December 8, 2024
Cloud Gaming Market
Ict

The Growth In Mobile Gaming Is Anticipated To Open Up The New Avenue For Cloud Gaming Market

The Cloud Gaming Market is estimated to be valued at US$ 513.48 Mn in 2023 and is expected to exhibit a CAGR of 42% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Cloud gaming or gaming streaming allows users to play video games on any device without need for hardware of own by leveraging the computational power and storage of remote servers. The gaming content is processed and streamed over the internet to any device such as computers, tablets, smartphones etc. This allows users to play high graphic intensive games on any device with basic hardware and internet connectivity.

Market Dynamics:
Rising demand for mobile gaming – Mobile gaming has increased significantly over past few years with rise in smartphone penetration globally. As per data, mobile gaming revenue was US$ 77.2 billion in 2021 and is estimated keep growing in coming years. This rise in mobile gaming is driving the demand for cloud gaming as it allows users to play graphic intensive games on mobile and tablets without need for high performance hardware.
Rapid technology advancement – Technology like 5G networks, edge computing and AI/ML has advanced significantly which is helping improve the capabilities and efficiency of cloud gaming platforms. 5G provides low latency and high bandwidth necessary for smooth gaming experience. Edge computing brings servers closer to reduce latency further. AI/ML helps analyze gamers behavior and optimize resource allocation. These technological developments are fueling the adoptions of cloud gaming.

Segment Analysis

The Cloud Gaming market size can be segmented into gaming platform and gamer type. Based on gaming platform, the streaming segment is expected to be the largest contributor to the market during the forecast period. This is mainly owing to low requirement of hardware, easy accessibility to games across multiple devices through streaming, and ability to instantly launch multiple games. However, the virtualization segment is predicted to showcase the highest growth rate during the forecast period owing to ability to access high-end games on low-configuration devices through virtualization of gaming infrastructure on remote servers.

PEST Analysis

Political: Emergence of 5G network and initiatives by governments to improve digital infrastructure will boost market growth. For example, governments of several countries are focusing on developing 5G infrastructure to provide better connectivity for cloud gaming services.

Economic: Increasing popularity of freemium model among gaming platforms coupled with rising disposable income is fueling the market growth.

Social: Changing preferences of millennial and generation Z towards interactive and collaborative gaming experiences is influencing demand for cloud gaming services.

Technological: Advancements in edge computing, AI, and VR technologies are allowing developers to enhance gaming experience. Growing deployment of 5G network is also positively impacting market by ensuring low latency.

Key Takeaways

The global Cloud Gaming market is expected to witness high growth, exhibiting CAGR of 42.% over the forecast period, due to increasing internet penetration and rising number of gamers around the world.

Regionally, North America dominated the market in 2020 and is expected to lead the market during the forecast period. This is attributed to factors such as availability of advanced digital infrastructure, high smartphone and internet penetration, and presence of key market players in the region. However, Asia Pacific is expected to grow at the highest CAGR during the forecast period owing to increasing investments by public and private organizations to enhance digital infrastructure in countries like China and India.

Key players operating in the Cloud Gaming market are Amazon Web Services Inc., Apple, Inc., Electronic Arts, Inc., Google Inc., Intel Corporation, International Business Machines Corporation, Microsoft Corporation, NVIDIA Corporation, Sony Interactive Entertainment LLC, Ubitus Inc., and others. Major players are focused on partnerships, acquisitions, product launches, and geographical expansion to remain competitive in the market. For instance, in 2022, Microsoft acquired Activision Blizzard to strengthen its position in the video game industry.

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

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →