Content Delivery Network Market by Component (Solutions (Web Performance Optimization, Media Delivery, Cloud Security) and Services), Content Type (Static and Dynamic), Provider Type, Application Area and Region - Global Forecast to 2028
Updated on : April 15, 2024
Content Delivery Network (CDN) Market Size, 2028
The Content Delivery Network Market size is expected to have increased from USD 21.7 billion in 2023 to USD 36.5 billion by 2028, 10.9% CAGR. The exponential growth of internet traffic, fueled by the rising popularity of video streaming, online gaming, social media, and other digital content, creates a high demand for efficient content delivery solutions.
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Content delivery network Market Dynamics
Driver: Increasing demand for enhanced video content and latency-free online gaming experience
The online gaming trend increases exponentially as new technologies, such as 4K and Ultra HD, are released. These new technologies improve the gaming experience but can damage the pre-gaming experience, as they will make the gamers wait for hours to complete the download. This may lead to bad feedback from the gamers on public platforms that can bring loss to the providers. CDN solves this problem by leveraging content caching and a global network of servers. CDN allows gaming companies to deliver core downloads and patches to gamers quickly. In addition, download failures and server crashes are also prevented. All these functionalities improve the pre-gaming experience. In addition, CDN prevents any probability of lagging for players as connectivity problems have become a major problem for players in outlying geographic areas. Moreover, CDN provides scalability and thus enables the player to continually use the game even if the game grows by its file size due to high-quality graphics and other capabilities.
Restraint:Complex architecture and concern about QoS
QoS refers to monitoring infrastructure components, such as servers, routers, and network traffic. Managing these components is difficult, requiring significant time, money, and effort from the solution providers. The site administrators and mobile operators must ensure these components are properly executed to deliver better QoS to end users. Peer-to-Peer (P2P) CDN is unpredictable and dynamic and has a complex architecture. A full-fledged decentralized protocol must continuously monitor, manage, and recover the system from errors. The system's security and management are the major concerns of P2P CDN because of the lack of centralized control.
Furthermore, the need for enhanced QoS varies based on the streaming types preferred by the end users. For instance, users can tolerate a streaming delay in on-demand videos, whereas the requirement of QoS is much more specific in live video streaming. Delay in live video streaming of live matches and video conferencing may highly affect the QoS of a CDN vendor. The quality of the content may degrade as the content is delivered from various peer sources.
Opportunity: Growing interest of consumers in OTT platforms and VOD for entertainment
Over-the-Top (OTT) video consumption is rapidly evolving due to the ongoing advancements in digital infrastructure and efforts adopted by OTT platforms to create interesting content for consumers at affordable prices while delivering significant value. Moreover, the increased adoption of mobile devices, the popularity of large screens, and investments in original content creation are further driving the consumption. Furthermore, the demand for Video on Demand (VoD) services increases. It is an easier, faster, cheaper, and more comfortable method to watch videos enabling subscribers to download programs and watch them later. OTT and VoD users expect fast access to the programs and also expect to experience improved broadcast quality. The increasing number of users for OTT and VoD increases the demand for CDN solutions. A CDN can help media network admins meet their expectations more efficiently and cost-effectively. In addition, a VoD CDN accelerates delivery by providing users with the video from the closest to the user’s location by caching content on multiple servers dispersed geographically.
Challenge: Data security and privacy concerns
With the increasing use of video streaming solutions for watching movies and advertisements, there is a rise in viruses and cyberattacks. Often, users send and receive various video links to one another, which are sometimes corrupted by viruses. Ultimately, these viruses can potentially expose the private details of the recipients to malicious hackers and can affect the recipients' devices. The security of video content has become crucial. Video streaming solution providers need to develop and provide secured video streaming solutions to users. Security and privacy of the video content shared across various platforms are major concerns. At the same time, there are concerns related to copyrights and digital rights mismanagement, which can arise due to data misuse and information leakage. To counter such challenges, enterprises need to restructure their strategies of deploying video technologies before use. The absence of suitable policies and procedures for identifying and managing video content can hamper market growth.
Content delivery network Market Ecosystem
Prominent companies in this market include well-established, financially stable content delivery network solutions and services providers. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Akamai Technologies (US), AWS (US), Google (US), Microsoft (US).
