Content Delivery Network Market Size, CDN Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Content Delivery Network Market


The global content delivery network market size was valued at USD 10.58 billion in 2018 and is expected to witness a CAGR of 11.7% over the forecast period. The market growth can be attributed to the growing volumes of content being exchanged over the internet in line with the continued high-speed network rollouts. Effective solutions would be required to ensure uninterrupted content delivery over a high-speed data network, particularly to cater to the rising demand for Video-on-Demand (VOD) and Over the Top (OTT) services. Plummeting data costs coupled with increasing affordability and accessibility of broadband and mobile network access are some of the other major factors that are expected to drive the demand for content delivery network solutions.

The e-commerce industry is evolving continuously in line with changing consumer behavior. As such, CDN solutions are being employed to ensure that consumers have access to all the content necessary to make an informed buying decision. CDN solutions are also being employed aggressively to optimize delivery as consumers shift from conventional television to video content delivery over a cellular network. At the same time, implementation of digital solutions based on an IoT network across various industries are prompting CDN solution providers to introduce customized industry-specific CDN solutions. The growing adoption of advanced technologies, such as artificial intelligence (AI) and augmented reality (AR), is also opening opportunities to launch innovative CDN solutions.

The increasing demand for VOD and OTT services is necessitating broadcasters to provide latency-free content over the network and improve video delivery. At the same time, the ongoing investments in network infrastructure, which have strengthened the connectivity, increased the bandwidth, expanded the coverage, and improved the delivery, are encouraging consumers to stay connected and receive instant updates and access media content. This is prompting broadcasters to enhance content delivery while providing diversified content for multiple applications. The launch of affordable smartphones and data plans coupled with high-speed network rollouts are also necessitating enhanced content delivery and are driving the demand for CDN solutions.

Particularly in countries, such as India and China, the popularity of online gaming and the preference for digital marketing is growing. Advances in technology coupled with the rollout of smart cities and 4G network rollouts are also creating encouraging opportunities. At this juncture, large access providers and platform companies are pursuing horizontal and vertical integration initiatives to withstand the intense competition. As such, companies conventionally known for offering technology solutions are moving into content market space. The increasing population coupled with the advent of new network technologies is also driving content consumption and necessitating efficient content delivery solutions. The digitization of the media & entertainment industry is particularly driving the market growth.

CDN solutions are being used extensively in the media & entertainment industry to support streamed audio and video content delivery. Customers want to view the desired content anytime, anywhere, and in the most suitable format. The demand for original and high-quality content is growing as a result and content consumption patterns are changing continuously. This has necessitated effective CDN solutions that can optimize network performance and improve content delivery. On the other hand, issues surrounding data security and information privacy are expected to restrain the market growth.

Content


Type Insights of Content Delivery Network Market

Based on content type, the global CDN market has been further segmented into static CDN and dynamic CDN. The dynamic CDN accounted for the largest market share in 2018 and was valued at USD 6,979.6 million owing to increase in demand for CDN solutions for real-time video streaming, voice over IP (VoIP), and online gaming services. Dynamic content envisages content that changes continuously as part of personalized web services. Customers want all TV services to be available through a single provider and operators are responding to these demands via network and delivery optimization techniques. Media broadcasters, content providers, and CDN solution providers are particularly considering network and delivery optimization as an opportunity to increase their customer base and revenues.

The growing preference for an enhanced e-commerce experience is also driving the demand for CDN solutions. The shifting consumer preference can be attributed to the proliferation of digital devices and mobile computation devices, and widespread high-speed data network rollouts. Consumer behaviors are changing continuously, and retailers and e-commerce companies are trying aggressively to improve the content delivery accordingly. Advanced network technologies are being employed as part of the efforts to enhance content delivery according to the changing consumer demands, thereby driving the growth of the dynamic CDN segment.

Solutions Insights

Based on solutions, the market has been further segmented into media delivery, web performance optimization, and cloud security. The media delivery segment accounted for the largest market share of 44.8% in 2018. The increasing number of devices capable of supporting digital media coupled with easy high-speed network access has provided the consumers with an option to access the desired media, anytime and anywhere. The demand for CDN solutions for latency-free media delivery is expected to grow over the forecast period as a result.

On the other hand, the web performance optimization segment is estimated to emerge as the fastest-growing segment over the forecast period exhibiting a CAGR of 12.1% from 2019 to 2025. The growth can be attributed to the increasing demand for Quality of Experience (QoE) and Quality of Service (QoS). Web applications optimized for performance tend to have lower bounce rates. Moreover, given the increase in the number of connected IT devices, the emphasis on a strong data network and improved content delivery is also on the rise, thereby bolstering the demand for CDN solutions for web performance optimization. The cloud security segment is also expected to grow substantially registering a CAGR of approximately 11.8% owing to growing concerns over data security and information privacy.

