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IC21028345 |
Pages: 5 |
Dec 2020 |
The key role of content delivery is to provide better access to online information and to accommodate faster page loads for the end user. In addition, to decreasing page load time and promoting efficient content, it is also necessary to help prevent denial of service (DoS) attacks by decentralizing data handling tasks. The global content delivery market is estimated to grow at a CAGR of 14% during the forecast period. Increase in the use of smart devices and the rise in demand for Over the top (OTT) services are resulting in the growth of content delivery market. Furthermore, data security and privacy concerns are the two major reasons that may hamper the markets growth.
Increase in the usage of smart phones, smart TVs, and adoption of internet services in developing as well underdeveloped nations is the prime factor for the growth of content delivery market. As per the survey conducted by Datareportal, in October 2020, it is estimated that almost 4.66 billion people were active internet users, of which 91% were mobile internet users. This has eventually led to an uncommon growth in online content consumption through various platforms such as Netflix and Rakuten. In addition, the rise in demand for Over the top (OTT) and Video on Demand (VoD) services that can be accessed in smart phones or television is predicted to drive the growth of the content delivery market in the near future. Moreover, these services offer a wide range of movies, web series, and other online programs, thus providing numerous choices to the end user.
Data security and privacy of content shared across different platforms is one of the major concerns. Increase in the use of various websites and sharing different links for entertainment may lead into cyberattacks and personal data breaches. These drawbacks might hamper the growth of the content delivery market.
Online video streaming is increasing at an unprecedented rate. OTT and VoD service platforms are growing due to the technological advancements in content delivery media. OTT and VoD services are also cheaper, faster, and easier to access through a smart phone or smart television. Furthermore, according to the Nokia mobile broadband index 2018, approximately 65% to 75% of the traffic comes from video content streaming. This network traffic can be minimized with proper communication between internet providers and network operators.
The demand for VoD services is growing rapidly as it is an easier, faster, and affordable video delivery platform. It is easier to download the desired programs and watch it at any point of time after the download for end users. Smart TVs that are currently being manufactured include video streaming applications such as Netflix, Amazon Prime for entertainment purposes. For instance, LG, Samsung, Sony, and Panasonic have propelled the trend towards smart TVs manufacturing. Furthermore, the closing down of movie theaters due to COVID-19 has fueled the growth of VoD services.
The healthcare sub-segment is estimated to be the most lucrative by 2027 due to the COVID-19 outbreak. This sub-segment is valued to grow at a high CAGR during the forecast period. Healthcare sector works on a time-based operating management and needs real time data of the user of healthcare system to store and update the health conditions of an individual.
North America is one of the most prominent regions in the content delivery market. This growth in content delivery in North America has been due to the growing number of users that are accessing the web content. Digitalization of retail industries like online gaming, eCommerce, and eLearning are leading to the increasing usage of online content delivery. North America also holds a major market share with the key market players such as Home Box Office (HBO), Netflix, Amazon etc. Canada is estimated to exhibit the highest CAGR during the forecast period. The main reason for this is the growth in the usage of internet-based video services.
In addition, Asia-Pacific region is also anticipated to show a remarkable growth in the forecast period. India is expected to be the fastest growing market in VoD services with respect to the increase in latest network services like 5G. China holds a major share in content delivery market which will eventually aid in the increase of its services throughout the region.
Source: Research Dive Analysis
Some of the significant content delivery market players are Alphabet Inc., Apple Inc., Eros International plc, Home Box Office Inc., Netflix Inc., Rakuten Inc., Tencent Video, Walt Disney company, CinemaNow, Gulf DTH FZ LLC.
Most companies in content delivery market are opting inorganic growth strategies like strategic collaborations to expand into local markets. Content delivery market players are emphasizing more on merger & acquisition and advanced product development. These are the frequent strategies followed by established organizations.
Aspect | Particulars |
Historical Market Estimations | 2019-2020 |
Base Year for Market Estimation | 2019 |
Forecast timeline for Market Projection | 2020-2027 |
Geographical Scope | North America, Europe, Asia-Pacific, LAMEA |
Segmentation by Product Type |
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Segmentation by Application |
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Key Regions Covered | China, India, USA, Canada, South Korea |
Key Companies Profiled |
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