[Research Report] The Content Delivery Network (CDN) Market is expected to grow from US$ 20.98 billion in 2022 to US$ 73.17 billion by 2030; it is estimated to grow at a CAGR of 16.9% from 2022 to 2030.
A content Delivery Network, or CDN, is a distributed system of computers designed to provide web content to end users as soon as feasible. A content Delivery Network's primary goal is to provide any form of digital content to visitors efficiently and securely, regardless of where they are in the world or what type of device they are using. A content Delivery Network (CDN) is a geographically dispersed network of computers that enables quicker web performance by locating copies of web material closer to consumers or easing the delivery of dynamic content (e.g., live video feeds). Each CDN server is positioned on the "network edge"—closer to users than the host server, which is where the website originates. As a result, CDN servers are frequently referred to as "edge servers." Each server saves or caches copies of a subset of the web content from the host server—HTML files, pictures, audio, video, and applications. The solution in the Content Delivery Network (CDN) market enables the website publisher to provide faster performance, minimize loading time for its users, and control its own bandwidth consumption and expenses by shortening the distance between this material and users.
The solution in the Content Delivery Network (CDN) market allows site visitors to view content more quickly. For online publishers, this means more page views, increased traffic, higher customer engagement, and lower site abandonment. Web hosts bill businesses for data sent from the origin server. A CDN permits fewer data transfers from the origin server by storing copies of material closer to the users, decreasing an organization's bandwidth use and expenditures. An organization that uses a CDN saves time, human capital, and money by not having to create and operate its own geographically spread server network. For instance, according to a 2023 report by ThriveMyWay, on the top 100000 websites globally, 4148 on the internet use a CDN (this is around 41%). CDNs not only provide content faster, but they also increase the quality of the content supplied. Slow transmission, which can cause jitter, can impede video playback, video calls, and live video streaming. Buffering, poor image and sound quality, and incomplete transmissions all have an impact on video and audio content delivery. Material Delivery Networks assist by reducing the distance between the material and the user and by balancing traffic to avoid overloading routers or servers.
Content Delivery Network (CDN) Market Overview:
On its current trajectory, online video consumption growth is the key market driver of CDN video delivery growth. When compared to broadcast TV, online consumers demand the same or better quality. This puts pressure on content providers to publish appealing content and deliver it in high quality in order to meet demand. Several large-scale internet video providers are currently streaming 4K content, which consumes more bandwidth than normal HD streaming. As more 4K content becomes available (combined with increased 4K device sales), viewers will demand more high-quality content, putting extra strain on internet infrastructure. The last two years have clearly altered the television viewing environment; streaming is now not only supplemental to linear transmission but has begun to supplant it in many locations. Viewers are moving away from traditional broadcast television and toward online video, which may be accessed via personal or linked devices. Although stay-at-home restrictions are lifting in some areas and customers are returning to pre-pandemic activities, improvements taken during the pandemic to enable streaming, together with the launch of a number of new OTT services, indicate that traction will continue. For instance, according to the Conviva State of Streaming 2021 report, Live programming accounts for 23% of global viewing time, with on-demand material accounting for the remaining 77%. While this demonstrates that live video is not yet as popular as on-demand video (and probably never will be), it is still rather astounding and demonstrates how far the live-streaming industry has progressed. Also, On-demand video may command a larger part of worldwide viewing time, but as this statistic illustrates, it cannot compete with live video in terms of engagement. The average viewer spends approximately 25.4 minutes each viewing session watching live video, compared to approximately 19 minutes watching video on demand.
Content Delivery Network (CDN) Market Driver:
Rise in live streaming to Drive Growth of Content Delivery Network (CDN) Market
The rising adoption of smart devices such as smartphones, smart TVs, and tablets is leading to an increase in live streaming among users. The past two years have undoubtedly shifted the TV viewing landscape; streaming is now not just supplementary to linear broadcast but has begun to replace it in many places. Viewers are shifting away from traditional broadcast television toward online video, either through personal or connected devices. Although stay-at-home restrictions are ending in some regions and consumers are returning to pre-pandemic activities, changes made during the pandemic to enable streaming alongside a range of new OTT service launches mean traction will continue. By 2022, 86% of smart TV households have a regular TV streaming service via the TV's built-in feature. Although a sizeable portion (14%, or 1 in 7) of smart TV homes do not yet use those sets to stream TV or movies, it is still a huge growth over 2020 (75%). According to a 2023 Unscreen survey report, with 89% of WiFi households in the US having access to mobile devices, TV apps only have a 54% reach. Mobile devices are the most widely used video streaming devices. According to the Omdia TV & Online Video Intelligence Service, by the end of 2025, TV and online video will have a total of 2.8 billion global subscriptions, with online video accounting for nearly all of the growth. Between 2020 and 2025, pay-TV subscribers are expected to rise by 0.1% (1.0751 million to 1.075.8 million). Online video subscriptions, on the other hand, will more than triple from 829 million to 1,686 million.
