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2021

Content delivery Network Market

Content delivery Network Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component, Content, Provider and Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2020-2027

IC : Information, Infrastructure & Network Security

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Author's: Rachita Rake & Shreyas Wadodkar | Onkar Sumant
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Content Delivery Network Market Statistics - 2027

The content delivery network market size was valued at $11,629 million in 2019, and is projected to reach $38,689 Million by 2027, growing at a CAGR of 15.3% from 2020 to 2027. A content delivery network is a platform that is highly distributed by server, which helps minimize delays and loss time in web page and content loading by minimizing physical distance between the user and server. This will help users to view and show high-quality content and web page without delay in loading. Without content delivery network, the server must respond to each and every single user request ticket. This will create significant traffic at the origin and increase chances of server failure; however, content delivery network carries significant protection for internet traffic.

On the basis of provider type, the traditional CDN segment dominated the overall CDN market share in 2019, and is expected to continue this trend during the forecast period. As to host this websites traditionally is becoming difficult because of single point of presence of server so content delivery network helps it to build faster, secure and cost effective network for better customer experience which will create lucrative opportunities in the global content delivery market. However, the peer-to-peer CDN segment is expected to witness highest growth due to the factors such as growing use of multi CDN infrastructure such as client-side CDN switchers. A peer-to peer CDN uses end-device information to determine the best ratio of content consumption from a content delivery network edge servers and other end-devices providing the same content. This will provide numerous opportunities for the market to grow.

Content-Delivery-Network--Market--2020-2027

Depending on component, the solution segment dominated the content delivery network market share in 2019, and is expected to continue this trend during the forecast period as the solution allows organizations to focus on their major activities such as providing new features in the application, which notably contributes toward the growth of the global CDN market. However, the service segment will show highest growth rate in the upcoming years due to increasing demand of various services such as professional services, managed services. Furthermore the use of content delivery network is increases in various industry verticals such as BFSI, IT and Telecom and others which will increase the demand for service globally which will opportunistic for the global CDN industry. For instance, in May 2020 Akamai technologies global provider of content delivery network service partnered with Conviva which is leader in the global streaming of media and video to provide better API service to improve Conviva users experience. 

Asia-Pacific is expected to exhibit highest growth during the forecast period, owing to strong economic growth along with the ongoing development in the IT and telecom sector, which drives organizations to invest heavily in content delivery network to sustain growth and improve productivity. In addition, factors such as major shift toward digital transformation, rise in cloud deployment and technological advancement among small & medium businesses, and ongoing modernization of telecommunication networks such as 5G networks, low latency private LTE drive heavy investment in content delivery network in emerging economies. Furthermore, enterprises in Asia-Pacific are focusing on enhancing their operations and increasing their overall efficiency to stay competitive in the market, which is expected to provide lucrative opportunities for the CDN market growth during the forecast period. 

The report focuses on the growth prospects, restraints, and CDN market analysis. The study provides Porter’s five forces analysis of content delivery network industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the CDN market trends.

Content delivery Network Market
By Provider Type
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Peer-to-peer CDN is projected as one of the most lucrative segments.

Segment review

The content delivery network market is segmented on the basis of component, content, provider, industry vertical, and region. By component, it is bifurcated into solution and service. By content, it is bifurcated into static content and dynamic content. By provider, it is categorized into traditional CDN, telecommunication CDN, cloud CDN, and peer to peer CDN. By industry vertical, it is classified into healthcare, retail & e-commerce, BFSI, IT & telecommunication, media & entertainment, travel & tourism, and others. By region, the CDN market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Impact of COVID-19 on the content delivery network market

The COVID-19 outbreak has a positive impact on the growth of the content delivery network market as content delivery network technologies are helping enterprises to address the extensive capacity demand of internet traffic. Most of the internet and data service providers are observing around 30–45% growth over a year in the global internet traffic. There is growing need to ensure the content delivery network service providers are having enough ability and capacity to deliver content delivery network with high performance during the increased traffic demand. Therefore, service providers, such as local mobile network operator and over the top service provider, are making considerable investments in content delivery network in a number of use cases. Moreover, the COVID-19 pandemic is opportunistic for the content delivery network and over the top (OTT) market growth as organizations across the globe are content delivery network to enable their business objective during work from home initiatives. Content delivery network is observing growing popularity and attention of researchers in both industry and academia as a means to data searching costs and produce the revenue streams for service providers due to the features in networking. During the COVID-19 pandemic, organizations that deployed content delivery network earlier have been able to quickly adjust to the new partners and business requirements that were resulting due to work-from-home mandates. Content delivery network help organizations cope with the ongoing pandemic and maintain economically positive operations.

Content delivery Network Market
By Industry Vertical
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Healthcare industry is one of the most significant segments.

Top impacting factors    

Increase in need for uninterrupted and live content delivery and high-speed data network and rise in use of rich media and video over website, increasing the demand for enhanced video and low latency online gaming, drive the CDN market globally. Moreover, surge in internet penetration and rise in use of smartphone and wearable also drive the market globally. However, technical difficulties in live video streaming and complex architecture and problem about quality of service may hinder the growth of the market globally. Furthermore, increase in demand for cloud-base service and rise in use of consumers in over-the-top service are anticipated to create lucrative content delivery network market opportunity. 

Growth in penetration of smartphone and wearable across the globe

From the last decade, the use of smartphones across developing economies is continuously increasing due to numerous factors such as increase in per capita income, cost affordability, availability of multiple low-price options with significant features, and others. Furthermore, growth in application of bring-your-own-device policy and work from home adoption by many organizations due to COVID-19 pandemic have resulted in the growing use of smartphones for official purpose. For instance, the survey by one of the web sites OBERLO.com states that the number of smartphone users is increasing every year. In 2020, the total number of smartphone users has crossed 3.5 million, which is 9.3% greater than in 2019. Furthermore, nearly 45.5% people of the total population that is 7.7 million people are using smartphones in the world. The percentage of smartphone users in the U.S. is 76% of its total population. In addition, South Korea has the highest percentage of smart phone users in the world, which is 95% of its total population. This growing use of smartphones creates lucrative opportunity in the global content delivery network market forecast period.

Content delivery Network Market
By Region
2027
North America 
Europe
Asia-Pacific
LAMEA

Asia-Pacific region is projected as one of the most significant segments.

Key Benefits For Stakeholders

  • The study provides an in-depth analysis of the content delivery network market along with the current trends and future estimations to elucidate the imminent investment pockets.
  • Information about key drivers, restraints, and opportunities and their impact analysis on the CDN market size is provided.
  • Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the content delivery network market.
  • The quantitative analysis of the content delivery network market from 2019 to 2027 is provided to determine the content delivery network market potential.

Content delivery Network Market Report Highlights

Aspects Details
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By Component
  • Solution
  • Service
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By Content Type
  • DYNAMIC CONTENT
  • STATIC CONTENT
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By Provider Type
  • Traditional CDN
  • Telecommunication CDN
  • Cloud CDN
  • Peer to peer CDN
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By Industry Vertical
  • Healthcare
  • Retail & e-commerce
  • BFSI
  • IT & Telecommunication
  • GOVERNMENT AND PUBLIC SECTOR
  • MEDIA AND ENTERTAINMENT
  • Others
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (Japan, China, Australia, India, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

LUMEN TECHNOLOGIES, RACKSPACE TECHNOLOGY, MICROSOFT CORPORATION, INTERNATIONAL BUSINESS MACHINES CORPORATION (IBM) ., CITRIX SYSTEMS, INC, AMAZON WEB SERVICES, INC., GOOGLE LLC, AKAMAI TECHNOLOGIES, CLOUDFLARE, INC., LIMELIGHT NETWORKS, INC

Analyst Review

The adoption of content delivery network has increased over the period to deliver reliable and consistent experiences for their subscribers. In addition, the ability of content delivery network to provide various opportunities for businesses to gain new insights to run the business efficiently is increasing its popularity among end users. Furthermore, many healthcare, retail & e-commerce, BFSI, IT & telecom, and tourism industries are investing in content delivery network to increase security and reduce network-related issues in organizations, which in turn fuels the growth of the market.

Furthermore, the market is expected to witness significant growth in the future, due to increase in use of low latency networks such as long-term evolution, LTE micro stations, and 5G networks in domestic user and rise in adoption of artificial intelligence-oriented business models among organizations. For instance, organizations such as Microsoft Corporation, IBM Corporation, and Google LLC massively use content delivery network to enhance customer experience. The adoption of content delivery network helps them to implement better communication network to bring positive transformation, which results in high-quality customer service, cost saving, global reach, and diverse server load. Moreover, rise in investments in artificial intelligence & tools among every industry vertical boosts the revenue growth.

In the current business scenario, substantial rise has been experienced in the usage of content delivery network solutions across Asia-Pacific. This is attributed to the fact that large population in this region has created an extensive pool of internet subscribers. Moreover, the region is the largest contributor to the total number of mobile subscribers across the globe, and is expected to add more subscribers to its network in the upcoming years. Asia-Pacific is further anticipated to witness highest growing in content delivery network in the upcoming years, due to its size; diversity; major shift toward digital transformation; and the logical lead taken by countries, including China, South Korea, and Japan.

The presence of a large number of providers in the global content delivery network market increases the competitive rivalry among key players. Therefore, content delivery network providers are differentiating themselves from competitors and driving revenue growth by incorporating new digital business technologies such as artificial intelligence, machine learning, 5G networks their offerings to gain a competitive edge, and retain their market position. The market is considerably concentrated with major players consuming significant market share. The degree of concentration will remain the same during the forecast period. The vendors operating in the market are taking several initiatives such as new product launches and partnership to stay competitive in the market and to strengthen their foothold in the market.

In addition, companies are heavily investing in R&D activities to develop advanced content delivery network service, which is opportunistic for the market. For instance, in December 2020, Huawei Technology launched cloud-based content delivery network service in India. Which will provide better content delivery network service to Indian market, which is expected to provide lucrative opportunity for the growth of the market during the forecast period.

Author Name(s) : Rachita Rake & Shreyas Wadodkar | Onkar Sumant

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Content delivery Network Market

Global Opportunity Analysis and Industry Forecast, 2020-2027