Editor | 01-09-2013
Further evidence has emerged of the burgeoning nature of the content delivery market (CDN) driven on by the explosion in online video and over the top (OTT) services.
TechNavio calculates that the CDN market will grow at a CAGR of 40.61% over the period 2012-2016 and indeed cites the increased streaming of video data as one of the key drivers of the growth.
The analyst also noted that even though the global video CDN market has also been witnessing the development of content delivery clouds, the high cost of video CDNs could pose a challenge to the growth of this market. The report also cited the key vendors dominating the market space include Akamai Technologies, CDNetworks, Level 3 Communications and Limelight Networks.
This latest survey comes only days after a new survey from ABI Research found that the cloud video service market is expected to be worth $2.36 billion by the end of 2013.
"The CDN and related markets are poised for a round of consolidation, commented Sam Rosen, practice director at ABI Research looking at the CDN market dynamics. We expect horizontal consolidation as well as horizontal consolidation where CDNs bring in functions, especially from online video platforms, to compete for the largest content producers.