Content Delivery Network (CDN) Market Outlook, Segments, Geography, Dynamics, Recent Developments, and Strategic Insights by 2031

The content delivery network (CDN) market size is projected to reach US$ 84.67 billion by 2031 from US$ 23.48 billion in 2023. The market is expected to register a CAGR of 17.4% during 2023–2031. The growth in the e-commerce industry and the rise in live-streaming are likely to remain key trends in the market.

Content Delivery Network (CDN) Market Analysis

On its current trajectory, online video consumption growth is the key market driver of CDN video delivery growth. When compared to broadcast TV, online consumers demand the same or better quality. This puts pressure on content providers to publish appealing content and deliver it in high quality in order to meet demand. Several large-scale internet video providers are currently streaming 4K content, which consumes more bandwidth than normal HD streaming. As more 4K content becomes available (combined with increased 4K device sales), viewers will demand more high-quality content, putting extra strain on internet infrastructure. Recent years have clearly altered the television viewing environment; streaming is now not only supplemental to linear transmission but has begun to supplant it in many locations. Viewers are moving away from traditional broadcast television and toward online video, which may be accessed via personal or linked devices. Although stay-at-home restrictions are lifting in some areas and customers are returning to pre-pandemic activities, improvements taken during the pandemic to enable streaming, together with the launch of a number of new OTT services, indicate that traction will continue. For instance, according to the Conviva State of Streaming 2021 report, live programming accounts for 23% of global viewing time, with on-demand material accounting for the remaining 77%. While this demonstrates that live video is not yet as popular as on-demand video (and probably never will be), it is still rather astounding. It demonstrates how far the live-streaming industry has progressed. Also, On-demand video may command a larger part of worldwide viewing time, but as this statistic illustrates, it cannot compete with live video in terms of engagement. The average viewer spends approximately 26.4 minutes each viewing session watching live video, compared to approximately 19 minutes watching video on demand.

Content Delivery Network (CDN) Market Overview

A content delivery network, or CDN, is a distributed system of computers designed to provide web content to end users as soon as feasible. A content delivery network's primary goal is to provide any form of digital content to visitors efficiently and securely, regardless of where they are in the world or what type of device they are using. A content Delivery Network (CDN) is a geographically dispersed network of computers that enables quicker web performance by locating copies of web material closer to consumers or easing the delivery of dynamic content (e.g., live video feeds). Each CDN server is positioned on the "network edge"—closer to users than the host server, which is where the website originates. As a result, CDN servers are frequently referred to as "edge servers." Each server saves or caches copies of a subset of the web content from the host server—HTML files, pictures, audio, video, and applications.

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Content Delivery Network (CDN) Market: Strategic Insights

Content Delivery Network (CDN) Market

• Market Size 2023
  US$ 23.48 Billion
• Market Size 2031
  US$ 84.67 Billion

Market Dynamics

GROWTH DRIVERS

• Rise in live-streaming

FUTURE TRENDS

• The adoption of containerization and microservices architecture

OPPORTUNITIES

• Rapid growth in the e-commerce industry

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Component

• Solutions and Services

Content Type

• Static and Dynamic

Provider

• Cloud CDN
• Traditional CDN
• Telco CDN

Application

• eCommerce and Retail
• Media and Entertainment
• Online Gaming

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Content Delivery Network (CDN) Market Drivers and Opportunities

