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%.

Market Synopsis

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.

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.

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.

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.

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.