TechNavio is reporting that unprecedented growth of streaming video is directly boosting the Global Video Content Delivery Network (CDN) Market. The market is projecting a CAGR of 29.66 percent from 2014-2018.
“In 2013, the average video traffic over the internet was estimated at 23.2 exabytes per month, and is expected to reach 71.5 exabytes per month by 2018,” says Faisal Ghaus, Vice President of TechNavio research.
“With the increase in internet speed and improvement in video quality, there is a steep increase in video data streaming. This increase boosted the demand for video CDNs and ensured better QoS is provided to the viewers by reducing the load and stream time of the video. This is one of the major drivers in the Global Video CDN market and will drive the market during the forecast period.”
Over the top content on the internet has exploded in recent years. Services like YouTube, Facebook, Skype, Netflix, and Viber are all witnessing an increase in users who stream high quality videos, for longer times, on more devices than ever before.
Even though network operators barely benefit from OTT services, there are still steps being taken in order for the market to capitalize on all this content, with operators contemplating the pros and cons of incorporating cached CDN services into their networks to maintain network performance and retain their user base.
The revenue contributed by the OTT services was estimated at US$6.61 billion in 2013 and is expected to reach US$19.65 billion by 2018. The upswing of the OTT market during the forecast period is also fueling the Global Video CDN market.
“In recent times, the immense growth in data traffic has made it extremely important to minimize load time to facilitate an enhanced end-user experience,” says Ghaus.
Video CDNs effectively minimize load times and optimize services as they speed up the transmission of data using servers located in various regions and directs the data through the shortest available route. This is extremely beneficial while streaming audio and video files as data is accomplished with minimal pauses and interruptions.
To determine the scenario for these vendors in the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.