Content Delivery Network (CDN) Market

Content Delivery Network (CDN) Market Outlook (2022-2032)

The global content delivery network (CDN) market is forecast to grow at a CAGR of 12.6% to reach US$ 61.2 Billion by 2032, up from US$ 18.8 Billion in 2022. Media and entertainment companies are big users of content delivery networks, thanks to online streaming and website content solutions.

In 2021, content delivery networks held a 27.5% share of the global managed network services market. The growing demand for rich video content among online users, as well as the trend of digitization in organizations across end-user verticals, drives the overall CDN market demand.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 16.5 Billion
Expected Current Market Value (2022)	US$ 18.8 Billion
Projected Forecast Value (2032)	US$ 61.2 Billion
Global Growth Rate (2022-2032)	12.6% CAGR
Growth Rate of U.S (2022-2032)	12.0% CAGR
Expected Market Value of China (2032)	US$ 4.4 Billion
Key Content Delivery Network Software Providers	Akamai Technologies Microsoft Corporation IBM Corporation Limelight Networks Amazon Web Services, Inc. CloudFare Inc. Limelight Networks Inc. Google LLC AT&T Verizon Media Lumen Technologies Deutsche Telekom AG QUANTIL StackPath Fastly G-Core Labs S.A OnApp Limited Broadpeak Citrix Systems NTT Communications Corporation Comcast Technology Solutions Tata Communications Imperva Rackspace Technology Leaseweb Alibaba Cloud

According to Cisco's visual networking index, IP video has accounted for more than 79% of online traffic in 2018. These points to the growing popularity of online video services. One of the major areas where CDN is gaining traction is online gaming.

Gaming companies are increasingly investing in content delivery networks (CDNs) to ensure a better user experience. With the increased use of the internet and smart devices, an enormous amount of data is generated on a daily basis that must be intelligently managed. The goal of web performance optimization solutions is to reduce latency. The success of these solutions will drive up demand from major retailers as well as the media and entertainment industries.

2015-2021 Content Delivery Network Demand Analysis vs. Forecast 2022-2032

According to market research and competitive intelligence provider Fact.MR- The global content delivery network market grew at a 14.1% CAGR between 2015 and 2021.

Rising Internet use for data and media transmission, as well as rising consumer interest in video on demand (VOD) and OTT platforms for entertainment have resulted in global growth in content delivery network solutions and services. As a result of the increased demand for e-learning and work-from-home opportunities, the use of content delivery networks has increased exponentially.

Major investments in network technology development, as well as a sharp decline in data costs, are some of the key factors driving the adoption of content delivery networks. The growing e-Commerce sector, as well as the associated CDN requirements, has also boosted CDN adoption rates.

Software-as-a-Service, with e-Commerce verticals gaining traction with video content delivery over mobile networks, service content delivery network offerings are likely to reflect increased demand. Given these factors, the CDN market is expected to grow at a 12.6% CAGR to reach US$ 61.2 Billion by 2032.

Prominent Content Delivery Network Market Drivers

Increased Preference for CDN Services for Dynamic Content Requirements to Stimulate Uptake

In terms of digital content distribution, content delivery networks are highly competitive in terms of service quality. As a result, market participants use edge servers for localized caching, necessitating dynamic security.

Software-defined networking (SDN) and network function virtualization (NFV) technologies are rapidly gaining traction, allowing for high-performance services without the need for massively distributed infrastructure, resulting in significant opportunities for large-scale cloud systems.

Content delivery networks not only improve video content and streaming speed and quality, but they also provide high levels of dependable security and superior scalability due to lower data storage costs and content management outsourcing.

Key Challenges hindering Content Delivery Network Market

The Shift of Key Players to In-House CDN Infrastructure and Network Connectivity Issues is Impeding CDN Demand

Some major organizations are shifting their focus away from third-party CDN services and toward building their own content delivery network tailored to their specific requirements. Viruses and cyberattacks are becoming more common as more people use video streaming services to watch movies and advertise. The absence of appropriate standards and procedures for discovering and regulating video content may stymie market growth.

High-cost technology, insufficient connectivity, and the need for high-quality service, as well as concerns about data security and privacy, are expected to constrain the industry. Technical difficulties in live video streaming, complex architecture, and issues with service quality may stymie market growth.

Country-wise Analysis

How will the U.S perform in the Global Market for Content Delivery Network?