Rise in live-streaming to Favor the Market

The rising adoption of smart devices such as smartphones, smart TVs, and tablets is leading to an increase in live streaming among users. The past two years have undoubtedly shifted the TV viewing landscape; streaming is now not just supplementary to linear broadcast but has begun to replace it in many places. Viewers are shifting away from traditional broadcast television toward online video, either through personal or connected devices. Although stay-at-home restrictions are ending in some regions and consumers are returning to pre-pandemic activities, changes made during the pandemic to enable streaming alongside a range of new OTT service launches mean traction will continue. By 2022, 86% of smart TV households have a regular TV streaming service via the TV built-in feature. Although a sizeable portion (14%, or 1 in 7) of smart TV homes do not yet use those sets to stream TV or movies, it is still a huge growth over 2021 (76%). According to a 2023 Unscreen survey report, with 89% of Wi-Fi households in the US having access to mobile devices, TV apps only have a 54% reach. Mobile devices are the most widely used video streaming devices. According to the Omdia TV & Online Video Intelligence Service, by the end of 2031, TV and online video will have a total of 2.8 billion global subscriptions, with online video accounting for nearly all of the growth. Between 2021 and 2031, pay-TV subscribers are expected to rise by 0.1% (1.0761 million to 1.075.8 million). Online video subscriptions, on the other hand, will more than triple from 829 million to 1,686 million.

Rapid growth in the e-commerce industry.

With the rise in internet penetration and growing population, the online retail industry is experiencing tremendous growth. According to Startup India, in May 2024, the revenues of e-commerce companies are expected to triple over the next three years to US$ 8.13 billion due to growth in internet usage. In addition, various companies are taking their business online, which is leading to an increasing number of websites. Therefore, the demand for CDN is expected to gain traction in the coming years. It enables e-commerce websites to rapidly deliver content, such as images and other files, regardless of bandwidth (traffic levels) or the user's location. The CDN helps e-commerce companies to fasten their website’s load time faster, so that users hundreds or thousands of miles away can swiftly access the website from the host servers.

Content Delivery Network (CDN) Market Report Segmentation Analysis

Key segments that contributed to the derivation of the content delivery network (CDN) market analysis are component, content type, provider, offering, and application.

• Based on the component, the content delivery network (CDN) market is divided into solution and services. The solution segment held the largest share of the market in 2023.
• By content type, the market is segmented into static and dynamic. The dynamic segment held a significant share of the market in 2023.
• By provider, the market is segmented into cloud CDN, traditional CDN, telco CDN, and others. The cloud CDN segment held a significant share of the market in 2023.
• In terms of offering, the market is segmented into mobile content delivery, software delivery, video streaming, and others. The mobile content delivery segment is expected to grow with a significant CAGR.
• In terms of application, the market is segmented into e-commerce and retail, media and entertainment, online gaming, and others. The e-commerce and retail segment is expected to grow with a significant CAGR.

Content Delivery Network (CDN) Market Share Analysis by Geography

The geographic scope of the content delivery network (CDN) market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

Major markets in North America are one of the leading regions in the content delivery network (CON) market. The majority of CDNs already have extensive network reach in mature video markets such as North America and Europe. Still, there is an opportunity for CDNs to strategically position themselves with targeted investments and capitalize on this expansion in developing regions with higher growth potential. The North American region is home to major OTT content providers such as Netflix, Amazon Prime, Hulu, Apple TV+, and others. According to a 2023 report by DataAl, customers are downloading more apps; in the US, streamers are predicted to download 85% more video streaming apps in 2021, compared to 80% in South Korea.

Content Delivery Network (CDN) Market Market Report Scope

Content Delivery Network (CDN) Market News and Recent Developments

The content delivery network (CDN) market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the content delivery network (CDN) market are listed below:

• ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise, and consumer technology solutions for the mobile internet, launched Content Delivery Network (CDN) 2.0, a decentralized real-time CDN solution, enabling operators to build a new-generation content network featuring ultra-low latency and two-way interaction. (Source: ZTE Corporation, Press Release, September 2022)
• Cisco and Qwilt announced that they were working with Fastweb, one of Italy’s leading telecommunications operators, to bring their joint content delivery network (CDN) solution, based on Open Caching, to the Italian market. The new solution enables Fastweb to rapidly increase network performance, support rising data volumes, and enhance streaming experiences for all its residential and business customers across Italy. (Source: Qwilt, Press Release, July 2023)

Content Delivery Network (CDN) Market Report Coverage and Deliverables

The “Content Delivery Network (CDN) Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Content delivery network (CDN) market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Content delivery network (CDN) market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Content delivery network (CDN) market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the content delivery network (CDN) market
• Detailed company profiles