Market Definition
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
The Global Cloud Gaming Market is projected to grow at around 30% CAGR during the forecast period, i.e., 2021-26. The growth of the market is driven primarily 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.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR | 30% |
| Regions Covered | North America: The US, Canada, Mexico |
| South America: Brazil, Argentina | |
| Europe: UK, Germany, France, Italy, Spain | |
| Asia Pacific: China, Japan, India, South Korea | |
| Middle East & Africa: Saudi Arabia, UAE, South Africa | |
| 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 providers to improve customer engagement, which, in turn, would act as a promising growth opportunity for the global market in the years to come.
Market Segmentation:
Based on Device:
Amongst all devices, Smartphones are projected to witness rapid growth in the Global Cloud Gaming Market during 2021-26, 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.
By Gamer Type:
Here, Casual gamers dominate the market with the largest share, and the same trend is expected during 2021-26. 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 e-Sports tournaments that offer lucrative prize money are other crucial aspects projected to fuel the demand for cloud games among casual gamers through 2026.
Regional Landscape
Geographically, the Global Cloud Gaming Market expands across:
Of all regions globally, Asia-Pacific is expecting the largest share in the Cloud Gaming Market during 2021-26. 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.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Cloud Gaming Market is projected to witness around 30% CAGR during 2021-26.
A. The introduction of 5G, with massive ongoing investments in developing & expanding its infrastructure, coupled with numerous improvements in the internet services and the mounting penetration of smartphone users, are the key factors projected to drive the Global Cloud Gaming Market during 2021-26.
A. Smartphones are projected to emerge as an area of remunerative opportunities for the leading players in the Global Cloud Gaming Market over the forecast years.
