Report Overview

Growing demand for rich content and high-quality movies on websites and apps, technology advancements, and effective solutions for content distributions to improve the customer experience is fueling the Saudi Arabia CDN market growth at a high-reaching CAGR.

Saudi Arabia Content Delivery Network (CDN) Market, 2028 - Industry Trends & Forecast Report

Saudi Arabia Content Delivery Network (CDN) Market - Overview

A rapidly increasing demand for effective solutions to enable seamless and uninterrupted content distribution over high-speed data networks is a major driver for the Saudi Arabia CDN market. Government programs, such as the National Transformation Program, attempt to digitize important industry verticals to improve system efficiency and overall performance. The rising disposable income is allowing them to boost their spending power on modern consumer electronic devices, which could also help to fuel the expansion of the CDN market over the forecast period. The market participants are investing a large amount in the development of the CDN market expansion to assure the quality of service and the quality of experience for consumers.

Saudi Arabia Content Delivery Network (CDN) Market - Industry Trends & Forecast

The CDN Market has benefited from increased internet usage around the world. The expansion of the CDN market has been fueled by shifting patterns from telemarketing to digital marketing as a result of the growing number of social media users. Several social media platforms provide live videos and films. It is a major growth factor for the CDN market. The pandemic has increased worldwide demand for the market. Because of the growth of social media, more data is consumed and higher-quality films are constantly uploaded to the internet. People prefer to learn, shop, and work on the internet. Such trends could continue to have a significant positive impact on the overall demand for CDNs.

Growth Drivers

The increased need for CDN systems to support real-time Voice Over IP (VoIP), video streaming, and online gaming could fuel the expansion of the dynamic CDN segment. Continuously changing data as part of customized web services and applying web performance optimization to speed up the delivery of web pages or website content for any organization on multiple end-user devices are examples of dynamic content. These services use an intelligent routing strategy to reduce page latency. Customers prefer to receive all of these services from a single supplier, and operators respond to this demand by optimizing their networks and delivery. Because of the increasing adoption of high-speed data networks, greater bandwidth, and increasing volume of static content, the static CDN segment is expected to grow significantly throughout the projection period. As the volume of static material grows, so does bandwidth usage and page load time, limiting the servers' available capacity and the users' surfing experience. The CDN can be used to cache these materials over a network of geographically scattered servers, resulting in faster page load times, better performance, better bandwidth management, and lower infrastructure costs.

Growth Drivers

Increasing Demand for Quality Video Contents and Online Gaming Experience

During the forecast period, the growing demand for better video content and a latency-free online gaming experience could boost the CDN market growth. Latency-free games with fast gaming speeds are in high demand among gaming companies and gamers. By enhancing the speed and performance of game downloads and updates, CDNs assist game companies in overcoming the challenges of low latency.

With innovative technologies, such as upgraded consoles, PCs, and handheld devices, as well as faster internet speeds, the downloaded size of games have increased substantially. These advancements enhance the gaming experience while potentially disrupting the pre-gaming experience. CDNs allow key downloads to be delivered fast while preventing download errors and server crashes. These factors contribute to a better pre-game experience. It also has scalability, allowing the player to continue playing the game even if the game's size grows due to high-quality visuals and other features.

Restraints

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.

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

The COVID-19 pandemic has had a direct impact on the market, as CDN suppliers rely on various economic elements for their revenue, including active financial markets, liquidity, and money from financial institutions. Despite these challenges, the CDN market is likely to develop steadily throughout the forecast period as the amount of data transmitted on the internet grows in tandem with the deployment of high-speed networks.

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

The market is segmented into solutions and services depending on the component. Growth is projected in the solutions segment in the forecast period of 2022–2028. The rising demand in 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.

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

The market can be divided into static and dynamic segments depending on the content type. During the projected period, the dynamic segment is expected to grow at a faster rate. Dynamic data is customized and varies based on the needs of the consumer to give interesting content and improve the consumer's overall experience.

Saudi Arabia Content Delivery Network (CDN) Market - By Service Provider

The commercial CDN segment’s expansion is being fueled by various solutions given by service providers for network optimization, content acceleration, and media delivery. Several old CDN solutions are gradually proving insufficient to meet the challenges posed by the introduction of cutting-edge technologies. Another difficulty for the CDN market is that mobile users are increasingly demanding content that is not customized for their devices and is located further away from the origin servers. These disadvantages could stifle the segment 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 Corporationare among the leading participants in the Saudi Arabia CDN industry. To be competitive in the market, major corporations are launching innovative technologies and releasing new services. Mergers and acquisitions, as well as new service improvements, are other competitive strategies.

Recent Developments

The CDN may reproduce content that is posted on the internet in multiple locations to make it easier for internet users to obtain it. The Content Delivery Network Service provider replicates the content for end-users prior to the request. The CDN has certain appealing features, such as minimizing overcrowding on servers and lowering packet loss and delays.

Scope of the Report

By Offering

Solutions

• Web Performance Optimization
• Media Delivery
• Cloud Security

Services

•  Storage Services
•  Designing and consulting services
•  Website and API management
•  Analytics and Performance Monitoring
•  Network Optimization Services
•  Digital Rights Management
•  Others
•  

By Type of Content

• Static
• Dynamic

By Type of Provider

• Telco CDN
• Traditional CDN
• P2P CDN
• Cloud CDN
• Others

By Application

• OTT Platform
• Retail and E-commerce
• Video Streaming
• Education
• Gaming
• Healthcare
• Others

By Organization Size

• SMEs
• Large Enterprises