A content delivery network is an interconnected distributed system of proxy or cache servers deployed across numerous data centers that use geographical vicinity of the user as a benchmark for delivering web content. The goal of a content delivery network is to allow effective functioning of internet by serving content to end-users with zero latency and high performance. Rapidly ballooning base of internet users has played a huge role in transforming the market of content delivery network service provision. Content delivery networks serve a majority of the internet content today, comprising of downloadable objects like media files and software, web objects like text, graphics and scripts, live streaming media, on-demand streaming media, and social networks. Content suppliers such as e-commerce vendors and media companies pay content network delivery operators to deliver their content to their batch of end-users. The content delivery network servers store multiple copies of content on strategically dispersed servers at different locations. Caching or replicating of such content help enterprises to remove the data load from source servers, thereby speeding up the delivery of content requested by plethora of clients at the same time, efficiently and in a secure manner.
Content Delivery Network Market: Segmentation
Content Delivery Network is segmented on the basis of solution, end-user, service provider and region. By solution, content delivery network market can be segmented into media delivery solution, web content optimization, cloud & content security, analytics & monitoring and other solutions. Content Delivery Network market can be segmented according to end-user which includes small business, medium business and large enterprises. By service provider, content delivery network market can be segmented into conventional CDN provider, telecom CDN provider and other CDN providers. Regionally, content delivery network market can be segmented into North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific excluding Japan (APEJ), Japan and Middle East and Africa (MEA).
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Content Delivery Network Market: Regional Outlook
North America was the dominant regional market in 2015 and is expected to retain its dominance during the forecast period 2015 – 2022. Asia Pacific excluding Japan is anticipated to exhibit highest CAGR amongst all the regions in content delivery network market amidst the projected period.
Content Delivery Network Market: Drivers
Exploding usage of data consumption over internet is the key driver for the content delivery network market. Moreover, increasing demand for mobile content delivery and high bandwidth applications combined are expected to fuel the growth of content delivery network market during the forecast period 2016-2026. However, factors such as operator recalcitrance and revenue loss with interference of third party providers are expected to hinder the growth of content delivery network market. Also, high initial cost charged by content delivery network service providers is likely to restrain the progress of content delivery network market during the projected period.
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Content Delivery Network Market: Key Players
The major players in the content delivery network market include Amazon.com Inc., Akamai Technologies Inc., CloudFare Inc., EdgeCast Networks Inc., CDNetworks Co. Ltd., Rackspace Hosting Inc., Level 3 Communications, Inc., Limelight Networks Inc., Highwinds Network Group Inc., ChinaCache Inc.and other vendors. Akamai Technologies Inc. and Amazon.com Inc. together represented a market share of more than 40% in the content delivery network market in 2014. Key vendors in the content delivery network market follow the strategy of engaging in strategic partnerships with ecosystem vendors to enhance their market presence. Moreover, introducing cost-effective services to gain competitive edge is another major strategy adopted by key players in the content delivery network market.
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