Data consumption growth is reportedly being driven by over-the-top (OTT) platforms, ecommerce websites, and government services and is driving companies like Netflix, Amazon, Meta, Google, Cloudflare, and Akamai to invest heavily in content delivery networks (CDNs) in smaller cities in India.
India is still levelling up with mature CDN markets and is set to become the fastest-growing CDN market in the next three to four years due to its large untapped population. Increasing broadband penetration and low data rates have created a need to host content closer to major population centres. Social media, OTT video, game streaming, and sporting events are fuelling the growth of India’s data usage volumes.
Tier-2 and 3 cities in states like Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Bihar, and Chhattisgarh are experiencing the highest data consumption, with per-capita usage ranging from 38-42 GB per month, surpassing metros like Delhi and Mumbai that have an average of 30-34 GB.
As per Extreme Infocom, content companies have expanded their CDN presence in the capital cities of major states. In addition, India has 1,500 population centres with more than 50,000 households, which will need enhanced connectivity.
