Cloud Gaming Market Report
Cloud Gaming Market by Gaming Type (Video Streaming and File Streaming), Device Type (Mobile, PC, and Console) End-user (Casual Gamers, Avid Gamers, and Hardcore Gamers), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028
Cloud Gaming Market Analysis
The global cloud gaming market is anticipated to garner $55,805.9 million in the 2021–2028 timeframe, growing from $2,996.3 million in 2020, at a healthy CAGR 45.0%.
The cloud gaming services market is expected to grow due to technology advancements, acquisitions, and business expansion by key market players to increase the adoption of cloud gaming for various end-users.
The main impediment is the subscription charges of the cloud gaming.
According to the regional analysis of the market, the Europe cloud gaming market is anticipated to grow at a CAGR of 46.0%, by generating a revenue of $17,338.9 million during the review period.
Cloud Gaming Overview
Cloud computing has evolved from a buzzword used by those who have knowledge of real technology that is gaining traction with consumers on a daily basis. The gaming industry embraced the cloud computing paradigm by implementing the cloud gaming. A cloud game is one that is stored on a corporation server rather than on the gamer's computer or device. The gamer joins the game by installing a client programmer that can connect to the server where the games are being played. The cloud gaming refers to the act of playing a game from the cloud. In almost every case, the term "cloud" refers to a network of data centers crammed with servers that deliver content to whoever is trying to access it. The increasing adoption of the cloud based solutions across the globe is one of the leading factors of growth of the market.
COVID-19 Impact on Cloud Gaming Market
The rise of cloud gaming service delves into the rapidly changing cloud gaming market. This will continue to play an important role in meeting gamers' changing tastes by assisting them in transitioning from traditional console games to cloud games. The COVID-19 pandemic has had a wide-ranging positive impact on cloud gaming market. The pandemic has affected nearly every aspect of our lives, with lockdown restrictions affecting how we work, socialize, shop, and study. Such broad changes in our daily lives have inevitably raised concerns about our well-being and our ability to cope with these unusual and uncertain circumstances. This will look into numerous reports that suggest many people have turned to video games during the pandemic. The pandemic has impacted positively on the cloud gamin owing to growing interest towards home based entertainment of individuals across the globe. Cloud gaming has an impact on players, such as providing cognitive stimulation and opportunities for socialization, as well as a variety of mental health benefits, such as reduced anxiety and stress. The findings highlight the sociocultural significance of video games, as well as the potentially beneficial nature of game effects on well-being.
Rising Number of Internet Users and the Growing Popularity of Mobile Gaming Culture are Expected to Fuel the Growth of the Cloud Gaming Market
In today's technology-driven world, smartphones are being adopted at an astonishing speed all over the world. As a result, it is changing the socialization and communication patterns of the masses. Smartphone users can use many apps to access a variety of services and content via the internet. For years, video games have steadily grown in popularity. And, as people seek new ways to socialize and entertain themselves during the pandemic, the trend has only accelerated. Gaming has grown to be a larger industry than film and sports combined. Cloud gaming is new way of online gaming, which renders the game data on the cloud side instead of the end users system and forwarded via high-speed network. Video gaming is one of the fastest growing businesses in multimedia entertainment industry. The market demand is fueled by the large-scale adoption of smart mobile devices and mobile games. For example, BlueStacks, an American technology company, in September 2021, released BlueStacks X, a free cloud-based gaming streaming service for mobile games. The growing popularity of mobile gaming is driving the in-game advertising market. The growing popularity of smartphones, as well as the increasing availability of high-speed internet, has prompted game developers to place a greater emphasis on improving app design. According to an Austrian survey, only 2.1% of the 2,004 participants reported negative effects of video games, while 77.2 % specified that video games had a positive mental health impact, and that games have the potential to promote mental health and provide opportunities to interact with friends through online gaming platform services.. Also, vendors are gradually implementing freemium models, in which the first level of a game is provided free of charge, but users must pay to access the advanced levels. These factors have significantly increased end-user demand for cloud games. Other factors such as an upsurge in the number of gamers and a rising partnership between advertisers and video game companies are also expected to propel the cloud gaming during the forecast period.
To know more about global cloud gaming market drivers, get in touch with our analysts here.
Issues with Latency and Responsiveness Will Limit Market Potential
Streaming games on a cloud platform typically necessitates a low latency network with high bandwidths and adequate bandwidth. However, in some countries, the cost of obtaining an internet connection with the required bandwidth may be prohibitively expensive. If the necessary network and bandwidth requirements are not met, latency and responsiveness can be an issue.
