CDN Market Growing 26% Annually
The CDN market is estimated to grow from $3.7 billion in 2014 to $12.2 billion by 2019, at a Compound Annual Growth Rate (CAGR) of 26.3 percent from 2014 to 2019, according to Marketsandmarkets.
In terms of regions, NA is expected to be the biggest market in terms of revenue contribution while Asia Pacific (APAC) is expected to experience increased market traction with high CAGRs, http://www.marketsandmarkets.com/PressReleases/cdn.asp
Other forecasts have called for annual growth between 16 percent and 25 percent.
According to Cisco, CDN traffic will represent about half of all Internet traffic in 2017, and a majority of traffic after that.
Much of that traffic will flow within specific metro areas, not across the long haul networks, as more content and app providers cache content locally.
|CDN Traffic Growth|
Demand clearly is going to keep growing. On average, households using linear TV generate much less traffic than a household that relies on Internet video.
A cord-cutting household will consume 92 GB per month in 2015, compared to 43 GB per month for a linear TV or average household. That is the difference between linear delivery using multicast (broadcast) delivery compared to on-demand unicast delivery.
|Global Cord Cutting Generates Double the Traffic|
That is driven in significant part by the growth of mobile video consumption. which is growing much faster than either digital TV (cable, IPTV, satellite) or online video, in terms of number of accounts.
This trend is more pronounced in regions such as North America and Western Europe, where the penetration of digital TV already is high.
Also, in emerging regions mobile video growth rates are even higher, as these regions are skipping over fixed connectivity. It therefore is not hard to envision continued strong growth of the CDN market.
Up to this point, the CDN market has been a niche within the connectivity services market. As it grows, it will become more attractive to a wider range of transport suppliers.
|Global Online and Mobile Video Growing Faster Than Digital TV|