USD 696.6 million
Cloud Gaming Market Size, Share, Growth Analysis, By Type(File Streaming, Video Streaming), By Device(Smartphones, Tablets, Gaming Consoles, PCs & Laptops), By Gamer Type(Casual Gamers, Avid Gamers, Lifestyle Gamers), By Deployment(Public Cloud, Hybrid Cloud, Private Cloud), By Offering(Infrastructure, Compute, Memory, Storage), By Gaming System(PlayStation, Stream My Game, Steam in Home Streaming, Remote Play), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45A2059 |
Region:
Global |
Published Date: June, 2024
Pages:
157
|Tables:
179
|Figures:
79
Cloud Gaming Market Insights
Cloud Gaming Market size was valued at USD 696.6 million in 2022 and is poised to grow from USD 1020 million in 2023 to USD 20940 million by 2031, growing at a CAGR of 45.8% in the forecast period (2024-2031).
Cloud gaming refers to an online game world that does not require any specific hardware. This is a very popular concept that has been adopted by gamers worldwide as it eliminates the need for frequent hardware updates to keep games compatible. Along with an enhanced gaming experience, it also offers a seamless mobile gaming experience. The benefit of file streaming helps companies provide their players with a fluid gaming experience with lower internet rates. In addition, it gives players the option to personalize their gaming library, remember their progress and get instant access to their accounts. It has a wide range of applications in gaming consoles, smartphones, tablets, pcs & laptops, among others.
The growing popularity of cloud gaming, as well as the proliferation of improved cross-platform gameplay, which improves the gaming experience, is expected to drive market growth. Increasing usage of internet services and secure access to online games is increasing the demand for the product. Also, network infrastructure upgrades like 5G provide more bandwidth and lower latency, enabling players to stream XR (augmented reality and virtual reality) gameplay without interruption. The global spread of smartphones is predicted to fuel market expansion. Also, the growing popularity of social media games is expected to fuel market growth. The majority of people on the planet play games on social networking sites like Facebook, Instagram, and Reddit. Also, social networking companies are focusing on hiring cloud game developers to offer a variety of cloud games on social media platforms and increase user engagement. These factors are expected to favorably drive the growth of the global Cloud Gaming Market Share.
US Cloud Gaming Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
gaming consoles
Fastest Growth
gaming consoles
Growth Rate
45.8% CAGR
Global Cloud Gaming Market ($ Bn)
Country Share for Asia Pacific Region
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Cloud Gaming Market Segmental Analysis
Global cloud gaming market is segmented based on type, device, gamer type, deployment, offering, gaming system, and region. In terms of type, the market is segmented into file streaming and video streaming. Based on devices, the market is segmented into smartphones, tablets, gaming consoles, PCs & laptops, smart TVs, and head-mounted displays. Based on gamer type, the market is segmented into casual gamers, avid gamers, and lifestyle gamers. Based on deployment, the market is segmented into public cloud, hybrid cloud, and private cloud. Based on offering, the market is segmented into infrastructure, compute, memory, storage, gaming platform services, content service, and others. Based on gaming system, the market is segmented into play station, stream my game, steam in home streaming, remote play, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Device
The gaming console segment is the largest segment by device in the cloud gaming market and has the highest revenue share, accounting for nearly 50% of the total market. The popularity of consoles is because only a few people can afford or play computer games, and controllers are more convenient than the time and effort required to build or purchase a computer. The growing disposable income also contributes to segmental dominance. For instance, the Microsoft Xbox consoles provide Forza Horizon racing games which attract a large consumer base. These provide high resolution systems suggest the 4K resolution output which attracts modern gamers so that they can experience this also.
The smartphone segment is the fastest growing segment and accounts for more than 10% of the market revenue and is expected to grow at the second-fastest CAGR over the next few years. Most people own smartphones, which are widely available and affordable. Many consumers also own multiple smart devices. The growth is accredited due to the growing availability of premium games that have options for the in-app purchases and subscription methods. The companies in this sector are also targeting mobile gamers or mobile gaming because of the rising adoption of smartphones by customers.
Analysis by Gamer Type
The casual gamers are the largest segment by gamer type global cloud gaming market and are expected to increase the segment's CAGR to over 50%. The freemium model contributes towards the growing popularity of casual games which drives the attention of the larger gamers. The increasing trend of spontaneous gaming is also driving the market. Hyper-casual gaming is one of the most popular game genres right now; it has the most viewers and can be monetized to earn money. For example, over 2 billion people have downloaded games from Voodoo that are truly casual.
The avid gamer segment is the fastest growing segment of the market, followed by the lifestyle gamer segment. It is growing at a CAGR of about 42%. Avid gamers are influencers who help their friends discover games they like. A lifestyle gamer is passionate about playing video games and engages in learning the game's capabilities and strategies. Both segments are expected to witness steady growth during the forecasted period due to their increasing popularity.
Global Cloud Gaming Market Size By Device
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Cloud Gaming Market Regional Insights
Asia-Pacific held the largest market share in the global cloud gaming market in 2021. With the rise in popularity of cloud infrastructure, it is now easier to access a wide range of computing, storage, and communication resources in a reliable, cost-effective, and low-maintenance manner. Gaming services have been classified as one of the fastest growing cloud computing industries in China, and many applications can benefit from these cloud computing capabilities. More cloud-based game operations and development are planned in the future, especially for mobile games. The potential market for on-demand games in homes in China with very high-speed connections is limited by the better compatibility of cloud gaming with IPTV and current technological limitations on streaming.
