Residential Proxy Server Market - Forecasts from 2024 to 2029

The residential proxy server market is estimated to grow at a CAGR of 11.48% during the forecast period.

A residential proxy server is a type of proxy server that serves as a connection for a user's device and the websites they want to visit. It receives an IP address from an Internet Service Provider (ISP) and is linked to a specific geographical region. Residential proxy servers are used for various purposes due to their unique capabilities such as web scraping and data collection.

Market Drivers

Increasing internet traffic bolsters the residential proxy server market growth.

Residential proxies add an extra layer of privacy and security to the web browsing experience, which is especially useful for bypassing geographical limitations, avoiding website blocks, and preventing online monitoring. Such proxies are necessary for gathering comprehensive and accurate data from the internet, making them useful for a variety of applications such as market research, competitive analysis, and trend monitoring. The overall increase in internet usage fuelled by the growth of online activities, has increased demand for residential proxy servers, thereby augmenting the overall market growth.

The rise in web scraping drives the residential proxy server market growth.

Residential proxies are critical for data collection and web scrapping as they allow users to collect information from websites without being restricted or detected, making them especially useful for scraping data from web pages that have anti-scraping measures. Data extraction from websites has become an increasingly important tool for companies in a variety of industries, including eCommerce, data analytics, and market intelligence which shows a significant demand for residential proxy servers. For instance, Bright Data proxy services enable users to avoid restrictions and blocks by using the industry's fastest residential proxies and are used for web scraping to gather data from different websites. Their premium proxy services are a top choice for developers as they have over 72 million IPs, best-in-class technology, and the ability to target any country, city, ZIP Code, carrier, and ASN.

Demand for accessing location-specific content drives the residential proxy server market expansion.

Residential proxies are used to gain access to location-specific content that may be restricted or geographically blocked. These proxies allow users to access regional websites, streaming services, and other location-specific content. The demand for residential proxies grows as websites and web applications become more location-specific. Residential proxy servers are extremely useful in areas where internet restrictions and firewalls restrict access to specific websites or services. Users may bypass these restrictions and gain access to blocked content and services by using residential IP addresses from different locations. To gather location-specific content from different websites there is a huge demand for residential proxy servers which shows a significant growth in the residential proxy server industry.

North America is anticipated to hold a significant share of the residential proxy server market.

North America is projected to account for a major share of the residential proxy server market owing to the region’s robust growth in internet users. According to the World Bank’s data, in 2021, individuals having internet access accounted for 92% of the overall US population. The increasing number of mobile devices has bolstered mobile internet usage and likewise favorable investments by major North American nations to enhance internet access are acting as additional driving factors. For instance, the “Universal Broadband Fund” launched by the Government of Canada in November 2020, aims to provide internet access to 98% of Canadians by 2026. As per the Universal Broadband Fund, the government has set the national target to provide 100% internet by 2030.

Market Challenges

Legality consideration will restrain the residential proxy server market growth.

The growth of the residential proxy server market may be restrained by legality considerations. The legality of web scraping and the use of private proxy servers are unclear and businesses must deal with potential legal and ethical issues related to data collection and privacy concerns. The use of illegally sourced residential proxies can have serious ethical and legal consequences. Some providers might be unable to obtain permission from the original IP owners to share their IP addresses and bandwidth, which could violate privacy rights and ethical standards which will affect the growth of the residential proxy server market growth.

Company Products

• Oxylabs Residential Proxies- Oxylabs proxies provide free access to geo-restricted content. Its Residential Proxy network extends to 195 countries and allows for targeting by country, city, state, ZIP code, coordinate, and ASN.
• SOAX Residential Proxies- SOAX Residential Proxies remove all the data without being hindered by CAPTCHAs and are compatible with HTTP(S) and UDP/QUIC protocols. It was created to automatically rotate IP addresses, ensuring a smooth scraping experience.
• Rayobyte Residential Proxies- Rayobyte Residential Proxies is created in-house and is capable of handling jobs of any size. It has no limits on the number of concurrent connections one can send, and each request is assigned a unique IP address, allowing a user to avoid CAPTCHAs and other anti-scraping technology.
• SOCKS5 Residential Proxy-  SOCKS5 is one of the most recent and widely used options on the market. SOCKS5 is one of the most secure and effective proxy options for hiding a user’s IP address and browsing the internet privately.

Segmentation

By Type

• Static Residential Proxy
• Rotating Residential Proxy

By Protocol

• HTTP
• HTTP (S)
• SOCKS

By Application

• SEO Monitoring
• Social Media Automation
• Price Monitoring
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Others