The “Global Content Delivery Network Market, By Service Provider (Telecom CDN, Conventional CDN, and Others), By Application (Media Distribution, Software Distribution, Website Caching, and Others), By End-use Vertical (Media & Entertainment, E-commerce, ISP, Healthcare, Government and Education, Gaming, Advertisement, and Others), By Service (Designing, Testing And Deployment Service, Software-as-service (Individual Module (Digital Rights Management, CDN Delivery, CDN Analytics & Monitoring, Transparent Caching, and Others), and Bundled Suite), Managed Service, Consulting Service, and Others, and by Geography (North America, Europe, Asia Pacific, and RoW) - Global Forecast to 2027”, was valued at US$ 10,278.7 million in 2019, witnessing a CAGR of 20.5% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Overview
Content delivery network or CDN is a system of distributed servers that delivers pages and other web content to a user, which is based on geographic locations of users. CDNs are a layer of the internet ecosystem. CDN allows for the quick transfer of assets required for loading Internet content including HTML pages, stylesheets, images, and videos. CDN players pay ISP and carrier network operators for hosting servers in their data centers.
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 Driver
Rising consumption of rich media content is expected to boost the global content delivery network (CDN) market growth over the forecast period
Technological advancements in video formats have led to a radical shift from standard definition to high definition platforms such as 2k, 4k, and 8k. This results in significantly higher sizes of files. For instance, bitrate for 4K video is approximately 18 Mbps, 2X the HD video bitrate, and 9X SD video bitrate. This is expected to drive growth of the CDN platform to deliver such content across various supported devices without compromising on the quality of content. For instance, in March 2016, the Olympics Broadcasting Services (OBS) announced that it would stream 130 hours of 8K content to Japan during the 2016 Olympics, Brazil. UHD (4K) IP video is expected to account for 21% of the global VoD traffic by 2019. Thus, these factors are expected to drive growth of the global content delivery network (CDN) market during the forecast period.
Market Opportunity
Rising development of IoT and growing consumption of connected devices can present lucrative growth opportunities in the global content delivery network (CDN) market
Growing consumption of connected devices across the globe in turn results in growth of the IoT market. Such connected devices communicate with each other and server-based resources via the Internet. This in turn leads to increased load on the network. According to Coherent Market Insights’ analysis, smart TV household penetration is expected to account for above 50% in countries such as the U.K. and France by 2019 end. According to Cisco IBSG, the number of connected devices is anticipated to reach 50 Bn units by 2020 end.