Cloud Gaming Market

Cloud Gaming Market Outlook (2024 to 2034)

The global cloud gaming market size is calculated at US$ 863.5 million for 2024 and is forecasted to reach US$ 6.62 billion by the end of 2034, expanding at a CAGR of 22.6% between 2024 and 2034.

Cloud gaming is the term used to describe the practice of playing video games on a device via an internet connection without the requirement for local game installation or specialized gaming hardware. Since most recent graphics-intensive games require specialist gaming PCs or consoles, which are expensive and have limited hardware space unless manually upgraded, cloud gaming can make video games more accessible.

Mobile and handheld gaming are revolutionizing on-the-go entertainment and shaping the future of interactive experiences. Since cloud gaming platforms like PlayStation and Google Stadia are already available, their main market is PC and console gamers. Cloud gaming services are predicted to grow in the market as a result of the rollout of 5G services in several countries.

By utilizing mobile ubiquity and quick 5G connections, these services are projected to enable smartphone users to enjoy AAA-quality gaming. Cloud gaming on mobile devices will also become more popular due to the services offered by mobile network carriers and game producers.

Report Attributes	Details
Cloud Gaming Market Size (2024E)	US$ 863.5 Million
Forecasted Market Value (2034F)	US$ 6.62 Billion
Global Market Growth Rate (2024 to 2034)	22.6% CAGR
North America Market Share (2034F)	38.5%
East Asia Market Growth Rate (2024 to 2034)	22.9% CAGR
Market Share of Casual Gamers (2024E)	77.3%
East Asia Market Share (2024E)	23.5%
Key Companies Profiled	Amazon, Inc. Apple Inc. Electronic Arts, Inc. Google LLC Intel Corporation NVIDIA Corporation Numecent Holdings Ltd. Parsec Cloud, Inc. Sony Interactive Entertainment Ubitus Inc.

Why is Cloud Gaming Becoming So Popular across the World?

"Extensive 5G Deployment Entailing High-speed Connectivity for Cloud Gaming"

The introduction of 5G and high-speed internet is projected to accelerate cloud gaming market growth. Additionally, gaming businesses are collaborating with networking companies to provide cutting-edge cloud connectivity.

• For example, Verizon Communications, Inc., and Hi-Rez Studios teamed up in August 2022 to provide game developers with effective mobile gaming capabilities via its millimeter wave (mmWave) and C-band 5G network. This is projected to lead to lucrative prospects for cloud gaming service providers.

It has been seen that because of the quantity of storage and game updates in contemporary titles, more players are shifting to cloud gaming.

• For example, the Call of Duty Modern Warfare 2 video game, which was released in November 2022 by Activision Publishing, Inc., took up about 36.2 GB of storage space on the PlayStation 5 system.

Leading companies are using cloud services to store their game progress since they can pick up where they left off on any compatible platform as long as they are signed into the account linked to the game's purchase.

"Increased Device Accessibility and Affordability Associated with Cloud Gaming"

The increased accessibility and device flexibility of cloud gaming is one of the main reasons propelling its demand. For many prospective players, traditional gaming is prohibitive due to the need for pricey gaming hardware. This limitation is removed by cloud gaming, which enables gamers to play top-notch games on a variety of devices with little hardware needs, from smart TVs to low-end smartphones.

Metaverse gaming is navigating the convergence of virtual realities and interactive experiences. A wider audience is drawn in by this democratization of gaming, including casual players who have not invested in specialist gaming gear. In addition, cloud gaming makes it possible for players to seamlessly transition between devices, which increases convenience and draws in players with a more adaptable and accessible gaming experience.

What are the Challenges Associated with Cloud Gaming?

“Network Latency Concerns and Need for Heavy Infrastructure Investments for Service Providers”

In cloud gaming, network latency is still a major worry despite advancements. A less responsive gaming experience can be caused by delays in data transfer between users and servers, which can affect gameplay and real-time interactions.

Robust infrastructure, comprising strong servers and large data centers, is necessary for high-quality cloud gaming. The requirement for significant investment in these resources can prevent certain businesses from adopting cloud gaming widely.

“High Premium Membership Fees and Data Security and Privacy Concerns”

Using the cloud to store and analyze game data creates security and privacy concerns. Gamers could be hesitant to trust third parties with sensitive data, such as payment credentials and personal information.

Although cloud gaming does away with the need for expensive gaming hardware, some users may find it financially difficult to pay for the membership fees connected with premium cloud gaming services. This may hinder the widespread adoption of cloud gaming platforms.

Country-wise Insights

Technological advancements in the United States, marked by high-speed internet and the widespread availability of 5G, are projected to drive cloud gaming market trends. The dominance of the country can be attributed to its diverse demographics and a large and enthusiastic gaming community. China also has a large number of gaming communities. The accessibility of reasonably priced high-speed internet coupled with extensive smartphone adoption is driving the cloud gaming market growth in these countries.

