The global content delivery network market is anticipated to grow at a year-over-year rate of 19.9% in 2016 and reach US$5,898.9 million in revenues, according to a latest report by Future Market Insights. Rising development of better broadband infrastructure such as GPON, 4.5G and 5G, Internet-of-Things(IoT), retention of online devices and increasing consumption of rich media content is expected to continue to fuel the growth of the content delivery network market in 2016.
The global CDN market is primarily segmented into conventional CDN and telecom CDN, with the former being preferred by end-users and expected to account for 74.6% of revenue share in 2016. The segment is expected to be dominated by Software-as-a-Service (SaaS) service type which had a revenue share of 54.2% in 2015, and is expected to maintain its dominance in 2016 and beyond. In terms of end-user segment, media & entertainment will remain the largest in 2016, growing at a year-over-year growth of 23.2%, fueling further growth and innovation in the industry.
The market research firm points out that North America will continue to be the largest market for content delivery network, with total revenues in the region expected to grow at 21.3% in 2016. Existence of a strong channel of U.S. based content delivery network providers and high awareness on its benefits among end-users will continue to propel the growth of the content delivery network in North America.
In addition to North America, Asia Pacific excluding Japan (APEJ) is a highly lucrative market for content delivery network providers. This market is anticipated to increase at 21.8% to reach USD703.3 million in revenues in 2016.
