IP Leasing and IoT in 2022 Explained 

5 min read
18 August 2022
Agnė Srėbaliūtė

The world of Internet of Things is built on IP addresses. In the face of global IPv4 exhaustion, IoT-based businesses face the struggle of acquiring resources. Discover how IP leasing can offer a solution to this major problem.

Wi-Fi icon with IoT objects around it.

In the modern world, where the number of smart devices is growing, and the demand for Internet Protocol (IP) addresses is increasing, Internet of Things (IoT)-based businesses are dealing with expansion challenges. Luckily, IP leasing IoT businesses can access is a cost-effective solution to the problem.  
As you might already know, everyday objects connected via the internet that collect and exchange data using embedded sensors are known as the Internet of Things. The IoT system bridges the gap between the physical and digital worlds. It represents future networking when almost any real-life object will be able to have its authentic identity, gather data and function without human intervention. 

According to Statista, there were 11.3 billion connected IoT devices in 2021. By 2030, this number is expected to nearly triple to 29.4 billion. These devices range from smart dog collars, children’s toys and smart wearables to means of transport, home systems and shipping labels. The utmost goal of the IoT is to enable connectivity among things (objects) that, at first, seem unfit for connection. IoT not only meets individual needs but also serves as an extraordinary asset for businesses, bringing endless possibilities to the market. 

At the heart of every intelligent device lies a unique identifier – an IP address. IPs are necessary for tracking location as well as sending and receiving information between devices to enable communication via the internet. However, today we are dealing with an IPv4 shortage, which businesses can combat either by buying or leasing the necessary resources.

Did you know IP leasing is a much more sustainable way of expanding today’s IoT network? Continue reading to learn why. 

IP exhaustion as a challenge for IoT

Every device connected to the internet needs an identifier: A locally or globally unique address. The Internet Protocol – a standard for transferring data – uses number-based addresses to identify a particular piece of hardware connected to the web.  

Internet Protocol version 4 (IPv4) was the first public version of IP, introduced in 1981. At the time, 4.29 billion unique identifiers seemed plenty to accommodate all internet-connected devices for a long time. However, the increasing demand quickly exhausted the limited supply. 

A sand clock representing running out of IPv4 addresses..
IPv4 supply is running out

IPv6 officially launched in 2012 to expand the physical limits of the IPv4 address pool. However, IPv6 adoption has been slow due to soaring adoption costs and difficult migration. Even to this day, a decade after the official launch of IPv6, IPv4 remains the dominant IP version.  

On a global scale, the availability of IPv6 has barely surpassed 40% by mid-2022. Therefore, since a good portion of the world’s devices were designed with IPv4 in mind, the internet is likely to continue running on IPv4 for decades to come. With the demand for the IoT in various fields growing and the need for IPv4 not decreasing, one of the most efficient solutions for businesses is to lease IPv4 addresses.  

Solution for IoT businesses

Even though the IPv4 address pool has been depleted, at least 20% of IPv4s are still unused. This creates favorable conditions for IoT businesses to scale. How does that work?  

At IPXO, we introduce the world’s first fully automated IP lease marketplace that connects the companies in search of IPv4 to rent with the ones that have resources to share. That enables the lessees to gain much-needed resources and the lessors to secure additional income.  

The platform provides the option to lease IP addresses short-term, which is beneficial for temporary business projects. This guarantees a more sustainable use of internet resources. Other IP lease benefits include competitive pricing, the simplicity of the service and the wide selection of IPv4 addresses. Let us take a more detailed look into each benefit. 

Competitive pricing, simplicity and wide selection listed as IPv4 leasing benefits.
IP lease benefits

Cheap business scaling

IPv4 prices have been increasing. Beneath lies the fact that IPv4 has become an intangible commodity due to insufficiency. Compared to buying an IP address, leasing is a much cheaper option. It enables any network infrastructure-focused business, including IoT-based businesses, scale at low upfront costs. For example, the usual price for an IPv4 address is around $45, whereas an average lease deal at IPXO is around $0.50 per IP per month. 

IP leasing is easy

The main aim of our platform is to make both IP leasing and monetization easy. Whether you rent the IPv4 resources you need or lease your unused IPv4 to others, you can enjoy an intuitive interface supported by automation in every step. Registration takes only a few minutes, and our professional support team is here 24/7. 

Wide choice of IPs

Since the number of IPv4 addresses is finite, it is important to take care of the resource responsibly. Regional Internet Registries (RIRs) allocate internet addresses in five geographical regions. At IPXO, you can find IPs from all regional registries – AFRINIC, APNIC, ARIN, LACNIC and RIPE NCC. This guarantees that you pay exactly for what you need.

Even though these benefits are applicable to those business owners who are interested in leasing, the IoT businesses that have unused IP resources should not be left out. Let us demonstrate how IP holders can benefit from monetizing their unused IPs.  

IoT businesses as IP holders

If your IoT company has idle IP resources, here are a few top benefits IP monetization offers: 

  • Recurring revenue 
  • IP reputation monitoring 
  • Advanced Know Your Customer (KYC) checks 
Recurring revenue, reputation monitoring and KYC checks listed as IP monetization benefits.
IP monetization benefits

Since the pool of IPv4 is so limited, our job is to find trustworthy lessees and create a setting for IoT businesses where everyone benefits. That includes companies with a surplus of IPv4 resources. If you have IPs to share, we encourage you to join the IPXO platform and lease your assets to reputable IP lessees. Set your own price and start collecting the payouts. 

Real-time IP monitoring and automated IP abuse reporting ensure that the addresses you bring to the IPXO Marketplace are safe. Abuse observability and our advanced KYC checks are here to ensure that every new client that joins the platform is verified before they can even look for IPs and lease. We strive to ensure responsible use of your valuable IP resources.  

For a standard 5% platform fee for IP holders deducted monthly from earned revenue, IPXO offers a full-service IP monetization experience with access to hundreds of verified lessees and the opportunity to provision assets instantly.

The IoT market will continue to grow

The IoT market is steadily growing, and IoT Analytics predicts the IoT market share to reach $525 billion by 2027. There are many innovative technologies within the scope of IoT, including battery-free sensors, modern wearables and machine-learning microcontrollers. The future of the IoT has the potential to be limitless. 

As the IoT industry moves towards providing access to extraordinary amounts of data collected by various interconnected devices, the demand for IPs grows as well. Moreover, the increase in demand for IoT devices has been relevant to many businesses, including information technologies, manufacturing, transport, marketing, agriculture and others. In the face of slow IPv6 adoption, this further increases the demand for IPv4. 

How we approach the global crisis of the IPv4 shortage can directly affect the expansion of any industry, including the IoT industry. Luckily, IP leasing has proven to offer a solution that works. Would you like to learn more about leasing IP addresses and how that can help you scale your IoT-based business? Book your demo, and we will answer all your burning questions.

About the author

Agnė Srėbaliūtė

Technical Content Writer

Agnė is a Technical Content Writer at IPXO. For more than 15 years she has been molding her skills in various fields, including PR copywriting, SEO copywriting and creative copywriting. Her lifestyle is based on continuous learning through numerous areas of interest, leisure activities and travelling. Addictions? Hiking and coffee.
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