North America is expected to grow at a CAGR of 43.5% during the forecast period. According to the Entertainment Software Association, 65% of American adults enjoy playing video games. Esports viewership in the US is projected to surpass all other major sports leagues in 2021 with the exception of the NFL. The high penetration of desktops, laptops, and even smartphones in the country allows for rapid growth in cloud gaming. Cloud gaming services combine hyperscale cloud capabilities, global content delivery networks, and streaming media services to create a next-generation platform for interactive, immersive, and social entertainment. The rapid demand for the product in the US is facilitated by the deployment of edge data centers throughout the country and the general accessibility of cloud gaming.
Global Cloud Gaming Market By Geography
- Largest
- Fastest
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Cloud Gaming Market Dynamics
Drivers
The Low-latency Capability of 5G Technology
- Market players are working to reduce technological barriers and associated high costs to attract the diverse range of gamers present across the world. To provide a realistic and distinctive gaming experience, gaming services require low latency. The low latency capability of 5G technology offers more support to providers. With the introduction of 5G, cloud-based gaming is being redesigned to provide a better gaming experience. For example, in October 2020, according to a Wipro white paper, many players are looking to convert to 5G technology and make additional investments to have a better gaming experience. As a result, it is predicted that the low latency features of 5G technology will further accelerate the market growth.
Restraints
Latency and response issues
- On cloud platforms, game streaming requires a low latency network with high bitrate and sufficient bandwidth. However, in some countries, the cost of setting up an Internet connection with the required performance may not be affordable. If the proper network and bandwidth requirements are not met, latency and response issues can occur. However, as telecom providers begin offering high-speed Internet and major companies such as Microsoft Corporation and Google LLC invest in data servers, the limiting factor may be removed in the future.
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Cloud Gaming Market Competitive Landscape
Global cloud gaming market growth is fragmented and highly competitive. Key industry players are focused on product developments, new product launches, and geographical expansions to gain a significant amount of market share.
For example, In January 2022, Utomik announced a partnership with Samsung to deliver Utomik's game subscription service to Samsung Smart TV customers worldwide through its unique hybrid gaming platform. It will employ a hybrid gaming platform, allowing players to play on any device and switch to other devices using both device and context-based smart download technology and cloud gaming technology.
Top Player’s Company Profiles
- Google Inc.
- Microsoft Corporation
- Amazon Inc.
- NVIDIA
- Tencent
- Sony Interactive Entertainment
- IBM
- Samsung Electronics
- Blade
- Blacknut
- Shadow
- Parsec
- Vortex
- Ubitus
- Hatch
- LiquidSky
- PlayGiga
- GameFly
- PlayKey
- GeForce Now
Recent Developments
- In September 2022, LG announced the adoption of cloud gaming services for its upcoming smart TVs. LG will include cloud gaming service providers Blacknut and Utomik cloud applications on its smart TVs.
- In January 2022, Microsoft acquired Activision Blizzard to bring gaming fun and community to everyone on all devices. The acquisition includes legendary properties such as "Warcraft," "Diablo," "Overwatch," "Call of Duty," and "Candy Crush" from Activision, Blizzard, and King, as well as global eSports operations by Major League Gaming. Additionally, with plans to bring Activision Blizzard games to Game Pass, the acquisition will boost Microsoft's Game Pass portfolio, making Game Pass one of the most compelling and diverse portfolios of gaming content in the industry
- In September 2021, Microsoft announced that it would expand its Xbox cloud gaming operations to Brazil, Mexico, Australia, and Japan. In these countries, more than 100 video games will be available, targeting the local market. As a result of this development, Microsoft Xbox Cloud Gaming will now be accessible in 26 countries.
- In June 2021, Utomik published Summer in Mara which is a craft-based adventure game. The user plays the role of young Koa, an adventurous girl who travels while planting crops, harvesting them, making new tools, and acquiring things.
Cloud Gaming Key Market Trends
- The world we live in is becoming more and more digital, which is why smartphones are becoming so common. In 2020, there were 5.2 billion smartphone connections and by 2025, 80% of people will be using smartphones. As smartphones are becoming more and more popular, game developers are aiming to offer players a mobile gaming environment. Network providers are investing in mobile gaming as a way to enhance the gaming experience through high-performance connectivity. Using top-tier smartphones, cloud computing and 5G infrastructure across any platform and location will also improve the gaming experience for consumers. A high-quality, low-latency gaming experience can be available on mobile devices. According to data from Ericsson, 22 out of 106 service providers have already implemented mobile cloud gaming services as of October 2020. According to MMR's findings, there are nearly 2.4 billion mobile gamers globally. As a result, the industry is predicted to grow as cloud-based mobile gaming becomes more popular.
- The emerging trend of social media games is predicted to drive market growth in the coming years. The amount of time spent globally on social networking websites such as Facebook, Instagram and Reddit has increased. In addition, top social networking corporations are partnering with other cloud games on their social media platforms. To increase user engagement, Facebook, Inc. acquired Playgiga in 2019 with the aim of integrating cloud gaming services into its platform. These factors are accelerating the expansion of the market.
Cloud Gaming Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global cloud gaming market analysis, by device, in 2021, the gaming console segment belongs to the device segment accounting for the highest proportion of revenue, accounting for nearly 50% of the total market. In the coming years, it is expected that this aspect will support the growth of the market. By gamer type, in 2021, casual gamers hold the majority of the market share and are expected to grow the segment CAGR to over 40.0%. Asia-Pacific holds the largest market share in the global market and is expected to grow at a CAGR of 44.50% during the forecast period. Gaming services have been ranked as one of the fastest growing cloud computing industries in China, and many applications can benefit from these cloud computing capabilities. If the proper network and bandwidth requirements are not met, latency and response issues can occur, which will hamper the market growth.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 696.6 million |
| Market size value in 2031 | USD 20940 million |
| Growth Rate | 45.8% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Cloud Gaming Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Cloud Gaming Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Cloud Gaming Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Cloud Gaming Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Cloud Gaming Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Cloud Gaming Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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