CAGR: 36.91% Current Market Size: USD 561.22 million Fastest Growing Region: North America
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
Global cloud gaming market is expected to grow from USD 561.22 million in 2021 to USD 6928.10 million by 2029, at a CAGR of 36.91% during the Projection period 2022-2029.The increasing popularity of cloud technology in gaming is the primary driver of the market. The rising penetration of the internet is providing lucrative growth opportunities to the cloud gaming market. The millennial and Gen Z population are more inclined toward cloud gaming and thus they are the major end-consumers. The advancement in the network infrastructure of 5G offers high bandwidth and lower latency, which enables the developer to integrate virtual reality.
Cloud gaming is generally referred to as gaming on-demand or even gaming as a service. Cloud gaming is the widely used type of gaming that uses remote servers directly to the user’s device. Cloud gaming is an advancement of traditional gaming systems, where the user played games on mobile devices and personal computers. The objective of developing cloud games is to eliminate the requirement of expensive hardware. The traditional games could have only been installed using such hardware devices. Cloud gaming requires the user to pay a subscription fee and in return, they get access to a set of games included in the library. This gaming requires a high-speed internet connection that is reliable. These types of games can be used on different devices such as smartphones, tablets, etc. Cloud gaming offers several additional features that attract a higher number of consumers.
Request Sample:- Global Cloud Gaming Market
Market Dynamics:
Drivers:
Cloud gaming have exceptional attributes as compared to traditional gaming, which is why they are used by a huge chunk of the population. Cloud gaming can be operated on several devices such as smartphones, personal computers, laptops, consoles, etc. Cloud gaming even helps the player to join a session from a remote location at any given time. There are some cloud games that are based on virtualized operating system environment. Further, the increasing penetration of the internet along with the rising preference for video games. These gamers are preferring to play the games directly on the external cloud servers.
The emergence of new technologies in 5G infrastructure, development of cloud technology, and implementation of external servers are also. Thus, with the growing development of such technology, the use of cloud gaming is also increasing. The demand for cloud gaming is increasing with the expansion of the 5G technology industry. Cloud gaming technology provides a better experience over a wide variety of platforms. The digital space is providing lucrative growth opportunities for the development of cloud technologies. Cloud technology focuses on the building of virtual gaming environments for the players.
Restraints:
The cloud gaming market's expansion is being hampered by the lack of infrastructure in developing and underdeveloped regions. Cloud gaming technologies require the use of efficient infrastructure in order to provide a user interface. Several developing countries do not invest adequately in cloud technology. The lack of such technology hampers the growth of the cloud gaming market.
Opportunities:
The expansion of the smartphone industry is providing lucrative opportunities to the cloud gaming market. The rising penetration of smartphones can be attributed to the rising per capita income. Consumers are more inclined toward the adoption of smartphones as they can use them for different purposes. The vast majority of the population prefers to use cloud games on Instagram, Reddit, and Facebook. These social media platforms provide engagement for the customers. This factor is providing growth opportunities for the cloud gaming market.
Challenges
Cloud gaming requires extensive research and development processes in order to be launched in the market. The technology used for the manufacturing of cloud gaming is rigorous and requires the use of high-end network infrastructure. Further, the launch of the product requires a rigorous development process and thus this leads to delay in the commercialization of the product.
Segmentation Analysis:
The global cloud gaming market has been segmented based on technology, device, offering, gamers, and regions.
By Technology
The technology segment includes file streaming and video streaming. The video streaming segment led the cloud gaming market with a market share of around 61.74% in 2021. Video streaming gaming is more popular owing to its beneficial attributes. The need for video streaming eliminates the requirement for additional hardware devices. Thus, video streaming can be used from anywhere using the internet.
By Device
The device industry segment includes laptops, personal computers, smartphones, smart TV, and consoles. The consoles segment led the cloud gaming market with a market share of around 56.93% in 2021. Consoles are one of the most popular ways to operate cloud gaming. The benefits of consoles include high-end displays and sound systems. The use of gaming consoles offers a rich experience to the gamers and thus drives the cloud gaming market.
By Offering
The offering segment includes infrastructure and gaming platform service. The gaming platform service segment led the cloud gaming market with a market share of around 54.01% in 2021. Gaming platform services are required to provide an efficient gateway for playing cloud gaming. The gaming platform service eliminates the requirement of installing expensive hardware. There are many companies like Sony, GeForce, Microsoft, etc. provide gaming platform services.
By Gamers
The gamers segment includes casual gamers and hardcore gamers. The casual gamers segment led the cloud gaming market with a market share of around 57.93% in 2021. Casual gamers prefer cloud gaming as they can play it on various hardware devices. The higher penetration of smartphones has led to an increase in the number of casual gamers. Further, improvement in the 5G network infrastructure, has attracted many casual gamers to play cloud games.
By Regional Analysis
The regions analyzed for the cloud gaming market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia-Pacific region dominated the cloud gaming market and held the 41.43% share of the market revenue in 2021.
