Akamai: How Much Can Online Shopping Content Delivery Segment Add To Revenues In The Next Five Years?

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Online shopping content delivery, the most important segment for Akamai, can add about $450 million to the company’s topline in the next five years. At present, the segment accounts for about 37% of Akamai’s overall revenues and this figure is expected to touch 39% by 2021, which essentially means that we estimate online shopping content delivery revenue growth to outpace the growth in other divisions.

Increasing Internet and broadband penetration and sustained growth in e-commerce shopping are likely to keep Akamai’s online shopping content delivery networks running. Internet penetration in the U.S. currently stands at around 85% with 90% of those using broadband. We expect the latter figure to get near 100% over the next six-seven years. E-commerce retail in the U.S. is growing strongly, totaling at $340 billion, up from $197 billion in 2011. The market is expected to reach $540 billion over the next three-four years, and the growth in web traffic should drive Akamai’s content delivery network.

AKAM online shopping content delivery

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Akamai
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