Content Delivery Network Market worth $34.5 billion by 2027, growing at a CAGR of 12.5 % Report by MarketsandMarkets™

Chicago, June 23, 2023 (GLOBE NEWSWIRE) -- The global Content Delivery Network Market size to grow from USD 19.2 billion in 2022 to USD 34.5 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 12.5% during the forecast period, according to a new report by MarketsandMarkets™.  A Content Delivery Network (CDN) consists of interconnected servers that deliver web content requests to end users. CDN interconnects proxy servers or cache servers that are distributed globally across numerous data centers. The delivery of web content is performed depending on the user’s proximity to these servers. CDNs are being widely implemented to serve the internet content available today. Organizations are moving toward cloud CDN implementation to offer seamless content delivery and the best online experience to their end users. The deployment of cloud CDN solutions will help organizations engage with customers and maintain their market position. CDN solutions help deliver downloadable data that comprises media files, text, images, live streaming media, software, and social network data.        

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336 - Tables
56 - Figures
333 - Pages
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Scope of the Report

The adoption rate of CDN solutions is expected to grow, owing to the increasing utilization of data over the internet and the increasing digitalization trend among companies. Organizations are focusing on engaging customers to improve their businesses and sustain the competition and are therefore leveraging CDNs to make their online presence stronger and effective to deliver the best, high-quality, end-user experience. The performance of websites and their loading time is very important for companies, and this directly has an effect on customer experience, customer adoption, and the ranking of their search engines. Users expect high-quality performance on their devices, and this is achieved by implementing CDN solutions by content providers. Latency issues, excess time taken by webpages or websites to load, and crashing/freezing of websites may give a negative image to end-users. This can severely affect the company’s customer base and popularity among users. MarketsandMarkets forecasts the global CDN market size to grow from USD 14.4 billion in 2020 to USD 27.9 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 14.1% during the forecast period.      

The scope of CDN market has widened over the years, with 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 (QoE) and Quality of Service (QoS), the proliferation of video and rich media over websites, increasing demand for enhanced video content and latency-free online gaming experience, and increasing internet penetration and adoption of mobile devices leading to rising opportunities for mobile CDN are some of the driving factors for the CDN market. There are immense opportunities for CDN vendors, which include the rising demand for cloud-enabled services, the increasing demand for integrated and next-generation security solutions and services, and the growing interest of consumers in Over The Top (OTT) platforms and Video on Demand (VoD) for entertainment. However, complex architecture and concerns about QoS and network connectivity along with technical difficulties in live video streaming, may restrain the market growth. Additionally, data security and privacy concerns, and variations in website monetization and applications may hamper the growth of the CDN market.

Among the component segment, the solutions segment is leading the CDN market in 2020.  The solutions segment is expected to hold a larger market size, as with the growing availability of low-cost bandwidth has made the internet accessible to every individual and changed the data consumption trend radically. Furthermore, the advent of social media and mobile apps have extensively added to data consumption. Social media sites deliver a platform to organizations to expand their global presence, brand names, and customer base. Organizations garner a larger customer base by promoting their products and services through social media platforms. Thus, the social media marketing strategy is essential for organizations, especially online businesses.  

Among solutions, the web performance optimization segment is estimated to grow with the highest CAGR during the forecast period.  Web performance optimization is used to speed up the delivery of the web pages or website content for any organization on various end-user devices. This reduces the latency of the pages by an intelligent routing method. Web performance optimization caters to the end users by delivering a replica or copy of the web page or website, if available on the CDN server that is near to the location of the user. With the growing eCommerce and mCommerce competition among organizations, web performance optimization has become essential for companies as well as their customers. The website content must be downloaded quickly, irrespective of the device used by the visitor. Web performance optimization plays an important role in this aspect. It offers a better user experience to the visitor, thereby increasing the competitive edge of the company.  

Among services, the storage services segment lead the CDN market in terms of revenue during the forecast period. Storage services manage the overall stored data and offer scalability. These services make sure that there is scope for scalability to accommodate the storage requirements of the companies. Moreover, these services also offer high protection to the stored data across multiple centers and provide protection layers to safeguard the data. CDN vendors try their best to offer effective storage services so that content replication and storage is done closer to the end user's location.

Among the content type, the dynamic content type is leading the CDN market in 2020. The dynamic content type segment is expected to hold a larger market size and even estimated to grow at a faster growth rate during the forecast period. The increasing growth in internet video advertisements, online video streaming, and live online broadcasts is driving the growth of the dynamic content segment. Furthermore, the shift from the traditional methods of the advertising industry to the methods of live streaming videos provided growth opportunities for vendors in the dynamic content segment.

