Content Delivery Network (CDN) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 23.79 Billion |
| Market Size (2029) | USD 40.56 Billion |
| CAGR (2024 - 2029) | 11.26 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Content Delivery Network (CDN) Market Analysis
The Content Delivery Network Market size is estimated at USD 23.79 billion in 2024, and is expected to reach USD 40.56 billion by 2029, growing at a CAGR of 11.26% during the forecast period (2024-2029).
The growing number of internet users and the tendency of users to play games on mobile devices, with storage issues in many devices, is one of the major drivers for the market studied. A significant advantage of cloud-based gaming is that games are available anytime from almost any device, such as smartphones and tablets. Moreover, a content delivery network (CDN) is a promising paradigm for gaming delivery, as users can play games on any OS or device.
- The popularity of online gaming is increasing along with the introduction of new technology, such as 4K and Ultra HD. While these new technologies make gaming more enjoyable, they can negatively impact the pre-gaming experience by making players wait hours for the download to finish. Gamers may respond negatively to this on open platforms, which could cost the providers money.
- Moreover, gamers may be discouraged, and gaming companies may be unable to reach a wider audience due to long wait times for downloads of games. Therefore, to avoid any lag in performance, companies are investing in CDNs to deliver high-quality content globally for CDN solutions. The increasing internet speed supported by the emergence of low-cost data-based telecom services is fueling the adoption of cloud gaming platforms, which is driving the subscription of video streaming-based cloud gaming.
- With the growing smartphone adoption, the demand for original, high-quality content and the ongoing growth of content consumption has made effective CDN solutions necessary to boost content delivery and network performance. The market is anticipated to develop faster throughout the forecast period due to the increased demand for over-the-top (OTT) and video-on-demand (VOD) services, guaranteeing continuous content delivery over a high-speed data network.
- Some of the most influential organizations are moving away from third-party CDN services and toward deploying a content delivery network tailored to their needs. As more people use video streaming services to watch movies and advertise, viruses and cyber-attacks are rising. The lack of appropriate standards and procedures for discovering and regulating video content could hinder the market’s expansion.
Content Delivery Network (CDN) Market Trends
Media and Entertainment (M&E) Segment to Witness Major Growth
- The media and entertainment segment is expected to contribute significantly to the market’s growth during the forecast period, supported by the demand for high-quality online content broadcasting among the media players and the development of OTT platforms worldwide, increasing the demand for CDN solutions. According to Netflix, Netflix had around 260 million paid subscribers worldwide as of the fourth quarter of 2023.
- The content delivery network demand in the media and entertainment sector is characterized by the growing demand for streaming and rich media services, the proliferation of online gaming, and the ever-increasing demand for efficiency, reliability, and quality in video streaming and content delivery. Furthermore, the ever-evolving online gaming industry necessitates enhanced user experience, seamless game performance, and reduced latency, thus further offering lucrative growth opportunities for the CDN market.
- Media and entertainment (M&E) companies face significant pressure to continuously deliver high-quality content and experiences that attract and retain viewers. This further drives the demand for CDN solutions and services in the media and entertainment sector to scale live events and streaming channels and secure content, websites, and applications from attacks.
- In the fast-paced digital landscape, the efficiency and speed of content delivery networks are crucial for distributing video content globally. Market vendors are recognizing the need and entering into partnerships with streaming companies for advanced video streaming services.
- As increasing numbers of users demand online content, the demand for content delivery network solutions and services in the media and entertainment companies is expected to grow to deliver top-tier content consistently and reliably to large audiences. Moreover, in the coming years, video streaming and real-time voice-over-internet protocol (VoIP) are anticipated to become increasingly popular in gaming. CDNs are well-positioned to facilitate these trends by delivering low-latency, high-quality streaming experiences.
Asia-Pacific to Register Significant Growth
- There has been a mounting demand for CDNs in China, reflecting the country's growing digital economy, expanding online population, and increasing digital content consumption across various industries.
