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Content Delivery Network Market will Reach a Valuation of over US$ 11.5 Bn towards 2030-end: FMI

The demand for content delivery networks (CDNs) around the world has risen strongly in 2020, with the ongoing pandemic of the coronavirus creating opportunities in work from home and e-learning. Also, the prospects of the industry through 2030 is very positive, according to Future Market Insights (FMI). The report has stated that the industry will benefit from improvements in networking technology and the growing popularity of OTT content.

Analysts at FMI have said that software-as-a-service delivery network services will contributes substantially to the overall revenue, for media, entertainment and healthcare applications. Poor networking infrastructure in rural areas is a major challenge.

The content delivery network industry has reflected exponential growth in the recent past account of major advances in networking technology, and the widespread penetration of the internet even to developing countries. Further, businesses have increased demand for outsourcing of content, management and distribution of media services, bolstering speed of access to potential consumers.

While revenue from content delivery network services has soared, the high levels of competitiveness industry has reduced profit margins. Also, scalability remains an issue in terms of data storage, and mobile and dynamic content.

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The report by FMI offers an exhaustive overview, covering critical market dynamics. Some of the major takeaways from the study include:

Market was valued at US$ 11.5 Bn in 2019, with demand rising sharply, with the coronavirus outbreak generating major growth opportunities
Software-as-a-service content delivery networks remain in high demand, with the sales of individual modules expected to surpass that of bundled suites by 2030, owing to customized needs for CDN delivery processes
Media distribution applications of content delivery network witness higher growth than software distribution and website caching owing to unprecedented demand for on demand media consumption
North America remains a major market growth, supported by demand for video content and digitization of organization data. On the other hand, East Asia is generating lucrative growth opportunities with major investments in technology enhancements in the region
“End user businesses are leveraging CDNs for faster content, video streaming, e-commerce transactions, and other forms of digital entertainment. Consequently, the industry finds use in a number of industries including government, advertising, media, education, and medicine, which will aid market growth in the long term,” said a lead analyst at FMI.

Covid-19 Impact on Content Delivery Network Market
With fears over the rapid spread of the coronavirus, businesses and educational organizations around the world are encouraging alternative plans to operate including work from home and distance learning strategies.

The rapid expansion of videoconferencing, e-learning, and online messaging has resulted in increased internet traffic. Also, with people increasingly staying home the consumption of OTT content has soared during the pandemic.

Content delivery network players are increasingly being used for last mile network optimization, by keeping internet traffic at a local level. Players are considering sharing traffic statistics on vertical, country, or industry levels, which will help aid operations for the short term.

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Who is Winning?
In the study, FMI has assessed the varying business strategies being used by major companies in the content delivery network market. Leading players are deploying multiple strategies including investing in technology development, strategic mergers and acquisitions, and introduction of new offerings in the industry.

Some of the key players in the market include Akamai Technologies Inc., Deutsche Telekom AG, CloudFlare Inc., AT&T, Amazon Inc., Orange S.A., Microsoft Corporation, CDNetworks Co. Ltd., CenturyLink, and Verizon Digital Media Services.

More Insights
Future Market Insights, has provided a in-depth analysis of the global content delivery network market, covering information on historic demand and forecast data for the years between 2020 and 2030. The market study also provides detailed assessment of product pricing through varying market dynamics, life cycle analysis and new technologies that find roles in the production of content delivery networks and adoption in different demographics.