The rising use of the internet for data and media transmission and growing consumer interest in video on demand (VOD) and over the top (OTT) platforms for entertainment have generated growth in content delivery network solutions and services globally. Consequently, the applications of content delivery networks have risen exponentially, even with the coronavirus pandemic reaching its height in 2020 owing to demand for e-learning and work from home operations.
Some key factors encouraging the adoption of content delivery networks include major investments into development of network technologies and the sharp decline in data costs. The burgeoning e-commerce sector and the associated CDN requirements have also bolstered adoption rates.
A report published by Future Market Insights (FMI), provides insights into key factors influencing the market in terms of revenue and sales between the projection period between 2020 and 2030. Software-as-a-Service content delivery networks offerings are likely to reflect higher demand, with e-commerce verticals gaining traction with video content delivery over mobile networks.
CDN Solutions for Dynamic Content Gains Importance
According to the IEEE, content delivery networks are highly competitive on quality of service in terms of digital content distribution. Consequently, market players leverage edge servers for localized caching, making dynamic security essential.
SDN and NFV technologies are rapidly gaining ground, which provides services with high performance standards, without requiring massive distributed infrastructure, in turn generating major opportunities with large scale cloud systems.
Also, as OTT content gains popularity, CDN is critical in minimizing operational challenges for content distributors. Dynamic agreements between CDN and ISPs provide benefits of reduced CDN costs while continuing to generate substantial revenues for ISPs, which supports long term growth.
Rich Media and Video Content Drive Market Development
Rich media and video content applications have soared dramatically in the past decade, resulting in exponential growth for the CDN market. Maintaining low levels of latency has been critical for businesses to remain competitive in the sector.
Content delivery networks enable market players to distribute content faster by leveraging large banks servers around the globe, to provide localized service through the server closest to the user. CDNs not only improve speed and quality for video content and streaming, they also provide high levels of reliable security and superior efficacy in terms of scalability, owing to lower costs of data storage and the outsourcing of content management.
Market Research Methodology - Perfected through Years of Diligence
A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.
North America Content Delivery Network Market
North America is a key market for content delivery network, accounting for more than 35% of the global market share through 2030. The massive popularity of 4K videos and high accessibility to high speed data networks, coupled with a major population base of internet users, especially in the United States is a key driver.
Also, the market in North America has been provided impetus by the presence of major market players in the region. The high demand for video content in addition to the growing popularity of data digitization is contributing to growth in the region. Gaming through online channels, and the transition from conventional cable media are also major factors aiding the growth of the industry in North America.
Request a sample specific to North America market
Europe Content Delivery Network Market
Following North America, Europe is currently, the second largest market for content delivery networks. Some of the key factors driving the CDN market in the region is the high penetration of smart devices higher adoption rates by SMEs, widespread penetration of the internet.
Also, Europe has witnessed a growing demand for content delivery networks to meet the requirements of augmented reality and virtual reality applications. Online shopping is another major area of interest for players in the European market as e-commerce has become particularly popular in Germany the U.K. through AI assistants such as Siri and Alexa.
Request a sample specific to Europe market
East Asia Content Delivery Network Market
East Asia is a major, fast growing market for content delivery networks, which is projected to surpass Europe in terms of value by the end of the forecast period in 2030. The growth can be attributed the rapid spread of the e-commerce sector, and the media and entertainment industry. Also, countries in the region are investing heavily in high-speed network installations, which makes the deployment of content delivery networks essential in the region.
China will account for more than 67% of the regional market share by the end of 2030. While a large portion of the Chinese population remains offline, the massive population of the country has still resulted in a globally significant base of internet users. Collaboration with government backed bodies such as the China Telecom Global is key.
High Demand for CDN Delivery SaaS
Content delivery network services are primarily available in four key types, designing, testing, and deployment, software-as-a-service (SaaS), managed service, and consulting service. Of these, software-as-a-service is projected to account for over 67% of overall market value by 2030.
Software-as-a-Service can further be classified into bundled suites and individual modules for digital rights management, CDN delivery, CDN analytics & monitoring, and transparent caching among others. Individual modules have become increasingly more popular than bundled suites owing to demand for customization among end users.
Growing Media Distribution/Delivery Applications
Content delivery networks can be used for website caching, media distribution/delivery, and software distribution/delivery. Of these media distribution/delivery contributes significantly to revenue, and will account for more than 60% of the market share by the end of the forecast period.
This growth can be attributed largely to the massive rise in the popularity of video streaming services and VOD subscriptions in recent years, which has driven the demand for content delivery and network operational optimization.
Media & Entertainment Vertical Drives Demand
Key verticals leveraging content delivery networks include media & entertainment, e-commerce, IT & telecom, healthcare, government, advertisement, and others. Media and entertainment businesses are key consumers of content delivery networks, with impetus derived from online streaming and website content.
On the other hand, e-commerce applications are rising at a rapid pace, and is rapidly catching up with the entertainment segment. The penetration of the internet to even developing countries and rural areas, coupled with the high numbers of smartphone devices support growth.
Bias Towards Conventional CDN
Content delivery network offerings are provided largely through telecom CDNs or conventional CDNs. Conventional CDN service providers hold major market share. This trend is unlikely to change throughout the forecast period.