- Moreover, China is among the fastest-growing e-commerce markets globally. With millions of online shoppers and a growing digital economy, businesses rely on CDNs to ensure fast and reliable delivery of digital content to users across the country, including product images, videos, and web pages. CDNs help e-commerce platforms optimize website performance, reduce latency, and enhance the overall user experience, increasing customer satisfaction and higher conversion rates. Hence, most e-commerce companies are adopting content delivery networks, which has led to a growing demand for CDNs in China.
- Furthermore, OTT platforms like Netflix, Amazon Prime Video, and Hulu are witnessing rapid adoption in Japan. These platforms offer a wide range of video content, including movies, TV shows, and original series, which require reliable and scalable content delivery infrastructure. CDNs enable OTT providers to deliver streaming video content to viewers across Japan with minimal latency and buffering, even during peak traffic.
- In addition, the media and entertainment companies give the solutions designed for the content delivery network the highest precedence, in addition to end users in Japan, to meet shifting digital expectations and continue to be competitive. Moreover, to reinforce the country's technology infrastructure, the Government of Japan is aggressively supporting the digital revolution in the media and entertainment segment.
Content Delivery Network (CDN) Industry Overview
The content delivery network (CDN) market is fragmented, with the presence of major players like Amazon Web Services Inc. (Amazon.com Inc.), Akamai Technologies Inc., Google LLC (Alphabet Inc.), Cloudflare Inc., and Edgio Inc. Players in the market are adopting strategies such as partnerships, mergers, investments, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- February 2024: Vultr, a privately-held cloud computing platform, unveiled its latest offering, Vultr CDN. The content delivery service prioritizes proximity to users while maintaining robust security measures. With this launch, Vultr extends its reach, providing global content and media caching capabilities. This move equips Vultr's extensive community of over 225,000 developers with streamlined services, facilitating the scaling of their websites and applications. Unlike traditional networks, Vultr CDN stands out for its simplicity, offering unmatched price-to-performance ratios and boasting the industry's most competitive bandwidth costs.
- April 2024: InterDigital Inc., a company specializing in mobile, video, and AI technology research, partnered with Concordia University’s IN2GM Lab. The collaboration, spanning multiple years, aims to delve into tools that facilitate AI-driven delivery of immersive media over 5G networks. This partnership focuses on pioneering media delivery paradigms, developing prototype tools, and analyzing their outcomes.
Content Delivery Network (CDN) Market Leaders
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Amazon Web Services Inc. (Amazon.com Inc.)
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Akamai Technologies Inc.
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Google LLC (Alphabet Inc.)
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Cloudflare Inc.
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Edgio Inc.
*Disclaimer: Major Players sorted in no particular order
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Content Delivery Network (CDN) Market News
- July 2024: SPS Health acquired Mideast Delivery Solutions, a key player in specialized courier services for the long-term care pharmacy sector. This acquisition strategically positions Mideast Delivery Solutions within the SPS Health framework. Leveraging Mideast Delivery Solutions' expertise and robust delivery network, SPS Health aims to enhance its logistics services, ensuring a seamless and reliable experience for its healthcare partners.
- April 2024: Trump Media & Technology Group Corp. completed the research and development phase of its upcoming live TV streaming platform. The company is now set to expand its content delivery network (CDN). The platform's content will emphasize live TV, spanning news networks, religious channels, family-friendly films, documentaries, and content that faces cancellation or suppression on other platforms.
Content Delivery Network (CDN) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Microeconomic Factors on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Online Users, Per Capita Online Consumption, and Demand for High -quality Video Content
5.1.2 Growing Demand from Online Gaming Industries
5.2 Market Restraints
5.2.1 Larger Organizations Tending to Build their Own CDNS
5.2.2 Bandwidth Concerns, Particularly in Developing and Undeveloped Economies
6. MARKET SEGMENTATION
6.1 By Offering
6.1.1 Solutions
6.1.1.1 Media Delivery
6.1.1.2 Cloud Security
6.1.1.3 Web Performance
6.1.2 Services
6.2 By End User
6.2.1 Media and Entertainment
6.2.2 Advertising
6.2.3 E-commerce
6.2.4 Healthcare
6.2.5 Business and Financial Services
6.2.6 Research and Education
6.2.7 Other End Users
6.3 By Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 Germany
6.3.2.2 United Kingdom
6.3.2.3 France
6.3.2.4 Rest of Europe
6.3.3 Asia-Pacific
6.3.3.1 China
6.3.3.2 Japan
6.3.3.3 India
6.3.3.4 South Korea
6.3.3.5 Rest of Asia-Pacific
6.3.4 Latin America
6.3.4.1 Brazil
6.3.4.2 Mexico
6.3.4.3 Rest of Latin America
6.3.5 Middle East and Africa
6.3.5.1 United Arab Emirates
6.3.5.2 South Africa
6.3.5.3 Saudi Arabia
6.3.5.4 Rest of Middle East & Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Amazon Web Services Inc. (Amazon.com Inc.)
