Growing Use of OTT Platforms to Boost Content Delivery Network Market by 12.6% CAGR by 2032
The global content delivery network (CDN) market stood at US$ 18.8 Billion in 2022 and is expected to reach a valuation of US$ 61.2 Bn by the end of 2032. The market is anticipated to grow at a CAGR of 12.6% in the forecast period from 2022 to 2032. ott platforms
Rising need to minimize delays in loading content, especially in the entertainment and media sector is anticipated to boost the global content delivery network market. Besides, surging online gaming trend is expected to result in the deployment of latest technologies such as 4K and Ultra HD.
To ensure a better user experience, gaming companies are investing huge sums in content delivery networks. Also, increased use of the internet and smart devices worldwide is generating a vast amount of data on a daily basis which requires smart management.
Besides, increasing demand for media transmission, as well as rising preference for video on demand (VOD) and over-the-television (OTT) platforms for entertainment is anticipated to drive the global content delivery network market.
Additionally, rising adoption of e-learning and work-from-home practices is expected to push the use of content delivery network solutions in the forthcoming years.
Moreover, declining data costs and increasing investments in the development of network technology are expected to be responsible for boosting the adoption of content delivery networks. Emergence of software as a service and expansion of the e-commerce sector are projected to drive consumer preference for video content delivery over mobile networks, thereby propelling the market.
Key Takeaways:
- The U.S. content delivery network market is expected to flourish at 12.0% CAGR between 2022 and 2032.
- The China content delivery network market is projected to reach a valuation of US$ 4.4 Bn by 2032 and would grow at a CAGR of 12.1% in 2022-2032.
- By application, the media and entertainment segment currently dominates the global content delivery network market by occupying around 55% of share.
- In 2021, content delivery networks held a share of nearly 27.5% of the global managed network services market.
- In the historic period (2015-2021), the global content delivery network market exhibited growth at a CAGR of 14.1%.
Growth Drivers:
- Surging demand for smartphones and other connected devices that can support digital media is expected to drive growth in the global market.
- Increasing demand for enhanced video content and improved gaming experience is set to boost growth in the global content delivery network market.
Key Challenges hindering Content Delivery Network Market ott platforms
Some major organizations are shifting their focus away from third-party CDN services and toward building their own content delivery network tailored to their specific requirements. Viruses and cyberattacks are becoming more common as more people use video streaming services to watch movies and advertise. The absence of appropriate standards and procedures for discovering and regulating video content may stymie market growth.
High-cost technology, insufficient connectivity, and the need for high-quality service, as well as concerns about data security and privacy, are expected to constrain the industry. Technical difficulties in live video streaming, complex architecture, and issues with service quality may stymie market growth.
Leading content delivery network service providers across the globe are mainly focusing on strategic partnerships with start-up or local companies to ensure long term revenue. Meanwhile, some of the other key players are engaging in mergers and acquisitions to either co-develop new products or gain access to the latter’s technology to come up with innovative products.
Key Content Delivery Network Software Providers:
Akamai Technologies; Microsoft Corporation; IBM Corporation; Limelight Networks; Amazon Web Services, Inc.
CloudFare Inc.; Limelight Networks Inc., Google LLC; AT&T; Verizon Media; Lumen Technologies; Deutsche Telekom AG, QUANTIL; StackPath; Fastly; G-Core Labs S.A; OnApp Limited; Broadpeak; Citrix Systems; NTT Communications Corporation; Comcast Technology Solutions; Tata Communications; Imperva; Rackspace Technology; Leaseweb and Alibaba Cloud. ott platforms
