Key Market Overview:
Cloud Gaming Market is estimated to reach over USD 47.91 Billion by 2030 from a value of USD 1.47 Billion in 2023, growing at a CAGR of 53% from 2023 to 2030.
Cloud gaming is a modern gaming model that allows users to play high-end games remotely without the requirement of expensive gaming setups. Remote servers are used to store and process the games. Further, processed result is transmitted to the user\'s device via high-speed internet. Gamers could play large games on low-end PCs as the processing is carried out by powerful remote servers. Moreover, cloud gaming technology allows gaming over a wide variety of devices including, laptops, smartphones, tablets, and others. High-end gaming is no longer restricted to dedicated gaming setups.
For instance, Xbox (Microsoft) one of the leading cloud gaming service providers offers multiple high-end games including fortnight and flight simulators among others ranging in size from 100-150 gigabytes. Heavy AAA game titles could easily be processed on low-end devices due to cloud gaming technology.
Cloud Gaming Market Coverage
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||USD 47.91 Billion|
|CAGR (2023-2030)||53 %|
|By Devices||Smartphone, Consoles, Laptop/Tablets, Smart TV, and Personal Computer|
|By streaming type||Video streaming and file streaming|
|By End-User||Casual Gamers, Avid Gamers, and Hardcore Gamers|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Nvidia GeForce Now, Amazon Luna, Microsoft xCloud, Shadow, Vortex Cloud Gaming, Paperspace, Parsec, Playkey, Rainway|
Recent advancements in the 5g network is one of the major drivers for the cloud gaming industry. Presently a large number of cities globally have access to 5g network connectivity. High-speed internet with low latency is the most important prerequisite for cloud gaming. Rising number of gamers are switching to cloud gaming platforms from traditional gaming setups as cloud gaming allows access to a large number of AAA titles without the need of investing in expensive dedicated gaming setups. Moreover, a large chunk of computer space is also spared as games are not stored locally. Aforementioned benefits in association with 5g network advancements are driving the demand for cloud gaming.
Currently high latency issue is one of the major restraint limiting the expansion of cloud gaming industry. Cloud gaming technology is relatively new. Underdeveloped cloud gaming infrastructure generally lead to high latency or lag when the number of users rises. High latency reduces the responsiveness and playability of the games. Moreover, at present, the content quality and quantity offered by cloud gaming service providers is limited as compared to traditional gaming platforms. Limited choice of games acts as a restraining factor in the expansion of cloud gaming, especially in the hardcore gamers segment.
The rising popularity of gaming in Asia Pacific region poses as a lucrative opportunity for the cloud gaming segment. In recent years a rising number of gamers can be observed in countries including China, South Korea, and Japan. For instance, Asia Pacific region accounts for 55% of gamers globally and made up 49% of total consumer spending on games worldwide in the year 2021. Predominantly Asian gamers prefer smartphones to play games.
Moreover, gaming companies push for a subscription-based gaming model is also estimated to benefit the cloud gaming industry. A rising number of businesses involved in game development are promoting subscription-based model as it offers better cash flows than one-time sale. Aforementioned factors indicate that Cloud gaming industry could witness substantial growth in forthcoming years.
Cloud Gaming Market Segmentation:
Based on devices the cloud gaming market is segmented into smartphones, consoles, laptops/tablets, smart TV, and personal computer. The smartphone segment held dominating market share by revenue for the year 2022. Most gamers in the Asia Pacific region prefer gaming on smartphones. Moreover, the smartphone segment is also estimated to showcase the fastest growth rate over the forecasted period. A rising number of Game developers are developing mobile-based games to monetize upon growing demand for smartphone games. For instance, call of duty mobile (first-person shooter video game franchise) was launched on October 1, 2019, by Activation for both Android and iOS platforms, becoming one of the biggest mobile game releases ever recorded with over 270 million downloads and generating a revenue of USD 480 million in the first year. Many traditional PC game developers are launching games on mobile devices owing to the rising number of smartphone gamers.
By Streaming Type:
Based on streaming type the segment is bifurcated into video sharing and file sharing. Presently file streaming also known as stream file transfer held dominating market share in the year 2022. File streaming is a type of data transfer approach used in cloud gaming. It enables players to play the game by downloading only a small portion of it, approximately 3-5%, to their devices. The technology further allows gamers to download and store the game in patches. Moreover, as the game progresses newer game\'s segments are downloaded and added to the game.
Furthermore, the video streaming segment is estimated to showcase substantial market growth over the forecasted period. Video streaming technology allows gaming on all kinds of devices including smartphones, consoles, laptops/tablets, smart TV, and personal computer. Moreover, the hardware specifications required in gaming via video streaming are minimal to other technologies. Rising 5G network presence will further fuel cloud gaming through video streaming in forthcoming
By End-User Type:
According to end users global cloud gaming market is divided into casual gamers, avid gamers, and hardcore gamers. The casual gamers segment held dominating market share as of 2022. Most of the gamers play games for entertainment and as a leisure activity.
Moreover, the hardcore gamer segment is estimated to be the fastest growing segment over the forecasted period. With technological advancements in cloud gaming service existing gamers are estimated to switch onto cloud gaming platforms as they allow access to large number of games without the need of allocating large storage space. Additionally new hardcore gamers are also anticipated to onboard cloud gaming platforms as they offer comparatively cheaper gaming setups than traditional setups. Furthermore, rise in game streaming segment is also projected to fuel the demand for cloud gaming from hardcore gaming segment.
The regional segment comprises of Europe, Asia Pacific, North America, the Middle East & Africa and Latin America. The Asia Pacific region held the dominating market share in the year 2022. Large number of internet users are based in Asia Pacific region. Gaming is very popular in countries such as Japan, China, Indonesia. Recently in Indian subcontinent (India, Bangladesh, Pakistan) gaming is gaining tremendous popularity. For instance, according to a report by google in the year 2021 the Asia Pacific region approximately accounted for 50% of the revenue.
Moreover, North America is anticipated to showcase substantial market growth over the forecasted developed gaming culture and presence of key market players in the region is estimated to fuel the revenue growth over the forecasted period.
Cloud Gaming Market Competitive Landscape:
The report on Cloud Gaming Market presents a comprehensive analysis of macroeconomic factors such as market dynamics, SWOT analysis, segmental analysis and others. In terms of market players, the data is related to business collaborations, mergers and acquisitions, product innovations, and strategies adopted by competitors. These factors are studied to offer an insightful understanding of current market circumstances. Following are the major market players that comprise the latest market concentration–
• Nvidia GeForce Now
• Amazon Luna
• Microsoft xCloud
• Vortex Cloud Gaming
• In January 2022, Microsoft announced acquisition of Activision Blizzard for USD 95.00 per share the deal was valued at USD 68.7 billion.