The content delivery network market is projected to witness a CAGR of 30.26% during the forecast period to reach a total market size of US$73.008 billion by 2026, increasing from US$11.473 billion in 2019. A Content Delivery Network (CDN) is a widely spread network of servers that helps reduce the physical distance between the server and the user, resulting in faster download of web page content. This speeds up the display of high-quality content to the users accessing the webpage across different locations globally. A CDN offloads traffic from content servers and improves the web experience, thus benefiting both the content provider and its end users.
With almost 89 million secure internet servers worldwide in 2020, according to the World Bank, CDNs offer an easy way to increase the speed of a website while also lowering latency. Therefore, they are essential for the fast, efficient, and secure delivery of content to users around the world.
Geographically, North America has the highest share in the CDN market. By type, video content delivery holds a larger share due to the growth of video-on-demand and OTT services. The ever-increasing video content is expected to be the main reason for the rise of the CDN market.
Owing to the digital transformation worldwide, CDN delivers static, dynamic, and interactive content to end-users, at an increased speed and lower bandwidth. Businesses and governments have also started using the facilities to the internet. This requires a smooth user experience with no lags. The buffering duration of the content affects the interest of the users. This growing demand has been fueled by broadband and mobile internet connectivity across the nations.
With as many OTT platforms available, the number of content consumers is also increasing due to their attractive subscription plans and advertisement. The OTT platforms are evolving from time to time with better digital infrastructure and interactive apps and websites. The CDN market is closely related to the proliferation of these platforms. Moreover, an increase in the number of smartphone users, huge investment in original content creation; cheap internet plans are also propelling the market growth. Likewise, expansion of online shopping and online payment gateways require an uninterrupted service, the CDN monitors data traffic and aids the process. Thus, factoring a growth in its market.
CDN has several pros, but a few cons may limit its market growth. The high-cost structure of using CDN services is a downside. There is also a question of privacy and data security because of the large number of users as it may lead to virus and cyber attacks. These factors question the authenticity of its services and challenge the market expansion. However, the pros outweigh the cons in most cases leading to new avenues of growth.
The Covid-19 pandemic has put a restriction on physical activities which had negatively impacted the consumption, distribution, and production process of several markets. But the digital activities heaved high. Moreover, during the pandemic, the use of media and entertainment platforms requiring high-quality video content is swelling the demand for CDN solutions. The alarming rise in the usage of internet services during the pandemic has increased the network traffic which created enormous growth opportunities for the CDN market.
The market leaders for the Content Delivery Network Market are Akamai Technologies, CloudFlare, AT&T Inc., Limelight Networks, Amazon, CDN77, CDNetworks, Ericsson, Tata Communications, and Internap. The key players in the market implement growth strategies such as product launches, mergers, and acquisitions, etc. to gain a competitive advantage over their competitors. For Instance,
|Market size value in 2019||US$11.473 billion|
|Market size value in 2026||US$73.008 billion|
|Growth Rate||CAGR of 30.26% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, End Users, Applications, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Akamai Technologies, CloudFlare, AT&T Inc., Limelight Networks, Amazon, CDN77, CDNetworks, Ericsson, Tata Communications, Internap|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global content delivery network market?
A1. Content Delivery Network Market was valued at US$11.473 billion in 2019.
Q2. What will be the content delivery network market size by 2026?
A2. The content delivery network market is projected to reach a total market size of US$73.008 billion by 2026.
Q3. What are the growth prospects for the content delivery network market?
A3. The global content delivery network market is projected to witness a CAGR of 30.26% during the forecast period.
Q4. What factors are anticipated to drive the content delivery network market growth?
A4. The major factors driving the CDN market growth include the rising need for effective solutions to enable live and uninterrupted content delivery over a high-speed data network, increasing demand for enhanced Quality of Experience and Quality of Service, an explosion of video, and rich media websites.
Q5. Which region holds the maximum market share of the content delivery network market?
A5. Geographically, North America has the highest share in the CDN market owing to the growing number of users accessing the web content.
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