The global cloud gaming market size was estimated at USD 311.6 Million in 2019. It is anticipated to reach USD 2,610.3 Million by 2027, growing at a CAGR of 48.1% over the forecast period. Substantial growth in the mobile gaming market, growing penetration of smartphones are the key factors responsible for the massive growth. Moreover, The growing gamers attraction towards AR & VR based games, Multi-player online games is positively benefitting the market. Additionally, the increase in internet penetration in developing countries such as India, Indonesia, Brazil, is profiting the market.
The current games use the device as a storage to store game data, player information, and uses device resources such as RAM, GPU to enable smooth gameplay. The cloud gaming stores all game data & files on remote data centers and content delivery networks (CDN). This offers high-resolution gameplay, smoother performance, better device storage management by eliminating the need to download a game to the device separately. There will be no need to purchase a separate device such as a gaming console (Playstation, XBOX) for high-end gaming, your existing device may very well support the high-quality gameplay.
The game developing companies have partnered with tech giants that are willing to disrupt this industry, to produce compatible games, and to capture the huge gamers audience with this next-gen offering. A collaboration between CDN, streaming services provider, and game developer is necessary to deploy cloud gaming efficiently. The telecom companies also play a crucial role in cloud gaming deployment, therefore the many telcos are in contact with tech giants to support their future plans related to the cloud gaming industry
Cloud gaming also offers remote account access to players, as the gaming data is saved in the cloud, the player can log in from any device and continue the gameplay. This concept will certainly benefit low-income group gamers, as the need to buy a separate gaming console or even a high configuration smartphone is eliminated completely. The hustle of downloading large game files and updating them from time-to-time will also be eliminated.
There are few technical challenges in deploying cloud gaming, for instance, the games have one of the most critical codes & content which is technically challenging to be served via a remote datacenter as multiple files need to be exchanged in realtime to enable smooth gameplay. it requires a strong bandwidth internet connection for the best gaming experience, which is quite challenging in developing countries, poor internet connectivity may cause gaming latency impacting the overall gaming experience. Moreover, increasing internet tariffs also acts as a challenge in cloud gaming market growth. The games in your device such as mobile, PC, gaming console can be tweaked based on your device configuration for best performance, which is not the scenario for cloud gaming. Cloud Gaming works on the concept of “One Size, Fits All”, which acts as a key market growth restraint.
Based on offering the global cloud gaming market can be segregated into infrastructure and gaming platforms. The gaming platform segment that includes various cloud PC platforms such as GeForce NOW, Blade’s Shadow, Sony PlayStation accounted for the largest market share in 2019. These platforms are the core of all cloud gaming concept, they provide the remote servers that wherein the users can virtually install games and play online from any device. The customer has the freedom to purchase a cloud platform with various configurations based on their need, customers are charged for a monthly, annual subscription. Recently, tech giants such as Google and Microsoft have also entered the cloud gaming industry with their Stadia and Xcloud platforms respectively. The infrastructure segment is growing at a moderate growth rate since the last few years.
On the basis of device type, the cloud gaming market can be segmented into Gaming consoles, PC & Laptop, Smartphone & tablet, Smart Television, and HMD (Head Mounted Displays). Considering the massive 2.5 Billion mobile gamers population, the smartphone segment is leading the cloud gaming market in 2019. Mobile games account for greater than 70% of mobile stores (Google Play Store, Apple App Store) revenue. Considering the convenience that mobile offers to gamers, the market will continue to expand over the forecast period.
The specialized gaming devices such as gaming laptop/PC, Gaming console are expensive commodities, not everyone can afford such items. However, the professional gamers still prefer PC/Laptop or Consoles, considering its large screen size and support for high size games such as GTA-V (Nearly 65GB download size), which is beyond the capacity of a smartphone.
On the basis of streaming the market is bifurcated into video streaming and file streaming. The video streaming segment accounted for greater than 60% market share in 2019, this service enables accessing games from any device remotely on any platform. Moreover, the streaming helps to eliminate the need to download and update games on the device.
The file streaming segment is expected to attain the fastest CAGR in the upcoming few years, as companies are trying to deploy high-resolution PC games on the cloud which will require the exchange and streaming of files.
Based on gamers type, the market can be segregated into Casual, Enthusiastic, and Hardcore players. the casual gamers account for the largest market size in 2019, the casual game of generally prefer playing low-mid quality games, also the number of casual gamer around 60% of the total gamer population. Moreover, the development of deploying 5G network services is expected to further boost the global cloud gaming market growth over the forecast period.
The hardcore player segment is growing at a moderate growth rate, as these players are used to play high-end games which are currently not available on cloud gaming platforms therefore companies need to develop games optimized for cloud gaming platforms in order to capture the hardcore gamers segment.
The Asia Pacific cloud gaming market is growing at the highest growth rate owing to substantial growth in the 5G infrastructure development, reasons of a large number of mobile gaming development companies, and high growth in smartphone users in recent years.oreover, the cloud gaming platforms are cost-effective in nature, and are expected to attract the gaming population in the developing countries such as India, Indonesia, Pakistan, and Bangladesh.it is highly necessary for a cloud gaming platform to create awareness among farmers about the concept of cloud gaming, as most of The Gamers population in the developing countries are not well aware of the cloud gaming and its advantages.
North America and the European cloud giving market are growing at a substantial growth rate for the last few years. High per capita income, growing investment in gaming Technology, and the availability of necessary cloud gaming infrastructure in these particular regions are expected to boost the regional market growth.
The Global cloud gaming market is dominated by companies such as Nvidia, Intel, Amazon, Google, Sony, and Tencent. The market has a high entry barrier such as investment requirements, infrastructure requirements, and experienced labor requirements, which prevents new companies from entering the cloud gaming ecosystem. The companies utilize advanced technology such as Augmented reality, virtual reality, 3D gaming in order to provide the user with the best gaming experience.
|The base year for estimation||2019|
|Actual estimates/Historical data||2017 – 2019|
|Forecast period||2020 – 2027|
|Market representation||Revenue in USD Billion & CAGR from 2020 to 2027|
|Regional scope||North America, Europe, Asia Pacific, Latin America, Middle East & Africa|
|Country scope||U.S., Canada, UK, Germany, France, China, India, Japan, South Korea, Taiwan, Brazil, Mexico, UAE, and KSA|
|Report coverage||Market size estimates and forecast, company market share analysis, competitive landscape, market dynamics, drivers, restraints, opportunities & challenges, qualitative analysis and trends|
|25% free customization scope (equivalent to 9 analysts working days)||Do you have any additional requirements? We can incorporate the same at no extra cost.|
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