Exponentially increasing Internet penetration in all the industry verticals saw the content delivery network market valued at $11.85 billion in 2019, with an upsurge forecast to reach $24.70 billion till 2025 growing at a CAGR of 13.4% in between 2020 to 2025, according to researchandmarkets.com.
Alongside this, Cisco projects that by 2022, CDNs are expected to carry about 72% of global Internet traffic, up from 56% in 2017.
Due to the proliferation of OTT services, expect to see subscriber bases reach 650 million in 2021.
Barriers to CDN adoption
For each of these companies, there have been significant barriers to CDN adoption, deployment, and usage.
The CDN market is dominated by a handful of very large specialist providers, which has kept prices artificially high.
There are cheap and even free CDN services available, but these don’t have the security or reliability needed for online services.
Over time, with more people accessing the Internet and the growing availability of bandwidth, websites and website services have increased in sophistication and capability which has driven the demand for more specialized CDN services to accommodate the new user experience.
The Future of CDNs
Today, leading CDN providers are positioned to expand their infrastructures with a projected 72% market share in carrying all Internet traffic by 2022.
However, it’s not just CDNs that are scaling up their Infrastructure as a service offering with internet service providers and telecom companies also developing content delivery networks.
Driven by much higher Internet usage and greater broadband penetration, digital media delivery has been expanding from private IP distribution networks into OTT (over the top services) networks that run over the Internet.
Fueling this rapid increase in digital media traffic is the continued growth in Streaming Video on Demand Services (SVOD).
In 2018, global subscriptions to streaming video services overtook cable television, (for the first time), reaching over 613 million people, 27 %more than the year before.
“Although the current SVOD expansion is being led primarily by US-based media, some see global networks as a path to unlock global markets. Analysts have predicted a rapid expansion of demand in Asia-Pacific markets; Asia-Pacific is expected to account for 51 percent of all video streaming traffic by 2024, almost twice as much as in 2018” deloitte.com
Much of the growth in video traffic comes from the largest Streaming Video on Demand Services, social media networks, and other hyper-scale digital media companies that already operate their own CDNs.
The rising demand for increasing volumes of video-on-demand and OTT services, including offerings such as multiplayer iGaming and Broadcast and pay-TV services, means CDNSs need to continue to shape the Internet to meet hardware innovations and evolving human behavior.
In the short term, the CDN market is poised for strong growth.
What this means for the CDN providers, media companies, and telecoms jockeying for a position in that market is a cloud computing vendor that hosts the infrastructure on behalf of their customers. The vendor hosts the infrastructure in “the cloud” – in other words, in various data centers. Their customers access this cloud infrastructure over the Internet. They can use it to build and host web applications, store data, run business logic, or do anything else that could be done on traditional on-premises infrastructure, but often with more flexibility to distribute media online could viably optimize their entire content delivery pipeline, and secure ownership of the data their audiences generate.
Communications Service Providers
Healthcare and Life Sciences
Hospitality & Travel
Media and Entertainment
Retail & Consumer Goods
Software & Technology
Software as a Service