CDN Featured Article

With smartphones in virtually every hand in developed countries around the world, the amount of content they consume is increasing by leaps and bounds. This has led to a boon in the global content delivery network (CDN) market, which according to Future Market Insights, will achieve $5.8 billion in revenue with a year-over-year growth rate of 19.9 percent in 2016.

A CDN is a service designed to quickly and effectively deliver the content of websites that have a global reach and high traffic. It is a system of distributed servers that deliver webpages and other Web content based on the geographic locations of the user, the origin of the webpage and a content delivery server. This means CDN servers that are closer to the user will be able to deliver the content much faster.

Businesses across all segments are using CDN for B2B interactions so they can serve their customers by accelerating many different types of content, including voice, video, games, e-commerce transactions and many others.

The report by Future Market Insights looked at the global market of CDN which were segmented into seven major regions, North America, Latin America, Eastern Europe, Western Europe, Asia Pacific Excluding Japan (APEJ), Japan and the Middle East & Africa (MEA).

The North American region continues to dominate in terms of market value, and it will also continue to expand at a compound annual growth rate (CAGR) of 21.3 percent. However, the APEJ will be experiencing the highest CAGR, coming in at more than 23 percent. The long term outlook of the forecast sees the global content delivery network to increase at a CAGR of 20.5 percent during the forecast period 2016-2026.

The growth of the North American market is primarily being driven by the strong channel of US-based content delivery network providers along with the knowledge base that exists regarding the benefits of using this technology to deliver content to users.

The growth of IP traffic around the world is expected to increase the adoption of CDN as the price point of smartphones continues to decrease and more devices get connected in the Internet of Things (IoT) ecosystem.

Based on service, Software-as-a-Service (SaaS (News - Alert)) will dominate the market segmentation and will continue to do so in 2016 and beyond from the 54.2 percent share it held in 2015. Designing, testing and deployment service will also play a great role, capturing the remaining market share.

As for service providers, there is conventional CDN, which has the lion's share of the market at 74.6 percent in 2016, compared to telecom CDN at 25.4 percent.