Global Cloud Gaming Market Research Report: Forecast (2023-2028)
In cloud gaming, games are stored entirely in data centers & delivery networks. It eradicates the need for massive downloads & transforming a user’s device into a high-storage terminal, thereby providing significant advantages to both gamers & game providers. With this, all the leading game companies worldwide are shifting to cloud services to deliver interactive & immersive entertainment to consumers. On the other front, the telecom sector is adapting to rapid technological developments to suffice the burgeoning requirements of these gamers moving onto cloud services. As a result, these aspects project a pool of lucrative growth prospects for the cloud gaming industry in the future at the global level.
Market Insights & Analysis: Global Cloud Gaming Market (2023-28)
The Global Cloud Gaming Market is projected to grow at around 30% CAGR during the forecast period, i.e., 2023-28. The growth of the market would be propelled mainly by the mounting demand for low latency & high-speed gaming experiences facilitated through the 5G technology that enables users to seamlessly stream XR games, coupled with the growing penetration of smartphone users & the internet and the proliferation of immersive & competitive mobile gaming.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: Germany, The UK, France, Spain, Italy, Rest of Europe|
|Asia-Pacific: China, India, Japan, South Korea, Rest of Asia-Pacific|
|South America: Brazil, Argentina, Rest of South America|
|Middle East & Africa: UAE, Saudi Arabia, South Africa, Rest of MEA|
|Key Companies Profiled||NVIDIA Corporation, Intel Corporation, Google, Microsoft Corporation, Amazon Web Services Inc. , Advanced Micro Devices, Sony Interactive Entertainment LLC, IBM, Tencent, Alibaba, Apple, Inc., Ubitus Inc., Electronic Arts, Inc., Rainway, Parsec Cloud, Inc.|
|Unit Denominations||USD Million/Billion|
Cloud gaming is the future of the gaming sector, where the cloud plays a crucial role in providing a seamless gaming experience to users without the requirements for additional hardware or storage. It allows users to play games on online servers instead of installing them on a console or computer and offers benefits like enhanced speed & flexibility. As a result, many leading market players & telecom providers worldwide are collaborating to meet the growing demand for a 5G cloud gaming experience among gamers.
Moreover, since the majority population spends excessive time on social networking platforms like Facebook, Instagram, etc., to play games, the advent of social media games is another lucrative opportunity for the global market to expand over the forecast years. Due to this, many social networking organizations are actively working on acquiring cloud gaming solutions to improve customer engagement, which, in turn, would act as a promising growth opportunity, further enhancing the Global Cloud Gaming Market size in the years to come.
Key Driver: Ever-Increasing Consumer Demand for Seamless Gaming Experiences across Different Devices
Cloud gaming enables users to access & play games on different devices like smartphones, tablets, smart TVs, & low-spec PCs without the need for high-end gaming hardware or even regularly upgrading those systems to keep up with the latest gaming requirements. This accessibility & device flexibility appeal to a massive audience, including casual gamers who may not have powerful PCs or dedicated gaming consoles, thereby fueling the adoption of cloud gaming. Hence, by streaming games from remote servers, cloud gaming reduces the initial investment and offers a cost-effective alternative for users to access an extensive range of games without having to buy individual titles, i.e., the prime aspect projected to drive the Global Cloud Gaming Market during 2023-28.
Growth Restraint: Inadequate Internet Infrastructure & Speeds in Some Regions
While cloud gaming offers the convenience of streaming games without the need for powerful hardware, it heavily relies on a stable & fast internet connection that can handle high bandwidth & low-latency data transmission to deliver a seamless gaming experience. In regions with limited or unreliable internet connectivity, gamers may face issues like lag, latency, & interruptions during gameplay and, in turn, poor image quality, input delay, & overall dissatisfaction for users. Hence, this aspect restricts the adoption of cloud gaming by individuals living in regions with poor internet infrastructure and thus is the prime growth restraint for the Global Cloud Gaming Market.
Based on Devices:
Among them all, Smartphones are projected to witness rapid growth in the Global Cloud Gaming Market during 2023-28, owing primarily to the surging penetration of smartphones, massive expenditure on 5G infrastructure & services and extensive availability of unlimited & affordable internet plans worldwide. Over the past few years, there's been a rapid rise in mobile gaming globally, especially with the advent of Covid-19 in 2020, owing prominently to its cost-effectiveness.
With ultra-fast networks, gamers can now stream high-definition games on their smartphones, and it has eliminated the need for constantly upgrading hardware, graphics, or gaming consoles. Moreover, the burgeoning demand for mobile games worldwide is also influenced positively by the integration of advanced technologies like 5G, Augmented Reality, & Virtual Reality into cloud gaming. Hence, these aspects are projected to promote the expansion of the global cloud gaming market for smartphones.
Based on Gamer Type:
Here, Casual gamers dominate the market with the largest share, and the same trend is expected during 2023-28. It attributes principally to the cost-effectiveness & convenience associated with cloud gaming. Moreover, continuous enhancements in the internet services and the introduction of affordable 5G smartphones, which have enabled high speed & low latency streaming, are also expected to boost the demand for cloud gaming among casual gamers over the forecast years.
Furthermore, the Covid-19 pandemic in 2020 that resulted in the home quarantine of a large chunk of the population has also contributed to the increasing number of casual gamers worldwide. Nevertheless, the rising popularity of e-Sports and the growing number of such tournaments that offer lucrative prize money are other crucial aspects projected to fuel the demand for cloud games among casual gamers through 2028.
Of all regions globally, Asia-Pacific expects the largest share in the Cloud Gaming Market during 2023-28. The various initiatives taken by governments of different countries for infrastructural developments associated with the 5G technology and the mounting utilization of cloud gaming platforms owing to their cost-effective nature are the prime aspects driving the regional market. Besides, increasing mergers & acquisitions among the leading industry players & cloud service providers to expand their offerings are also fueling the market growth across Asia-Pacific.
Japan, after China, is the largest market in the region, owing to the already extensive & rapidly expanding presence of leading game companies like Nintendo, Sony, etc., for years, coupled with rapid technological developments in the country. On the other hand, India is expected to become the leading market for cloud gaming in the coming years on account of the burgeoning disposable income of people, the emergence of new & unique gaming categories, and the surging penetration of smartphones in the country.
Recent Developments in the Global Cloud Gaming Market
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Frequently Asked Questions
A. The Cloud Gaming Market is expected to record around 30% CAGR during 2023-28.
A. The growing consumer demand for seamless gaming experiences across different devices is the prime factor projected to drive the Cloud Gaming Market during 2023-28.
A. NVIDIA Corporation, Intel Corporation, Google, Microsoft Corporation, Amazon Web Services Inc., Advanced Micro Devices, Sony Interactive Entertainment LLC, IBM, Tencent, Alibaba, Apple, Inc., Ubitus Inc., Electronic Arts, Inc., Rainway, and Parsec Cloud, Inc. are the key players operating in the Cloud Gaming Market.
A. The lack of adequate internet infrastructure & speeds in some regions is the major factor that might hinder the growth of the Cloud Gaming Market in the forecast period.
A. Casual gamers would create lucrative prospects for the leading companies in the Cloud Gaming Market during 2023-28.
A. Asia-Pacific is expected to emerge as a promising region for the Cloud Gaming Market to witness profitable opportunities over the forecast years.