Based on offering, the solutions segment is expected to register higher CAGR during forecast period
CDNs play a vital role in handling the majority of data and content consumed on the internet. Users' impatience with buffering has made efficient content delivery crucial for organizations. The global digitalization trend, including BYOD, CYOD, mobility, and social media marketing, has increased network traffic and data consumption. The availability of affordable bandwidth and the popularity of social media and mobile apps have further contributed to the growing demand for CDN solutions. Organizations leverage CDNs to deliver their content effectively, ensuring a better quality of experience (QoE) for their target customers.
Based on services, the Website and API management services is expected to hold the largest market size during the forecast
Website and API management services within the CDN domain encompass API management, hosting services, colocation services, connectivity services, and website management services. APIs facilitate the delivery and distribution of data to end users, enabling developers to create programming interfaces. CDN solution providers assist customers in securely and efficiently transmitting content to end users, making their websites and internet-accessible APIs readily available. Hosting and connectivity services ensure compatibility and ease of access for end users, while colocation services offer a secure environment for network connectivity. By utilizing these services, businesses can minimize capital expenditure (CAPEX), overcome data center limitations, and enhance content delivery capabilities.
By application area, healthcare is expected to register higher CAGR during forecast period
The healthcare services application area is a highly profitable sector within the CDN domain. However, it faces various technological challenges such as increasing regulations, cybersecurity risks, and evolving customer demands. CDN solutions have proven to be beneficial for the healthcare industry, especially with the widespread adoption of telemedicine. Healthcare enterprises rely on real-time data and instructions, which can be efficiently delivered through CDN's mobile and system connectivity. Additionally, CDN ensures fast and secure content delivery for portals, health records, web-based applications, and collaboration platforms. The demand for dynamic content with low latency is growing, and CDN addresses these requirements while providing security measures to protect sensitive patient information. Healthcare organizations can leverage CDN solutions for emergency videos, video conferencing for specialist consultations, and ensuring reliable content delivery to meet consumer needs.
Based on region, North America is expected to hold the largest market size during the forecast
North America holds the largest share in the global CDN market, primarily driven by the US and Canada. The region's strong economies, investment in R&D, and early adoption of advanced technologies fuel the development of CDN solutions. Factors such as the growing smartphone and internet user base, increasing popularity of OTT media services and 4K video content, and the need for enhanced website performance and cybersecurity drive the demand for CDN solutions. Market leaders like Akamai, AWS, Microsoft, Limelight Networks, Cloudflare, along with innovative startups such as Fastly, StackPath, and QUANTIL, have contributed to the market's growth. The adoption of CDN solutions is prevalent across various industry verticals in North America, including retail and eCommerce, gaming, and media and entertainment, supported by the region's ongoing digitalization efforts.
Market Players:
The major vendors in this market include Akamai Technologies (US), Microsoft (US), IBM (US), Edgio (US), Google (US), AWS (US), AT&T (US), Cloudflare (US), Lumen Technologies (US), Deutsche Telekom (Germany), Fastly (US), Citrix systems (US), NTT Communications (Japan), Comcast Technologies (US), Rackspace Technology (US), CDNetworks (South Korea), Tata Communications (India), Imperva (US), Broadpeak (France), Quantil (US), StackPath (US), G Core Labs SA (Luxembourg), Tencent Cloud (China), OnApp Limited (UK),EVG Corp (Vietnam), Kingsoft Cloud (China), Bunny.net (Slovenia) and Baishan Cloud (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and product enhancements, and acquisitions to expand their footprint in the content delivery network market.
