CDN market to be worth $7.4BN by 2017

Parent Category: News | 14-10-2013

As OTT is as hot as ever and online video in general soars with series bingeing, more research is pointing to content delivery networks (CDNs) as the lucrative equivalent of the shovel in the new TV Klondike.

According to a new market research report Global Content Delivery Networks (CDN) Market (Delivery Technologies, Hardware, Analytics, Monitoring, Encoding, Transparent Caching, DRM, CMS, OVP) - Trends, Geographical Analysis & Worldwide Market Forecasts (2012 - 2017) published by MarketsandMarkets, the total CDN market is expected to rocket by a CAGR of 24.6% until 2017, reaching a value of $7.4 billion. This compares with $2.1 billion in 2011. North America, which commanded almost two-thirds (64.3%) of the overall managed CDN in 2011 at $1.3 billion, is expected to maintain market leadership by 2017, generating $4.6 billion at a CAGR of 24.1%.

In its report explaining the significance and potential profitability of CDNs, the analyst noted the growth in online video content richness and the network complexities to manage efficient content delivery to user.

It is in countering these Internet limitations and content delivery drawbacks that CDNs have evolved and the analyst asserts that they have emerged as one of the most lucrative markets for both existing players and new market players. MarketsandMarkets adds that online content is growing at a rapid rate from content provider businesses as well as from individuals, and as the Internet traffic load increases, it becomes difficult to manage this growth and provide quality of service to the end-user. Furthermore, MarketsandMarkets believes that competition within the CDN sector has accelerated due to the increasing demand for quality of services and new players' network optimisation solutions.

Concluding, and looking at a call to action for concerned parties, the analyst cautioned that despite demand, content providers had to differentiate clearly their products among other CDN providers for achieving better adoption among users.