Content delivery networks, CDN (world market)

2009-2014

Data of J'son & Partners Consulting

At the end of 2014 the volume of global traffic in CDN networks was 16.7 EB. By 2019 this indicator will grow to 84.3 EB, the annual average growth of traffic of CDN in the world for this period will be 38%.

Cisco: Distribution of online content

According to results of the annual research Cisco VNI 2009-2014 by 2014 the volume of global Internet traffic will increase more than four times and will reach 767 Exabyte a year. The predicted value by 10 times exceeds the total amount of traffic in IP networks in 2008. Monthly traffic by 2014 will make about 64 Exabyte.

IP traffic will grow more than by 3 times from 2010 to 2014. The annual average growth rate will be 34%. The user IP traffic will quicker grow corporate. Video traffic from services (PC and TV-based Internet video services) will annually increase by 72%.

Due to growth of penetration of the home broadband Internet (growth rates of house broadband access in August, 2010 exceed subjects of growth of corporate broadband access many times), increases in data transfer rate, change of consumer preferences and also changes in the traditional scheme of interaction the worker-employer (full-time or periodic employment out of office – "mobile office", activity of employees in social networks in working time, etc.) in the next 4 years positions of so-called "user" traffic in relation to business traffic will amplify.

Geographical traffic spectrum

Latin America, the countries of Central and Eastern Europe (annual average growth rates - 38%, the general increase - by 5.1 times) will become the most fast-growing regions in the development plan for IP traffic in 2009-2014.

Sales volume

In 2009 universal traffic in a year made 14.7 Exabyte. About 6.9 Exabyte or the few less than 50% of traffic were the share of CDN networks. Considering the average cost of 1 GB of the transferred traffic in 2009 in the world – $0.27, it is possible to estimate the total amount of the implemented services of CDN:

7.407 million. GB * $0.27 = $2 billion.

CDN operators

For the first decade of the 21st century competitive environment of the market of CDN underwent significant changes: in 2000 in the world was there were over 50 suppliers of CDN; in 2002 after crash of their dotcoms there were about ten, in 2004 their number was reduced to six, and six years later them about 50 (August, 2010) again.

The market of CDN was for the first time mastered a startup projects, first of all such as Akamai, Limelight Networks and CDNetworks. Historically telecom operators allowed these companies to place a cache servers on the networks free of charge since it reduced load of networks. However a number of large telecom operators took more pragmatical position and made the decision to independently develop this direction. This trend especially amplified in 2008-2010 2009 was issued especially "fruitful" on appearance of new CDN operators from among operators of telecommunication networks: at least, 13 companies began a business activity or announced the plans.

Market leaders at the end of 2009 became:

• Akamai Technologies with income of $860 million,
• Limelight Networks – $131,66 млн.,
• Level 3 Communications – $75 млн.
• CDNetworks – about $60 million.

Income of all other CDN providers less than $50 million.

Akamai, Limelight and Level 3 form the so-called "big three" of CDN operators of which more than 50% of the market of CDN in general and about 70% of the market of transfer of video content in the world are the share.

See Also

• Content delivery networks, CDN (market of Russia)
• DoS-attacks on content delivery networks, CDN Content Delivery Network