Content Delivery Network (CDN) Industry Spur by Increasing Demand for Digital Content

Published Date : 20 Apr 2023

In 2022, the content delivery network (CDN) industry size was evaluated at USD 19.65 billion and it is expected to contribute USD 105.55 billion by 2032, progressing at a rate of 18.31% from 2023 to 2032.

The content delivery network (CDN) industry growth is driven by the increasing adoption of mobile devices, growing internet penetration, and increasing demand for digital content.

Industry Overview:

The delivery of Web sites, music, video, and other Internet-based material to consumers is sped up through the use of a content delivery network (CDN), which is a system of numerous servers and storage (CDN nodes). The "caching servers" or "edge servers," which are situated in widely scattered data centers, are used by the CDN nodes to duplicate the content provider's files. Although big businesses may develop their own "enterprise CDN," the majority of CDNs are third-party services. The top third-party CDN services as of 2018 include Akamai, Google, Cloudflare, Microsoft, Rackspace, Amazon, and Limelight.

To streamline the service distribution procedure, CDN servers are placed in numerous places around the world to cooperate in satisfying end-user content requests. According to the growth of the network design and the necessary bandwidth, a CDN's node count changes. To reduce content access delay, edge servers should be strategically positioned so that they can fulfill content requests at the periphery of the network and reduce the burden on backbones, interconnects, and public and private peers.

Regional Insights:

North America is expected to capture the largest industry share over the forecast period. The regional growth is attributed to the fast penetration of the internet coupled with the increasing population. For instance, according to Kepios, in January 2022, there were 307.2 million internet subscribers in the US. At the beginning of 2022, 92.0 percent of the country's populace was online in the United States. From the same source, In January 2022, 333.9 million people were living in the United States.

The population of the USA grew by 1.9 million (+0.6%) between 2021 and 2022, according to data. Moreover, users are consuming more digital material than ever due to the quick adoption of smartphones, tablets, and smart TVs. The industry in this region is experiencing income development as a result of increasing viewer demand for both live streaming and video-on-demand (VOD) hosting. The demand for the content delivery network in this region is also being further accelerated by technical developments in streaming protocols, cloud video distribution, and content delivery network technology.

Europe is expected to grow at a significant rate during the forecast period owing to the growing investment in the deployment of 5G infrastructure. The European content distribution industry is growing in terms of revenue due to internet architectures in new fields like machine-to-machine communication and the Internet of Things.

In 2020, the World Bank estimates that more than 85% of Europeans will have access to the Internet. In this region, manufacturing and the pharmaceutical sectors are both experiencing digital transformations. Productivity is rising owing to digital technologies, and the need for CDN will spur demand for data-based business models. Over the forecast period, these variables are anticipated to fuel demand.

The Asia Pacific is growing at the highest CAGR over the projected period. The rapid growth of digital transformation coupled with growing government efforts in the countries like India and China is expected to fuel the industry growth. For instance, the government of India started the Digital India Initiative to better online infrastructure, create and improve internet access, and make government services available to Indian residents virtually.

The goal of the digital India program is to advance technology and digital literacy in India. In addition, the growth of the content distribution industry in the Asia Pacific is being supported by the increasing uptake of 5G networks and other high-speed networks. The demand for static and dynamic content is rising as mobile and internet networks become more accessible and affordable. Therefore, throughout the projection period, demand for the content distribution industry is anticipated to be driven by content consumption.

Content Delivery Network (CDN) Industry Report Scope:

Report Coverage Details
Market Size in 2022 USD 19.65 Billion
Projected Forecast Value in 2032 USD 105.55 Billion
Growth Rate 18.31% from 2023 to 2032
Fastest Growing Market Asia Pacific
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

Report Highlights:

  • By solutions, the media delivery segment is expected to dominate the industry during the forecast period. The anticipated driver of the segment's growth is the rising demand for smartphones and other intelligent, connected gadgets that can support digital media. Due to the ongoing roll-out of high-speed networks, customers in emerging countries had no choice but to acquire the data from any location at any moment. The demand for CDN solutions to guarantee latency-free media delivery is expected to increase, driving growth. On the other hand, the cloud security segment is growing at a substantial rate during the anticipated timeframe due to growing worries over data security and privacy protection.
  • By end-user, the media and entertainment segment is expected to capture the largest industry share during the projected period. With the increasing demand for online streaming and VOD services, the media and entertainment sector is moving to a digital distribution model and expanding significantly. This mainly necessitates improving the data and network transmission. The delivery of high-quality visual skills with enhanced visibility without any interruptions to customers, regardless of the device, is a growing area of emphasis for CDN providers.

Industry Dynamics:


Growing live video streaming

The CDN industry has benefited from the growing demand for improved live video streaming with better image clarity. The demand for CDNs has been greatly driven by the rising use of video streaming websites and programs like Amazon Prime, Netflix, and others. People in quarantine or confinement, like in most other countries, heavily depend on live video streaming for entertainment, which is driving up demand for video streaming services.

Additionally, one of the most popular and important ways to obtain information in the modern digital world is through video streaming. The acceptance of video streaming is being fueled by the growing popularity of social media, which will also fuel the CDN industry.


Traffic barriers while using mobile devices

People increasingly depend on mobile devices for video streaming and online gaming, which has resulted in an increase in traffic that is slowing down content distribution. In addition, the outbreak of Covid-19 has caused the majority of people worldwide to depend on mobile devices, which has increased traffic.

Additionally, the growth of mobile video traffic using various standards creates a need for sufficient bandwidth and devices that can handle a variety of video broadcasting. CDN providers typically struggle to keep the cost barrier for mobile connectivity issues in different nations to handle the traffic and maintain the speed of the content. Thus, traffic barrier while using mobile devices is a major restraining factor for the industry expansion.


Increasing demand for online games

The rise of the COVID-19 pandemic has caused lockdowns in many nations, which has caused spectacular growth in the digital gaming industry. It tracks the number of online servers for diversion, entertainment, and companionship, as well as for connecting to the real world more fully.

Additionally, people of all ages are becoming more interested in gaming, and a study from Appannie claims that since March 17th, 2020, there has been a significant increase in the number of smartphone games downloaded, which has increased demand for online gaming. Online gaming has also become a common choice for people to entertain themselves at home during the quarantine time as a result of the covid-19 outbreak. Thus, driving industry growth.

Recent Developments:

  • In March 2022, Fastly, Inc., a pioneer in the fastest edge cloud network provider acquired Fanout. The acquisition is consistent with Fastly's bigger development strategy, which involves finding and utilizing the talent and technological advancements that enhance client performance, security, and innovation.

Major key Players:

  • Amazon Web Services Inc. 
  • Akamai Technologies Inc. 
  • Google LLC 
  • Cloudflare 
  • Limelight Networks Inc. 
  • CDNetworks Co. Ltd. 
  • Fastly Inc. 
  • StackPath LLC 
  • Edgemesh Inc. 
  • Tata Communications

Market Segmentation:

By Solutions

  • Cloud Security
  • Media Delivery
  • Web Performance

By End-User

  • Media and Entertainment
  • E-Commerce
  • Advertising
  • Healthcare
  • Financial Services
  • Research & Education
  • Others

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