Requirement for uninterrupted and live content delivery and high-speed data network, usage of rich media and video over website, rise in demand for enhanced video and online gaming streaming, and surge in penetration of smartphone and wearables worldwide drive the growth of the global content delivery network market. Demand for high service quality, shift towards service architecture, and usage of consumer in over-the-top services present new opportunities in the coming years.

Growing demand for rich video content, among the increasing online users, and the trend of digitization in organizations across the end-user verticals boost the overall CDN market demand.

The global content delivery network market generated $11.62 billion in 2019, and is expected to reach $38.68 billion by 2027, witnessing a CAGR of 15.3% from 2020 to 2027.

Key industry players – Akamai Technologies, Microsoft Corporation, IBM Corporation, Limelight Networks, Amazon Web Services, Inc., Google LLC, Lumen Technologies, Cloudflare, Inc, Citrix Systems, and Rackspace Technology

Based on region, North America held the largest market share in 2019, accounting for around two-fifths of the global content delivery network market, and is expected to maintain dominance in terms of revenue by 2027. This is due to high adoption of online services and media, rise in usage of artificial intelligence (AI) & other smart connected devices in the region. However, Asia-Pacific is projected to maintain the highest CAGR of 18.7% during the forecast period, due to ongoing development in the IT and telecom sector that drives organizations to invest heavily in the content delivery network to improve productivity and sustain growth. In addition, a major shift toward digital transformation, rise in cloud deployment, and technological advancement among small & medium businesses supplement the growth.

Based on industry vertical, the media and entertainment segment contributed to the highest market share in 2019, accounting for around one-fourth of the global content delivery network market, and is projected to maintain its leadership status during the forecast period. This is due to usage of online video streaming and online gaming. However, the healthcare segment is expected to manifest the highest CAGR of 18.8% from 2020 to 2027. This is due to real-time information of patients offered during various situations on the regular basis.

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Based on component type, the solution segment contributed to the highest share in 2019, accounting for more than three-fifths of the global content delivery network market, and is estimated to maintain its lead position during the forecast period. This is due to adoption of solutions among organizations as it allows them to focus on their major activities. However, the services segment is expected to witness the highest CAGR of 16.7% from 2020 to 2027, owing to increase in demand for various services such as managed services, professional services, and low-cost maintenance service for maintaining security and high quality of the network.

Covid-19 Scenario

  • Internet and data service providers experienced nearly 30–45% growth in internet traffic worldwide. Owing to rise in need to ensure the highest capability and capacity for providing content over the delivery network with high performance, they implemented massive investment plans.
  • There has been considerable growth in the popularity of content delivery networks and attention of researchers in both industry and academia to save data searching costs. This generated more revenue streams for service providers as they offered various features in networking.

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