Why is the United States a Lucrative Market for Cloud Gaming Providers?

“Presence of Sizeable eSports Gaming Community"

Attribute	United States
Market Value (2024E)	US$ 224.1 Million
Growth Rate (2024 to 2034)	23.1% CAGR
Projected Value (2034F)	US$ 1.79 Billion

The existence of a sizable gaming community engaged in eSports across several countries in the region is credited with driving the sector in the country. Because it has made it possible for players to get new games without having to download them, cloud gaming has become more and more popular in the United States.

• The number of video game players in the United States increased from 214.4 million in 2020 to 226.6 million in 2021, according to a survey released by the Entertainment Software Association (ESA). 38% of players are between the ages of 18 and 34, and 20% of games are aimed at younger audiences.

The presence of major corporations creating innovative methods for cloud gaming at a competitive membership cost is projected to propel market expansion.

Why Does China Account for Significant Demand for Cloud Gaming?

"Abundant Cloud Infrastructure Resources Facilitating Reliable and Cost-effective Processing"

Attribute	China
Market Value (2024E)	US$ 160 Million
Growth Rate (2024 to 2034)	22.9% CAGR
Projected Value (2034F)	US$ 1.18 Billion

Ample processing, storage, and communication resources are offering reliable, affordable, and low-maintenance solutions due to the expanding cloud infrastructure market. These cloud computing resources can be used for a variety of purposes, and the market for gaming services in China is expanding at a noteworthy pace. Companies are focusing on collaborations to enhance their offerings.

• For example, a strategic partnership between Blacknut, a cloud gaming service, and Bridge Alliance, an alliance of leading mobile operators, was signed in March 2023. This partnership is projected to create new and exciting opportunities for consumers, mobile operators, and game publishers, and accelerate the adoption of cloud gaming throughout Asia Pacific.

Category-wise Insights

PC and laptop gamers enjoy access to cloud gaming services from various locations, making for adaptive gaming experiences. The ongoing evolution of cloud gaming appeals to casual gamers looking for fresh content without the need for large initial investments. All these factors are contributing to the extensive adoption of cloud gaming across the world.

Why are PCs & Laptops Preferred for Cloud Gaming?

“PCs & Laptops Facilitating On-the-Go Access to Cloud Gaming Services”

Attribute	PCs & Laptops
Segment Value (2024E)	US$ 289.3 Million
Growth Rate (2024 to 2034)	23.5% CAGR
Projected Value (2034F)	US$ 2.28 Billion

Gamers who use PCs and laptops benefit from the freedom to select their own gaming environment. These devices give players the ability to access cloud gaming services from almost anywhere, whether they are at home, in a cafe, or on the go. This makes for a flexible and adaptive gaming experience.

Major cloud service providers and gaming businesses have acknowledged the importance of PCs and laptops in the gaming environment. To ensure a smooth and entertaining user experience, they are actively integrating and enhancing their cloud gaming services for these devices.

Why are Casual Gamers Projected to Account for Higher Revenue Generation?

“Casual Gamers Benefitting from Cost-Efficient Accessibility of Cloud Gaming Platforms”

Attribute	Casual Gamer
Segment Value (2024E)	US$ 667.5 Million
Growth Rate (2024 to 2034)	23% CAGR
Projected Value (2034F)	US$ 5.15 Billion

Cloud gaming service providers are always coming out with new features and unique gaming experiences. Casual gamers interested in discovering fresh and interesting content without having to make large initial expenditures are drawn to this ongoing evolution.

By incorporating social and multiplayer capabilities, cloud gaming systems improve the experience of casual gamers. Games include a social component that draws in casual players in particular. This is enhanced by the opportunity to connect with friends, participate in multiplayer sessions, and share gaming moments.

Casual players can enjoy an easily navigable and accessible gaming experience using cloud gaming platforms. Those who might not often invest in high-performance PCs or dedicated gaming consoles find cloud gaming interesting because it eliminates the need for expensive hardware and allows for direct gameplay via internet streaming.

Competitive Landscape

Joint ventures between telecom firms and cloud gaming providers and tech start-up acquisitions are primarily influencing the growth of the cloud gaming market. Companies are focusing on forming alliances with digital giants to develop larger and more advanced cloud gaming services.

• In March 2023, Microsoft announced the signing of a new 10-year agreement to make its Xbox game library available on the Boosteroid cloud gaming platform. Microsoft is making an effort to convince regulators to approve Activision Blizzard's acquisition. This is the company's third contract with competing gaming platforms.

Segmentation of Cloud Gaming Market Research

• By Device :

  • Smartphones
  • Tablets
  • Gaming Consoles
  • PCs & Laptops
  • Smart TVs
  • Head-mounted Displays

• By Type :

  • Video Streaming
  • File Streaming

• By Gamer Type :

  • Professional Gamers
  • Casual Gamers

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa