INSIGHTS

While the availability of Internationalized Domain Names (IDNs) has steadily increased across various top-level domains, both country code (ccTLDs) and generic (gTLDs), the growth and adoption of these domains have been remarkably sluggish. On the surface, IDN registrations appear well-supported, with at least 78 ASCII/Latin ccTLDs, 50 IDN ccTLDs, 423 ASCII/Latin gTLDs, and 95 IDN gTLDs offering IDN registrations. However, despite this apparent availability, the actual uptake of IDNs has been underwhelming. According to available data, there are an estimated 4.4 million second-level IDNs globally, representing a mere 1.2% of the entire domain name market. While this figure is likely an underestimation, it nonetheless highlights the limited penetration of IDNs in comparison to their ASCII/Latin counterparts.

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Even more concerning is the lack of substantial growth in IDN registrations over the past year. While a handful of ccTLDs, such as .рф (Russian Federation), .vn (Vietnam), and .hk (Hong Kong), witnessed strong growth in IDN registrations, the majority of ccTLDs experienced minimal or no growth at all. In fact, a staggering 19 ccTLDs reported a contraction in their total IDN registrations during the same period. The median growth rate across a sample of 41 ccTLDs was a meager 0.6%, painting a bleak picture of the overall IDN market's stagnation. 

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The reasons behind this lack of growth are multifaceted, but one factor that stands out is the relatively low end-user awareness of IDNs. According to ccTLD registries themselves, when asked to rate end-user awareness of IDNs, the average score was a mere 2.5 out of 5, indicating a significant knowledge gap among potential users. Another factor often associated the limited adoption are compatibility issues with many existing software and systems. These applications and systems were often designed with the assumption that domain names would only contain ASCII characters. The lack of Universal Acceptance means that even if a user successfully registers an IDN, they may encounter issues when attempting to use that domain name in various contexts, such as email addresses, web browsers, or other online services. These compatibility problems can manifest in various ways, including improper display, recognition, or processing of IDNs, leading to frustration and confusion for end-users.  Consequently, the perceived value and usefulness of IDNs are diminished, deterring potential adopters from embracing these domains. Users may opt for more conventional ASCII domain names to avoid potential compatibility issues, even if an IDN would better represent their language or cultural identity.

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Notably, a significant majority (68%) of ccTLD registries consider the concept of Universal Acceptance to be the most important driver for IDN uptake, surpassing even end-user awareness. This recognition highlights the critical importance of addressing this technical challenge to enable the true potential of IDNs.

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While the availability of IDNs has undoubtedly improved over time, thanks to the efforts of registries and the broader domain name industry, the widespread adoption and growth of these domains have yet to materialize. Unless concerted efforts are made to address the awareness and technical challenges related to Universal Acceptance, the potential of IDNs to truly democratize the internet and make it accessible to language communities worldwide may remain unfulfilled.