CDN Market Going Gangbusters

July 7, 2016
According to Future Market Insights, the global content delivery network (CDN) market is anticipated to grow at a year-over-year rate of ...

According to Future Market Insights, the global content delivery network (CDN) market is anticipated to grow at a year-over-year rate of 19.9% in 2016 and reach $ 5.898 billion in revenues. North America is expected to continue to be the largest market for CDN services, with total revenues in the region expected to grow at 21.3% in 2016. Existence of a strong channel of U.S.-based CDN providers and high awareness of its benefits among end-users are expected to continue to propel the growth of the market in North America.

Rising development of the Internet of Things (IoT), improving broadband infrastructure, retention of online devices and increasing consumption of rich media content with growing interconnections between devices are expected to continue to fuel the growth of the CDN market in 2016. Growth in IP traffic across the globe is also anticipated to fuel global CDN adoption.

On the basis of application, the delivery/distribution segment holds the leading share and is anticipated to increase at 21.0% in 2016. Website caching is expected to witness a year-over-year growth of 19.8% in 2016 over 2015.

On the basis of service provider, the global market is primarily segmented into conventional CDN and telecom CDN. Based on popularity and functionality, the conventional CDN segment is preferred by end-users, with this segment expected to account for 74.6% revenue share of the market in 2016.

On the basis of service type, the global market is expected to be dominated by software-as-a-service (SaaS). This segment accounted for a revenue share of 54.2% in 2015 and is expected to maintain its dominance in 2016 and beyond.

Media and entertainment are expected to remain the largest end-use segment of the CDN market in 2016, growing at a year-over-year growth of 23.2%. CDNs remain an effective medium in the media and entertainment sector, with further growth and innovation expected in the near future.

In addition to North America, the Asia-Pacific region excluding Japan (APEJ) is a highly lucrative market for CDN providers. This market is anticipated to increase at 21.8% to reach 703.3 million in revenues in 2016.

Long term, the global CDN market is expected to increase at a CAGR of 20.5% during the forecast period of 2016-2026.

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