A content delivery network is a geographically dispersed network of multiple data centers and proxy servers. The primary goal is to offer high-speed access and scalability to end-users by distributes the service over multiple locations. This means that instead of having one server in one geographical area, multiple servers can be physically present at different sites, each linked to the others via a high-speed internet connection. In other words, all the computers on a content delivery network are connected to everyone else on the network. Moreover, a content delivery network enables the quick transfer of assets required for loading Internet content including HTML pages, images, videos, and java scripts.
Therefore, there is an increasing demand for content delivery networks worldwide, driving the growth of the content delivery network market. For example, in February 2021, ESDS launched another service, Enlight Content Delivery Network, along the lines of the Make in India and Atmanirbhar Bharat initiative. Enlight will allow organizations to deliver web-based content anywhere in India. ESDS aims to augment its presence through cloud data centers in India. Moreover, in December 2020, Huawei announced its foray into the cloud-based content delivery network in India to help businesses deliver the best user web experience.
This in turn is expected to augment the growth of the content delivery network market in the Asia Pacific, especially in India. A content delivery network is a highly distributed platform of servers that helps reduce delays in a loading web page by reducing the physical distance between the user and the server. It allows users to watch the same high-quality content around the world without slow loading times. Thus, the growth of the content delivery network market is attributed to the increasing number of smartphone and Internet users worldwide. As of January 2021, there were 4.66 billion active internet users worldwide, around 59.5% of the global population.
Of which, around 92.6% (4.32 billion users) accessed the internet through mobile devices. As Internet traffic has increased, this has led to a significant drop in transit prices and consequently to a drop in CDN service prices. Moreover, market players or new entrants are offering rich services at a reasonable cost. However, despite its growing popularity, content delivery networks face several challenges, such as poor network connectivity or technical difficulties in live video streaming. High-quality content requires high-speed internet and high bandwidth for seamless streaming. This in turn is expected to restrain the content delivery network growth.
However, the rapid improvements in broadband infrastructure around the world have greatly improved broadband speeds, providing lucrative opportunities for market players.