Market Trends of Content Delivery Network (CDN) Industry
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.
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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.
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