The need for web expansion and the demand for better Quality of Service (QoS), is now higher than ever before. This is because of the swift expansion of internet service over the years. These internet services include; online music, video streaming, online videos, online games, etc
Also, they provide solutions and services to different end users verticals. Furthermore, CDNs helps in handling large internet traffics by diverting the users to different servers. Thereby distribution load is perfect and efficient.
Content Delivery Network Market was valued at $9.24 billion in 2018 and it is estimated to grow to $ 12.16 billion. By the end of 2019 at a Compound Annual Growth Rate (CAGR) of 27.3% from 2014 to 2019.
North America has the biggest market in revenue contribution. While the Asia Pacific is anticipated to experience increased market traction. With high compound Annual Growth Rate, in due time.
The CDN market demand is boosted by the rising demand. For rich video content among the increasing number of online users. Also, with the trend of digitization. Among the various organizations across the end-user’s verticals.
Here are some of the new trends that might have already or will lead to an increase in growth and adoption rate of CDNs.
More and more users are becoming sophisticated. Especially with the emergence of 3G and 4G networks. The amount of mobile traffic for media- related service. Accounted for nearly 45% and is further expected to increase.
The expected growth of consumed data is about 4.5 GB per month. Hence, the need for content to be mobile-compatible will further increase. That’s why even Google started mobile-optimized websites. That could offer a competitive advantage in search results. Because of this dynamic mobile optimized up come.
The demand for online videos has been on the rise in recent years. More than 10 million videos are viewed on YouTube and Facebook every day. Approximately 80% of them are viewed from the mobile phone. Moreover, CDNs reduce latency for high bandwidth content like video streaming.
Additionally, network administrators are now seeking cost-effective solutions. To increase video delivery and at the same time improve the quality of the videos. CDNs streaming servers optimize video delivery. By catching the video content in multiple servers, geographically dispersed.
When a user is in need of a specific video. CDN offers the content from the closest server to the user’s location. Speeding up delivery and improving availability.
Expansion in Internet usage and reach
According to the Worldwide digital population. Almost 4.4 billion people are active users of the internet as of April 2019. This number encompasses 58% of the global population. India, China, and the USA rank ahead of other countries in terms of internet users.
By now, we all know that without the internet is unimaginable. Internet connects billions of people worldwide. It is the core pillar of modern society. Traditional solutions, such as WAN. Can’t keep up with the pace of change, diverse access points and the dynamic amount of content.
95% of purchases will be made online by 2040. Global e-commerce sales opportunities are rapidly growing each year. In 2017 alone e-commerce was responsible for $2.3 trillion in sales. It is expected to double up to up to $4.5 trillion by 2021.
For example, in the USA alone, online shopping accounts for 10 percent of retail. Its anticipate growth is 15% per year. CDNs have become a vital tool for smooth e-commerce websites.
Digital transitional Model
Many media organizations are transitioning to a digital distribution model. Due to these transitions, many CDN vendors now have great market opportunities. Besides, the vendors are increasing their focus on the techniques. That will enhance web performance optimization. So as to meet the mobile and dynamic content requirements.
The Content Delivery Market is highly competitive. Due to companies having benefits, like improved accessibility. With which it can grow mobile content delivery and storage. With the advancement in technological inventions. The key players in the CDN market are constantly innovating and upgrading their product. Offering to meet the needs of the increasing market.
Key Players in the CDN market
- Amazon Web Services Inc
- Limelight Networks Inc
- Akamai Technologies Inc
- Google LLC
- Verizon Digital Media Services
- Tata Communications