GVR Report cover Content Delivery Network Market Size, Share & Trends Report

Content Delivery Network Market Size, Share & Trends Analysis Report By Content-type (Dynamic, Static), By Solutions (Media Delivery, Cloud Security), By Service Provider, By End Use, And Segment Forecasts, 2021 - 2028

  • Published Date: May, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-3-68038-543-4
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 150

Report Overview

The global content delivery network market size was valued at USD 10.73 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 22.1% from 2021 to 2028. The COVID-19 pandemic has adversely affected the market as content delivery network (CDN) vendors rely on various economic factors, such as vibrant financial markets and the flow of liquidity and capital from financial institutes, for their revenue growth. The pandemic negatively affected liquidity and capital flow. However, the market is expected to grow steadily owing to the increasing volumes of data being exchanged on the internet in line with the continuous rollout of high-speed networks. Due to the pandemic, numerous businesses worldwide are not renewing their on-premise CDN service subscriptions as they have shifted to working remotely.

U.S. content delivery network market size, by service provider, 2016 - 2028 (USD Million)

Any prolonged recession due to uncertainties, such as those stemming from the COVID-19 pandemic, can limit the capital allocated to maintain the robustness of IT infrastructure, which is necessary to offer CDN services. This might adversely impact the material access rate. Effective solutions would be needed to ensure constant content delivery over a high-speed data network over the forecast period, mainly to cater to the growing demand for Over the Top (OTT) and Video-on-Demand (VOD) services. This is expected to drive the market over the forecast period.

The global e-commerce industry is continuously evolving in line with the evolving consumer behavior. CDN solutions are effectively deployed to ensure that the global e-commerce industry operates efficiently at full capacity and customers have access to all the necessary data to make an informed buying choice. CDN solutions are also being deployed to improve content delivery as customers shift from traditional television to video content delivery over a cellular network. Simultaneously, the application of digital solutions based on IoT networks across various industries is driving market players to develop and promote customized industry-specific CDN solutions.

The growing demand for OTT and VOD services necessitates broadcasters to offer latency-free data over the network and enhance the quality of video delivery. The continuing investments in network infrastructure across the world, especially in the emerging economies, have improved the overall network connectivity, bandwidth, and coverage. Such developments have been instrumental in ensuring consumers stay connected, get instant updates, and retrieve readymade media data. This is driving broadcasters to enhance content delivery while delivering diversified data for consumption across several applications.

Digital marketing preferences and online gaming are growing at a considerable rate, particularly in countries, such as India and China. Improvements in technology coupled with the smart city initiatives and impending rollout of 5G networks are also creating favorable growth opportunities for the market. At this juncture, major platform providers and companies are increasingly pursuing vertical and horizontal integration initiatives to withstand the intense competition. As such, companies commonly known for offering technology solutions are shifting to the content market space.

CDN solutions are being extensively used in the media & entertainment industry to boost video and audio streaming content delivery. Customers want to view the desired content anywhere, anytime, and in the best suitable format. The need for high-quality and original content is rising and patterns of content consumption are continuously evolving. This has created the need for efficient CDN solutions that can improve network performance and enhance content delivery.

Content-type Insights

The dynamic CDN segment dominated the global market in 2020 and accounted for a revenue share of over 63%. The segment growth can be attributed to the growing demand for CDN solutions for supporting real-time Voice Over IP (VoIP), video streaming, and online gaming. Dynamic content includes the data that changes continuously as part of customized web services. Customers prefer receiving all the services via a single provider and operators cater to these demands through network and delivery optimization.

The static CDN segment is expected to witness significant growth over the forecast period. Static content is typically free from variations and does not require generation. Modern applications and websites are designed to deliver large volumes of static content, including videos and images, to users. As the volume of static content increases, bandwidth consumption and page load time also increase, thereby hampering the servers’ available capacity and the browsing experience for users. Nevertheless, CDN can be implemented to cache these assets throughout a set of geographically dispersed servers, reducing page load times, enhancing performance, controlling bandwidth consumption, and reducing infrastructure costs. All these factors are expected to contribute to the growth of the static CDN segment over the forecast period.

Solutions Insights

The media delivery segment dominated the market in 2020 and accounted for a revenue share of over 40%. The segment will expand further at the fastest CAGR from 2021 to 2028. The proliferation of smartphones and other smart & connected devices capable of supporting digital media is expected to drive the segment growth. Continued rollout of high-speed networks, especially in emerging economies, has provided customers the choice to access the desired data anywhere and anytime. The subsequent need for CDN solutions to ensure latency-free media delivery is expected to contribute to the segment growth.

The cloud security segment is expected to witness significant growth over the forecast period due to the rising concerns over data security and privacy protection. Given that several businesses depend on telecommunications, cloud storage, and the related infrastructure for their operations, protecting the systems and assets hosted over the cloud is turning out to be a priority in the modern world. As such, there is an increasing focus on cloud security to essentially protect the infrastructure from hackers and secure the data stored over the cloud.

Service Provider Insights

The traditional commercial CDN segment dominated the market in 2020 and accounted for a revenue share of over 50%. The multiple solutions offered by the service providers for network optimization, content acceleration, and media delivery are expected to drive the growth of this segment. The rise in data consumption worldwide is prompting CDN providers to introduce solutions for useful content and network delivery optimization. However, traditional CDN is gradually turning out to be insufficient for addressing the challenges posed by the advent of the latest technologies. Mobile users are increasingly demanding content that is located farther from the origin servers, which is not optimized for their devices. These drawbacks are expected to limit the segment growth over the forecast period.

The cloud segment is expected to witness significant growth over the forecast period. The factors contributing to the growth of this segment include the increasing volumes of the rich media file content, proliferation of smart & connected devices, introduction of high-quality video content, and increasing availability of rich media over social media sites. The growing preference for mobile apps and the rising popularity of online shopping and e-commerce are the other significant factors expected to drive the growth of the cloud CDN segment.

End use Insights

The media & entertainment segment dominated the market in 2020 and accounted for a revenue share of over 32%. The media & entertainment industry has been witnessing significant growth in line with the growing demand for online streaming and VOD services, which primarily calls for optimizing the data and network delivery. Given that online customers expect high-quality visual capabilities with improved visibility without any interruption irrespective of the device, CDN solutions can potentially help reduce the delay and optimize the entire content delivery process. This can benefit the viewers in the form of a high-quality experience, which can emerge as a prime factor in augmenting revenues for media & entertainment enterprises.

Europe content delivery network market share, by end use, 2020 (%)

On the other hand, the e-commerce segment is estimated to register the fastest CAGR from 2021 to 2028. The gaming segment is also expected to witness significant growth over the forecast period. Gaming is emerging as one of the industries wherein fast download speeds are mandatory to ensure optimum experiences for end users (gamers). Considering that most of the latest games are played in 4K resolution and tend to have large file sizes, they cannot be managed with slower internet speeds. In addition, longer waiting times for downloading games can discourage gamers and prevent gaming companies from reaching a larger audience. Hence, companies providing online games at a global scale opt for CDN solutions to avoid any lag in performance.

Regional Insights

Asia Pacific dominated the global market in 2020 and accounted for a revenue share of over 39%. The regional market will expand further at the fastest CAGR from 2021 to 2028 as it is characterized by the presence of emerging economies, such as India and China, and is also one of the fastest-growing consumer markets. Moreover, the growing population has resulted in an increased demand for technological advancements in networking infrastructure to fulfill the needs pertaining to online media consumption. Various initiatives by the regional governments, such as Digital India, have enabled fast and secure management of data delivery, owing to which, the usage of CDN solutions is expected to increase.

North America is expected to witness significant growth over the forecast period. The high internet penetration and rising popularity of the 4K resolution display in the region are the key factors supporting the regional market growth. 4K resolution display necessitates a robust CDN infrastructure for efficient delivery of data. Moreover, the rapid adoption of cloud-based services and the introduction of high-speed data networks are expected to favorably impact the regional market growth. A surge in leisure spending and high smartphone penetration are the other factors contributing to the adoption of CDN solutions in the region.

Key Companies & Market Share Insights

The key companies are undertaking several initiatives to expand their geographical reach and strengthen their foothold in the global market. Such initiatives include investments in research & development activities, mergers & acquisitions, new product launches, strategic collaborations & partnerships, and upgrades to the existing solutions. For instance, in April 2019, Akamai Technologies announced that it would extend its partnership with Microsoft. Under this partnership, the CDN capabilities of the company were integrated with Microsoft Azure Blog Storage and Media Services. Some of the prominent players in the global content delivery network market include:

  • Akamai Technologies

  • Amazon Web Services, Inc.

  • International Business Machines Corp.

  • Limelight Networks

  • Verizon

  • AT&T Intellectual Property

  • Google LLC

  • Microsoft

  • CenturyLink

  • Deutsche Telekom AG

  • Tata Communications

  • Fastly, Inc.

  • Tencent Cloud

  • Kingsoft Corporation, Ltd.

  • Alibaba.com

Content Delivery Network Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 12.96 billion

Revenue forecast in 2028

USD 52.30 billion

Growth rate

CAGR of 22.1% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company market share, competitive landscape, growth factors, and trends

Segments covered

Content-type, solutions, service provider, end use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil; Mexico

Key companies profiled

Akamai Technologies; Amazon Web Services, Inc.; International Business Machines Corp.; Limelight Networks; Verizon; AT&T Intellectual Property; Google LLC; Microsoft; CenturyLink; Deutsche Telekom AG; Tata Communications; Fastly, Inc.; Tencent Cloud; Kingsoft Corporation, Ltd.; Alibaba.com

Customization scope

Free report customization (equivalent up to 8 analyst working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global content delivery network market report on the basis of content-type, solutions, service provider, end use, and region:

  • Content-type Outlook (Revenue, USD Million, 2016 - 2028)

    • Static

    • Dynamic

  • Solutions Outlook (Revenue, USD Million, 2016 - 2028)

    • Web Performance Optimization

    • Media Delivery

    • Cloud Security

  • Service Provider Outlook (Revenue, USD Million, 2016 - 2028)

    • Traditional Commercial

    • Cloud

    • Peer-to-Peer

    • Telecom

  • End use Outlook (Revenue, USD Million, 2016 - 2028)

    • Advertising

    • E-commerce

    • Media & Entertainment

    • Gaming

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • MEA

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