CDN Market Projected to US$ 12 Billion by 2019

Pune, India, April 1, 2014--Content delivery networks (CDNs) are currently providing one of the fastest revenue-generating markets, estimated to grow from US$ 3.71 billion in 2014 to US$ 12.16 billion by 2019 with rapid explosion of web-based content, mainly online music, online video and online transaction-based services enhancing demand,  according to a new Marketsand Markets report.

According to MarketsandMarkets, that growth represents an impressive 26.3% CAGR from 2014 to 2019. In terms of regions, NA is expected to be the biggest market in terms of revenue contribution while the Asia Pacific (APAC) is expected to experience increased market traction with high CAGRs, in due course.

Over the last decade, the Internet has exhibited utmost growth and trend change over the use of online content. The ever-evolving Internet has resulted in growing Internet traffic, content richness and the resultant network complexities in managing efficient content delivery to users. To counter these Internet limitations and content delivery drawbacks, CDNs have evolved.

Nowadays, online content is growing at a rapid rate from content providing businesses as well as due to individuals who have started posting or uploading their content online to share with their peers. As the Internet traffic load increases, it becomes difficult to manage such huge traffic and provide Quality of Service (QoS) to the end user.

Due to increasing demand for QoS, new players are entering this market with their network structure for network optimisation," said the report. This increase in the number of new entrants results into intense competition for the new as well as for the existing leaders. Content providers have to choose between different CDN providers for achieving better QoS for their clients.

MarketsandMarkets believes that the pricing pressure and content providers' internal CDNs initiatives are the major issues in the CDN market. These challenges are increasing the pressure on CDN vendors to provide CDN services at low cost.