Global Cloud Gaming Market- Country Analysis:
In the North American region, the USA is the largest market shareholder in the cloud gaming market with an estimated market share of around 57.92% by the end of 2022. The high consumer base of cloud gaming in the states is anticipated to drive the market growth of cloud gaming in USA. Also, the availability of high-end network infrastructure provides easy accessibility to the gaming community.
Japan is the largest cloud gaming market across the globe with an estimated market share of 45.41% across the Asia region by 2022. There are many tech giants present in the country and also there are high numbers of casual gamers. There are too many cloud providers that have partnered with different entertainment companies in order to provide an efficient user interface.
Key Industry Players Analysis
To increase their market position in the global cloud gaming business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
Latest Development
Report Attribute
Report Metric |
Details |
Study Period |
2018-2029 |
Base Year |
2021 |
Projection Period |
2022-2029 |
Market Share Unit |
USD Million |
Segments Covered |
Technology, Device, Offering and Gamers |
Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle-East and Africa |
Major Players |
Amazon Web Services Inc., Electronic Arts, Inc., Apple, Inc., Google Inc., International Business Machines Corporation, Intel Corporation, Microsoft Corporation, Sony Interactive Entertainment LLC, NVIDIA Corporation, Ubitus Inc among others |
Scope of the Report
Global Cloud Gaming Market by Technology:
Global Cloud Gaming Market by Device:
Global Cloud Gaming Market by Offering:
Global Cloud Gaming Market by Gamers:
Global Cloud Gaming Market by Region:
Current market size of Global cloud gaming Market is USD 561.22 million in 2021
USA is largest market in North America with an estimated market share of around 57.92% by the end of 2022
The global cloud gaming market has been segmented based on technology, device, offering, gamers and regions.
Leading market players active in the global cloud gaming market are Amazon Web Services Inc., Electronic Arts, Inc., Apple, Inc., Google Inc., International Business Machines Corporation, Intel Corporation, Microsoft Corporation, Sony Interactive Entertainment LLC, NVIDIA Corporation, Ubitus Inc among others.
Manufacturers in the cloud gaming market are using advanced technologies to incorporate better results, and performance of the cloud gaming. In addition, the rising number of investments will contribute to the demand for cloud gaming.
Rising preference for cloud gaming, increasing options of gaming devices, and penetration of the internet, is primarily driving the growth of the cloud gaming market.
Political Factors- Cloud gaming technologies require the use of efficient infrastructure in order to provide a user interface. Several developing countries do not invest adequately in cloud technology. The lack of such technology hampers the growth of the cloud gaming market. Political factors are one of the significant factors that largely affect the operations of the organization in the livestock monitoring market. The manufacturers should be well-versed with the regional laws and legislation, rules and regulations, import and export policies, etc. The concerned regional agencies provide guidelines to the manufacturing companies regarding the procurement of materials and specifications for the use of it.
Economical Factors- Cloud gaming requires the user to pay a subscription fee and in return, they get access to a set of games included in the library. The organization can leverage this trend by expanding its product range and targeting new customers. For instance, a major company, International Business Machines Corporation, had invested 8%, of the company’s total revenue, in the research and development process to develop advanced solutions and products in the cloud gaming industry. The rising penetration of smartphones can be attributed to the rising per capita income. Consumers are more inclined toward the adoption of smartphones as they can use them for different purposes. The vast majority of the population prefers to use cloud games on Instagram, Reddit, and Facebook. These social media platforms provide engagement for the customers. This factor is providing growth opportunities for the cloud gaming market.
Social Factor- The increasing penetration of smartphones, PCs, laptops, and gaming consoles has led to a rise in demand for cloud gaming. The countries such as China, India, Japan, Malaysia, and Singapore are the major end-users of cloud gaming. The increasing industrialization and urbanization, are providing lucrative opportunities for the market growth of cloud gaming. Further, the presence of multiple gaming service providers in the regional countries has increased the number of cloud gaming platforms offered to the customers.
Technological Factors- The emergence of new technologies in 5G infrastructure, development of cloud technology, and implementation of external servers are also. Thus, with the growing development of such technology, the use of cloud gaming is also increasing. The demand for cloud gaming is increasing with the expansion of the 5G technology industry. Cloud gaming technology provides a better experience over a wide variety of platforms. The digital space is providing lucrative growth opportunities for the development of cloud technologies. Cloud technology focuses on the building of virtual gaming environments for the players.
Environmental Factors- According to various studies, the penetration of technology and mobile phones has damaged the environment and caused the death of biodiversity. Penetration of technology caused global warming in addition to biodiversity loss, water & land degradation, acid rain, deforestation, and coral reef degeneration. Hence, the aforementioned environmental concerns triggered by cloud gaming may pose significant challenges to market growth.
Legal Factors- The multiple legislations and laws prevailing in the region must be followed by manufacturers. In order to set up a business, the manufacturer must require to pass the stringent regulations by regional agencies. Thus, companies should extensively focus on the legal factors of the country. Moreover, the laws related to employment laws, import and export, and labor laws must be taken care of. A lawful and legal organization can effectively survive in the long run. For instance, recently, Ubitus Inc., collaborated with the Intel Corporation, announced the latest Android cloud gaming, which is based on the Intel GPU
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