The CDN market is being powered primarily by growth in the video delivery segment, which is expect to grow more than 30 percent in 5 years as a result of the surging popularity of over the top video. The CDN service provider market grew 20+ percent in 2010 and is expected to grow 22 percent CAGR through 2016.
This rapid growth is changing the competitive landscape as incumbents and well-heeled new entrants (telcos, MSOs and cloud service providers) vie for market share. "We fully expect to see continued downward price movement as contenders push towards reaching critical mass," commented David Dines, principal analyst, video infrastructure and CDN. "At the same time competitors will be differentiating themselves on service level agreements and value-add services such as video management and analytics."
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