According to Future Market Insights (FMI)’s recently published business intelligence report, the global content delivery network (CDN) market size is expected to surpass US$ 43 Bn by 2029. Significant growth of the market is largely attributed to increasing amount of content exchanged over the internet in line with constant high-speed network rollouts. Growing demand for CDN for live streaming applications and online videos is also a significant factor for the market growth.

“Increasing IP traffic and advent of advanced technologies around the world are likely to contribute to robust growth of the CDN market. Rapidly growing investments in improving the broadband infrastructure of various nations are further expected to benefit the market players,” says FMI analyst.

Proliferation of Rich Media and Video over Websites

Incorporation of rich and content media in the marketing strategy is an ongoing trend among organizations to attract more attention of their consumers. In addition, online vendors are constantly finding methods to improve their content with better quality.

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Rich media offers enhanced user experience and it is already incorporated into many businesses for advertising their products via online video and audio that helps them keep their users engaged and generate more consumer interest. Increasing adoption of the internet, owing to wide availability of low-cost bandwidth, has given rise to several video formats such as cloud TV, Over the Top (OTT), and on-demand video delivered over different platforms. Additionally, the explosion of social media is one of the significant aspects leading to increased video and rich content over the internet. Consequently, mounting consumption of high-definition and web-based videos is the major factor contributing to the growth of the content delivery network market.

E-commerce Industry Witnesses an Increase in the Adoption of CDN

As of 2019, adoption of CDN in the media & entertainment industry generated revenue of US$ 3.5 Bn, as the expectation of companies is growing in line with their ongoing journey for digital transformation. The e-commerce industry is rapidly evolving in line with changing consumer behavior. Fundamentally, CDN solutions are employed to confirm that consumers have access to all the necessary content in order to make an effective buying decision. In addition, CDN solutions are being used aggressively to elevate delivery as consumers’ inclination from conventional television to video content delivery on a cellular network grows strong. Owing to these factors, e-commerce industry is witnessing significant adoption of CDN, thereby impacting the market growth. Over the forecast period 2019-2029, demand for CDN from the e-commerce industry is poised to grow at a highly noticeable CAGR of 18%.

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Opportunities Remain Concentrated in North America

As of 2019, North America remained at the forefront of the CDN market and will continue to do so till 2028. Easy availability of high-speed data network, surging popularity of 4K content, and a large internet user base are impacting the growth of North America’s CDN market. However, APEJ is projected take over the former market, in terms of revenue share in 2029. The regional market is expected to grow at a staggering CAGR of 24% over the forecast period. In the current scenario, APEJ’s CDN market is observing a disruptive growth, owing to growing consumption of internet via smartphones & portable devices and number of internet subscribers in the region.

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