EGIO - Global CDN Services Market About $5B In 2023 Expected To Grow 3% In 2024 Driven By AWS
2024-07-15 08:30:00 ET
Summary
- The market for third-party CDN services was about $5 billion in 2023.
- Without Amazon and Cloudflare growing, revenue growth of the CDN market would have been negative in 2023 and 2024.
- The market is not as big as many suggest, and those writing about the size of the CDN space don’t define it and include non-CDN services like transcoding, hardware, hosting, storage and transit in their numbers. In most cases, these reports also include vendors who no longer exist in the market.
The market for third-party CDN services, which I define as the delivery of video and small and large objects, was about $5 billion in 2023, which I break down in detail below. This figure does not include revenue for services tied to security (WAF, DDoS, etc.), compute, hardware, and storage, and excludes delivery in China. The number excludes any company with its own DIY CDN, like Netflix ( NFLX ) and YouTube ( GOOG , GOOGL ), that doesn’t sell its infrastructure as a service to other companies.
The figure also excludes revenue from vendors offering online video platforms, including Brightcove ( BCOV ), Uplynk, AWS Media Services ( AMZN ), Quickplay, Deltatre, Mediakind, Sports Radar, Cognizant ( CTSH ), Endeavor Streaming ( EDR ), StreamAMG, Bedrock Streaming, etc., which combined saw revenue of about $1.8 billion in 2023. Based on what I know, AWS Media Services is the largest of the group, with about $450 million in revenue in 2023.
While reports produced by research firms say the CDN market was multiple times larger than my number, they are wrong. Full stop. Do not buy their reports. Akamai ( AKAM ), Fastly ( FSLY ), Edgio ( EGIO ), CDN77, and others disclose enough details tied to their delivery revenue that we have numbers to form a good foundation for market sizing....
Global CDN Services Market About $5B In 2023, Expected To Grow 3% In 2024, Driven By AWS