The content delivery network (CDN) market is expected to reach $7.4 billion by 2017 with a compound annual growth rate (CAGR) of 24 percent, says a study by MarketsandMarkets
The report—Global Content Delivery Networks Market (Delivery Technologies, Hardware, Analytics, Monitoring, Encoding, Transparent Caching, DRM, CMS, OVP), Trends, Geographical Analysis & Worldwide Market Forecasts (2012 – 2017)—says the global CDN market is expected to increase from $2.1 billion in 2011 to $7.4 billion by 2017, an estimated CAGR of 24.6 percent.
In addition, North America is predicted to continue to command the largest share of that market during the same period, increasing from $1.3 billion during 2011 to $4.6 billion by 2017 (a CAGR of 24.1 percent), the report says.
MarketsandMarkets cites Internet growth and trend-change over the use of online content resulting in increased traffic, content richness and efforts to manage efficient content delivery to users as reasons for the growth.
In addition, to compensate for limitations and content delivery drawbacks, CDNs have evolved and those networks have emerged as among the most lucrative markets with web-based content (especially music, video and transaction-based services) promoting the need for CDNs, the report says. Relevant content comes from content-provider businesses as well as from individuals, and as Internet traffic increases, managing that growth and maintaining a quality of services becomes more difficult, according to the report. Therefore, new players have entered into the market with network optimization solutions, the report adds.
To reach those conclusions, MarketsandMarkets analyzed the global CDN market based on CDN solutions, service providers, the market based on video and non-video, market verticals and geographies, value chain, competitive ecosystem and industry and region specific market data for solutions, service provider types and organization size respectively. It also reviewed market trends and factors influencing growth, offering geographic analysis of the CDN in North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa.
Click here to access the report summary.