Web Caching

Market Analysis and Projections for Web Caching and Content Distribution

Proxy Penetration

According to WebSideStory's StatMarket.com as of December 10, 1999, 17.5% of users are accessing the Web behind proxy servers (based on sample of 35M users). This represents an increase of over 15% since April 1999 (when approximately 15% of users were behind proxies).

Caching Market Projections

According to an August 1999 Internet Research Group report cited by The Industry Standard, the caching market will grow from $88M in 1998 to $2.1B in 2003. They later (October 1999) cite Network Appliance as the leading caching appliance vendor in 1998, with 28% of the caching market.

A February 2001 article quotes IDC as saying that shipments of caching software will grow at 92% per year between 1999 and 2004, while revenues will increase about 5% faster. In 2003, IDC is quoted as believing that the 2003 caching appliance market will hold steady to the 2002 numbers (which dropped from $426 million in 2001 to just $249 million).

Content Delivery Projections

According to the HTRC Group in 1999, the content delivery network market will grow to $2.3B by 2002. In their more recent 2000 Content Delivery Service Study, they state that CDN services growth is expected to grow from $97 million in 2000 to $2.2 billion in 2003.

In February 2000, the Internet Research Group released a report projecting a $6B content distribution and delivery systems market in 2004. In May 2000 The Yankee Group revised their original projections that content delivery services will only grow to $875M by 2003, and instead predicts $125 million by the end of 2000 and growing to $1.4B in revenue for 2003. A late 1999 TechnologyEvaluation.com research note puts the trend at $500M by 2002. In October 2000, IDC projected the US CDN market to grow to $1 Billion in 2004. More recently, a November report from IDC says that worldwide content network spending will increase from $1.6 billion in 2001 to $8 billion in 2005.

In a December 2000 report, Probe Research projected worldwide CDN services growth from $25 million in 1999 to $50 billion in 2005.

A March 2001 report by the Aberdeen Group estimates that the digital content distribution (DCD) market will grow from $1.33 billion in 2000 to $5.95 billion in 2005.

Frost & Sullivan has estimated that the world CDN satellite market could grow from $1.2M in 1999 to $403M in 2007, according to a July 2001 report.

In a September 2001 report, Cahners In-Stat Group projects worldwide content delivery revenues to be $336 million in 2001.

In January 2002, the NetsEdge Research Group (NRG) released figures on the 2001 CDN market. About 3,000 customers are spending more than $16M/month, causing yearly revenues to double to $200M in 2001. Akamai dominated the business, with 80% of the market. Digital Island came in second, with 10%.

In April 2002, the NetsEdge Research Group (NRG) predicted continued growth of the CDN market, with over $3B by 2006.

In a January 2003 report, Probe Research predicts that CDN revenues will pick up in 2003, with more than 20% growth (compared to 10% growth in 2002). CDN market will become intermingled with hosting market as each tends to offer the services of the other.

Streaming Media

According to a January 2000 press release from RHK, streaming media accounts for 10 percent of all Internet traffic.

According to the HTRC Group in their 2000 Content Delivery Service Study, streaming services will grow from $337 million in 2001 to $1.7 billion in 2003, assuming that television-like quality is widely adopted.

Streaming media advertising is expected to reach $3.1B by 2005, according to a recent (June 2001) report by the Yankee Group.

Browser Caching

According to June 1998 estimates from NetRatings, browser caches accounted for 12-28% of page views.


I'd love to add or update the information here. Do you know of an article or report that I can see and cite that talks about market share or industry projections? If so, let me know!

Cache Now!

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Last modified: Sat Feb 9 13:40:21 EST 2008
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