Penetration of large scale e-commerce websites along with the consumers preferences for online shopping is also pushing for the employment of CDNs by the mobile companies which has boosted the CDN market growth during the forecast period 2020 - 2025. Content delivery network market value was $11.85 billion in 2019 and is anticipated to see an upsurge during the forecast period. The market will reach $24.70 billion till 2025 growing at a CAGR of 13.4% in between 2020 to 2025.
Content delivery network market is analyzed to witness notable growth during the forecast period 2020-2025, owing to the Penetration of large scale e-commerce websites along with the consumers’ preferences for online shopping is also pushing for the employment of CDNs by the mobile companies. The market growth is primarily attributed because of the growth and maturity of the internet and as a consequence, there has been an enormous growth in the network traffic. The ever-evolving internet has been paving a way for the new challenges in the managing and delivering of content to the end users which is stimulating the need of these networks which is boosting the market growth across the globe
The Content delivery network market is segmented into media delivery, web performance optimization, DRM and transcoding, monitoring and analytics, transparent caching, data security and cloud storage by solution. Media delivery segment held the major share accounting to around 34% in 2019. Content delivery network market value with respect to media delivery solutions was $4.06 billion in 2019 and is anticipated to see an upsurge during the forecast period. The market will reach $8.6 billion till 2025 growing at a CAGR of 13.66% in between 2020 to 2025. There is a rapid increase in internet users across the globe, which in turn had affected the speed and performance of the websites. Owing to this problem there is a need of media delivery solution.
Americas is estimated to hold the prominent share of 38% of global CDN market in 2019 and is forecast to reach $9.18 billion by 2025 growing at CAGR of 13.2% during 2020-2025. The market is analyzed to be driven by enterprises opting for CDN solutions. Media and entertainment industry accounted for the major value for the Americas CDN market in 2019 with online gaming poised to witness the highest growth of CAGR 18.95% during 2020-2025. The largest growing CDN market is APAC which is forecast to grow at CAGR 18.46% from 2020 to 2025 projecting to $7.49 billion by 2025. The market is poised to be driven by growing SMEs which opt for cloud CDNs and P2P CDNs owing to its cost effectiveness and flexibility. The growth is also estimated to be assisted by increasing access of internet through smartphones and portable computing devices for gaming and media consumption. Penetration of large scale e-commerce websites along with the consumers’ preferences for online shopping is also pushing for the employment of CDNs by the mobile companies which has boosted the market growth in this region.
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Content delivery network Market Growth Drivers:
- CDN can decrease loading time, website latency and handle traffic spikes
Over the course of the last decade, the number of internet users worldwide has tripled from 1 billion in 2005 to 4 billion in 2019. With an expanding user base and global audience, websites need to ensure content is available no matter the amount of traffic or distance from the origin website servers. The distributed network of servers that make up a CDN can decrease loading time, website latency and handle traffic spikes. On a global scale, IndustryARC is forecasting more than two-third of the world’s population will have a smartphone by 2025. By comparison, in 2011, this percentage hovered at about 10 percent. A dynamic CDN optimized for mobile content delivery assists in providing users with a smooth and speedy interaction with a website.
- Surge in global B2C e-commerce sales
According to IndustryARC, by 2019, global B2C ecommerce sales are expected to reach $2 trillion. A website with a CDN can better handle sharp spikes in traffic, like those during sales or big events, by distributing and directing traffic over its available servers. CDN takes it one step further with its Dynamic Web Acceleration service, a proprietary language that compresses round trips between the user’s interface and origin servers.
- Work from home policy due to covid-19
Due to Covid-19 situation, there is an increase in work from home options, which can directly and indirectly lead to higher media consumption. Remote classes and training plans also will contribute to increased IP traffic, which will lead to higher utilization of CDNs across countries.
- In April 2019, AWS enhanced Amazon CloudFront’s security, and now it requires to attach SSL/TSL certificate when one adds an alternate domain name to a distribution.
- In April 2019, Google partnered with Deloitte to expand its partnership with Deloitte to bring the cloud to more industries including healthcare and life sciences, financial services, and retail.
- In April 2019, Deutsche Telekom partnered with G&L GmbH to strengthen its content delivery and web security solutions. G&L GmbH will enable comprehensive services in the areas of design, integration, management, and operations.
The Major Players in this Market Include
The major companies in the Content delivery network market include Amazon Web Services Inc. (U.S.), Akamai Technologies (U.S.), Level 3 Communications (U.S.), Verizon Digital Media Services (U.S.) and Limelight Networks (U.S.) among others. In April 2019, Deutsche Telekom partnered with G&L GmbH to strengthen its content delivery and web security solutions. G&L GmbH will enable comprehensive services in the areas of design, integration, management, and operations.
Incorporation of content and rich media in the marketing strategy is the trend among organizations to capture the interest of their customers. Online marketers are persistently finding methods to improve their content with better quality. Rich media offers such opportunity to them by providing dynamic elements, which in turn, give an enriched and enhanced user experience. Rich media is incorporated into many companies to advertise their products by using video and audio elements that engage users and generate their interest. Activities such as transferring, sharing, and posting rich media files, by the content providers as well as individuals have increased the burden on the existing networks. Therefore, the rising consumption of web-based, high-definition videos is the major factor contributing to the increase in the adoption of CDN.
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About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.