Video CDN Revenue To Reach $2.2 Billion In 2022

Video content delivery network, or CDN, provider revenue reached $1.8 billion in 2017 and is expected to grow at a CAGR of 4.7% to hit $2.2 billion in 2022, according to updated forecasts from Kagan, a media research group within S&P Global Market Intelligence. Though price per GB will continue to decline, increases in the amount of video delivered, as well as the growing number of streams delivered to larger screens, such as TVs, result in growth in the overall video traffic delivered by CDN providers. However, as has been the case since the dawn of digital video, increases in video compression efficiency will temper the increase in bandwidth required for all resolutions.

The largest technology trend that Kagan has seen for video CDNs in the last year is the effort to reduce the latency of video streamed via a CDN as compared to the traditionally-delivered stream, particularly for live content. In place of previously-used protocols, CDN providers are looking to WebRTC, Secure Reliable Transport, or SRT, and Quick UDP Internet Connections, or QUIC to minimize latency and increase efficiency.

CDN providers vary greatly in size and scale of their networks. Some CDN providers have many server locations while others have much more centralized solutions. Many are trying to differentiate themselves with additional services or high quality video delivery with low re-buffer rates, as well as ensuring their service is cost competitive. Global CDN providers are continually upgrading their networks to increase network capacity and expand their global presence, while reducing their cost of delivery. There has also been some merger and acquisition activity with current CDN providers looking to expand into new regions by buying existing providers.