7.1.2 Akamai Technologies Inc.
7.1.3 Google LLC (Alphabet Inc.)
7.1.4 Cloudflare Inc.
7.1.5 Edgio Inc.
7.1.6 CDNetworks Inc.
7.1.7 Fastly Inc.
7.1.8 Microsoft Corporation
7.1.9 AT&T Inc.
7.1.10 Tata Communications Limited
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Content Delivery Network (CDN) Industry Segmentation
A content delivery network (CDN) is comprised of interconnected servers that deliver content securely. To enhance speed and connectivity, CDNs strategically position servers at network exchange points. The content delivery network is defined based on the revenues generated from the solutions and services used at various ends globally. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the market’s growth in terms of drivers and restraints.
The content delivery network (CDN) market is segmented by solution and service (media delivery, cloud security, and web performance), end user (media and entertainment, advertising, e-commerce, healthcare, business and financial services, research and education, and other end users), and geography (North America (United States and Canada), Europe (Germany, United Kingdom, France, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), Latin America (Brazil, Mexico, and Rest of Latin America), and Middle East and Africa (United Arab Emirates, Saudi Arabia, South Africa, and Rest of Middle East & Africa)). The market size and forecasts are provided in terms of value (USD) for all the above segments.
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Content Delivery Network (CDN) Market Research FAQs
How big is the Content Delivery Network Market?
The Content Delivery Network Market size is expected to reach USD 23.79 billion in 2024 and grow at a CAGR of 11.26% to reach USD 40.56 billion by 2029.
What is the current Content Delivery Network Market size?
In 2024, the Content Delivery Network Market size is expected to reach USD 23.79 billion.
Who are the key players in Content Delivery Network Market?
Amazon Web Services Inc. (Amazon.com Inc.), Akamai Technologies Inc., Google LLC (Alphabet Inc.), Cloudflare Inc. and Edgio Inc. are the major companies operating in the Content Delivery Network Market.
Which is the fastest growing region in Content Delivery Network Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Content Delivery Network Market?
In 2024, the North America accounts for the largest market share in Content Delivery Network Market.
What years does this Content Delivery Network Market cover, and what was the market size in 2023?
In 2023, the Content Delivery Network Market size was estimated at USD 21.11 billion. The report covers the Content Delivery Network Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Content Delivery Network Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the emerging trends in the CDN market?
The emerging trends in the Content Delivery Network (CDN) Market are: a) Adoption of edge computing to reduce latency b) Use of Artificial Intelligence (AI) for predictive content caching c) Integration of security services to protect against Distributed Denial-of-Service (DDoS) attacks
Content Distribution Network Industry Report
The Global Content Delivery Network (CDN) Market is witnessing remarkable growth, fueled by the surge in internet traffic from video streaming, online gaming, social media, and digital content. This demand is driving content delivery network providers and CDN companies to expand their services, catering to sectors like media, healthcare, e-commerce, and online gaming, all seeking to enhance user experience with fast, secure, and latency-free content delivery. The rise of Over-the-Top (OTT) platforms and Video on Demand (VoD) services further bolsters the need for robust CDN infrastructure to ensure quick and reliable content access. Supported by technological advancements and the expansion of high-speed networks worldwide, the CDN market is set to continue its upward trajectory. For detailed insights, Mordor Intelligence™ offers comprehensive analysis and forecasts on market share, size, and revenue growth rates in the CDN sector, available as a free report PDF download, providing a historical overview and future outlook of this dynamic industry.
