Top 3 Trends Impacting the Global Content Delivery Network Market Through 2021: Technavio

Technavio has published a new report on the global content delivery network (CDN) market from 2017-2021. (Graphic: Business Wire)

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LONDON--()--Technavio’s latest market research report on the global content delivery network (CDN) market provides an analysis on the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

Ujjwal Doshi, a lead analyst from Technavio, specializing in research on internet and e-commerce sector says, “The global CDN market is expected to grow at a CAGR of close to 30% during the forecast period, owing to factors like the growing penetration of broadband services and the increased usage of rich media files across the media, enterprise, and entertainment sectors. Increasing amount of video contents being streamed over the Internet and the increasing usage of the Internet for communication in corporate organizations is also driving the market growth.”

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The top three emerging market trends driving the global content delivery network market according to Technavio research analysts are:

  • Increasing development of content delivery clouds
  • Growing pricing pressure on vendors
  • Major players building CDNs with transparent caching

Increasing development of content delivery clouds

In the past five years, there has been a gradual shift from the use of traditional CDNs to cloud-based CDNs. Content delivery clouds improve delivery service capabilities of web applications and storage. They also provide access to numerous specialized services. Content delivery clouds facilitate possible research that emphasizes on recognizing essential application requirements, improved scalability, the robustness of systems, usability and access performance, reduced cost, durability of data, and support for security and privacy.

Growing pricing pressure on vendors

The increasing pricing pressure on vendors is one of the main trends being witnessed by the global CDN market owing to the intense competition. The market is dominated by Akamai Technologies, but the company is now witnessing immense competitive pressure from peers such as Level 3 Networks, Limelight, and CDNetworks. As a result, Akamai Technologies has reduced its prices, which earlier used to adopt a premium pricing strategy for its CDN solutions. Hence, vendors, such as Akamai Technologies, are managing to attract more customers but are compromising with their margins.

Major players building CDNs with transparent caching

With a rapid increase in data usage on service providers' networks, it has become financially advantageous for big companies to build their own CDNs for consumers rather than outsourcing them. Apple relies on Akamai Technologies and Level 3 to deliver Apple-related contents including apps, iTunes videos, and software updates for iOS and OS X platforms. It has now built its own CDN to serve its consumers. This development is expected to affect the revenues of Akamai Technologies and Level 3 in the coming years, depending on the scale and location of the network.

“Leading brands like Amazon, Apple, Google, and Microsoft are the reason for the huge increase in Internet traffic. The inclination of these major service providers to own their dedicated CDNs is expected to be one of the key highlights during the forecast period,” says Ujjwal.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

Release Summary

Technavio’s latest market research report on the global content delivery network (CDN) market provides an analysis of the most important trends expected to impact the market outlook from 2017-2021.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com