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The Global Cloud Gaming Market size is estimated to grow at a compound annual growth rate (CAGR) of 10.54% between 2022 and 2027. The market size is forecast to increase by USD 1,619.32 million. The growth of the market depends on several factors, including increased availability of high-speed Internet, cost-saving benefits of cloud gaming, and innovations in the cloud gaming market.
This cloud gaming market report extensively covers market segmentation by application (video streaming and file streaming), device (gaming consoles, computing devices, smart TVs, and mobile devices), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased availability of high-speed Internet is notably driving the cloud gaming market growth. As internet speeds have increased around the world, it has become easier for gamers to stream their games from the cloud. This allows cloud gaming service providers to offer higher-quality graphics and faster response times. Now Cloud gaming services offer greater convenience as users can access games from any device connected to the internet. Because of this, the video game industry has grown rapidly in recent years, with more people playing games than ever before. This has created a huge market for cloud gaming services as people look for new and innovative ways to play their favorite games over better internet connections. Therefore, the availability of high-speed internet is expected to boost the growth of the market during the forecast period.
Growth in mobile cloud gaming is one of the primary cloud gaming trends . As mobile cloud gaming grows in popularity, smartphones, and tablets are becoming more and more popular because it gives players access to high-quality games without the need for powerful devices, giving them more flexibility in terms of when and where they can play games. More and more users are accessing the game. Additionally, mobile cloud gaming services such as Google Stadia, Microsoft xCloud, and NVIDIA GeForce Now have made it easier for gamers to access games on the go without having to carry around a console or gaming PC.
According to a Newzoo report, the market is expected to hit USD 98 billion by 2024, and mobile cloud gaming will be the major contributor to this growth. The convenience of being able to play games on the go and the increasing power and performance of mobile devices are the main factors driving this trend.
Infrastructural and bandwidth challenges are impeding the cloud gaming market growth. Streaming high-quality games requires a lot of bandwidth. This can be difficult for users with access to limited data plans or slow internet connections. High-speed internet has made cloud gaming more accessible, but many parts of the world still lack the necessary infrastructure for reliable high-speed internet access. This can make cloud gaming difficult or impossible in certain countries and can lead to issues such as delay (latency) between user input and game response, which is a significant problem for cloud gaming. Although some cloud gaming service providers have significantly reduced latency by updating their software and browsers, it remains a significant challenge for the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cloud Gaming Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Advanced Micro Devices Inc: The company offers different types of cloud-based games, especially GPU cloud gaming.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the video streaming segment will be significant during the forecast period. Video streaming is a key component of cloud gaming as it allows gamers to access games over the internet without having to download or install them on their local devices. Cloud gaming providers typically use video streaming technology to deliver games to gamers in real-time, allowing them to play high-quality games on a variety of devices, from smartphones to game consoles.
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The video streaming segment was valued at USD 1,108.45 million in 2017 and continued to grow until 2021. There are several different approaches to video streaming for cloud gaming. A common method is to use a thin client architecture. In this case, the game runs on a remote server and the video is streamed over the Internet to the player's device. In this model, the player's device must be powerful enough to allow video streaming and send input back to the server. This approach is suitable for games with low latency requirements. Another option is to use a more powerful client device that can handle some processing locally. In this model, part of the game runs on the local device and part on the remote server. This reduces latency and improves the overall gaming experience but requires more powerful devices and more complex architectures. In both cases, the video streaming technology used must be able to handle the high bandwidth and low latency demands of cloud gaming. This typically involves adaptive bitrate streaming where video quality is optimized based on the player's internet connection and a specialized protocol designed for low-latency video streaming, such as WebRTC or the Low Latency HLS (LL-HLS) protocol. Overall, moderate growth is expected for the video streaming segment during the forecast period.
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North America is estimated to contribute 48% to the growth of the global cloud gaming market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Cloud gaming has grown in popularity in North America in recent years, and there are several companies offering cloud gaming services in the region. One of North America's leading cloud gaming companies is Google Stadia, which launched in 2019 and has since added new features to serve its customers better. Stadia allows users to play games on various devices such as laptops, desktops, TVs, and mobile devices using a controller or mouse, and keyboard. The company offers a library of games that can be purchased individually or accessed through a monthly subscription. Another major player in this region's market is part of the Xbox Game Pass Ultimate subscription service. xCloud allows users to play Xbox games on their mobile devices and also supports streaming to PCs. Other notable cloud gaming services in North America include NVIDIA GeForce Now, which allows users to stream PC games to a variety of devices, and a library of games that will run on a variety of devices.
The COVID-19 pandemic has had a major impact on the market. With most people forced to stay at home and looking for ways to pass the time, the demand for video games and game-related services increased significantly. As a result, there is no need for expensive hardware. The market saw rapid growth as more users sought ways to access high-quality games in their homes. One of the key benefits of cloud gaming during lockdowns is that users can play games without leaving their homes. Faced with strict social distancing measures, many users turned to cloud gaming to have fun and connect with friends and family. Overall, the COVID-19 pandemic had a positive impact on the market as it has accelerated cloud gaming adoption and increased demand for gaming-related services. Increasing adoption of secure cloud services and its adoption of advanced technologies such as 5G and artificial intelligence in gaming will boost the growth of the market during the forecast period.
The cloud gaming market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Cloud Gaming Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.54% |
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Market growth 2023-2027 |
USD 1,619.32 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
8.21 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 48% |
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Key countries |
US, China, Japan, South Korea, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Advanced Micro Devices Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Apple Inc., BLACKNUT, Cloudquest Pvt. Ltd., Crytek GmbH, Intel Corp., International Business Machines Corp., Loudplay, Microsoft Corp., Nintendo Co. Ltd., NVIDIA Corp., OVH Groupe SA, Paperspace Co., Samsung Electronics Co. Ltd., Sony Group Corp., Ubitus KK, and Unity Software Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Device
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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