The Global Cloud Gaming Market Anticipated to Generate a Revenue of $55,805.9 Million, Growing at a CAGR of 45.0% from 2021 to 2028Download Sample Reports Overview
The global cloud gaming market is estimated to be valued at $55,805.9 million by 2028, surging from $2,996.3 million in 2020, at a noteworthy CAGR of 45.0%
Impact Analysis of COVID-19 on the Cloud Gaming Market
While many sectors of the economy are under stress as a result of the isolation and pandemic, the game industry is thriving. The COVID 19 has had a positive impact on the cloud gaming market because the industry was immediately prepared to serve customers digitally and meet the growing demand for digital entertainment. Cloud gaming enables businesses to continue playing modern games on outdated devices or devices that aren't designed for gaming at all. According to a Polish Gamers Research conducted in May 2020, 31% of adults admitted to playing more frequently as a result of the pandemic. According to the same report, 39% of children played more frequently during the pandemic. Thus, the Covid19 has positively impacted the market.
Global Cloud Gaming Market Analysis
Technological advancements, new social formats, and monetization methods are bringing a once-peripheral activity more deeply into the mainstream. Video games are arguably on their way to becoming the world's new favorite pastime, spawning a new realm of virtual property, currency, and entertainment. The game industry has seen a massive boom in recent years. The rapid development of the internet and mobile devices paved the way for new ways of doing business in the industry. The cloud gaming market has become one of the world's fastest growing and developing market worldwide.
High cost of the subscription for cloud games can hinder the growth of the market.
The game industry is considered to be young, but it is one of the fastest growing industries in the creative sector. Over the last few years, the world has seen massive growth in that industry. What's more, the Polish game industry has a strong chance of expanding even further in the coming years. The shifting inclination of the individuals towards the gaming and online earning through game are few of factors of the growth for the market. Cloud gaming is a new industry technology that enables users to stream high-end games across handheld devices with fast network connectivity, such as laptops, tablets, and smartphones, thereby eliminating the need for a dedicated gaming console/PC. Factors such as reduced investment in the consoles and playing game any time anywhere are boosting the market growth opportunities.
Global Cloud Gaming Market, Segmentation
The global cloud gaming market is segmented based on gaming type, device type, end-use, and region.
The gaming type segment is further classified into video streaming and file streaming. The video streaming sub-segment is expected to have the largest market share, with revenues exceeding $33,630.0 million by 2028, up from $1,613.9 million in 2020.. The increase in the number of devices capable of supporting digital media, combined with increased access to high-speed internet, gives consumers the ability to access the media content of their choice, whether it is information, entertainment, or social activity, at any time and from any location.
The device type is further classified into mobile, PC, and console. The mobile sub-segment is expected to have a dominant and also fastest growing market share of $29,721.1 million by 2028, up from $1,332.2 million in 2020, with CAGR of 48.4%.Currently, the market for mobile and smart phones is expanding due to factors such as lower costs and enhanced design & functionalities such as enhancements in mobile browsing and email services, the rise of new network technologies such as 3G & 4G, better personal and professional data supervision, and the correction & upgrading of all operating systems.
The end-use segment is further divided into, casual gamers, avid gamers, and hardcore gamers. The hardcore gamers sub-segment has a dominating market share, and it is expected to surpass $27,179.0 million by 2028, up from $1,484.9 million in 2020. The number of the hardcore gamers in the cloud gaming market will grow since most gamers today choose to play games on their mobile devices. The announcement of 5G and limitless data plans are also expected to be critical factors in the global success of cloud gaming. The expansion of services and investment in 5G infrastructure are critical to the success of this initiative. As per Ericsson, a Swedish multinational networking & telecommunications company, the number of 5G mobile subscriptions in the Asia-Pacific region is expected to reach 1,545 million by 2025.
The cloud gaming market for the Asia-Pacific region is projected to have the fastest growing market share. The market in Asia-Pacific generated a revenue of $883.0 million in 2020 and is projected to reach up to $17,338.9 million by 2028. The Asia-Pacific region is expected to grow in the gaming industry in the coming year, with countries such as China, Japan, and India showing a high potential for market growth. Because of the rise in the digital ecosystem, Chinese enterprises are ready to embrace the business chances brought by global digitalization.
Key Players in the Global Cloud Gaming Market
Some of the leading global cloud gaming market players are
- Microsoft Corporation
- Ubitus Inc
- Amazon Inc.
- Intel Corporation
- Sony Corporation.
- AMD Cloud Gaming
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Cloud Gaming Market
- Bargaining Power of Suppliers: Suppliers in the cloud gaming market are few, and product dependence, availability of raw materials, and pricing give suppliers significant bargaining power.
As a result, the bargaining power of suppliers is high.
- Bargaining Power of Buyers: The initial cost of cloud gaming necessitates large capital investments
As a result, the bargaining power of buyers is low.
- Threat of New Entrants: Startups entering this market face high capital investment costs, labor costs, and must adhere to government regulations.
As a result, the threat posed by new entrants is low.
- Threat of Substitutes: There are alternative free gaming options available in the market. But the additional benefits offered by cloud gaming such as playing with less number of hardware are increasing the preference of the people towards cloud gaming.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: To stay ahead of the competition, companies in the global cloud gaming market are focusing on strategies such as business expansion, technological innovations, and product advancements.
As a result, the market's competitive rivalry is moderate.