Global Cloud Gaming Market Research Report: Forecast (2023-2028)

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 & 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.

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.

Market Dynamics

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.

Market Segmentation

Based on Devices:

• Smartphones
• Tablets
• Gaming Consoles
• PCs & Laptops
• Smart TVs
• Head-Mounted Displays

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:

• Casual Gamers
• Avid Gamers
• Lifestyle Gamers

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.

Regional Projection

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

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

• In April 2023, LG Electronics (LG) announced expanding the cloud gaming experience on its 2023 TVs by adding 4K (3,840 x 2,160) support for NVIDIA GeForce NOW in over eighty countries while also launching the popular Boosteroid service in over sixty countries. Post the additions of Blacknut & Utomik in September 2022, these new, compelling options will further bolster the suite of cloud gaming services available to LG TV users.
• In January 2022, Utomik announced signing a partnership with Samsung to bring Utomik's game subscription service to Samsung Smart TV users globally using its unique hybrid gaming platform. This partnership will provide the ever-growing audience access to Utomik's extensive library of high-quality, handpicked games.
• The same year & month, Microsoft announced its plans to acquire Activision Blizzard Inc., a leader in game development & interactive entertainment content publisher. This acquisition will accelerate the growth in Microsoft's gaming business across mobile, PC, console & cloud and will provide building blocks for the metaverse.

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