will want something that either matches their business name or product, is an acronym of their business name, is a generic related to their business name or just something catchy.
I believe in the shgort-term, they will look at two extensions 1) the .com and 2) their cc-TLD. What will happen (and is happening now) is they will struggle to find anything that fits the bill in .com and so will go for the cc-TLD (.cn or .in for example).
Over time, more and more businesses will register in their own cc-TLD shifting the proportion of .com's to a relatively minor amount. The exceptions will be global brands or companies targetting a truly global market who may be forced to take the .com (although they will no doubt cover the cc-TLD as well).
This will mean that cc-TLD's will dominate in each country (except perhaps in the US where .com is firmly entrenched) and new website owners, in time, won't even worry about the .com as they see their respective cc-TLD everywhere and being the norm.
The growth will be in these cc-TLD's whereas .com, without an expanding market to drive it will peak in terms of investment value.
Thoughts?
These two factors are the main reason for the growth of registrations and value of .com domain names.
However things are now changing. US internet penetration is nearing 75% and the emerging markets is where we should look for internet and therefore domain growth.
Let's consider two of the biggies - China and India. Internet penetration stands at 16% and 6% respectively with a combined population of about 2.5 billion, ten times the population of the US.
So, when this penetration starts to ramp up (which it is already doing), more and more businesses and individuals will 'go online' and create websites.
Billions of them.
We need to consider what they will do when considering a domain name (I'm talking end users here). Naturally they will want something that either matches their business name or product, is an acronym of their business name, is a generic related to their business name or just something catchy.
I believe in the shgort-term, they will look at two extensions 1) the .com and 2) their cc-TLD. What will happen (and is happening now) is they will struggle to find anything that fits the bill in .com and so will go for the cc-TLD (.cn or .in for example).
Over time, more and more businesses will register in their own cc-TLD shifting the proportion of .com's to a relatively minor amount. The exceptions will be global brands or companies targetting a truly global market who may be forced to take the .com (although they will no doubt cover the cc-TLD as well).
This will mean that cc-TLD's will dominate in each country (except perhaps in the US where .com is firmly entrenched) and new website owners, in time, won't even worry about the .com as they see their respective cc-TLD everywhere and being the norm.
The growth will be in these cc-TLD's whereas .com, without an expanding market to drive it will peak in terms of investment value.
Thoughts?







