Content Delivery Network Industry Overview
The global content delivery network market size is expected to reach USD 95.37 billion by 2030, registering a CAGR of 23.0% from 2022 to 2030, according to the new report by Grand View Research, Inc. The major factors expected to drive the market’s growth are rising demand for advanced technologies such as Augmented Reality (AR) and Artificial Intelligence (AI), increasing accessibility and affordability of mobile and broadband networks, reducing costs, and increasing demand for affordable smartphones and data plans, are giving the opportunities to the market players to launch advanced CDN solutions.
The increasing population and the advancements in network technologieslead to high content consumption, there by increasing the demand for efficient CDN solutions. Furthermore, the digitalization of the media andentertainment industry is boosting the overall market growth. However, data security and information privacy are likely to limit market growth. Several initiatives have been taken by the government in different countries to provide high-speed internet facilities in both rural and urban areas and also the recent improvements in internet speed have increased data consumption.
This has led to cause congestion and latency issues, and rise in internet traffic, and created massive growth in the demand for CDN solutions to provide efficient content delivery to the end users. This has a direct impact on the enterprises where daily operations and businesses depend on the delivery speed of the content, webpage performance, and the time taken for a webpage to load, by which they can strengthen their business. This has compelled organizations to utilize CDN solutions for driving process optimization and delivering better customer experience and service.
Content Delivery Network Market Segmentation
Grand View Research has segmented the global content delivery network market based on content-type, solutions, service provider, end use, and region:
Based on the Content-type, the market is segmented into Static, and Dynamic.
- 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.
- 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.
Based on the Solutions, the market is segmented into Web Performance Optimization, Media Delivery, and Cloud Security.
- 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.
- 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.
Based on the Service Provider, the market is segmented into Traditional Commercial, Cloud, Peer-to-Peer, and Telecom.
- 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.
- 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.
Based on the End-use, the market is segmented into Advertising, E-commerce, Media Entertainment, Gaming, and Others.
- 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.
- 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).
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 RD 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
- ATT Intellectual Property
- Google LLC
- Microsoft
- CenturyLink
- Deutsche Telekom AG
- Tata Communications
- Fastly, Inc.
- Tencent Cloud
- Kingsoft Corporation, Ltd.
- com
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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