Cloud Content Delivery Network Market: Massive Growth on Cards as Organizations Move IT Services to Cloud, Globally

A content delivery network can be defined as a system of distributed servers that deliver web content such as web pages to the user based on user’s geographical location. Content delivery networks are particularly effective in expediting the delivery of content of web sites that have global reach or have high traffic. Content delivery network delivers the content from the nearest server to the users and also protect them from large surges in traffic by reducing latency while also reducing loading time. Content delivery or the hosting of content delivery services over the cloud can be termed as cloud content delivery network.

The increased global broadband speed and rise in downloadable content are expected to be major driving factors of the cloud content delivery network market. The market is also expected to receive significant push from the increasing number of organizations migrating their IT services on cloud. However, the market growth is expected to be hindered by the concerns over data security. Moreover, the market is expected to face restraint due to the latency problem associated with the technology. Furthermore, the growth in mobile content delivery networks is expected to open new doors of opportunity.

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The global cloud content delivery network market is segmented on the basis of type, core solution, vertical and geography. On the basis of type, the market is segmented into standard/non-video CDN and video CDN, video CDN sub-segment would cover the content delivery of video files while standard/non-video CDN sub-segment would cover the content delivery of files other than video for example text files and pdf files among others. In 2016, the video CDN sub-segment is expected to hold the major revenue share of the market and is expected to grow at a rapid pace during the forecast period.

On the basis of core solution, the global cloud content delivery network market is segmented into web performance optimization, media delivery and cloud security. Based on core solution, media delivery sub-segment is expected to hold major share of the market throughout the forecast period, primarily due to its critical role in delivery of media such as audio or video. On the basis of vertical, the market is segmented into advertising, media & entertainment, online gaming, e-commerce, education, government, healthcare and others (BFSI, IT, and travel & hospitality)). The market, based on vertical, is expected to be dominated by media & entertainment sub-segment which also is projected to grow at rapid pace throughout the forecast period.

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The global cloud content delivery network market is expected to be driven by the North America region. In 2016, North America is estimated to contribute a major share to the overall cloud content delivery network market with the U.S. contributing most to the region’s revenue. The region is expected to lose market share throughout the forecast period. The presence of major industry players along with high adoption of cloud content delivery network solutions in the region is expected to drive the market growth. Also, the presence of necessary internet and communication infrastructure is also expected to bolster the market growth. North America is also helped by the favorable regulatory environment and governments encouraging the developments in the field.

Asia-Pacific region is expected to emerge as the fastest growing region for the cloud content delivery network market. The region is also anticipated to emerge as the largest market in terms of market revenue towards the latter half of the forecast. This growth is accountable from the countries such as China, Japan, India and South Korea while South East Asian countries with their superior communication infrastructure and increasing smartphone adoption also add to the impressive growth in the region.

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The global cloud content delivery network market is expected to expand at a CAGR of 25.5% during the forecast period of 2017 to 2025 and reach US$ 18,564.5 Mn in 2025.

Major players in the cloud content delivery network market include Akamai Technologies, Inc., Limelight Networks, Inc., CenturyLink, Inc., CDNetworks Co., Ltd., Google LLC, Amazon Web Services, Inc., NTT Communications Corporation, Alibaba Cloud, Oracle Corporation and Cloudflare, Inc.

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