by Cloud gaming, also known as gaming on demand, is a form of online gaming which allows playing video games hosted on remote servers streamed to different devices over the internet. It allows gamers to play games online without hardware requirements such as gaming computers, consoles, graphic cards or solid state drives. With advancements in 5G connectivity and edge computing, cloud gaming is revolutionizing the gaming industry by providing an accessible, cost-effective and seamless gaming experience across different devices.
The global cloud gaming market is estimated to be valued at US$ 591.53 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
These technologies are enabling seamless gameplay with no lag, compressed streaming and virtualization of gaming hardware. 5G technology in particular is poised to transform the cloud gaming experience with its ultra-low latency and huge bandwidth capabilities. Moreover, cloud gaming removes the need for expensive gaming hardware and allows users to experience console-quality games on any screen using only an internet connection. This ubiquitous access to immersive games on varied devices through rental subscription models is gaining rapid popularity worldwide and propelling the cloud gaming market on an upward growth trajectory over the forecast period.
SWOT Analysis
Strength: Cloud gaming provides greater accessibility to games for users with low-end devices or no dedicated gaming devices since games are run on remote servers. It allows users to play graphically intensive games instantly across a wide range of devices like laptops, tablets and smartphones without lengthy downloads or updates. The pay-per-use pricing model reduces upfront costs for gamers compared to purchasing hardware.
Weakness: Dependence on a stable and high-speed internet connection for optimal gameplay experience. Latency or lag between a player’s input and the corresponding action on screen can negatively impact responsiveness for competitive or action games. Data usage charges from internet service providers may apply depending on the duration and quality of games streamed.
Opportunity: Growing popularity of mobile and cloud-based gaming is driving more users to switch from offline consoles and PCs to cloud gaming services. 5G technology rollout is anticipated to further enhance the cloud gaming experience by enabling higher resolution and shorter latency. Major tech companies are investing heavily to develop advanced cloud platforms and content libraries.
Threats: Traditional game publishers and console manufacturers view cloud gaming as a threat to their businesses and revenue models. They are enhancing their own platforms and services to directly compete with cloud alternatives. Disruptions to internet infrastructure or servers hosting cloud games could impact service availability and reliability.
Key Takeaways
The Global Cloud Gaming Market Size is expected to witness high growth over the forecast period driven by increasing smartphone and broadband penetration worldwide.
The Asia Pacific region currently dominates the market owing to high adoption rates of mobile gaming in countries like China, India, and Japan. Key players are focusing on partnerships to expand game libraries and availability of their cloud services across different platforms and countries in the region.
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. These companies are focusing on developing advanced cloud gaming platforms through acquisitions and partnerships. They aim to leverage their existing user bases across hardware, software and services to increase subscriptions for their cloud-based gaming services.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