Growing Demand to Reduce the Need of Consoles and Increasing Number of Gamers Across the Globe is Creating Opportunities of Growth
The advancement of technology provides incredible opportunities to gain access to the most popular games without the need to purchase expensive equipment. The biggest problem for many (mostly young) gamers who dream about a professional esports career is the lack of proper hardware. High-end gaming computers are super expensive. The growth of mobile gaming as a killer end-user in the mobile app market has been very impressive over the last decade. The constraint of limited device types on mobile devices is the major impediment to further growth of mobile gaming. However, recent advances in cloud computing have shed light on the viability of playing high-end video games on mobile devices. A key potential of cloud gaming is to overcome the limitations of a player’s mobile phones, console, or others. A game could be as large and complex as the cloud can handle, and multiplayer games that typically cap at 100 players could potentially expand to thousands or more. Game businesses are moving video games from mobile phones, consoles, and PCs to the cloud, and telecoms are adjusting to the new technological demands. Cloud gaming promises to free gamers from the constraints of specific hardware by allowing them to access their accounts from anywhere and play the same game on any capable device. Services claim that by removing the need for players to purchase a console or high-end gaming PC, lower-income consumers will be able to participate more easily, increasing the number of players.
To know more about global cloud gaming market opportunities, get in touch with our analysts here.
Cloud Gaming Market
By Game Type
Source: Research Dive Analysis
The video streaming sub-segment is anticipated to have a dominant market share and generate a revenue of $33,630.0 million by 2028, growing from $1,613.9 million in 2020.
This solution renders all graphics, compresses the output videos, and streams them to cloud clients via remote CPUs/GPUs. The video is streamed to the user and locally decoded. This method necessitates more bandwidth and processing time, but it allows for the use of higher-powered GPUs than local devices. Both cloud gaming and live media streaming entail compressing incoming video and distributing it to end users. In both cases, the user has access to only a subset of the most recent video frames, with no access to future frames before they are created.
Cloud Gaming Market
By Product Type
Source: Research Dive Analysis
The mobile sub-segment of the global cloud gaming market is anticipated to have a dominant market share and surpass $29,721.1 million by 2028, with an increase from $1,332.2 million in 2020. Because of massive data centers linked to phones and devices via the internet, most next-generation smartphones can run cloud gaming, providing users with easy access to games. Cloud gaming is expected to grow in popularity as users seek instant, on-demand gameplay. With the introduction of cloud gaming, smartphone manufacturers now have lucrative opportunities to improve their product capabilities while also generating new revenue streams through subscription fees. This encourages telecommunications companies to work with platform providers to incorporate cloud gaming functionality into their offerings.
Cloud Gaming Market
By End Use
Source: Research Dive Analysis
The hardcore gamers sub-segment of the global cloud gaming market is anticipated to have a dominant market share and surpass $27,179.0 million by 2028, with an increase from $1,484.9 million in 2020. Hardcore gamers are people who play games as a hobby and spend a significant amount of time and money on them. Hardcore gamers are more likely to opt for the convenience and cost-effectiveness of cloud gaming. Furthermore, continued improvements of 5G smartphones result in high speed and low latency properties, resulting in a wider adoption of cloud gaming for hardcore gamers.
The avid gamers sub-segment of the global cloud gaming market is anticipated to have the fastest growth and surpass $17,693.0 million by 2028, with an increase from $900.6 million in 2020 with the CAGR 9.8%. Avid gamers are part of a vibrant gaming community that relies on YouTube for reviews and news. As the popularity of video games grows, players are increasingly turning to mobile to satisfy their addiction. In fact, roughly one-third of mobile gamers in the United States are classified as "avid gamers," spending more than nine hours per week on average playing mobile games on smartphones.
Cloud Gaming Market
Source: Research Dive Analysis
The Market for Cloud Gaming in North America to be the Most Dominant
The North America cloud gaming market accounted $1,200.3 million in 2020 and is projected to register a revenue of $22,891.6 million by 2028. Cloud gaming market growth h is being driven by an increase in people's affordability in the region, as well as the region's strong economic backbone, combined with cutting-edge technologies. Furthermore, free-to-play and mobile games are propelling the region's market growth. The high disposable income is driving market growth, along with the latest technologies.
The Market for Cloud Gaming in Asia-Pacific to be the Most Lucrative
The Asia-Pacific cloud gaming market accounted $883.0 million in 2020 and is projected to register a revenue of $17,338.9 million by 2028. The Asia-Pacific cloud gaming market is expected to grow at a significant CAGR 46.0%, over the forecast period. Asia-Pacific is set to be the most attractive destination for business expansion/investment for key stakeholders across the globe. The increasing internet dependent population, government initiatives, rising FDI, and economic growth are few factors that are making Asia-Pacific an emerging market for all kind of players. Over the past few years, the cloud gaming has seen a positive growth mainly driven by the increase in the online gamers in the region and improved gaming technology by the companies. The market is witnessing an increased adoption of next generation technologies and the ever-increasing popularity of PCs and electronic devices is also supporting the cloud gaming market in the region.
