CDN market forecast to grow at 19% CAGR through 2029

Oct. 29, 2019
According to Future Market Insights, the content delivery network (CDN) market reached about $7 billion in 2018 and is anticipated to grow at a CAGR of about 19% during the ...

According to Future Market Insights, the content delivery network (CDN) market reached about $7 billion in 2018 and is anticipated to grow at a CAGR of about 19% during the forecast period of 2019-2029. The shift from hardware-based network functionality to software-based networking, which is built on virtualized infrastructure, is growing, thereby potentially raising the demand for CDN services.

The rising ubiquity of smartphones and high-speed Internet access have resulted in the emergence of OTT video content and popularity of live-streamed content such as sporting events and concerts. The result has led to increasing demand for CDN services to enable consumers to gain access to information based on their geographic locations.

Among the findings:

  • Most of the CDN providers are eyeing Asia-Pacific to expand their business, in view of increasing demand for video streaming and online gaming in the region.
  • Continuous innovations and rapid penetration of technologies such as DevOps, virtualization, APIs, and real-time analytics are expected to create windows of opportunities in the CDN landscape.
  • As regulatory policies continue to have a significant impact on the evolution of the CDN ecosystem, market stakeholders are strengthening their partnerships with regional and local players to reduce costs and broaden consumers' choices.
  • Customers are demanding more predictability in CDN services spending and price transparency, thereby compelling service providers to redefine their strategies.
  • Continuous adoption of advanced technologies, such as the Internet of Things (IoT), and increasing penetration of smartphones and Internet are some of the factors bolstering the demand for CDN services globally.

The research indicates that the demand for CDN services in the media and entertainment vertical is likely to increase at a CAGR of about 21% during the forecast period.

"As the content delivery network market is becoming more diverse and competitive, expectations of enterprises from the service providers are evolving in line with their ongoing journey of digital transformation. Players in the content delivery network market should be focusing on reducing the cost and delivering video programming with improved reliability and high possible picture quality," said an FMI analyst.

Top players in the CDN market are holding a major portion of the market. Moreover, various key players in the market are focusing on product innovations and geographic expansions through partnerships and collaborations with local and regional players in order to maintain their supremacy in the market.

For example, in April, Akamai highlighted several innovations and initiatives within its live and on-demand streaming media service, Adaptive Media Delivery. These new innovations in its CDN solution are intended to help broadcasters to deliver high quality and secure online streaming experiences.

With the advent of advanced technologies and increasing IP traffic around the world, the CDN market has been witnessing rapid growth in recent years. A notable rise in consumption of rich media content and rapid investments in improving the broadband infrastructure in several countries are further likely to work to the advantage of the market players.        

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