Content Delivery Network Market Size, Share & Trends Analysis Report By Content-type (Static, Dynamic), By Solutions (Web Performance Optimization, Cloud Security), By Service Provider, By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global content delivery network market size was valued at USD 15.47 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 23.0% from 2022 to 2030. The COVID-19 pandemic has directly affected the market as the content delivery network vendors rely on several economic factors, such as vibrant financial markets, the flow of liquidity, and capital from financial institutes, for their revenue. Despite these factors, the CDN market is expected to witness steady growth over the forecast period due to the increasing volumes of data being exchanged on the internet in line with the continuous rollout of high-speed networks.

Numerous organizations globally are not renewing their on-premise CDN service subscriptions as they have shifted to working remotely due to the pandemic. Content delivery network solutions are extensively used in the media and entertainment industry to boost audio and video content delivery. The continuous evolvement of content consumption and the need for high-quality and original content has catered to the need for efficient CDN solutions that can improve network performance and enhance content delivery. The growing demand for Over the Top (OTT) and Video-on-Demand (VOD) services will ensure continuous content delivery over a high-speed data network and is expected to boost the growth of 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 in e-commerce industries to ensure that the industries operate efficiently at full capacity and that customers have access to all the necessary data to make an informed buying choice. Customers are shifting from traditional television to video content delivery over a cellular network, as CDN solutions are also being deployed in that domain to improve content delivery. Simultaneously, the application of digital solutions based on IoT networks and artificial intelligence across various industries is driving market players to develop and promote customized industry-specific CDN solutions.

The growing adoption of OTT and VOD services involves broadcasters offering latency-free data over the network and enhancing the quality of video delivery. The continuous investments in network infrastructure worldwide, especially in emerging economies such as India, have improved the overall network connectivity, bandwidth, and coverage. These developments have been instrumental in ensuring consumers can stay connected, get instant updates, and retrieve readymade media data. This is a driving factor for broadcasters to enhance content delivery while delivering diversified data for consumption across several applications.

Additionally, digital marketing preferences and online gaming are growing considerably, particularly in countries, such as India and China. The advancements in technology coupled with the smart city initiatives and impending rollout of 5G networks are also key driving factors for the growth opportunities for the content delivery network market in the forthcoming years. At this juncture, major platform providers and companies are increasingly pursuing vertical and horizontal integration initiatives to withstand the intense competition. As such, organizations that are commonly known for offering technology solutions are shifting towards content market space.

Content-type Insights

The dynamic CDN segment dominated the market with a revenue share of over 60% in 2021. The growth can be attributed to the increasing demand for CDN solutions for supporting real-time Voice Over IP (VoIP), video streaming, and online gaming. Dynamic content includes continuously changing data as part of customized web services and using web performance optimization, to speed up the delivery of web pages or website content for any organization on several end-user devices. These services reduce the latency of the pages by an intelligent routing method. Customers prefer receiving all these 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 due to the increasing adoption of high-speed data networks, better bandwidth, and increasing volume of static content. With the increase in volume of static content, bandwidth consumption and page load time also increase, thereby hampering the servers’ available capacity and the browsing experience for users. The 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.

Solutions Insights

The media delivery segment has witnessed growth over the forecast period and accounted for a revenue share of over 35% in 2021. The segment will expand further at the fastest CAGR of over 23.0% from 2022 to 2030. The increasing demand for smartphones and other smart and connected devices capable of supporting digital media is anticipated to drive the segment growth. In emerging economies, the continued roll-out of high-speed networks left no choice for customers to access the data anywhere and anytime. The growing need for CDN solutions to ensure latency-free media delivery is expected to contribute to the growth.

The cloud security segment is anticipated to witness significant growth over the forecast period due to the rising concerns over data security and privacy protection. Several organizations 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. There is an increasing focus on cloud security to essentially protect the infrastructure from hackers and secure the data stored over the cloud. All these factors are anticipated to contribute to the growth of the cloud security segment over the forecast period.