Content Delivery Network (CDN) Market Segmental Analysis:
Based on offering, the Content Delivery Network (CDN) Market is segmented into mobile content delivery, software delivery, video streaming, and others. As the video streaming industry grows, so do the demands on the servers that power it. Video Content Delivery Networks (CDNs) have stepped up to fulfill streaming demand and assist streamers in reaching a larger audience. Indeed, Cisco estimates that 72 percent of all internet traffic now passes through a CDN, up from 56 percent in 2017. By distributing copies of media files close to viewers, CDNs avoid buffering and stream crashes when delivering video content. This caching feature is very useful for live broadcasts. Cached segments from a live broadcast can reduce startup time to less than five seconds. Furthermore, it considerably minimizes the load on the origin server, delivering a more stable viewing experience.
Content Delivery Network (CDN) Market Regional Analysis:
Major markets in North America are one of the leading regions in the Content Delivery Network (CDN) market. The majority of CDNs already have extensive network reach in mature video markets such as North America and Europe, but there is an opportunity for CDNs to strategically position themselves with targeted investments and capitalize on this expansion in developing regions with higher growth potential. The North American region is home to major OTT content providers such as Netflix, Amazon Prime, Hulu, Apple TV+, and others. According to a 2023 report by DataAI, customers are downloading more apps; in the US, streamers are predicted to download 85% more video streaming apps in 2021, compared to 80% in South Korea. According to Deloitte Insights, In contrast to 67% of Americans who had a pay-TV subscription in 2021, 82% of US customers had a video streaming subscription, with an average of 4 subscriptions.
Content Delivery Network (CDN) Market Key Player Analysis:
The Content Delivery Network (CDN) Market analysis consists of players such as Akamai Technologies; Amazon Web Services; Alphabet Inc; Baishan Cloud; Citrix Systems; Deutsche Telecom; Deutsche Telecom; NTT Communications; Tata Communications; Tencent Cloud are among the key Content Delivery Network (CDN) market players profiled in the report.
Content Delivery Network (CDN) Market Recent Developments:
Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the Content Delivery Network (CDN) Market. A few recent key market developments are listed below:
- In August 2023, Akamai Technologies, Inc., the cloud company that enables and protects life online, today announced that it had acquired assets from StackPath, including certain enterprise client contracts, after StackPath's decision to suspend operations of its Content Delivery Network (CDN) market. Akamai will extend its regular offerings and support to customers searching for an enterprise solution to their content delivery, cybersecurity, and cloud computing needs by allowing them to access the world's most distributed edge and cloud platform.
- In April 2022, Google made Media CDN, a platform for delivering content using the same infrastructure that powers YouTube, generally available. Google Media CDN, which has a presence in over 1,300 places across 200 countries, claims to "automate all facets" of "serving content close to users."
- In March 2021, BaishanCloud (Baishan), a prominent worldwide cloud data service provider, announced today the addition of mlytics to its SaaS-based multi-CDN platform ecosystem. Customers of mlytics can now take use of the premium content delivery service enabled by Baishan's broad global Content Delivery Network throughout China and Southeast Asia. This collaboration will provide joint customers with the high performance enabled by Baishan as well as the flexibility and cost-efficiency of the mlytics intelligent platform.
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
This text is related
to segments covered.
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
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to country scope.
- Akamai Technologies
- Amazon Web Services
- Alphabet Inc
- Baishan Cloud
- Citrix Systems
- Deutsche Telecom
- Deutsche Telecom
- NTT Communications
- Tata Communications
- Tencent Cloud
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