Content Delivery Network

Global Content Delivery Network (CDN) Services Market

by

Content Delivery Report Overview

From 2022 to 2030, the market for content delivery networks is projected to develop at a compound annual growth rate (CAGR) of 23.0%, from a market size of USD 15.47 billion in 2021. The COVID-19 epidemic has had a direct impact on the market because the revenue-generating capacity of content delivery network suppliers depends on a number of economic factors, including active financial markets, a steady flow of liquidity, and capital from financial institutions. Despite these challenges, the CDN market is anticipated to rise steadily throughout the forecast period as a result of the rising amounts of data being transferred online in tandem with the ongoing deployment of high-speed networks.

Due to the pandemic, many organisations across the globe are switching to remote working and are not renewing their on-premise CDN service licences. Solutions for content delivery networks are widely utilised in the media and entertainment sector to improve the distribution of audio and video material. The demand for high-quality, unique content and the ongoing evolution of content consumption have fueled the demand for effective CDN solutions that can boost network performance and improve content delivery. The market is anticipated to grow at a faster rate than average over the course of the forecast period as a result of the rising demand for Over the Top (OTT) and Video-on-Demand (VOD) services, which will guarantee continuous content delivery over a high-speed data network.

In pace with changing customer behaviour, the global e-commerce market is constantly developing. Customers have access to all the information they need to make an informed purchasing decision thanks to the proper deployment of CDN solutions in the e-commerce sectors. Customers are moving away from traditional television in favour of video content delivered over cellular networks, while CDN technologies are also being used to enhance content delivery

Broadcasters who provide latency-free data over the network and improve the quality of video distribution are facilitating the increased uptake of OTT and VOD services. The global network connectivity, bandwidth, and coverage have all improved as a result of ongoing investments made in network infrastructure, particularly in developing nations like India. Consumers may now stay connected, receive real-time updates, and access ready-made media data thanks to these advancements. This is motivating broadcasters to improve content delivery while providing diverse data for consumption across many platforms.

Content-type Insights

With an estimated 60% revenue share in 2021, the dynamic CDN segment led the industry. The expansion might be due to the rising need for CDN solutions to support real-time VoIP, video streaming, and online gaming. Dynamic content contains constantly changing data as part of tailored web services and makes use of web performance optimisation to hasten the delivery of web pages or website content for any organisation across a variety of end-user devices. These services use a clever routing technique to lower page latency. Through network and delivery optimisation, operators meet customers’ preferences for receiving all of these services from a single supplier.

Due to the rising use of high-speed data networks, improved bandwidth, and rising volume of static content, the static CDN segment is anticipated to have considerable growth throughout the projected period. The amount of static material is increasing, which affects the servers’ capacity as well as user surfing experiences through increased bandwidth consumption and page load times. The CDN can be used to cache these content across a group of geographically scattered servers, speeding up performance, limiting bandwidth usage, and lowering infrastructure costs.

Solutions Insights

Over the predicted period, the media delivery segment expanded, and in 2021, it accounted for more than 35% of total revenue. From 2022 to 2030, the segment will grow at a CAGR of about 23.0%, which is the fastest. It is projected that the growing demand for smartphones and other smart, connected devices that can support digital media would propel the segment’s expansion. Customers had little choice but to access the data wherever and at any time in emerging economies due to the ongoing roll-out of high-speed networks. The main factor driving the growth will be the increasing need for CDN solutions to provide latency-free media delivery.

Service Provider Insights

In 2021, the typical commercial CDN category had the highest revenue share—more than 50%. This growth is being driven by the many network optimisation, content acceleration, and media delivery options that service providers are providing. A result of the increase in data consumption around the world, CDN providers have begun to offer solutions for relevant content and network delivery optimisation. The issues brought on by the introduction of the newest technologies are being addressed by a number of old CDN solutions, which are gradually proving to be insufficient. The fact that mobile consumers want material that is less optimised for their devices and is available farther away from the origin servers presents another problem for the CDN market. It is anticipated that these issues will restrain segment growth.

Over the projected period, the CAGR for the cloud segment is anticipated to be considerable. The introduction of high-quality video content, the proliferation of smart and connected devices, the development in the availability of rich media on social media platforms, and the volume of rich media file material that is being produced are the drivers that will propel the market’s expansion in the years to come.

End-use Insights

The segment with the biggest revenue share in 2021—more than 40%—was media and entertainment. With the rising demand for online streaming and VOD services, which largely necessitates optimising the data and network delivery, the media and entertainment sector is shifting to a digital distribution paradigm and experiencing substantial development. Regardless of the device, CDN vendors are increasingly focusing on providing their clients with high-quality visual capabilities and increased visibility without any interruptions.

From 2022 to 2030, the e-commerce sector is anticipated to see a sizable CAGR of 22.9%. The expansion is being driven by the rise in popularity of online gaming. It is essential to provide end users (gamers) with the best experiences possible as gaming is quickly developing as one of the businesses. Given that the majority of modern games are played at 4K resolution with complex visuals and frequently have massive file sizes, they cannot be run at lesser internet connections.

Regional Insights

The greatest revenue share in 2021—more than 30%—belonged to North America. The greatest internet penetration rate in the region and the rising demand for 4K resolution displays are the main drivers of the region’s market expansion. For the effective distribution of data, these offer a strong CDN infrastructure. Also anticipated to have a direct impact on regional market growth are the quick uptake of cloud-based services, the development of high-speed data networks, and rising smartphone demand.

Due to the presence of emerging economies like China and India, Asia Pacific is expected to see the greatest CAGR over the projection period. It is also one of the fastest-growing consumer markets.

Key Companies & Market Share Insights

To broaden their geographic reach and solidify their position on the global market, the major corporations are launching a number of projects. These initiatives include financial investments in R&D operations, mergers and acquisitions, the introduction of new products, strategic alliances and collaborations, and improvements to the current solutions.  Some of the prominent players operating in the global content delivery network market are:

  • Akamai Technologies
  • Amazon Web Services, Inc.
  • International Business Machines Corp.
  • Limelight Networks
  • Verizon
  • AT&T Intellectual Property
  • Google LLC
  • Microsoft
  • CenturyLink
  • Deutsche Telekom AG
  • Tata Communications
  • Fastly, Inc.
  • Tencent Cloud
  • Kingsoft Corporation, Ltd.