Industry Analysis & Industry Trends
The Content Delivery Network Operators industry in Australia has had a remarkable past five years. Industry revenue is estimated to grow by an annualised 20.9% over the five years through 2012-13 to reach $260.4 million. Industry revenue is expected to grow at a similarly speedy pace of 25.8% over 2012-13. The outstanding growth is due to the efficiency gains and cost savings the industry offers to its customers. As websites continued to feature more user generated and customised content, the need for fast and efficient networks grew, which benefitted demand for content delivery networks. Furthermore, online traffic is increasingly data intensive with higher resolution images, videos and live streaming. The industry is able to deliver this content cheaper on behalf of website operators... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Content Delivery Network Operators industry has a medium level of concentration in Australia. Akamai accounts for an estimated 48% of the industry in Australia, which is similar to its market share globally. Akamai's market share has been eroded to some extent over the past five years as more providers enter the industry. Outside of Akamai, no player is estimated to have a market share of greater than 10%.
Globally, two major forces are affecting the level of industry concentration. Firstly, more operators are entering the industry and challenging Akamai in terms of price. Amazon CloudFront and Level 3 Communications are two examples of this. Also, merger and acquisition activity has been strong as smaller players form alliances with, or are bought by, larger CDN providers... purchase to read more