Service Provider Insights

The traditional commercial CDN segment held the leading revenue share of over 50% in 2021. Multiple solutions offered by the service providers for network optimization, content acceleration, and media delivery are driving this growth. The rise in data consumption worldwide prompts CDN providers to introduce solutions for useful content and network delivery optimization. Several traditional CDN solutions are gradually turning out to be insufficient to address the challenges posed by the advent of the latest technologies. Another challenge faced by the CDN market is that mobile users are increasingly demanding content located farther from the origin servers, which is not optimized for their devices. These drawbacks are expected to limit the segment growth.

The cloud segment is expected to witness a significant CAGR over the forecast period. The increasing volumes of the rich media file content, proliferation of smart and connected devices, introduction of high-quality video content, and growing availability of rich media over social media sites are the driving factors for the growth of the market in the forthcoming years. Furthermore, 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 during the forecast period.

End-use Insights

In 2021, the media and entertainment segment accounted for the largest revenue share of over 40%. The media and entertainment industry is transitioning toward a digital distribution model and 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. CDN vendors are increasingly focusing on delivering high-quality visual capabilities with improved visibility without any interruption irrespective of the device to their customers.

Additionally, CDN solutions can reduce the delay and optimize the entire content delivery process. This can benefit the viewers through a high-quality experience, which can emerge as a prime factor in augmenting revenues for media & entertainment enterprises.

The e-commerce segment is expected to register a significant CAGR of 22.9% from 2022 to 2030. The growing demand for online gaming is driving the growth. Gaming is emerging as one of the industries, there has been high growth in downloading speeds, and it is mandatory to ensure optimum experiences for end users (gamers). Considering that most of the latest games are played in 4K resolution and sophisticated graphics and tend to have large file sizes, they cannot be managed with slower internet speeds.

Additionally, longer waiting times for downloading games can discourage gamers and prevent gaming companies from reaching a larger audience. Hence, companies are investing in CDNto deliver high-quality content globally for CDN solutions to avoid any lag in performance.

Regional Insights

North America held the largest revenue share of over 30%in 2021. The region has the highest internet penetration, and the rising popularity of the 4K resolution display region are the key factors supporting the regional market growth. These provide a robust CDN infrastructure for the efficient delivery of data. Moreover, the rapid adoption of cloud-based services, the introduction of high-speed data networks, and increasing demand for smartphones are expected to impact the regional market growth directly. A surge in leisure spending is also the major factor contributing to the adoption of CDN solutions in the region.

Asia Pacific is anticipated to witness the fastest CAGR over the forecast period, due to the presence of emerging economies, such as India and China, and is also one of the fastest-growing consumer markets. Moreover, the growing population and number of viewers for online gaming content have resulted in an increased demand for technological advancements in networking infrastructure to fulfill the needs for online media consumption. Several initiatives have been taken by the regional governments, such as Digital India, which have enabled fast and secure management of data delivery, owing to which the usage of CDN solutions is expected to increase.

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 R&D activities, mergers and acquisitions, new product launches, strategic collaborations and partnerships, and upgrades to the existing solutions. For instance, in December 2021, Limelight Networks, Inc., a leading provider of CDN services, announced the availability of GraphQL functionality for its Layer0 by Limelight web application CDN. This new functionality enhances Limelight’s presence in the web application CDN market, especially for web builders. Some of the prominent players operating in the global content delivery network market are:

• 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

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 2017 to 2030. For this study, Grand View Research has segmented the global content delivery network market report based on content-type, solutions, service provider, end use, and region:

• Content-type Outlook (Revenue, USD Million, 2017 - 2030)

  • Static

  • Dynamic

• Solutions Outlook (Revenue, USD Million, 2017 - 2030)

  • Web Performance Optimization

  • Media Delivery

  • Cloud Security

• Service Provider Outlook (Revenue, USD Million, 2017 - 2030)

  • Traditional Commercial

  • Cloud

  • Peer-to-Peer

  • Telecom

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Advertising

  • E-commerce

  • Media & Entertainment

  • Gaming

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA