Global Content Delivery Network (CDN) Market by Component (Solution (Media Delivery, Cloud Security & Web Performance) and Services), Content (Static and Dynamic), and Vertical (Media & Entertainment, Healthcare, Retail & E-commerce, BFSI, IT & Telecommunications and Others), and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2023-2030

Industry Perspective

The global Content Delivery Network (CDN) market size was worth around USD 18.56 Billion in 2022 and is predicted to grow around USD 52.39 Billion by 2030 with a compound annual growth rate of roughly 15.9% between 2023 and 2030. The report analyzes the global content delivery network (CDN) market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the content delivery network (CDN) market.

Global Content Delivery Network (CDN) Market: Overview

A content delivery network (CDN) is an interconnected system of computers on the Internet that offers web material quickly to a large number of users by replicating or caching the information on various servers and directing the content to distant consumers. CDN is employed to provide material to end users with high availability and performance.

CDNs are utilized by a significant amount of the internet's content, including web objects (text, scripts and images), downloadable objects (media files, documents and software), on-demand & real-time streaming data, applications (portals, eCommerce), and social networks.

When an end-user requests a particular web page, movie, or file, the server nearest to that user is dynamically identified and used to deliver the requested material, hence accelerating delivery. In order to give identical material to as many users as possible, even during high demand, content may be replicated on hundreds or thousands of servers.

The majority of internet and data service providers observe a 30–45% increase in worldwide internet traffic annually. There is a rising requirement to guarantee that service providers have sufficient capability and capacity to distribute content over the delivery network with high performance in light of the rise in traffic demand. Consequently, service providers such as local mobile network operators and over-the-top service providers are investing heavily in content delivery networks for a variety of use cases.

As new technologies such as 4K and Ultra HD become available, the demand for online gaming escalates, propelling the market forward. Increasingly, gaming companies are investing in CDN to offer high-quality content and improve the user experience. CDN enables gaming companies to distribute crucial files and patches to users for rapid download. Additionally, server outages and download errors are prevented. These elements all improve the pre-gaming procedure. Moreover, CDN provides scalability, allowing players to continue playing even if the game's download size grows as a result of its high-quality graphics and other features.

Key Insights

• As per the analysis shared by our analyst team, the global content delivery network (CDN) market is estimated to grow annually at a CAGR of around 15.9% over the forecast period (2022-2030).
  In terms of revenue, the global content delivery network (CDN) market size was valued at around USD 18.56 Billion in 2022 and is projected to reach USD 52.39 Billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate
• Based on component, the solution was predicted to show maximum market share in the year 2022
• Based on application, the static segment was the leading revenue-generating component in 2022
• Based on distribution channel, the media & entertainment is anticipated to witness the largest share in the year 2022
• On the basis of region, North America was the leading revenue generator in 2022

Increasing Adoption of OTT and VOD Services Augmenting the Market Growth

The rising popularity of OTT and VOD services necessitates that broadcasters offer data without network latency and improve the quality of video distribution. Global investments in network infrastructure, particularly in growing economies such as India, have enhanced network connectivity, bandwidth, and coverage.

These advancements have played a crucial role in ensuring that people can remain connected, obtain quick updates, and access prefabricated media data. This is a motivating factor for broadcasters to improve content delivery and provide diverse data for consumption across multiple applications.

Increasing Demand for E-commerce Industry Propeling the Market Growth

The e-commerce business is rising with the shifting of consumer behavior towards online purchasing. Effective deployment of CDN solutions in e-commerce industries ensures that these businesses operate at full capacity and that clients have access to all the required information to make an informed purchasing decision.

Customers are transitioning from traditional television to video content delivery through a cellular network, as CDN solutions are also being introduced to improve content delivery in this sector. Concurrently, the use of digital solutions based on IoT networks and artificial intelligence in a variety of industries is pushing market participants to create and promote industry-specific CDN solutions.

Technological Advancements in CDN Services Pose an Opportunity for the Market Growth

The technological improvements such as smart city projects, and upcoming rollout of 5G networks are expected to be an opportunity for the content delivery network market. To combat the strong competition, big platform providers and businesses are increasingly adopting vertical and horizontal integration projects. As a result, well-known providers of technology solutions are moving their focus to the content sector.

Content Delivery Network (CDN) Market: Segmentation Analysis

Based on content, the global market is segmented into solution & services. The solution is further categorized into media delivery, cloud security & web performance. The media delivery segment is dominating the market share owing to the increasing demand for smartphones and other smart and connected devices equipped to support digital media will propel the segment's growth.

In developing economies, the ongoing deployment of high-speed networks has left customers with no alternative but to access data at any time and from any location. It is anticipated that the increasing need for CDN solutions to enable latency-free media delivery would help to the expansion.

On the basis of content, the market is bifurcated into static and dynamic. The dynamic segment is dominating the market share owing to increasing demand for CDN systems to enable real-time Voice over IP (VoIP), video streaming, and online gaming is responsible for the expansion.

Dynamic content consists of continuously changing data as part of customized web services and the use of web performance optimization to expedite the delivery of web pages or website content for any organization across many end-user devices. These services reduce page latency by employing a clever routing strategy.

Based on vertical, the global market segments are media & entertainment, retail & e-commerce, healthcare, BFSI, IT & telecommunications and others. The media & entertainment segment is dominating the market share owing to the growing migration to a digital distribution paradigm and seeing substantial growth. With the increasing demand for online streaming and VOD services, which necessitates the optimization of data and network delivery for the users. Customers of CDN providers are increasingly prioritizing the delivery of high-quality visual capabilities with enhanced visibility and no interruptions, regardless of the device.

Recent Development

September 2022- Lumen Technologies has established new underwater fiber line between the U.S. and France increases network capacity and variety. Lumen is investing in a fiber pair on Google's Grace Hopper cable between New York and Bude, Cornwall. Both locations will leverage Lumen landing station and infrastructure services.

July 2022- Fastly is working with with Mercedes-AMG PETRONAS Formula1 to deliver the fastest online experiences to the customers, both on the internet as well as track.

June 2022- Edgio has acquired Limelight’s acquisition of Edgecast providing enhanced scale and scope with diversified revenue across customers, products, channels, countries, and offering a comprehensive set of capabilities for web apps, APIs, and video content.

May 2022- Fastly acquired Glitch to improve the breadth of applications and utilize extensive knowledge to produce a vast repository of tools and resources for consumers.

April 2022- Lumen Technologies working together with Disney Streaming to standardize CDN configuration metadata to improve the quality and reliability of streaming video.

Regional Landscape

North America Dominated the Market Share

North America is dominating the market share of global content delivery network (CDN) market owing to the largest internet penetration and the increasing popularity of 4K resolution displays are the primary drivers driving the growth of the regional market. These provide a solid CDN architecture for effective data delivery. 

In addition, the rapid adoption of cloud-based services, the deployment of high-speed data networks, and the growing demand for smartphones are anticipated to have a direct impact on the growth of the regional market. The adoption of CDN solutions in the region is also significantly influenced by an increase in leisure spending. 

Competitive Landscape

Amazon Web Services Inc., Microsoft, Akamai Technologies, Google LLC, IBM Corporation, Cloudflare, Inc., Verizon Partner Solutions, Fastly Inc, F5, Inc., NTT Communications Corporation, Lumen Technologies, CDNetworks Inc., Edgio, amongst others.

The global Content Delivery Network (CDN) market is segmented as follows:

By Component

• Solution
• Media Delivery
• Cloud Security
• Web Performance
• Services

By Content

• Static
• Dynamic

By Vertical

• Media & Entertainment
• Retail & E-commerce
• Healthcare
• BFSI
• IT & Telecommunications
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Southeast Asia
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America