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Content Delivery Network Market to expand at a CAGR of 20.5%, by 2020

The global content delivery network market is anticipated to grow at a year-over-year rate of 19.9% in 2016 and reach US$ 5,898.9 Mn in revenues. North America will continue to be the largest market for content delivery network, with total revenues in the region expected to grow at 21.3% in 2016. Existence of a strong channel of U.S. based content delivery network providers and high awareness on its benefits among end-users will continue to propel the growth of the content delivery network in North America.  

Rising development of IoT, improving broadband infrastructure, retention of online devices and increasing consumption of rich media content with growing interconnections between devices will continue to fuel the growth of the content delivery network market in 2016. Growth in the IP traffic across the globe is also anticipated to fuel the adoption of content delivery network globally.

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On the basis of application, delivery/distribution segment holds the leading share, and is anticipated to increase at 21.0% in 2016. Website caching, on the other hand, is expected to witness a year-over-year growth of 19.8% in 2016 over 2015.

On the basis of service provider, the global market is primarily segmented into conventional CDN and telecom CDN. Based on popularity and functionality, the conventional CDN segment is preferred by end-users, with this segment expected to account for 74.6% revenue share of the market in 2016.

On the basis of service type, the global market is expected to be dominated by Software-as-a-Service (SaaS) service type. This segment accounted for a revenue share of 54.2% in 2015, and is expected to maintain its dominance in 2016 and beyond.

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Media & entertainment will remain the largest end-use segment of content delivery network market in 2016, growing at a year-over-year growth of 23.2%. Content delivery network remains an effective medium in the media & entertainment sector, with further growth and innovation expected in the near future.

In addition to North America, Asia Pacific excluding Japan (APEJ) is a highly lucrative market for content delivery network providers. This market is anticipated to increase at 21.8% to reach 703.3 Mn in revenues in 2016.

Key participants of in the global content delivery network market include Level 3 Communications, Inc., Limelight Networks Inc., CloudFlare, Inc., Akamai Technologies Inc., Orange S.A., CDNetworks Co., Ltd., MaxCDN Enterprise, AT&T Inc., Amazon CloudFront and Highwinds Network Group, Inc.

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Long-term Outlook: The global content delivery network is expected to increase at a CAGR of 20.5% during the forecast period 2016-2026.