The usage of Content Delivery Networks (CDNs) is rapidly growing in the era of mobile and app-based internet. The effort to simplify navigation and improve user experience is taken both by vendors and network operators. The speed of a website affects everything, from infrastructure to cost of an e-commerce. With CDNs, the data is served to the end-user from the surrogate server located nearest to him. A CDN replicates content from the origin server to cache servers, scattered over the globe. Renting such service from a CDN provider has proved to be much simpler and more cost effective than maintaining an on-premise server of your own. Also, the content that the vendors provide is seeking to be highly interactive, and the varying round-trip of the content/data needs to be optimized, the latency minimized.
But, how can we measure the value of such market, its volume, its participants, stakeholders? How big is it?
Of course, the value measured will depend on the type of the service provided, on whether you are a vendor/content owner, or a CDN service provider. For the content owners, basically two questions need to be answered to find where the value of their CDN implementation lies:
According to Informa Telecoms & Media white paper, by 2017, the NorthAmerican market for commercial CDN services is expected to be worth US$4.63 billion, reflecting a threefold increase from 2012. Video, according to Informa T&M, will be the largest contributor to commercial CDN revenue growth, accounting for 81% of total revenue in 2017.
According to CBS, the video portion of CDN market should reach about $1B by the end of 2015.
According to MarketsandMarkets report, the growing demand for web-based content from music downloads to the cloud, will push the overall content delivery network market to $7.4 billion by 2017.
Image 1 – Market for commercial CDN services (Source: Informa Telecoms & Media)
Informa T&M furthermore predicts that the US will remain the largest market for commercial CDN services. With the annual growth rate of 24.6 percent between 2012 and 2017, the largest growth is occurring in North America, but its share of global traffic and revenue is expected to fall. At the same time, China and Western Europe are expected to increase their share of the global “bit delivery” market.
Image 2 – Global CDN revenues per region (Source: Informa Telecoms & Media)
Participants on the side of those offering CDN services and CDN platforms, the number of which now exceeds 50, while once there were only a dozen, some of the hugest players are:
For our full list (in alphabetical order), please visit our CDN companies page.
Each vendor/content owner needs to make an informed decision for himself on which CDN provider best suits their needs, depending on their value performance.
There are many different stakeholders in the CDN market, like content providers, content makers, data centre providers, Internet Service providers (ISPs), Internet access providers, Internet backbone providers, CDN providers, advertisers, and so forth. As the market dynamics continue to evolve, so will evolve the profiles, the merging trends, and price strategies of different stakeholders.