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Report Metrics |
Details |
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Market size available for years |
2017-2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD) Million/Billion |
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Segments covered |
By Offering, functionality, content type, provider type, application area, and regions |
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Region covered |
North America, Europe, Asia Pacific, Middle East and Africa, and Latin America |
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Companies covered |
Akamai Technologies (US), Microsoft (US), IBM (US), Edgio (US), Google (US), AWS (US), AT&T (US), Cloudflare (US), Lumen Technologies (US), Deutsche Telekom (Germany), Fastly (US), Citrix systems (US), NTT Communications (Japan), Comcast Technologies (US), Rackspace Technology (US), CDNetworks (South Korea), Tata Communications (India), Imperva (US), Broadpeak (France), Quantil (US), StackPath (US), G Core Labs SA (Luxembourg), Tencent Cloud (China), OnApp Limited (UK),EVG Corp (Vietnam), Kingsoft Cloud (China), Bunny.net (Slovenia) and Baishan Cloud (US). |
This research report categorizes the content delivery network market to forecast revenues and analyze trends in each of the following submarkets:
Based on Offering:
-
Solutions
- Web performance optiomization
- Media Delivery
- Cloud Security
-
Services
- Designing and consulting services
- Storage Services
- Analytics and Performance Monitoring
- Website and API management
- Network Optimization Services
- Support & Maintanance
- Digital rights management
- Transparent caching
- Others
Based on Offering:
- Video Streaming
- Website Acceleration
- Software Delivery
- Cloud Storage
- Mobile Content Delivery
By Content Type:
- Static Content
- Dynamic Content
By Provider Type:
- Traditional CDN
- Telco CDN
- Cloud CDN
- P2P CDN
- Others
Based on Application Area:
- Media and Entertainment
- Online Gaming
- Retail and eCommerce
- eLearning
- Healthcare
- Other Application Areas
By Region:
-
North America
- United States (US)
- Canada
-
Europe
- United Kingdom (UK)
- Germany
- France
- Italy
- Spain
- Nordics
- Rest of Europe
-
Asia Pacific
- China
- Japan
- India
- Australia and New Zealand
- South Korea
- Indonesia
- Rest of Asia Pacific
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Middle East and Africa
- UAE
- KSA
- South Africa
- Rest of Middle East and Africa
-
Latin America
- Brazil
- Argentina
- Mexico
- Rest of Latin America
Recent Developments:
- In June 2023, Cloudflare partners with Databricks, the data and AI company, to enable organizations to safely, simply, and affordably share and collaborate on live data.
- In February 2023, Akamai Technologies launches Akamai Connected Cloud, a distributed edge and cloud platform for cloud computing, security, and content delivery. The new Akamai Connected Cloud is an attempt to unify Akamai's cloud effort with core computing, distributed cloud, and edge platform capabilities.
- In June 2022, Limelight Networks acquired Edgecast from Yahoo! Inc. and rebranded itself to Edgio.
- In April 2022, Disney partnered with its streaming division and Lumen Technologies to standardise CDN configuration metadata and application programming interfaces (APIs) for the streaming video industry.
Frequently Asked Questions (FAQ):
What is content delivery network technology?
The Content Delivery Network (CDN) technology is a distributed network infrastructure designed to deliver digital content, such as web pages, images, videos, and other media, to end-users efficiently and reliably. It works by caching content in strategically located servers (known as edge servers or points of presence) across various geographic locations. When a user requests content, the CDN identifies the server closest to the user and delivers the content from that server, reducing latency and improving performance. CDN technology also provides load balancing, scalability, security, and content optimization features, enhancing the overall user experience and ensuring fast, seamless, and reliable content delivery.
What is the market size of the content delivery network market?
The content delivery network market size is projected to grow from USD 21.7 billion in 2023 to USD 36.5 billion by 2028, at a CAGR of 10.9% during the forecast period.
What are the major drivers in the content delivery network market?
The key drivers supporting the growth of the content delivery network market include the rising need for effective solutions to enable live and uninterrupted content delivery over high-speed data network, increasing demand for enhanced QoE and QoS, proliferation of video and rich media over websites, increasing demand for enhanced video content and latency-free online gaming experience, and exponential increase in the consumption of online video content is expected to drive the growth of the market.
Who are the key players operating in the content delivery network market?
The key vendors operating in the content delivery network market include Akamai Technologies (US), Microsoft (US), IBM (US), Edgio (US), Google (US), AWS (US), AT&T (US), Cloudflare (US), Lumen Technologies (US), Deutsche Telekom (Germany), Fastly (US), Citrix systems (US), NTT Communications (Japan), Comcast Technologies (US), Rackspace Technology (US), CDNetworks (South Korea), Tata Communications (India), Imperva (US), Broadpeak (France), Quantil (US), StackPath (US), G Core Labs SA (Luxembourg), Tencent Cloud (China), OnApp Limited (UK),EVG Corp (Vietnam), Kingsoft Cloud (China), Bunny.net (Slovenia) and Baishan Cloud (US).
What are the opportunities for new market entrants in the content delivery network market?