Among provider type, the traditional CDN is leading the CDN market in 2020. The traditional CDN segment is expected to hold the largest market size as this provider type incorporates pure player vendors in the CDN market, such as Akamai, Limelight Networks, and others. Also, the traditional CDN providers offer all the solutions and services that are required in the CDN, and they also incorporate the large set of servers that are deployed across the globe for balancing the load on the existing networks.

Among the applications, the healthcare segment is expected to dominate the market in terms of growth rate.  The healthcare services application area is one of the lucrative application areas in the CDN domain. This segment faces various technological challenges, such as a rising number of regulations and cybersecurity, and changing medical service demands for customers. The healthcare segment works on critical and time-based operating arrangements that require real-time data and instructions, which the mobile and system connectivity has made possible. CDN is one such solution that has benefited this segment on a large scale due to the high adoption of the telemedicine trend. Healthcare enterprises collaborate across locations for drug and medicine development and diagnostics.      

North America is one of the most prominent regions in the CDN market. North America is expected to be the highest contributor to the CDN market due to the early adoption of advanced technologies, such as BYOD, cloud computing, and mobility, among enterprises. This results in higher adoption of CDN solutions. The growth of the CDN market in Europe is driven by the increasing number of CDN users and connected devices across organizations. The presence of leading companies, such as Akamai, AWS, Microsoft, Limelight Networks, and Cloudflare, has fueled innovation in the CDN market, whereas startup companies, including Fastly, StackPath, and QUANTIL, have contributed to the growth of the market to a large extent. North America is expected to continue its lead in the CDN market. The growth of the CDN market in North America is also contributed by the growing number of users accessing the web content. CDN vendors in the region are increasing their focus on improving website performance and providing a secure environment while delivering content to users.

The 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 is increasing as it is an easier, faster, cheaper, and 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 is increasing 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 servers that are closest to user’s location by caching content on multiple servers dispersed geographically. Moreover, a CDN can help organizations deliver OTT content to their audiences in the most efficient way by enabling OTT platforms with minimized chances of struggling with heavy network traffic.  

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Top Trends in Global Metaverse in Education Market

• In order to deliver high-quality video streams with minimal latency and buffering, CDNs are becoming increasingly important as the use of video streaming services and online video consumption increases. The end-user experience and video delivery optimization are the main priorities for CDN providers.
• Beyond content caching and delivery, CDNs are developing to include edge computing capabilities. CDNs can provide quicker processing, lower latency, and support emerging technologies like Internet of Things (IoT) devices, augmented reality (AR), and virtual reality (VR) by moving computing resources closer to the end-users at the network edge.
• The introduction of 5G networks is anticipated to increase demand for mobile CDNs. In order to handle the increased mobile traffic, efficiently provide information to mobile devices, and take advantage of the high bandwidth and low latency provided by 5G networks, CDNs are being optimized.
• As online risks develop, CDN providers are emphasizing the improvement of security features to safeguard material and lessen attacks. This entails putting in place safeguards like bot identification, Secure Sockets Layer (SSL) encryption, Web Application Firewall (WAF), and Distributed Denial of Service (DDoS) defense.
• Many companies are implementing multi-CDN strategies to increase resilience, enhance performance, and lessen reliance on a single CDN provider. Organizations can assure redundancy and lessen the effects of CDN outages or performance problems by utilizing numerous CDNs at once to distribute their content over various networks.
• Cloud-based CDNs are popular because of their scalability, flexibility, and affordability. In order to enable organizations to quickly deploy and operate CDN systems without the need for significant infrastructure investments, CDN providers are increasingly making their services available through cloud platforms.

Key Industry Development

• To promote faster content delivery and a better user experience, CDNs have begun adding edge computing capabilities. Edge computing lowers latency and enables real-time processing for applications like IoT, AR, and VR by bringing computer resources closer to the end users.
• The demand for video streaming services is only going up, and CDNs are essential for providing low-latency, high-quality video content. CDN providers have been concentrating on improving video delivery, adding adaptive bitrate streaming, and supporting high-resolution formats like 4K and even 8K.
• Mobile CDN optimization is a key area of focus for CDN providers due to the expansion of mobile devices and the advent of 5G networks. This entails effectively distributing information to mobile devices, utilizing the low latency and high bandwidth advantages offered by 5G, and enhancing the mobile user experience.
• To guard against cyber risks and guarantee the integrity of content delivery, CDN providers are constantly improving their security measures. This entails putting in place DDoS defense, WAF, SSL encryption, and threat intelligence tools.

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