Competitive Scenario in the Global Cloud Gaming Market
Product advancements, innovations, and business expansion are common strategies followed by major market players.
Source: Research Dive Analysis
Some of the leading cloud gaming market players are Google, Microsoft Corporation, Ubitus Inc, Amazon Inc., Intel Corporation, Tencent, Sony Corporation., VORTEX, AMD Cloud Gaming, and Nvidia.
Porter’s Five Forces Analysis for the Global Cloud Gaming Market:
- Bargaining Power of Suppliers: There are few players in the cloud gaming market and the also, there is high demand for cloud gaming from various countries in order to reduce the mental stress impact.
Thus, the bargaining power suppliers is high.
- Bargaining Power of Buyers: Buyers have little bargaining power because establishing a cloud gaming requires a capital investment..
Thus, the bargaining power of the buyers is low.
- Threat of New Entrants: The companies entering cloud gaming market have to deal with high investment cost and adhere to the environmental regulations as well.
Thus, the threat of the new entrants is low.
- Threat of Substitutes:. Even though there are substitutes available in the market, there is high demand for the gaming solutions which support low additional spending on the hardware and consoles required for playing games.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: Companies in the global cloud gaming market are focusing on strategies such as business expansion, technological innovations, and product advancements to stay ahead of the competition..
Therefore, competitive rivalry in the market is moderate.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Gaming Type
Segmentation by Device Type
Segmentation by End-User
Key Companies Profiled
Q1. How big is the cloud gaming market?
A. The size of the global cloud gaming market was over $2,996.3 million in 2020 and is projected to reach $55,805.9 million by 2028.
Q2. Who are the leading players in cloud gaming?
A. Amazon Inc., Intel Corporation, Nvidia, and Microsoft are some of the major companies operating in the global cloud gaming market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What will be the growth rate of the Asia-Pacific Cloud gaming Market?
A. The growth rate of the Asia-Pacific cloud gaming market is 46.0%.
Q5. What are the strategies opted by the leading players in this market?
A. Innovations, technological advancements, and business expansions are the key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. Microsoft, Nvidia, Google, and others are investing more on R&D practices.
1.2.Real time insights and validation
1.4.Assumptions and forecast parameters
2.2.By type trends
2.3.By Product Type type trends
2.4.By function type trends
2.5.By end-user trends
3.1.Market segmentation & definitions
3.2.1.Top investment pockets
3.2.2.Top winning strategies
3.3.Porter’s five forces analysis
3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market
3.5.End Use landscape
4.Cloud Gaming Market, by Game Type
4.1.1.Market size and forecast, by region, 2020-2028
4.1.2.Comparative market share analysis, 2020 & 2028
4.2.1.Market size and forecast, by region, 2020-2028
4.2.2.Comparative market share analysis, 2020 & 2028
5.Cloud Gaming Market, by Product Type
5.1.1.Market size and forecast, by region, 2020-2028
5.1.2.Comparative market share analysis, 2020 & 2028
5.2.1.Market size and forecast, by region, 2020-2028
5.2.2.Comparative market share analysis, 2020 & 2028
5.3.1.Market size and forecast, by region, 2020-2028
5.3.2.Comparative market share analysis, 2020 & 2028
5.3.3.Market size and forecast, by region, 2020-2028
5.3.4.Comparative market share analysis, 2020 & 2028
6.Cloud Gaming Market, by End Use
6.1.1.Others Market size and forecast, by region, 2020-2028
6.1.2.Comparative market share analysis, 2020 & 2028
6.2.1.Market size and forecast, by region, 2020-2028
6.2.2.Comparative market share analysis, 2020 & 2028
6.3.1.Market size and forecast, by region, 2020-2028
6.3.2.Comparative market share analysis, 2020 & 2028
7.Cloud Gaming Market, by Region
7.1.1.Market size and forecast, by Game Type, 2020-2028
7.1.2.Market size and forecast, by Product Type, 2020-2028
7.1.3.Market size and forecast, by End Use, 2020-2028
7.1.4.Market size and forecast, by Country, 2020-2028
7.1.5.Comparative market share analysis, 2020 & 2028
18.104.22.168.Market size and forecast, by Game Type, 2020-2028
22.214.171.124.Market size and forecast, by Product Type, 2020-2028
126.96.36.199.Market size and forecast, by End Use, 2020-2028
