Cloud gaming is also known as online game streaming that utilizes cloud servers, unlike local devices, to run games with an aim to offer seamless gaming experience to the players with simpler and relatively cheaper access. Some of the prime advantages of cloud gaming are that users do not require any expensive hardware devices to get access to the newest games and can play any game on any device with the help of a stable internet connection and a screen. In cloud gaming services, the server acts like a high-powered PC and efficiently streams a feed of the game.
Increasing technological advancements and acquisitions among key market players is the main factor estimated to drive the growth of the global cloud gaming market by 2028. In addition, rising number of internet users as well as the trending mobile gaming culture among the younger generation are also expected to boost the market growth during the forecast period. Furthermore, the growing requirement to reduce the investments in expensive gaming consoles is predicted to offer abundant growth opportunities for the global cloud gaming market by 2028. However, low latency network is the main factor projected to impede the market growth.
Regionally, the cloud gaming market in the North America region is predicted to have a prominent growth and garner a revenue of $22,891.6 million in the 2021-2028 timeframe due to strong economic condition and utilization of state-of-the-art technologies in the region. In addition, Free2Play mobile games and high disposable income of the natives are some factors anticipated to bolster the market enhancement in the North America region.
According to the report published by Research Dive, the global cloud gaming market is estimated to garner a revenue of $55,805.9 million, growing at a strong CAGR of 45.0% in the 2021–2028 timeframe. Some chief players of the cloud gaming market include Sony Corporation., Google, Nvidia, Ubitus Inc, AMD Cloud Gaming, Microsoft Corporation, Intel Corporation, VORTEX, Tencent, Amazon Inc., and many others.
Key Market Developments
The prominent organizations operating in the industry are adopting numerous growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall cloud gaming market, which is subsequently helping the global cloud gaming market to flourish. For instance:
In January 2022, Nvidia, an American multinational tech company, announced its launch of Shield Software Experience Upgrade 9.0 and aims to bring Android 11 and other latest features to the Shield TV category. This latest update will offer support for aptX-compatible Bluetooth headsets, an updated Google keyboard with integrated voice search, and Android September 2021 security patch level.
In December 2021, Microsoft, an American multinational tech organization, announced the launch of multiple games to the Xbox Game Pass. Most of these games would be for PC, console, and cloud platforms. The games are Among Us, Broken Age, The Gunk, Firewatch, and many more. While Firewatch is a single-player game, Among Us, Broken Age, and The Gunk are multi-player ones.
In January 2022, GOX, the first-ever Indonesian game streaming platform, announced its partnership with Tencent Cloud, a leading Chinese multinational entertainment firm, to empower the region’s rising esports and live-streaming ecosystem. Tencent’s industry-leading live-streaming service and wide network will assist GOX to provide seamless, low latency, and stable gaming content throughout Indonesia and Asia.
Covid-19 Impact on the Market
Although the outbreak of the Covid-19 pandemic has hurled every industry and business, the global cloud gaming market has witnessed a positive impact. The growing adoption of gamers from traditional console games to cloud games and the urging need to combat the mental stress and depression caused by government-imposed strict lockdowns and mobility restrictions led individuals shift towards cloud video gaming, thus accelerating the market growth. Moreover, other features of cloud games like offering cognitive stimulation and opportunities for socialization, besides several mental health benefits like reduced stress and anxiety propelled the demand for cloud gaming during the pandemic.