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Content Delivery Network Market- Insights

A content distribution network or content delivery network (CDN) is a system distributed network that delivers webpages or different web content data across various geographical locations. Content delivery network delivers a large portion of online content, including web objects (scripts, graphics, and text), downloading objects (documents, software, and media files), applications (portals and e-commerce), social networking, on-demand streaming media, and live streaming media. There has been a rise in IP data traffic backed by internet proliferation, worldwide in the recent past. According to Coherent Market Insights’ analysis, in 2016, 96,054 PB IP data traffic was generated per month and is projected to reach 278,108 PB IP data traffic by 2021, globally. Increasing adoption of video supporting devices, wearable devices, AR/VR technology, and digitization is increasing data traffic globally, which in turn is expected to boost demand for content delivery network.

Growing e-commerce industry is expected to aid in growth of the market

Growing e-commerce industry is a major factor that aids in growth of the content delivery network market. According to Coherent Market Insights’ analysis, in 2018, India recorded 483 million internet users, which is projected to reach 666.4 million by 2023. Moreover, increasing demand for less uploading time is also fueling adoption of content delivery network technology in e-commerce companies. According to a survey conducted by Coherent Market Insights, in 2016, 47% worldwide consumers expected a web page to load in 2 seconds or less. Increasing website loading time results in low consumer retention on the webpage. Results of the survey revealed that an increase in loading time by one second reduces 11% page views, adversely affecting revenue generated by the e-commerce company. Therefore, to overcome this challenge, e-commerce companies are adopting content delivery network technology to reduce loading time of the webpage.

Figure 1. Global Content Delivery Network Market Share (%), by Region (2018)

Source: Coherent Market Insights Analysis, 2018-19

North America held a dominant position in the market in 2018

North America held a dominant position in the market in 2018 and is projected to retain its dominance throughout the forecast period. U.S. and Canada are major growth engines of the market in North America. Increasing usage of 4K content is one of the key factors driving growth of the market in the region. According to Coherent Market Insights’ analysis, connected 4k televisions consumed around 3.9 GB per month in 2016 in the U.S. and is projected to reach 43.5 GB per month by 2021.

Moreover, Asia Pacific content delivery network market is projected to exhibit the highest CAGR over the forecast period. India, China, and Japan are some of the major economies driving the market growth in this region. Increasing adoption of content delivery network technology by various end-use industries such as advertising, e-commerce, education, gaming, and media & entertainment have accelerated growth of the market in this region. For instance, in September 2017, Aditya Birla Online Fashion Private Limited (ABOF), an India-based e-commerce company, adopted Amazon CloudFront to reduce the uploading and downloading time. Similarly, in October 2009, NDTV Ltd, India's largest news and infotainment network company, adopted Tata Communication CDN platform to reduce the video streaming downloading time.

Figure 2. Global Content Delivery Network Market Share (%), By Content Type (2018)

Source: Coherent Market Insights, 2018-19

Among content type, video content delivery network segment held dominant position in the market in 2018 and is projected to retain its dominance throughout the forecast period, owing to increasing demand for CDN solutions for voice over IP (VoIP), real-time video streaming, and online gaming services. The content delivery networks increase the speed by routing content requests to confined servers, thereby providing support to maximize the bandwidth and speed up the page loads. The content delivery networks (CDN) enhance the overall performance by decreasing latency problems. Advanced solutions delivered by the content delivery networks market are essential for economical delivery to the end user due to internet usage as well as growth in rising deployment of online content.

Global Content Delivery Network Market – Key Players

Some of the major players operating in the global content delivery network market include Akamai Technologies, AT&T, Inc., CDNetworks, Chinacache, CloudFlare Inc., Highwinds Network Group, Inc., Internap Corporation, Level 3 Communications, Inc., Limelight Networks, MaxCDN, Tata Communications, and Verizon Communications, Inc.