South America is overwhelmingly advancing with the wide adoption of technology tools and devices in the past few decades with vibrant trends of technological convergence into different industrial and corporate sectors. Major advances gravitating towards digitization and e-commerce developments is largely concentrated in Brazil, Peru, Argentina, Peru, and others which highly relies on adequate content delivery network (CDN) market to reach to the targeted customers throughout the world. Widely penetrating domestic, commercial, and institutional internet applications and establishment of several media and entertainment blocks, e-marketing and e-commerce, and inclination towards online gaming significantly push forth the content delivery market demand in South America. Spurring internet driven and technology centered modern world inflicts booming online customer demand- the targeted audiences of multifarious organizations, constantly deploy various software integration for web content delivery which includes videos, textual, and aural subjects for traffic binding and revenue generation. With increasing internet users and web surfing, web content downloading, streaming, and viewing is affected largely consequently, relying heavily on the content delivery networks to reach out to public in every corner of the world eyeing on user-based accessibility to various websites and web applications. Business-to-consumer (B2C) e-commercialization has a major contribution in increasing demand for content delivery in South America, to attract more customers through high resolution image content and faster downloadable product descriptive videos, and so on. In 2018, the estimated revenue of the South American Content Delivery Network Market reached $426.7m, which is estimated to grow at a robust CAGR of 27.7%, during the forecast period 2019-2025.
Brazilian Content Delivery Network Market:
Brazil is a prominent market for ICT and is experiencing high demands for cloud computing and related content delivery and security network systems, as an imperative need towards digitalization and digitization.
Smartphone usage in Brazil accounted for 73% in 2017.
-American Association of Advertising Agencies (AAAA)
Among other regions in South America, Brazil accounted as largest contributer to the domestic content delivery network market, and held a regional share of 33.3% in 2018. Recently, Amazon Wen Services (AWS) announced that it will build its sixth infrastructure in South America, with its location set up in Bogota, Columbia. This will be a major step to support the company’s web services, which include content delivery network collaborated with cloud security services. New product launches such as point of presence (POP) by KeyCDN expands the content delivery network market in this region, this triggers a huge customer demand by offering high-speed web content browsing and decreased latency. Also, internet penetration in this country, high smartphone usage, inclination towards established e-commerce and trends of digitalization towards e-payment procedure in Brazil consistently necessitates efficient CDN services which affluences the regional content delivery network market.
Surge in Mobile and PC Gaming:
Online mobile gaming is gaining wide recognition among modern millennial population in the recent times, owing to better video graphics, high resolution image content, and better user interface. Surging mobile and PC gaming in South America is rising, thereby relying heavily on content delivery network system for high speed gaming conveniences through reduced latency and increased user accessibility. Video gaming industry is accomplishing huge success in this region and game development such as September 12 by Gonzalo Frasca and Vande Caballero’s Papo y Yo significantly leveraged huge customer engagement made possible through advanced technology and digital distribution processes. The mobile gaming market is growing vehemently by 60% increase annually. This signifies the high reliability on the content delivery network market to accomplish huge success in the online gaming industry in South America.
Increasing Internet Data Consumption:
South America’s internet user population is estimated to reach 68.8% and approximately 57 Tbps average IP traffic by the year 2022.
-CISCO
With growing economy and ease of access to internet service providers, South America is successfully rising as a technology advanced nation in the world. With higher internet facilities and more number of people browsing the web content, act as a huge bunch of target customers for different marketers. According to the United Nations Educational, Scientific and Cultural Organization (UNESCO), approximately half million of mobile users were present in South America with around 278,596,721 internet user subscriptions accounting for 65.3% internet penetration in this region. This is reflective of significant dependency on CDN facilities, which is likely to elevate the South America content delivery network market. Also, increasing inclination towards social media such as active involvement in Facebook, Twitter, Instagram, Snapchat, and others increases the prospect for the CDN market to offer better content accessibility and usability to users in this region. South America’s online population is increasing, and has crossed the collective social media users of Canada and the U.S.; South America accounted for 390 million users, and 320 million users in the respective combined regions. This signifies the hike in content browsing, image searching, and video streaming in South American countries, which is likely to upheave the content delivery network market in this region.
Content Delivery Network Market Expansion:
South America is emerging as one of the prominent technology hub in the world, with stronghold in business prospects, e-commerce expansion, and high economic stability. Home to technology advanced e-commerce giants such as MercadoLibre, South American domestic business environment offers wide scope of opportunities for the content delivery network market, to acquire huge benefits in this region. Recently, Akamai strategized improvement plans for its Intelligent Edge Platform and Limelight announced its alliance with the Ericsson, which are set to disrupt the CDN market throughout the world to penetrate simultaneously into IoT monitoring and management services. This will considerably upsurge the local, domestic, and international content delivery market, leveraging huge demand and growth prospects for the market in the recent times.
Key Players and their Contribution:
The South America CDN market is rapidly growing, with respect to emerging innovations and technology advancements adopted by different content delivery network companies in this region. Imperative and major R&D investments, merging and acquisition strategies, and marketing tactics are constantly implemented by these pioneers to exhibit huge profit and maintain a stability in the competitive market atmosphere. The leading market companies include Akamai Technologies Limited, Wangsu Science & Technology Co Ltd, Amazon Web Services, Inc., CenturyLink, Inc., Limelight Networks, Inc., Verizon Digital Media Services, Inc., CDNetworks Co Ltd, Tata Communications Ltd., Internap Corporation, Cloudflare Inc, and others.
Amazon Web Services, a technology service provider, is credited for providing content delivery network services for its customers, across the world. It has established a branch operation in South America, and is eyeing to grow in this region with potential technology benefits offered to domestic people. Its major achievement in the CDN service platform delivered by the Amazon CloudFront which has in-built application protection and supports automation interfaces stimulates high customer demand in the global CDN market. Also, Limelight Networks offers efficient and secured delivery of web contents to the targeted customers, offering high scalability, better storage, and speed delivery of contents. With 582,204 customer base, Limelight Networks offers customer satisfaction through its SmartPurge technology, which is and intelligent autonomous software system and removes old content from accessible path to provide rich user experience, simultaneously upheaving the customer demand and business growth.
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Related Reports:
A. Enterprise Content Delivery Network (ECDN) Market
https://www.industryarc.com/Report/19001/enterprise-content-delivery-network-market
B. Cloud Content Delivery Network (Cdn) Market
https://www.industryarc.com/Research/Cloud-Content-Delivery-Network-Market-Research-500544
C. Content Delivery Network (CDN) Market
https://www.industryarc.com/Report/15295/content-delivery-network-cdn-market.html
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