April 13, 2024
Cloud Gaming Market

Cloud Gaming Market is Rise with 5G Enabling High-Quality On-Demand Experiences

Cloud gaming allows users to stream and play video games without requiring powerful computers or gaming consoles. Games are processed on remote servers in data centers, and outputs are streamed to users over the internet. Technologies such as server virtualization and streaming protocols deliver high-resolution graphics and smooth gameplay to a wide array of devices like PCs, smartphones, and smart TVs. Rapid advancements in 5G networks are enabling new possibilities for cloud gaming by providing faster, lower latency connections required for immersive experiences. 5G promises to deliver previously impossible levels of responsiveness and quality that will push cloud gaming into the mainstream.

The Global Cloud Gaming Market Demand is estimated to be valued at US$ 591.53 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2030.

Key Takeaways
Key players: Key players operating in the cloud gaming market are Daikin Industries Ltd, Sharp Corporation, Mitsubishi Corporation, Hitachi Ltd., Haier Electronics Group Co., Ltd., Carrier, Samsung Electronics, Panasonic, Electrolux AB, and LG Electronics.

Daikin Industries Ltd is a leading provider of cloud gaming servers with its advanced cooling technology for data centers. Samsung Electronics launched game streaming services to complement its mobile and TV ecosystems. Hitachi develops low-latency compute and storage solutions tailored for cloud gaming deployments.

Growing demand: Widespread adoption of 5G is fueling demand for immersive and seamless cloud gaming experiences. Availability of games across different screens without hardware upgrades appeals to gamers of all types. Challenges of high-end PC and console gaming are diminishing the barriers to entry.

Global expansion: Major cloud gaming providers are partnering with mobile carriers worldwide to expand their reach. Service availability across Asia, Latin America, Middle East and Africa will unlock a vast untapped market. Data center build-outs in these regions will ensure low latencies for superior quality.

Market key trends
The ongoing rollout of 5G globally is a major catalyst enabling cloud gaming adoption. 5G networks make it possible to stream high-resolution games without latency issues. More countries achieving nationwide 5G coverage will bring benefits like fiber-like speeds to rural regions as well. Hardware innovations are lowering costs of cloud gaming infrastructure. Advancements in edge computing bring servers and storage closer to end users for single-digit latency.

Porter’s Analysis
Threat of new entrants: Low capital requirement and accessibility to latest cloud technologies allow new startups to enter the market easily.
Bargaining power of buyers: Lower subscriptions rates and accessibility across various devices increase bargaining power for buyers to switch between providers based on pricing and content.
Bargaining power of suppliers: Dominance of a few technology giants like Microsoft, Google, Nvidia etc as infrastructure and platform providers gives them significant bargaining power over other market participants.
Threat of new substitutes: Alternatives like game streaming, local gaming and consoles pose potential threat based on reliable connectivity and quality of experience.
Competitive rivalry: Intense competition between different cloud gaming platforms to acquire users and exclusive games compels providers to invest heavily in improving user experience and expanding library.

Geographical Regions
Currently North America accounts for the largest share in the global cloud gaming market primarily due to high adoption of advanced technologies and presence of major players in the region.

The Asia Pacific region is expected to witness fastest growth during the forecast period attributed to rising internet penetration, increasing middle class population and growing gamer base in densely populated countries like China and India driving the demand. However the growth would depend on advancement of network infrastructure to ensure uninterrupted connectivity.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it