188.8.131.52.Market size and forecast, by Game Type, 2020-2028
184.108.40.206.Market size and forecast, by Product Type, 2020-2028
220.127.116.11.Market size and forecast, by End Use, 2020-2028
18.104.22.168.Market size and forecast, by Game Type, 2020-2028
22.214.171.124.Market size and forecast, by Product Type, 2020-2028
126.96.36.199.Market size and forecast, by End Use, 2020-2028
7.2.1.Market size and forecast, by Game Type, 2020-2028
7.2.2.Market size and forecast, by Product Type, 2020-2028
7.2.3.Market size and forecast, by End Use, 2020-2028
7.2.4.Market size and forecast, by Country, 2020-2028
7.2.5.Comparative market share analysis, 2020 & 2028
188.8.131.52.Market size and forecast, by Game Type, 2020-2028
184.108.40.206.Market size and forecast, by Product Type, 2020-2028
220.127.116.11.Market size and forecast, by End Use, 2020-2028
18.104.22.168.Market size and forecast, by Game Type, 2020-2028
22.214.171.124.Market size and forecast, by Product Type, 2020-2028
126.96.36.199.Market size and forecast, by End Use, 2020-2028
188.8.131.52.Market size and forecast, by Game Type, 2020-2028
184.108.40.206.Market size and forecast, by Product Type, 2020-2028
220.127.116.11.Market size and forecast, by End Use, 2020-2028
18.104.22.168.Market size and forecast, by Game Type, 2020-2028
22.214.171.124.Market size and forecast, by Product Type, 2020-2028
126.96.36.199.Market size and forecast, by End Use, 2020-2028
188.8.131.52.Market size and forecast, by Game Type, 2020-2028
184.108.40.206.Market size and forecast, by Product Type, 2020-2028
220.127.116.11.Market size and forecast, by End Use, 2020-2028
7.2.11.Rest of Europe
18.104.22.168.Market size and forecast, by Game Type, 2020-2028
22.214.171.124.Market size and forecast, by Product Type, 2020-2028
126.96.36.199.Market size and forecast, by End Use, 2020-2028
7.3.1.Market size and forecast, by Game Type, 2020-2028
7.3.2.Market size and forecast, by Product Type, 2020-2028
7.3.3.Market size and forecast, by End Use, 2020-2028
7.3.4.Market size and forecast, by country, 2020-2028
7.3.5.Comparative market share analysis, 2020 & 2028
188.8.131.52.Market size and forecast, by Game Type, 2020-2028
184.108.40.206.Market size and forecast, by Product Type, 2020-2028
220.127.116.11.Market size and forecast, by End Use, 2020-2028
18.104.22.168.Market size and forecast, by Game Type, 2020-2028
22.214.171.124.Market size and forecast, by Product Type, 2020-2028
126.96.36.199.Market size and forecast, by End Use, 2020-2028
188.8.131.52.Market size and forecast, by Game Type, 2020-2028
184.108.40.206.Market size and forecast, by Product Type, 2020-2028
220.127.116.11.Market size and forecast, by End Use, 2020-2028
18.104.22.168.Market size and forecast, by Game Type, 2020-2028
22.214.171.124.Market size and forecast, by Product Type, 2020-2028
126.96.36.199.Market size and forecast, by End Use, 2020-2028
188.8.131.52.Market size and forecast, by Game Type, 2020-2028
184.108.40.206.Market size and forecast, by Product Type, 2020-2028
220.127.116.11.Market size and forecast, by End Use, 2020-2028
7.3.11.Rest of Asia Pacific
18.104.22.168.Market size and forecast, by Game Type, 2020-2028
22.214.171.124.Market size and forecast, by Product Type, 2020-2028
126.96.36.199.Market size and forecast, by End Use, 2020-2028
7.4.1.Market size and forecast, by Game Type, 2020-2028
7.4.2.Market size and forecast, by Product Type, 2020-2028
7.4.3.Market size and forecast, by End Use, 2020-2028
188.8.131.52.Market size and forecast, by Game Type, 2020-2028
184.108.40.206.Market size and forecast, by Product Type, 2020-2028
220.127.116.11.Market size and forecast, by End Use, 2020-2028
18.104.22.168.Market size and forecast, by Game Type, 2020-2028
22.214.171.124.Market size and forecast, by Product Type, 2020-2028
126.96.36.199.Market size and forecast, by End Use, 2020-2028
188.8.131.52.Market size and forecast, by Game Type, 2020-2028
184.108.40.206.Market size and forecast, by Product Type, 2020-2028
220.127.116.11.Market size and forecast, by End Use, 2020-2028
8.1.4.Recent strategic moves & developments
8.2.4.Recent strategic moves & developments
8.3.4.Recent strategic moves & developments
8.4.4.Recent strategic moves & developments
8.5.4.Recent strategic moves & developments
8.6.4.Recent strategic moves & developments
8.7.4.Recent strategic moves & developments
8.8.4.Recent strategic moves & developments
8.9.AMD Cloud Gaming
8.9.4.Recent strategic moves & developments
8.10.4.Recent strategic moves & developments
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.