Content Delivery Network Market to expand at a CAGR of 22.9% through 2016 to 2026

The India content delivery network (CDN) market is expected to be valued at US$ 291.7 Mn in 2016 and is likely to reach US$ 2.3 Bn by 2026, expanding at a CAGR of 22.9% during the forecast period (2016–2026). Increasing IP traffic in India is anticipated to increase load on the present internet network. This in turn is expected to propel growth of the CDN market in the country. A content delivery network is a globally distributed network of web servers that ensures faster delivery of content. It improves user experience along with efficient utilisation of network resources. Using a content delivery network helps content owners gain several benefits such as less latency, lower network load, increased reliability, cost savings, and a global reach.

Drivers and trends impacting the market

The India market is witnessing massive growth in content delivery network adoption by various SMEs focusing on using digital platforms and the internet to expand their presence. Market growth is driven by a growing subscriber base for smart devices and an increasing consumption of online video content. These factors along with the provision of attractive policies to residents for installation of Wi-Fi and broadband services are driving the growth of the India content delivery network market. Engaging customers is vital for sustaining in this business and this factor is becoming increasingly challenging owing to rapidly expanding online economic conditions characterised by intense competition. This in turn is expected to increase deployment of CDN for efficient delivery of online content over the forecast period, further propelling the growth of the India content delivery network market. The rapid proliferation of the Internet of Things (IoT) and connected devices is further expected to boost the growth of the India content delivery market.

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The costs of establishing a content delivery network are quite high (huge infrastructure costs and a high capital expenditure but less ROI in the initial stages). This can be quite challenging for new entrants heading into the highly competitive CDN market in India with high quality services. This market is likely to witness some key trends in the coming few years such as – reduced prices of CDN services, multi-CDN delivery and streaming of content, CDN services support for IPv6, and the use of next-generation hardware to run content delivery networks.

Market forecast

The India content delivery network market is classified on the basis of service providers, applications, and end-use verticals. On the basis of service providers, the market is segmented as telecom CDN providers, conventional CDN providers, and others. The conventional CDN providers segment was valued at US$ 169.0 Mn in 2015 and is expected to reach US$ 1.69 Bn by 2026, registering a CAGR of 23.4% over the forecast period. The telecom CDN providers segment was valued at US$ 57.5 Mn in 2015 and is expected to reach US$ 549.1 Mn by 2026, registering a CAGR of 22.9% over the forecast period.

On the basis of applications, the India content delivery network market is segmented as streaming, web acceleration, gaming, and CDN storage. In terms of value, the streaming segment is expected to expand at a CAGR of 24.5% while the web acceleration segment is expected to expand at a CAGR of 23.4% over the forecast period. On the basis of end-use verticals, the India content delivery network market is segmented as media & entertainment, e-commerce, TELCOs, healthcare, government & education, and others. In 2016, the media & entertainment segment is estimated to account for the highest market share of 47.2% and this is likely to increase to 58.1% by the end of 2026.

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Leading companies operating in the India CDN market

Some of the key players in the content delivery network market in India include Akamai Technologies Inc., CDNetworks Co. Ltd., Limelight Networks Inc., MaxCDN Enterprise, Amazon CloudFront – Amazon.com Inc., Tata Communications Ltd., CDN77, and Leshi Internet Information & Technology (LeEco).

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This release was published on openPR.