A content delivery network or content distribution network is a geographically distributed network of proxy servers and their data centers. The primary objective of CDN is to provide high availability and performance by distributing the service to end users. A CDN enables the quick transfer of assets required for loading Internet content including HTML pages, images, videos, and java scripts.
The global Content Delivery Network market is estimated to account for US$ 10,278.7 Mn in terms of value by the end of 2019.
Market Dynamics- Drivers
The daily consumption of videos is rapidly shifting from cable and DTH to internet-based delivery platforms. As a result of this, many market players are focused on capitalizing on these opportunities by providing novel services. This, in turn, is expected to increase traffic over the Internet and place additional pressure on organizations and OTT service providers, in order to ensure optimal quality to provide an enhanced user experience. Furthermore, top-tier content providers such as HBO and CBS are offering content services directly to consumers. Thus, these factors are expected to drive growth of the global content delivery network (CDN) market during the forecast period.
Various SMEs in emerging markets are focused on using the digital platform and internet to gain a global presence. On the contrary, large organizations are laying emphasis on the engaging and interactive digital experience that typically depends upon heavy multimedia content. This in turn can lead to increasing loading time of webpages due to increasing traffic and congestion on the Internet. Engaging customers is vital for sustaining the business and is becoming increasingly challenging with rapidly expanding online economic conditions characterized by intense competition. Therefore, these factors are expected to propel the global content delivery network (CDN) market growth over the forecast period.
North America region held dominant position in the global content delivery network market in 2019, accounting for 39.7% share in terms of value, followed by Asia Pacific, Europe, Latin America, and Middle East & Africa (MEA) respectively.
|Base Year:||2019||Market Size in 2019:||USD 10,278.7 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||20.5%||2027 Value Projection:||USD 45,801.5 Mn|
Akamai, Edgecast/Verizon, CDNetworks, Mirror Image, ChinaCache, MaxCDN, ChinaNet Center, Limelight Networks, Hibernia Networks, LeaseWeb, Highwinds, and Internap.
|Restraints & Challenges:||
Figure 1: Global Content Delivery Network Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraint
Certain key customers are shifting their focuses from relying on third-party CDN services to deploying their own CDN that is tailored to their specific demands. This is mainly due to increasing inclination towards providing superior user experience to their ever-increasing subscriber base. For instance, in June 2012, Netflix announced the rollout of Open Connect—its in-house CDN—in order to provide optimal service to its growing customer base. In May 2014, Comcast announced the deployment of CDN in order to move some traffic from third-party CDN services into its own. The company also launched commercial CDN services primarily targeting medium and large content owners.
Despite its rising popularity, CDN faces numerous challenges, especially poor network connectivity. High end content such as live video streaming requires high bandwidth and high-speed internet for seamless streaming. There is poor network connectivity in emerging economies such as Brazil and MEA. Therefore, these factors are expected to restrain growth of the global content delivery network market during the forecast period.
Increasing IP traffic across the globe is expected to increase load on the present Internet network. This in turn is anticipated to significantly drive demand for CDN. According to Coherent Market Insights’ analysis, Global IP traffic is anticipated to reach 2 zettabytes per year (168 exabytes per month) by 2019. In 2014, 39% of all Internet traffic passed through CDN, which is expected to increase to 62% by 2019. Furthermore, in 2014, the global internet traffic reached 15.5 GB per capita and is anticipated to account for 37 GB per capita by 2019 end.
Rapid improvements in the broadband infrastructure worldwide in turn translates to significantly improved broadband speed. This along with increasing internet penetration and affordability of these services is expected to increase the consumption of rich media content via various devices. This, in turn, is expected to boost the adoption of CDN in order to cater to such demands.
Figure 2: Global Content Delivery Network Market Value (US$ Mn), 2017 - 2027
The global content delivery network market was valued at US$ 10,278.7 Mn in 2019 and is estimated to reach US$ 45,801.5 Mn by 2027 exhibiting a CAGR of 20.5% between 2020 and 2027.
Major companies are focused on providing CDN solution support for IPv6 due to IPv4 expected to become obsolete, in turn prompting various customers to move towards IPv6 for hosting websites. IPv6 offers various additional benefits as listed below. For instance, in April 2014, Cloudflare announced CDN service support for IPv6 for its customers. In March 2012, Akamia announced a plan to provide CDN services support for IPv6 for enterprises, consumer-oriented services, and media companies.
Growing Internet traffic is a major driver for declining transit prices and subsequently CDN service prices. The entry of start-up companies in the market offering rich feature services at low cost further leads to a decline of CDN service prices across the globe. Average U.S. transit price was down 10% in 2015 when compared to the previous year. This is anticipated to decline at the same rate in 2016.
Key players operating in the global content delivery network (CDN) market are Akamai, Edgecast/Verizon, CDNetworks, Mirror Image, ChinaCache, MaxCDN, ChinaNet Center, Limelight Networks, Hibernia Networks, LeaseWeb, Highwinds, and Internap.
A content delivery network is a distributed platform of servers that helps to minimize the delays in web page loading, by reducing the distance between server and user. A content delivery network can transfer the assets required for loading the internet contents that include HTML pages, videos, and images. Moreover, a well-configured content delivery network can help to minimize malicious attacks such as Distributed Denial of Services.
The adoption of a content delivery network is majorly getting increased due to the increasing usage of content delivery networks in the media and entertainment industry. In this industry content delivery network is getting adopted for streaming high-quality audio and video content. The demand for high quality is getting increased and the pattern for content consumption is getting changed, owing to which CDN network is getting adopted, that can optimize the network performance, and improve the content delivery. For instance, according to Coherent Market Insights, in the year 2018, 84% of all internet users have watched online video through devices such as mobile, tablet, laptop, which is expected to increase over the forecast period.
Concerns regarding the safety and security of user data are expected to hamper the growth of the content delivery network over the forecast period.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.