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Global Video CDN Market 2012-2016

Global video CDN market: 40.6% CAGR estimated between 2012-16


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2014-04-17 07:09:02 - Global Video CDN Market 2012-2016 - a new market research report on companiesandmarkets.com

The Global Video Content Delivery Network (CDN) market is to grow at a CAGR of 40.61 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increased streaming of video data. The Global Video CDN market has also been witnessing the development of content delivery clouds. However, the high cost of video CDNs could pose a challenge to the growth of this market.

One of the main trends that is being witnessed in the Global Video CDN market is the growing pricing pressure on vendors, owing to the increasing competition among them. Akamai dominated the market till 2009, but the company is now witnessing immense competitive pressure from vendors such as Level 3 Communications,

 

 

Limelight Networks, and CDNetworks. As a result, Akamai, which earlier used to adopt a premium pricing strategy for its CDN solutions, has reduced its prices. Hence, vendors such as Akamai are attracting a large number of customers but are compromising with their margins.

One of the main drivers in this market is the significant increase in video data streaming. With the increasing internet speed and improving video quality, the number of videos being streamed each day has increased significantly.

One of the main challenges in this market is the high cost of video CDNs. Video CDNs are usually provided through third-party vendors, and the fees charged by them for providing video CDN services are generally high. This makes it difficult, particularly for SMEs, to afford video CDNs. Moreover, the deployment of large-scale video CDN solutions involves hidden charges and additional setup fees, making it even more expensive for enterprises.

The key vendors dominating this space include Akamai Technologies Inc., CDNetworks Co. Ltd., Level 3 Communications Inc., and Limelight Networks Inc.

The other vendors mentioned are Edgecast Networks Inc., Mirror Image Internet Inc., Tata Communications Ltd., and Internap Network Services Corp.

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