APAC Content Delivery Network Market (APAC CDN Market) is expected to reach $2.17 billion by 2025 at a CAGR of 32.8% during the forecast period 2020-2025. The rising recognition of wealthy media content and the growing demand for online gaming are enhancing the growth of the content delivery network market. Moreover, the rapid transition of media organization towards digital distribution model and the rising use of internet services are driving the content delivery network (CDN) market. The rising usage of edge servers and internet exchange points for load balance applications as well as the deployment of named data networking architecture will be a major driver for the APAC CDN market size. The increasing use of mobile devices such as smartphones, laptops and so on has propelled the need for video streaming from applications such as Amazon Prime, Netflix and local streaming service apps. In conjunction with this, in recent times the COVID-19 lockdown is also highly enhancing several applications growth such as media and entertainment, online gaming and education which are further driving the growth of the CDN market during the forecast period 2020-2025.
Key Takeaways
- China dominated the market by a market share of more than 38% in 2019, growing dominance of popular social media and OTT platforms like Facebook, Twitter, Instagram, Tencent Video, iQiyi, and Youku and many others have been rising in this region.
- Cloud security solutions is growing at a highest CAGR of 36.2% in the forecast period. As this solution help in protecting data from thefts and loss, along with reducing attacks that can hamper network performance.
- Content Delivery Network in Media & Services segment is growing at a CAGR of 35.27% in the forecast period. Owing to Increase in live streamed content, rising adoption of cloud-based video streaming solutions, and upsurge in demand for online videos in developing economies are set to drive the growth of the Media and Entertainment market.
- Content Delivery Network top 10 companies include iScaler Ltd., ChinacacheÂ, Akamai Technologies Inc., Wangsu Science & Technology Co Ltd, Amazon Web Services Inc., CenturyLink Technology Singapore Pte. Ltd., MaxCDN, Limelight Networks Inc., Fastly Inc., Alphabet Inc. (Google Inc.),Hibernia Networks, Verizon Communication Inc., CDNetworks Co Ltd, Tata Communications Ltd., Internap Japan Co. Ltd., Cloud flare Inc. among others.
By Solution- Segment Analysis
Cloud security solutions is growing at a highest CAGR of 36.2% in the forecast period as this solution helps in protecting data from thefts and loss, along with reducing attacks that can hamper network performance. Similarly, with rising online threats, users are demanding a secured online experience as more personal data as well as business related information has moved online. In addition Cloud security solution provides a more secured network by absorbing less sophisticated attacks as well simplifying the bandwidth. This also helps in blocking threats as well as limiting abusive bots and crawlers, thus decreasing hack and spam attacks. Moreover, with the help of cloud security, websites and data centers are able to reduce the downtime risks, DDoS attacks thus improving the standards for data security. These solutions also help in transforming enterprise networks towards accelerating applications and lowering costs. In addition, this cloud security helps in protecting the devices from such harmful sites and also protects data files with optimum efficiency. Hence these benefits are analysed to drive the market in the forecast period 2020-2025.
By Industry Vertical - Segment Analysis
Content Delivery Network in Media & Services segment is growing at a CAGR of 35.27% in the forecast period. Media and Entertainment segment is anticipated to reach Increase in live streamed content, rising adoption of cloud-based video streaming solutions, and upsurge in demand for online videos in developing economies are set to drive the growth of the Media and Entertainment market. The voluminous increase in the amount of data generated by media and entertainment firms has created a need for reliable Content Delivery Network (CDN) solutions. The media and entertainment segment is utilizing full capabilities of CDN solutions to offer secure and best quality viewing experience to its users. Content delivery network solutions help in lowering the delay and optimize the overall content delivery process. Hence, viewers get a high-quality viewing experience, and this, in turn, increases the revenue for the media and entertainment enterprises. As the demand for OTT platforms across the globe is rising, several companies are adopting Content delivery network solutions in order to optimize the performance. Adding to this, outbreak of Corona virus has significantly driven the market for media and entertainment services including OTT platforms. Due to this outbreak, Zee5 India, says the platform has witnessed an 80% increase in subscriptions and over 50% growth in time spent recently. Similarly Services like Amazon Prime and Netflix have seen an 82.63% increase in time spent due to outbreak of these viruses. With the wide spread of this virus, Media and Entertainment companies including OTT platforms in the world have been taking several tactical steps to optimize the performance by adopting these services. Similarly, several delivery companies are helping media and entertainment services in providing video and audio content in faster and and more reliable ways. For instance, Content delivery network PicoNets is helping OTT platforms optimize performance during this pandemic situation. Hence these benefits are analyzed to drive the market in the forecast period 2020-2025.
By Geography - Segment Analysis
China dominated the market by a market share of more than 38% in 2019 driven by growing dominance of popular social media and OTT platforms like Facebook, Twitter, Instagram, Tencent Video, iQiyi, and Youku and many others. Similarly, Initiatives such as partnerships and collaborations aim to favor the content delivery. Akamai China CDN, in collaboration with China Net Center, designed to simplify the ability to deliver fast, reliable, and safe digital experiences to consumers in Mainland China. In addition, through Partnerships with local ISPs, Akamai brings customers closer to digital content in major metropolitan areas as well as in inland regions. The built-in cache optimization maximizes the amount of content offloaded from a server that leads to major improvements in performance. BaishanCloud is a major cloud data services provider in China and around the world. It is one of the fastest growing companies in CDN space, becoming the only service provider based in China to be recognized by Gartner as possessing 'world' network capabilities. Hence these benefits are analysed to drive the market in the forecast period 2020-2025.
Drivers – APAC Content Delivery Network Market
- Rising demand for online games
The rise of coronavirus pandemic has resulted in lockdowns in many countries which has caused a spectacular boom to the digital gaming industry, bringing connectivity to the real-world. Moreover, people of all ages are turning towards gaming, and according to an Appannie report, since February, 2020, there has been a high growth pf 52% in the downloading of mobile games leading to upsurge the demand for online gaming. Additionally, the outbreak of Covid-19 has made online gaming the most popular option during the quarantine period for people. Thus, the ongoing demand for the online gaming has also enhanced the content delivery network market, as companies offering online games rely on CDN to avoid lags in speed and performance. Also, as online gaming continues to become more demanding due to sophisticated graphics and capabilities there will be an increased drive for content delivery network (CDN).
The rising demand for enhanced video streaming with better picture quality has also enhanced the CDN market. The increasing use of video streaming websites and applications such as Amazon Prime, Netflix and so on has highly fuelled the demand for CDN market. As in most countries, people are in quarantine/lockdown, they are significantly relying on video streaming for entertainment which is leading to the rising demand for video streaming applications. Additionally, video streaming has become one of the most popular and influential mediums for accessing information in today’s digital space. The rising trend of social media is also driving the adoption of video streaming which will further lead to drive the cloud CDN market.
Challenges – APAC Content Delivery Network Market
- Traffic Barrier while using Mobile Devices
As, people are highly relying on mobile devices for video streaming and online gaming, this increasing use of mobile devices has led to the rise of traffic thus hindering the delivery speed of the content. Additionally, due to the current Covid-19 pandemic majority of the population across the world are relying on mobile devices, which has led to the rise of traffic. Moreover, mobile video traffic is growing with different standards which enables the need for sufficient bandwidth and terminals that can support broad range of video streaming. In order to manage the traffic and maintain the speed of the content, CDN operators usually face challenges in maintaining the cost barrier for mobile connectivity problem in various countries. Thus, the high cost of CDN and continuous use of mobile devices is leading to increase in traffic and will lead to hamper the growth of the CDN market.
Market Landscape
Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the LATAM LMS-Frontline worker training market. In 2019, the market of Content Delivery Network industry outlook has been fragmented by several companies. Content Delivery Network top 10 companies include iScaler Ltd., ChinacacheÂ, Akamai Technologies Inc., Wangsu Science & Technology Co Ltd, Amazon Web Services Inc., CenturyLink Technology Singapore Pte. Ltd.,MaxCDN, Limelight Networks Inc.,Fastly Inc.,Alphabet Inc. (Google Inc.),Hibernia Networks, Verizon Communication Inc., CDNetworks Co Ltd, Tata Communications Ltd., Internap Japan Co. Ltd., Cloudflare Inc. among others.
Acquisitions/Technology Launches
- In 2019, Anevia had announced launch of a cloud naive content delivery network solution to enable easy deployment of CDN by delivering high quality services, even in peak traffic.
- In April 2020, Verizon announced definitive agreement to acquire Blue jeans Network, due the growing demand of cloud based video services.