Cloud-Based Service Adoption is growing, which is Driving Market Expansion

As per Fact.MR’s analysis, the content delivery network market in the United States is expanding steadily as a result of the widespread adoption of smart devices, higher adoption rates by SMEs, and widespread internet penetration. The country is expected to flourish at a 12% CAGR from 2022 to 2032.

Furthermore, rising acceptance of cloud-based services, deployment of high-speed data networks, and rising smartphone demand are expected to drive market expansion in the United States. An increase in leisure spending is another key factor driving the use of content delivery network solutions in the country.

Will China be the Kingpin of the Content Delivery Network Landscape across Asia Pacific?

Increasing CDN Solution Development Initiatives to Support Market Growth

China is a significant and rapidly expanding market for content delivery networks. The rapid spread of the e-Commerce sector, as well as the media and entertainment industries, can be attributed to the growth. Key players are heavily investing in high-speed network installations, making the deployment of content delivery networks in the country critical.

The use of content delivery network solutions is expected to increase as a result of several government initiatives that have enabled quick and secure data delivery management. According to Fact.MR, the content delivery network market in China is poised to grow at a CAGR of 12.1% until 2032, reaching US$ 4.4 Billion.

Category-wise Analysis

By Service Provider, which Category of Content Delivery Network will dominate?

Traditional CDN Service Providers Offer a Variety of Solutions to Fuel Market Revenue

According to Fact.MR’s estimates, content delivery network services are primarily provided by telecom CDNs or traditional CDNs. Traditional CDN service providers have a sizable market share. This pattern is unlikely to shift during the forecast period.

The sector's dominance can be attributed to a broader range of services offered, such as content acceleration, network optimization, and media delivery, among others. Traditional CDN service providers are introducing solutions for meaningful content and network delivery optimization in response to the surge in global data consumption.

Which Application is expected to abound for the Content Delivery Network Software Industry?

There is an Increasing Demand for CDN Solutions to Ensure Latency-Free Media Distribution/Delivery

Website caching, media distribution/delivery, and software distribution/delivery can all be accomplished through the use of content delivery networks. The content delivery network market is 55.1% dominated by media distribution/delivery. This expansion can be attributed largely to the recent surge in popularity of video streaming services and VOD subscriptions, which has fueled demand for content delivery and network operational optimization.

The demand for Smartphones and other smart and connected devices that can support digital media is expected to drive growth in the media distribution/delivery application segment. Customers in emerging economies have few options but to access data wherever and whenever they want, thanks to the ongoing deployment of high-speed networks.

Competitive Landscape

Content delivery network service providers are heavily focused on strategic partnerships within the industry and with end-user corporations in order to establish long-term revenue strategies and accelerate product development. Video-on-demand and video conferencing applications are creating significant opportunities for content delivery solution providers.

Key Developments in the Content Delivery Network Market :

• CloudFlare Inc. announced collaboration with the Internet Archive to improve the reliability of website operations for publishers, which will include users who do not use CloudFlare services. The collaboration will help to improve CloudFlare services while also providing more data to the Internet Archive.
• Limelight Networks, Inc., a leading provider of CDN services, announced the availability of GraphQL functionality for its Layer0 by Limelight web application CDN in December 2021. This new feature strengthens Limelight's position in the web application CDN market, particularly among web builders.

Key Segments Covered in the Content Delivery Network Market Report

• Content Delivery Network Market by Component :

  • Content Delivery Network Solutions
    • Web Performance Optimization
    • Media Delivery
    • Cloud Security
  • Content Delivery Network Services
    • Storage Services
    • Analytics and Performance Monitoring
    • Website and API management
    • Network Optimization Services
    • Support & Maintenance
    • Others

• Content Delivery Network Market by Content Type :

  • Static Content Delivery Network
  • Dynamic Content Delivery Network

• Content Delivery Network Market by Provider Type :

  • Traditional Content Delivery Network Provider
  • Telco Content Delivery Network Provider
  • Cloud Content Delivery Network Provider
  • P2P Content Delivery Network Provider
  • Other Content Delivery Network Provider Types

• Content Delivery Network Market by Application :

  • Media and Entertainment
  • Online Gaming
  • Retail and E-Commerce
  • E-Learning
  • Healthcare
  • Enterprises

• Content Delivery Network Market by Region :

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • Latin America