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The content delivery network (CDN) market is estimated to grow by USD 67,671.83 million at a CAGR of 26.87% between 2022 and 2027. The growth of the market depends on several factors, including high server availability, high growth in video streaming, and efficient data traffic management by reducing loading time.
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The high server availability is notably driving market growth, although factors such as the high price of CDN solutions may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The high server availability is notably driving market growth. Online assets can be easily distributed across various regions with the help of CDNs. These networks can automatically sense the availability of servers and divert content accordingly. This provides customers with an enhanced user experience by minimizing latency. CDN delivers dynamic and interactive content to end-users at a high speed and lower bandwidth. The high server availability ensures the delivery of content requests made by users by automatically routing them to the nearest servers in the network.
Video content is frequently uploaded on social media platforms. Many organizations share live events to increase traffic on their websites and strengthen their business. This marketing strategy is supported by the implementation of CDN solutions. Therefore, the need for effective CDN solutions that can optimize the live and uninterrupted delivery of content is expected to drive the growth of the global CDN market during the forecast period.
The increasing focus on the development of content delivery clouds is one of the major market trends. There has been a gradual shift from traditional CDNs to cloud-based CDNs in the past five years. Content delivery cloud solutions improve the delivery service capabilities of web applications and storage. They also provide access to various specialized services. Content delivery cloud solutions help organizations focus on recognizing essential application requirements and improve scalability.
In December 2020, Huawei Technologies Co., Ltd. launched a cloud CDN service in India to help businesses in delivering enhanced user web experience and provide opportunities in online travel and hospitality, e-commerce, and digital marketing. Similarly, in March 2020, the Mutually Agreed Norms for Routing Security (MANRS) initiative announced the CDN and Cloud Program to support securing the large hubs of the Internet from several routing problems. Such initiatives will support the market during the forecast period.
The high price of CDN solutions is challenging market growth. The charges for CND services are high, as they are provided by a third party. The features of CDN solutions, such as scalability, compatibility, and performance, make them expensive. Moreover, providers have to bear the high maintenance expenses. As a result, only large players can survive in this market, and smaller players restrict their businesses to a regional level to reduce costs.
Most deployments of large CDN solutions have hidden charges along with setup fees. This is a challenge for smaller companies with limited funds. In addition, the pricing structure of CDNs is not transparent. Thus, companies need to enter into contracts with CDN service providers carefully. These factors might hamper the growth of the market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Lumen Technologies Inc. - The company offers services such as static content download real-time streaming and on-demand
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market share growth by the web performance optimization segment will be significant during the forecast period. Web performance segments are used to speed up the download of web pages or website content for any organization on various end-user devices. It reduces the latency of pages by an intelligent routing method.
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The web performance optimization segment was valued at USD 4,974.12 million in 2017 and continued to grow until 2021. Web performance optimization delivers a copy of a web page or website, if available, on the CDN server nearest to the location of the user. This solution helps in reducing latency while offering smooth storage provisioning and orchestration of the entire workflow. The ranking algorithms of search engines such as Google rank websites with faster page load times higher than those with lower page load times. This enhances the user experience with websites, which will drive the growth of this segment during the forecast period.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in North America will witness moderately high growth during the forecast period due to high internet penetration and the increased adoption of smartphones and social media. The US accounts for the largest revenue share in the global market. The increasing use of mobile devices, such as smartphones, laptops, and tablets, has further fueled the demand for CDNs in this region. The demand for video streaming applications will rise during the forecast period due to the increasing investments by network operators in video CDNs. In addition, the streaming of video content is extremely high in the US, which has increased the adoption of CDNs. These factors will drive the growth of the market in the region during the forecast period.
In the rapidly evolving digital landscape, the Content Delivery Network (CDN) market plays a pivotal role in enabling seamless delivery of online video streaming services, online content and applications, and rich media file content to viewers. The CDN market encompasses various segments, including the video CDN segment and the standard CDN segment, which cater to the unique requirements of the media and entertainment segment, ecommerce industry, and emerging economies.
Traditional television broadcasters and technology solutions providers are increasingly integrating CDN services into their network infrastructure to offer buffer-free streaming experiences and adaptive bitrate streaming. CDNs leverage high-speed data networks, global server networks, and cloud security segment to ensure latency-free media delivery and data security.
Moreover, the emergence of IoT networks, smart and connected devices, and artificial intelligence is driving the adoption of CDNs for latency-free media delivery and content distribution. CDNs also offer network optimization, content acceleration, and peer-to-peer CDN segment solutions to reduce operational costs and improve website loading times.
Media and entertainment enterprises, social media sites, mobile apps, and online shopping platforms are leveraging CDNs to deliver high-quality video content and rich media to their users, ensuring better bandwidth and visual capabilities. The CDN market is expected to continue its growth trajectory, driven by the digital distribution model, OTT and VOD services, and the increasing demand for interruption-free content consumption.
The market forecasting report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Content Delivery Network (CDN) Market Scope |
|
Market Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 26.87% |
Market growth 2023-2027 |
USD 67,671.83 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
24.6 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akamai Technologies Inc., Amazon.com Inc., Broadcom Inc., Cloud Software Group Inc., Cloudflare Inc., Comcast Corp., Fastly Inc., Imperva Inc., International Business Machines Corp., Lumen Technologies Inc., Microsoft Corp., NetScout Systems Inc., Nippon Telegraph and Telephone Corp., proinity LLC, QUANTIL, Radware Ltd., StackPath LLC, Tata Sons Pvt. Ltd., Verizon Communications Inc., and Wangsu Science and Technology Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Solution
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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