The global content delivery network (CDN) market size is expected to reach $23,064.3 million by 2025, exhibiting a CAGR of 11.7% over the forecast period, according to a new market study conducted by Grand View Research. The unabated growth in internet traffic and data consumption is expected to drive the growth of the CDN market.
The growing demand for over-the-top (OTT) videos, online gaming, and Internet advertising is also expected to contribute to the market growth, according to Grand View Research. The media & entertainment segment dominated the content delivery network market in 2018 whereas the healthcare segment is expected to register the highest CAGR of 12.6% over the forecast period.
The North America regional market accounted for the largest market share of 41.4% in 2018 while the Asia Pacific regional market is expected to exhibit the highest CAGR of 14.0%. North America is home to several leading CDN companies. North America also has one of the largest customer bases with demanding ‘high-definition’ online content and online games.
However, the Asia Pacific regional market is expected to register the highest CAGR over the forecast period owing to the growing penetration of smartphones, increasing preference for online content delivery, continued growth of the e-commerce industry, and continued high-speed network rollouts.
Online Videos, Live Streaming
CDN solutions help in reducing the transmission time of the content and subsequently in enhancing the performance of content delivery. The demand for CDN solutions would be rising significantly owing to the growing popularity of online videos and live streaming. Security, traffic load scaling, and reduction in latency are particularly necessary to enhance the performance of video content delivery, stated Grand View Research. Plummeting data tariffs, increasing smartphone penetration, and high-speed data network rollouts are also driving the CDN market growth, according to Grand View Research.
Cloud delivery network is mainly used for delivering media content to a larger customer base spread across the globe. As such, the growing popularity of video on-demand (VoD) and OTT services is driving the demand for CDN solutions. However, the cloud security segment is expected to gain traction over the forecast period owing to the continued emphasis on ensuring the security and privacy of the content.