New market entrants in the CDN market have significant opportunities to capitalize on the growing demand for fast, reliable, and secure content delivery. With the increasing adoption of streaming services, cloud computing, e-commerce, and mobile internet usage, there is a need for innovative CDN solutions that can provide enhanced performance, scalability, and cost-effectiveness.
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The content delivery network market research study involves extensive secondary sources, directories, and databases, such as D&B Hoovers and Bloomberg BusinessWeek, to identify and collect information useful for this technical, market-oriented, and commercial global market study. The primary sources were mainly several industry experts from core and related industries and preferred suppliers, manufacturers, distributors, Service Providers (SPs), technology developers, alliances, and organizations related to all the segments of this industry’s value chain. In-depth interviews have been conducted with various primary respondents, including key industry participants and subject matter experts, to obtain and verify critical qualitative and quantitative information, and assess growth prospects. These respondents included key industry participants, subject matter experts, C-level executives of key market players, and industry consultants.
Secondary Research
In the secondary research process, various secondary sources were referred to for identifying and collecting information for the study. The secondary sources included annual reports, press releases, investor presentations of companies, white papers, certified publications, and articles from recognized associations and government publishing sources. The data was also collected from secondary sources, such as The Association of International Internet of Things Consortium, Europe Research Cluster on Internet of Things, Bitkom-Germany’s Digital Association, and China Association for Science and Technology. Secondary research was mainly used to obtain key information about industry insights, the market’s monetary chain, the overall pool of key players, market classification, and segmentation according to industry trends to the bottom-most level, regional markets, and key developments.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information for the report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Chief Technology Officers (CTOs), Chief Operating Officers (COOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the Content delivery network market. The primary sources from the demand side included Content delivery network end users, network administrators/consultants/specialists, Chief Information Officers (CIOs), and subject-matter experts from enterprises and government associations.
The break-up of Primary Research:
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Market Size Estimation
Multiple approaches were adopted to estimate and forecast the Content delivery network market. The first approach estimates market size by summating companies’ revenue generated through Content delivery network solutions. In this approach for market estimation, we identified the key companies offering Content delivery networks by offerings: solutions and services.
Both top-down and bottom-up approaches were used to estimate and validate the total size of the Content delivery network market. These methods were extensively used to estimate the size of various segments in the market. The research methodology used to estimate the market size includes the following:
- Key players in the market have been identified through extensive secondary research.
- In terms of value, the industry’s supply chain and market size have been determined through primary and secondary research processes.
- All percentage shares, splits, and break-ups have been determined using secondary sources and verified through primary sources.
Content delivery network Market Size: Bottom-Up Approach
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Data Triangulation
After arriving at the overall market size, the content delivery network market was divided into several segments and subsegments. The data triangulation procedures were used to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with data triangulation and market breakdown, the market size was validated by the top-down and bottom-up approaches.
Market Definition
A content delivery network (CDN) is a distributed network of servers located in various geographic locations. Its purpose is to efficiently deliver web content, such as images, videos, and applications, to end-users. By storing and replicating content on these servers, CDNs reduce latency, improve website loading speed, and enhance the overall user experience. They also help manage traffic spikes, improve scalability, and offer additional services like security and performance optimization.
Key Stakeholders
- Content delivery network solution providers
- Independent Software Vendors (ISVs)
- Investors and Venture Capitalists (VCs)
- Support and maintenance service providers
- Value-added Resellers (VARs) and distributors
Report Objectives
- To determine and forecast the global Content delivery network market by offering (solutions, and services), content type, provider type, application area, and region from 2023 to 2028, and analyze the various macroeconomic and microeconomic factors that affect the market growth.
- To forecast the size of the market segments with respect to five main regions: North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East and Africa (MEA).
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market.
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall market.
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the Content delivery network market.
- To profile the key market players; provide a comparative analysis on the basis of business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the competitive landscape of the market.
- In the market, track and analyze competitive developments, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities.
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Geographic Analysis
- Further break-up of the Asia Pacific market into countries contributing 75% to the regional market size
- Further break-up of the North American market into countries contributing 75% to the regional market size
- Further break-up of the Latin American market into countries contributing 75% to the regional market size
- Further break-up of the MEA market into countries contributing 75% to the regional market size
- Further break-up of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Content Delivery Network Market
Who are the major vendors in CDN Market?