The dominance of the sector can be attributed to a wider range of services offered including content acceleration, network optimization and media delivery among others.
Content delivery network market players are extensively focused on the strategic partnerships within the industry and with end user corporations to set up sustainable long-term revenue strategies, and to aid in faster product development.
The ongoing covid-19 crisis has resulted in the temporary closure of most conventional business operations, boosting the opportunities for content delivery networks for media, education, government, and healthcare sectors among others. Market players are paying attention to the major opportunities arising from video on demand and videoconferencing applications.
Akamai Technologies Inc. has announced the renewal of its partnership with AT&T till 2023, to provide Akamai’s services to AT&T customers as a part of cloud and network services including content delivery suites and modules. This extension of the collaboration is the third time, following 2012 and 2017, aimed towards network security and performance improvements.
CloudFlare Inc. has announced a partnership with the Internet Archive towards improving reliability of website operations for publishers, which will encompass even those users who don’t avail CloudFlare services. The partnership will help generate better services for CloudFlare services, while providing Internet Archive with greater volumes of data.
Microsoft Corporation has introduced the Azure Orbital a new content delivery network service at cloud scale to compete with AWS in satellite data processing, enabling analysis of factors influencing climate change and other scientific research in collaboration with partners such as Amergint, Viasat, Kratos, US Electrodynamics Inc., KSAT, and KubOS.
Aside from these players, other major producers include:
- Amazon.com Inc.
- Verizon Digital Media Services
- LimeLight Networks Inc.
- CDNetworks Co. Ltd.
- Orange S.A.
- Deutsche Telekom AG
- Stackpath LLC
This list is only indicative – The full list of content delivery network players is available on request.
Content delivery network Industry Report: Scope
Historical Data Available for
USD Million for value
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East & Africa
Key Countries Covered
US, Canada, Brazil, Mexico, Germany, Italy, France, U.K., Spain, BENELUX, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa
Key Segments Covered
Service, Application, Vertical, Service Provider, and Region
Key Companies Profiled
Akamai Technologies Inc., CloudFlare Inc., Amazon.com Inc., Microsoft Corporation, CenturyLink, Verizon Digital Media Services, Limelight Networks Inc., CDNetworks Co. Ltd., Orange S.A., AT&T, Deutsche Telekom AG, StackPath LLC
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered by the Report
- What is the size of the content delivery network market?
The global content delivery network market surpassed a valuation of US$ 11.5 Bn in 2019. The market is estimated to grow at a staggering 20% CAGR between 2020 and 2030.
- Which is the largest market for content delivery network?
North America is the leading market for content delivery networks. Growing use in the fields of e-commerce, media, and entertainment support market growth.
- Which are the top companies in content delivery network market?
Some of the leading companies operating in the market are Akamai Technologies Inc., CloudFlare Inc., Amazon Inc., Microsoft Corporation, CenturyLink, Verizon Digital Media Services, Limelight Networks Inc., CDNetworks Co. Ltd., and Orange SA among others.
- What are the applications of content delivery network?
Content delivery networks are primarily in the media and entertainment sector for a wide-ranging OTT, video, and website content. Content delivery networks are also increasingly being used by healthcare, telecom, and government services, in terms of public information dissemination.
- In what types are content delivery network services available?
Content delivery network services are provided in four types. These include designing, testing, and deployment, software-as-a-service, managed service, and consulting service. Of these, software-as-a-service content delivery networks are in high demand and are projected to account for approximately 67% of the overall market share by 2030.
- What is the outlook on content delivery network market?
Content delivery network service providers will find business to be more resilient to the coronavirus pandemic than other fields. The rollout of 5G technology coupled with a steady decline in data costs hurt market prospects.
- Which countries will exhibit relatively higher demand for content delivery network?
Countries in East Asia are displaying fast growth rates, on the back of ecommerce and media applications in addition to investments made to networking technology.
Enquiry before Buying
- Is this research conducted by Future Market Insights?
Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.
- What research methodology is followed by FMI?
FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions.
- Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
- What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
- Is a sample of this report available for evaluation?
Yes, you can request a sample and it will be sent to you through an email.
- How can I buy this report?
FMI provides a secure online payment system to buy report seamlessly. You can buy the report securely and safely.
Content Delivery Network Market: Segmentation
- Designing, Testing, and Deployment
- Bundled Suite
- Individual Module
- Digital Rights Management
- CDN Delivery
- CDN Analytics & Monitoring
- Transparent Caching
- Managed Services
- Consulting Services
- Media Distribution/Delivery
- Software Distribution/Delivery
- Website Caching
- Media & Entertainment
- IT & Telecom
- Telecom CDN
- Conventional CDN
- North America (U.S., Canada)
- Latin America (Brazil, Mexico, Rest of LATAM)
- Europe (Germany, Italy, France, U.K., BENELUX, Spain, Russia, Rest of Europe)
- South Asia & Pacific (India, Thailand, Indonesia, Malaysia, Australia, New Zealand, Rest of South Asia)
- East Asia (China, Japan, South Korea)
- Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa, Rest of MEA)