World Content Delivery Networks Market

Frost & Sullivan
December 31, 2006
84 Pages - SKU: MC1456373
License type:
Countries covered: Global

Research Overview

The Frost & Sullivan research service titled World Content Delivery Networks Market provides an overview of market opportunities in the content delivery networks market, revenue forecasts, and a complete analysis of key market drivers, restraints, and trends. In this study, Frost & Sullivan's expert analysts thoroughly examine revenue forecasts by geographies and vertical market segments including enterprise and media.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
  • Content Delivery Networks
  • P2P/ Peer-to- Peer networks
Technologies

The following technologies are covered in this research:
  • Content Delivery Networks (CDNs): Frost & Sullivan defines the CDN market as technology and services that enable the rapid and uninterrupted flow of content from the origin server to the end user. CDN vendors largely have proprietary infrastructure and use a combination of servers, network routing and intelligent software to enable delivery of content from the host server.
  • Peer-to-Peer (P2P): A P2P computer network delivers content by relying on user computers in a network instead of servers.
Market Overview

Increasing Broadband Penetration and Bandwidth Utilization Fuel Growth

The content delivery networks (CDN) market has experienced an explosive rate of growth since 2005 and promises to reflect a strong growth trend. The increasing penetration of Internet services is likely to be a key driver for this growth, in addition to the surging levels of broadband penetration. Unlike the traditional dial-up Internet, high-speed Internet connections such as Digital Subscriber Lines (DSL) and cable modems allow quality delivery of even large files with almost no time delays. This motivates content providers to develop more viable business models for the Internet, as it assures a committed audience.

"The magnified growth of the Internet as a viable communication and commercial platform diminishing distances, time and expenses has led it to become a very large repository of content distribution," notes the analyst of this research. "The demand and need to reach audiences comprising millions of end users spanning various geographical networks creates the requirement for highly scalable service infrastructure. This need will propel the growth of the CDN industry."

While the increasing growth of content over the Internet fuels the demand for CDN solutions, it is not without its share of challenges. The all-round emphasis on quality, security as well delivery of large-sized content; and a gradual move towards convergence in delivery of content will lay pressure on CDN vendors to strike a fine balance between technical issues and seamless delivery.

Increased Deployment of Rich Media Content Driving Demand for Content Delivery Solutions

Fuelled by the advances in compression technologies, format wars among Microsoft, Apple and RealNetworks, and the launch of Adobe’s flash video, there has been a noticeable increase in the amount of rich media content appearing on the Internet in the last few years. The enterprise segment has been at the forefront of deploying rich media for communication and information and even in the media and entertainment segment, challenges related to content security and poor end-user experience are dissipating fast. With high bandwidth connections, it is now possible to stream entertainment content over the Internet at speeds in excess of 500 Kbps, as compared to 56 Kbps through dial-up connections. This helps transmit quality signals to the PC, and content owners are expecting huge business opportunities through online media delivery. Moreover, the booming market of portable media players, gaming consoles, and wireless devices that transmit broadband content on television are all contributing to the demand for online content.

Geographically, the United States remains the strongest market, and with broadband penetration reaching nearly 50 percent of all Internet subscribers in the country, this trend is likely to continue for the next 12-24 months. Market growth is expected to be relatively gradual in Europe as incumbent ISPs cater to the market. In Asia, there exists considerable potential for growth, but regional loyalties could restrict the entry of many CDN companies. "Overall, the content delivery market has entered a strong growth phase after a long plateaued growth pattern," says the analyst. "Going forward, the market holds exciting opportunities, propelled mainly by the shift to digital media and increasing Internet usage worldwide."


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