What is CDN?
A content delivery network (CDN) is a system of servers or workstations interlocked over the internet, that is located to users across the globe to lessen the distance content travels. CDNs offer a solution for proficiently and successfully handling the content of all types.
Solutions include core services such as combination, management, and distribution of content as well as the variation of value-added functionality. Many CDN organizations can run on commercial off-the-shelf hardware with virtual machines, thus decreasing costs and refining infrastructure elasticity.
Content Delivery Network (CDN) Market Forecast: (2020-2025)
CDN market value was $11.85 billion in 2019 and is expected to see an increase during the forecast era and will extend to $24.70 billion till 2025 rising at a CAGR of 13.4% between 2020 to 2025. Exponentially increasing internet penetration in all the business verticals along with the increasing deployment of this type of delivery network for traffic handling has been encouraging market growth across the world.
The content delivery network market is divided into two parts i.e media delivery, web performance optimization by a solution. The media delivery division held the major share accounting for around 34% in 2019. CDN market value concerning media delivery solutions was $4.06 billion in 2019 and a rise is estimated throughout the forecast.
The market will reach $8.6 billion by 2025 rising at a CAGR of 13.66% from 2020 to 2025.
Media and entertainment are the leading end-user industry of the CDN market accounting for a 30% share of the market in 2019. Users can also view and access the high definition video content with web performance optimization and media delivery.
Social networking sites such as Facebook, Twitter, and others are also one of the causes of increasing internet traffic. Around, 1500 million are registered users in social networking sites presently.
America is capable of holding the major share of 38% of the global CDN market. It is predicted that it will reach $9.18 billion by 2025 rising at a CAGR of 13.2%. The market is examined to be driven by enterprises choosing for CDN solutions. America’s CDN market value was highly dependent on media and entertainment industry with online gaming composed to witness the highest growth of CAGR 18.95% during 2020-2025. The largest growing CDN market in APAC is predicted to grow at a CAGR of 18.46% from 2020 to 2025 projecting to $7.49 billion by 2025.
The market is composed to be driven by rising SMEs which decide on cloud CDNs and P2P CDNs due to its cost efficiency and flexibility. The penetration of huge scale e-commerce websites along with the consumers’ preferences for online shopping is also pushing for the service of CDNs by mobile companies which has enhanced the market growth in this region.
The Effect of Covid-19:
Due to the covid-19 condition, there is an upsurge in work from home opportunities, which can, directly and indirectly, lead to greater media consumption. Remote classes and training plans also add to improved IP traffic, which leads to more use of CDNs across nations.