Service Provider Insights

Based on service provider, the CDN market has been further segmented into traditional commercial CDN, free CDN, peer to peer CDN, and telecom CDN. The traditional commercial CDN segment accounted for the largest market share in 2018 and was valued at USD 4,096.8 million in 2018. The multiple solutions provided by the service providers, including network optimization, media delivery, and content acceleration, allowed the segment to dominate the global market. The increase in data consumption across the world is prompting CDN providers to launch solutions for effective network and content delivery optimization.

On the other hand, the peer to peer CDN segment is projected to register the highest CAGR over the forecast period owing to the reduced costs and better service quality associated with peer to peer (P2P) CDN solutions. The increase in network utilization and continued digitalization of various industries has necessitated enhanced content delivery and is expected to drive the segment growth. The growing e-commerce industry, particularly in Asia Pacific and the Middle East, due to high-speed data network availability is another factor that is expected to drive the segment growth. The rise in the number of social media users would play a crucial role in driving the segment growth. The millions of users using social media platforms, such as Facebook, Instagram, and YouTube, are generating very large volumes of online content, thereby necessitating the deployment of P2P CDN solutions for optimization of network and content delivery.

Application Insights of Content Delivery Network Market

The application segment covers the deployment of CDN solutions in media & entertainment, retail & e-commerce, healthcare, online gaming, BFSI, IT telecom, public sectors, and travel & tourism industries and industry verticals. The media & entertainment segment dominated the market and accounted for a market share of 18.9% in 2018. The media & entertainment industry has been witnessing significant growth in recent years. The growing demand for VOD and online streaming services has particularly necessitated optimization of the network and content delivery.

On the other hand, the healthcare segment is expected to register the highest CAGR exceeding 12% owing to the increase in adoption of digital healthcare services. Implementation of advanced technologies is allowing incumbents of the healthcare industry to capture patients' data through web applications and seamlessly share information over an internet network for faster and accurate diagnoses. As such, incumbents of the healthcare industry are preferring to host patients' records online, thereby necessitating a strong data network. Although content delivery over a data network involves security and privacy concerns, content delivery network market players are investing aggressively in enhancing the performance of their CDN solutions without compromising with security and privacy.

Regional Insights of Content Delivery Network Market

The North America regional market for content delivery network dominated the global market in 2018 and accounted for a market share of 41.4%. A large internet user base, surging popularity of 4K content, and easy high-speed data network access allowed North America to dominate the global market. The presence of several CDN solution providers in the region is also one of the key factors contributing to the market growth. For instance, the U.S. is home to a number of companies that provide CDN services, such as AWS, Akamai Technologies, Microsoft, and CloudFlare, among others.

Asia Pacific is expected to register a CAGR of 14.0% over the forecast period. The growth can be attributed particularly to the growing media & entertainment and e-commerce industries and high-speed network rollouts. On the other hand, the MEA is also witnessing high-speed network installations. CDN solutions would be very necessary to support these network rollouts in the region.

Market Share Insights of Content Delivery Network Market

Key players in the market include Akamai Technologies, Amazon Web Services, Inc., CenturyLink, Google Inc., IBM, and Verizon Communications, Inc., among others. These players happen to be among the established players in the industry and are holding a considerable share of the market. Market players are undertaking several initiatives aimed at expanding the geographical reach and strengthening the foothold in the market. Such initiatives include aggressive investments in research and development activities, new product launches, mergers and acquisitions, strategic collaborations and partnerships, and upgrades to the existing solutions.

For instance, in April 2017, Fastly, Inc. announced its Media Shield to optimize live streaming and on-demand video delivery over a network. The new technology controls traffic coming from different CDNs and routes it to a single point, which ultimately speeds up the video streaming for the users. Similarly, in April 2018, CDNetworks partnered with Net Insight to provide True Live OTT streaming solutions to its customers across the globe. On the other hand, Akamai Technologies partnered with Microsoft Azure Media Services and Blob Storage to help customers in optimizing network and content delivery.

p2Segments Covered in Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, this market research report has segmented the global content delivery network market report by content type, solutions, service provider, application, and region:

Content Type Outlook (Revenue, USD Million, 2019 - 2030)

  
Static
  
Dynamic

Solutions Outlook (Revenue, USD Million, 2019 - 2030)

  
Media Delivery
  
Web Performance Optimization
  
Cloud Security

Service Provider Outlook (Revenue, USD Million, 2019 - 2030)

  
Traditional Commercial CDN
  
Cloud CDN
  
Peer to Peer CDN
  
Telecom CDN

Application Outlook (Revenue, USD Million, 2019 - 2030)

  
Media and Entertainment
  
Retail & e-Commerce
  
Healthcare
  
Online Gaming
  
BFSI
  
IT Telecom
  
Public Sectors
  
Travel & Tourism