Content Delivery Network Market Predicted to Grow $27.9 Billion by 2025

Content Delivery Network (CDN) Market expected to grow from USD 14.4 billion in 2020 to USD 27.9 billion in 2025, at a Compound Annual Growth Rate (CAGR) of 14.1%.


Northbrook, IL -- (SBWIRE) -- 12/13/2021 -- According to a new market research report "Content Delivery Network Market by Component (Solutions and Services), Content Type (Static and Dynamic), Provider Type (Traditional CDN, Telco CDN), Application (Media and Entertainment, Online Gaming, Healthcare), and Region - Global Forecast to 2025" published by MarketsandMarkets™, the market size projected to grow from USD 14.4 billion in 2020 to USD 27.9 billion in 2025, at a Compound Annual Growth Rate (CAGR) of 14.1% during the forecast period.

The major factors driving the growth of the CDN market include the rising need for practical solutions to enable live and uninterrupted content delivery over a high-speed data network, increasing demand for enhanced QoE (Quality of Experience) and QoS (Quality of Service), a proliferation of video and rich media over websites, increasing demand for enhanced video content and latency-free online gaming experience, and increasing internet penetration and adoption of mobile devices leading to rising opportunities for mobile CDN.

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Based on solutions, the web performance optimization segment to grow at a higher CAGR during the forecast period

Web performance optimization is used to speed up the delivery of the web pages or website content for any organization on various end-user devices. This reduces the latency of the pages by an intelligent routing method. Web performance optimization caters to the end-users by delivering a replica or copy of the web page or website, if available on the CDN server that is near to the location of the user. If the requested content is not available on the closest server, then this solution routes the user request to the next-closest CDN or the third-party server that contains the page. Therefore, this solution helps in reducing the latency while offering smooth storage provisioning as well as orchestration of the entire workflow. This, in turn, facilitates the delivery of better Quality of Experience (QoE) and Quality of Service (QoS) to the end-user.

Based on services, the storage services segment is expected to lead the market during the forecast period

Storage services manage the overall stored data and offer scalability. Moreover, these services also offer high protection to the stored data across multiple centers and provide protection layers to safeguard the data. CDN vendors try their best to offer effective storage services so that content replication and storage is done closer to the end users location. CDN solution providers are emphasizing on and providing vast amounts of storage options with a faster retrieval rate. Cloud storage helps in storing website content and distributing the data to the customers. These cloud storage services reduce storage and maintenance expenses.

Based on application, the healthcare segment is expected to grow at a higher CAGR during the forecast period

The healthcare services application is one of the lucrative application areas in the CDN domain. This segment faces various technological challenges, such as a rising number of regulations and cybersecurity, and changing medical service demands for customers. The healthcare segment works on critical and time-based operating arrangements that require real-time data and instructions, which the mobile and system connectivity has made possible. CDN is one such solution that has benefited this segment on a large scale due to the high adoption of the telemedicine trend. Healthcare enterprises collaborate across locations for drug and medicine development and diagnostics.

North America to hold the highest market size during the forecast period

The growth of the CDN market in North America is contributed by the growing number of users accessing the web content. CDN vendors in the region are increasing their focus on improving website performance and providing a secure environment while delivering content to users. The growing digitalization in numerous industry verticals, including retail and eCommerce, gaming, and media and entertainment, is driving the adoption of CDN solutions in the region. Moreover, the presence of leading companies, such as Akamai, AWS, Microsoft, Limelight Networks, and Cloudflare, has fueled innovation in the CDN market, whereas startup companies, including Fastly, StackPath, and QUANTIL, have contributed to the growth of the market to a large extent. North America is expected to continue its lead in the CDN market.

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Major vendors operating in the CDN market include Akamai Technologies (US), Microsoft Corporation (US), IBM Corporation (US), Limelight Networks (US), Amazon Web Services, Inc. (AWS) (US), Google (US), AT&T (US), Cloudflare, Inc. (US), Verizon Media (US), Lumen Technologies (US), Deutsche Telekom AG (Germany), QUANTIL (US), StackPath, LLC (US), Fastly (US), G-Core Labs S.A. (Luxembourg), OnApp Limited (UK), Broadpeak (France), Citrix Systems (US), NTT Communications Corporation (Japan), Comcast Technology Solutions (US), Tata Communications (India), Imperva (US), Rackspace Technology (US), Leaseweb (The Netherlands), and Alibaba Cloud (China).

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