Cloud Gaming Market

The global cloud gaming market size was valued at nearly USD 1.02 Billion in 2022 and is anticipated to reach USD 29.81 Billion by 2031, expanding at a CAGR of 45.5% during 2023 – 2031. The growth of the market is attributed to the increasing popularity of cloud gaming with the ubiquity of amplified cross-platform gameplay.

Smartphone manufactures are focusing on developing gaming smartphones to offer an efficient gaming experience to players. For instance, Vivo Mobile Communication Co., Ltd. introduced a gaming smartphone which was iQOO 3 in February 2020. The smartphone is provided with a 5G capabilities and Snapdragon 865 processor to offer a transparent and magnified gaming experience to players. A notable percentage of the world population spend time on social networking sites including Instagram, Facebook, and Reddit to play games.

Get Free Sample Report

In addition, social networking companies are focusing on obtain cloud game contributors to provide various cloud games on social media platforms and improve customers engagement. For instance, Facebook, Inc. acquired Playgiga, which is a cloud gaming service provider in December 2019. By the acquisition, the company launched cloud gaming services on its platform to grow user engagement.

Cloud gaming allows users to play games over remote servers rather than asking to install a game on the computer, therefore eradicated storage problems and the demand for purchasing the latest gaming PCs. Advantages provided by cloud gaming are improved speed, scalability, and better user insights. Cloud gaming also helps to restructure content on several smart devices, which enhances the conveyance of content in overall mediums.

The COVID-19 pandemic outbreak has positively impacted the growth of the cloud gaming market. A large number of the global population were forced to undergo quarantined at home due to restrictions of lockdown imposed and search-engines were offering many interesting games on their homepage in order to increase user base. For instance, Google LLC introduced a series of cloud-based doodles of its popular previous games in April 2020. Various vendors are also making efforts to encourage cloud gaming with promoting social distancing. For instance, Google LLC cut off the entry fee for the Stadia cloud gaming service, consequently making video games available to users for free.

Cloud Gaming Market Trends, Drivers, Restraints, and Opportunities

• Rising proliferation of easy access to games on the cloud and internet services are some of the major factors contributing to the market growth.
• Wide penetration of smartphones across the globe and increasing trend of social media games in millennial are expected to provide growth platform to the market.
• Developments of network infrastructure for instance 5G offer higher bandwidth and high speed, which enables gamers to seamlessly stream XR gaming. This is expected to boost the market growth during the forecast period.
• Lack of efficient network infrastructure specifically in developing countries such as Brazil, India, and Mexico that cause fluctuating internet speed. This is expected to be a key challenge restraining the market expansion.
• Payment process that include the processing of debit card, electronic checks, and credit card is projected to offer lucrative opportunities for the market growth.

Scope of the Cloud Gaming Market Report                               

The report on the global cloud gaming market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Cloud Gaming Market Segment Insights

Video streaming segment is anticipated to account for a key market share

Based on types, the global cloud gaming market is bifurcated into file streaming and video streaming. The video streaming segment is anticipated to account for a key share of the market during the projected period as it eliminates the need for additional hardware devices. However, the file streaming segment is anticipated to expand at a rapid pace during the forecast period due to increasing rapidly as these games enable in-game communication and offer an improved gaming experience.

Get Free Sample Report

Gaming consoles segment is estimated to expand at a robust growth rate

In terms of devices, the market is differentiated into tablets, smartphones, PCs & laptops, gaming consoles, smart TVs, and head-mounted displays. The gaming consoles segment is estimated to expand at a robust growth rate in the coming years owing to rising expansion of gaming platforms due to broad development of digitalization. Meanwhile, the PCs & laptops segment is projected to exhibit a high growth rate during the forecast period as PC gaming is more affordable as compared to console gaming.

Get Free Sample Report

Casual gamers segment is projected to expand at a considerable CAGR

On the basis of gamer types, the global cloud gaming market is divided into avid gamers, casual gamers, and lifestyle gamers. The casual gamers segment is projected to expand at a considerable CAGR during the forecast period as a large chunk of the global population were forced to quarantine during the pandemic, which increased the number of casual gamers. On the other hand, the lifestyle gamers segment is expected to account for a key market share in the coming years due to the rising number of eSports competitions and increasing popularity of eSports tournaments across the world. For instance, a Fortnite World Cup was organized by Epic Games, in that over 35 million gamers participated. The company introduced USD 3 million prize money award for duo and solo winners in July 2019.

Asia Pacific is anticipated to constitute a key market share

In terms of regions, the global cloud gaming market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of Asia Pacific is anticipated to constitute a key share of the market during the projected period due to growing penetration of smartphones and rising demand for entertainment across the region. For instance, Alibaba Cloud partnered with Ubitus Inc. to introduce a cloud gaming solution on the Alibaba cloud platform in September 2019.

The market of North America, however, is expected to represent a major share of the market in the coming years owing to the presence of key vendors such as Apple Inc.; Google, LLC; Microsoft Corporation; and International Business Machines Corporation in the region. For instance, Apple Inc. introduced a video game service, which was Apple Arcade for iOS, iPadOS, macOS, and tvOS in November 2019.

Segments

The global cloud gaming market has been segmented on the basis of

Types

• File Streaming
• Video Streaming

Devices

• Tablets
• Smartphones
• PCs & Laptop
• Gaming Consoles
• Smart TVs
• Head-mounted Displays

Gamer Types

• Avid Gamers
• Casual Gamers
• Lifestyle Gamers

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Apple, Inc.
• Amazon Web Services Inc.
• Google Inc.
• Electronic Arts, Inc.
• International Business Machines Corporation
• Intel Corporation
• NVIDIA Corporation
• Microsoft Corporation
• Ubitus Inc.
• Sony Interactive Entertainment LLC

Competitive Landscape

Key players competing in the global cloud gaming market share are Apple, Inc.; Amazon Web Services Inc.; Google Inc.; Electronic Arts, Inc.; International Business Machines Corporation; Intel Corporation; NVIDIA Corporation; Microsoft Corporation; Ubitus Inc.; and Sony Interactive Entertainment LLC.

The main market players are continuously engaged in various development strategies such as mergers and acquisitions, research and developments, investments for innovative products, and collaborations. For instance, Tencent partnered with a chip designer company called NVIDIA Corporation to introduce cloud gaming in China in December 2019.