April 18, 2024
India Content Delivery Network Market

India Content Delivery Network Market is Anticipated to Witness High Growth Owing to Growing Internet Penetration

Content delivery network or CDN refers to a system of distributed servers that deliver webpages and other online content to users based on their geographic locations. It helps in reducing latency and improving quality of service for end-users across India. A CDN enables caching of content on multiple edge servers located closer to end-users to provide fast access and improve website load times by orders of magnitude.

The India content delivery network market is estimated to be valued at US$ 4412.15 Mn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024 to 2031.

Key Takeaways
Key players:
Key players operating in the India content delivery network are Huhtamaki Oyj, Conitex Sonoco, Tubettificio Senese S.r.l, A.C.M.I. S.p.A., PTM Packaging Pvt. Ltd., Sonoco Products Company, Paper Machinery Corporation, Raeed Company among others. Growing at a fast pace, the India CDN market is dominated by global players such as Akamai Technologies, CDNetworks and Cloudflare. Domestic players like Netmagic Solutions and Stackpath are also enhancing their edge computing networks across major cities in India.

Growing demand: Rapid adoption of data-intensive services like video and audio streaming, online gaming, e-learning and software updates has fuelled the demand for high-performance content delivery in India. Consumers expect seamless access to digital content from any location, driving more organizations to deploy CDNs.

Global expansion: Leading CDN vendors are increasing investments and developing new Points of Presence (PoPs) across Tier-1 and Tier-2 cities in India. This allows them to provide low-latency content delivery and support the growing bandwidth needs of customers in the emerging regional digital hubs.

Market Key Trends
One of the key trends driving growth in the India Content Delivery Network Market Size is the increased focus on edge computing capabilities. CDN providers are building out distributed infrastructure at the edge that can leverage unused compute resources on local servers for real-time processing of web requests, application workloads and delivering dynamic content. This enables enhanced performance, security and flexibility for latency-sensitive applications. Edge CDNs that leverage on-demand compute functions are well-positioned to power innovative IOT, AR/VR and cloud gaming services of the future.

Porter’s Analysis
Threat of new entrants: Low capital requirements and moderate differentiation allows new players to enter the market. However, established players have strong brand name and customer relationships.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiation in offerings from different vendors.
Bargaining power of suppliers: Suppliers have low bargaining power due to availability of substitutes and less differentiation in components.
Threat of new substitutes: Technology advancement continuously introduces newer and better delivery methods threatening the existing CDN services.
Competitive rivalry: Intense competition due to presence of established global as well as regional players differentiating through technology and pricing.

Geographical Regions
North India accounts for around 35% of the total India CDN market value, primarily due to the presence of major cities like Delhi, Mumbai, Bengaluru etc which are technology and digital adoption hubs. The high internet and device penetration along with growing adoption of Over-The-Top platforms in the region drives the market.

South India is the fastest growing region for the CDN market in India projected to grow at over 10% CAGR during the forecast period. States like Telangana, Karnataka and Tamil Nadu are witnessing rapid digitization of businesses and internet infrastructure development. This along with government initiatives to improve connectivity is boosting the growth of CDN market in South India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it