Saudi Arabia Content Delivery Network (CDN) Market to Grow at a Whopping CAGR of 25.1% 

Published | 09 September 2022

Saudi Arabia content delivery network (CDN) market is booming due to a rapidly increasing demand for rich quality video contents, games, and services along with a growing number of smart device users.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, forecasts Saudi Arabia Content Delivery Network (CDN) Market to grow at an impressive CAGR of 25.1% between 2022 and 2028. CDN solutions are widely used in the e-commerce industry to ensure that the industry runs at full capacity and that buyers have access to all of the information they need to make an informed purchasing decision. Customers are moving away from traditional television and toward video content delivery over a cellular network, as CDN technologies are being used to improve content delivery in that area.

The use of digital solutions based on IoT networks and artificial intelligence in a variety of industries is leading market players to create and promote customized industry-specific CDN solutions. Broadcasters are providing latency-free data over the network and improving video delivery quality as OTT and VOD services become more popular. Continuous global investments in network infrastructure have enhanced overall network connectivity, bandwidth, and coverage. These advancements have made it possible for customers to stay connected, receive real-time updates, and access ready-to-use media material. This, in turn, encourages broadcasters to improve content delivery while supplying diverse data for consumption across other applications.

Rapidly Increasing Demand for Quality Video Contents and Online Gaming Experience

During the forecast period, Saudi Arabia CDN market is predicted to grow at a stable pace. The rising demand for effective solutions to enable seamless and uninterrupted content distribution over high-speed data networks is a major driver for the CDN market. Government programs, such as the National Transformation Program, aims to digitize important industry verticals in order to improve system efficiency and overall performance. Increasing disposable income enables consumers to boost their spending power on modern consumer electronic devices, which is helping to fuel the expansion of the CDN market over the forecast period. Because of the rising need for better service and a better experience for consumers, market participants are investing heavily in the development of the CDN market.

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Challenge: Unpredictability, Complexity, and Instability of Rapid Technology Advancements

The term "Quality of Service" refers to the effective monitoring of network components, such as servers, routers, and latency. Managing all of these criteria takes a lot of time, effort, and money from CDN service providers. It is also challenging for site managers to ensure correct execution and delivery. A major biggest restraint for the CDN market growth is the unpredictability, complexity, and instability of Peer-to-Peer (P2P) CDN. The requirements for a full-fledged decentralized protocol that detects and prevents algorithm mistakes are potentially challenging. Such factors are significant technological constraints. The video content's quality is harmed since it comes from a variety of sources, which has a big impact on the internet user's interest. Degraded video quality in live streaming and video conferencing may have a significant negative impact on the growth of the CDN Market.

Segmental Coverage

Saudi Arabia Content Delivery Network (CDN) Market - By Offering

The Saudi Arabia CDN market by offering can be divided into solutions and services depending on the component. Higher growth is projected in the solutions segment during the forecast period of 2022-2028. Media delivery, cloud security, and web performance make up the solutions category. The rise of the solutions market is fueled by the need to give customers a better experience and lower the amount of time it takes for websites to load. The launch of government programs, such as the National Transformation Program, which aim to digitize the entire system, is helping to drive the use of CDN technologies. The growth of the CDN market is influenced by the use of social media campaigns and marketing to boost overall visibility of brand items.

Impact of Covid-19 on Saudi Arabia Content Delivery Network (CDN) Market

The global COVID-19 pandemic has had a negative impact on various countries. Saudi Arabia's top officials imposed lockdown restrictions and issued a list of preventive measures in order to stop the spread of a new coronavirus. Organizations implemented work-from-home (WFH) policies to protect employees, which prompted them to shift their business models to a digital mode, increasing demand for CDN services in the country. The ability to WFH or bring your own device to the office, as well as other benefits provided by the company, is propelling the CDN market expansion.

Competitive Landscape

Microsoft Corporation, IBM Middle East FZ-L.L.C., Amazon Web Services, Inc., Google LLC, AT&T Mobility LLC, Cloudflare, Inc., Verizon Digital Media Services, Inc., Lumen Technologies, and Internap Corporation are among the leading players in the Saudi Arabia CDN industry. To be competitive in the market, major corporations are launching innovative technologies and services. Mergers and acquisitions, as well as new service improvements, are also their competitive strategies.

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