Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Market Insights- India Content Delivery Network (CDN) Market 2017-2027
The India content delivery network (CDN) market was valued at US$ 435.2 Mn in 2018 and is expected to grow at a CAGR of 23.3% during the forecast period (2019-2027)
- Increasing streaming online of video content is expected to drive growth of the India content delivery network (CDN) market during the forecast period
Consumers are shifting from conventional, cable-based video consumptions top Internet-based delivery platform. Various companies in the market are determined to enter in the OTT service space, in order to encompass potential revenue opportunities. This, in turn, is expected to increase the traffic over the Internet, thereby increasing additional pressure on organizations and service providers to ensure the optimal quality for end users. For instance, in India, around 23% of viewers consider buffering as a key disadvantage when it is streamed on smart devices. Due to this, consumers are slowly shifting towards OTT-VOD services, in order to avail un-buffered viewing experience.
- Rapidly enhancing broadband structure is expected to propel the India content delivery network (CDN) market over the forecast period
In the recent, past broadband infrastructure in India has improved significantly, which has led to enhance broadband. Moreover, growing proliferation of high speed internet and affordability of related services is expected to accelerate the consumption of media content. This, in turn, is expected to fuel the market growth over the forecast period. For instance, the Government of India is working on a policy that would make broadband infrastructure crucial in states to deliver Digital India Program.
Streaming segment dominated the India content delivery network (CDN) market by application in 2018, accounting for 52% share in terms of value, followed by web acceleration, CDN storage, gaming, respectively
- High initial investment required for CDN is expected to restrain growth of India content delivery network (CDN) market over the forecast period
Setting up a new content delivery network requires significant investment at the beginning with less revenue generation. Thus, it becomes challenging for new players entering in the market with high quality service with the same cost as of competitors.
- Concerns regarding privacy settings is expected to hamper the India content delivery network (CDN) market over the forecast period
Although CDN prevents the website from malicious attacks, there are certain vulnerabilities that could cause severe problems. The researchers, Hoai Viet Nguyen, Luigi Lo Iacono, and Hannes Federrath found a way to make CDN serve up error pages when the origin website is working. This attack, called CPDoS works by fooling the CDN into caching an error page. Thus, similar vulnerabilities are expected to restrain the market growth in the near future.
- Growing demand for cloud-enabled CDN is expected to pose major growth opportunities for market players
Cloud CDN uses Google’s globally distributed edge points of presence to cache HTTP(S) load balanced content close to users. This leads to faster delivery of content to users and reduces serving cost. Moreover, it decreases server load, segmenting the audience becomes easy, and reduces lower network latency and packet loss. Such advantages are expected to offer lucrative growth opportunities key players in the near future.
- Growing population of Internet users is expected to offer significant opportunities for key players
According to International Consortium of Universities for the Study of Biodiversity and the Environment or iCUBE report 2018, India’s internet users are expected to reach 627 million in 2019, owing rapid growth of internet in rural areas. Many e-commerce companies have identified India as an ideal market to expand their business. Thus, it is expected to offer significant growth opportunities for market players.
Source: Coherent Market Insights
- Reduction in prices of CDN service is expected to be major trend in the market
As Internet traffic has increased, it has led to significant decline in transit price and consequently CDN service prices. Moreover, new entrants in the market are offering rich feature services at reasonable cost, which in turn, is decreasing CDN service price. For instance, in 2015, average video CDN pricing was 20% lower than prices in 2014 and was expected to decline further by 20-25% in 2016.
- Shifting focus towards multiple CDN
Performance of single CDN differs according to regions, which eventually affects delivery or streaming of content. Therefore, key video streaming companies in the market are focused on adopting multiple CDNs, where some partnering with CDN providers. For instance, in 2013, Bharti Airtel and Limelight Networks entered into strategic partnership and installed 2 new POPs in Chennai and Mumbai.
In India delivery network (CDN) market, media & entertainment dominated the India content delivery network (CDN) market in end-use vertical segment in 2018, accounting for 49.9% share in terms of value, followed by e-commerce, others, Telco, government & education, healthcare, respectively.
Source: Coherent Market Insights
Key companies operating in the India content delivery network (CDN) market are Tata Communications Ltd., Amazon CloudFront – Amazon.com Inc., Cachefly, CDNetworks Co., Ltd., CDNify Ltd., CDNsun, CDNvideo, CloudFlare, Inc., EdgeCast Networks, Fastly.com, proinity LLC (KeyCDN), Limelight Networks Inc., Skypark CDN, and Level 3 Communication Inc.
- Key companies in the market are focused in product launches, in order to expand their product portfolio. For instance, in January 2017, Tata Communications Ltd. along with BitGravity, a content delivery network (CDN) provider, launched Tata Communications’ CDN service powered by BitGravity with over 300 points present around the world.
- Key players in the market are focused on capacity expansion, in order to gain competitive edge in the market. For instance, in March 2017, CDNetworks Co., Ltd. expanded its network capacity four times.