Cloud Gaming Market Analysis North America,APAC,Europe,South America,Middle East and Africa - US,China,Japan,South Korea,Germany - Size and Forecast 2023-2027

Cloud Gaming Market Forecast 2023-2027

The Global Cloud Gaming Market size is forecast to increase by USD 1.62 billion, at a CAGR of 10.54% between 2022 and 2027. The market's growth hinges on various elements, notably the widespread accessibility of high-speed Internet, the cost-efficient advantages of cloud gaming, and ongoing innovations within the sector. The increased availability of robust Internet connectivity enables seamless gaming experiences, eliminating latency issues and enhancing overall performance. Moreover, the cost-saving benefits associated with cloud gaming, such as reduced hardware expenses and subscription-based models, attract a broader consumer base. Continuous innovations, ranging from advanced streaming technologies to diverse gaming content, further drive market expansion by offering novel and engaging experiences to gamers worldwide. These factors collectively contribute to the dynamic growth trajectory of the market.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This 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.

Market Dynamics and Customer Landscape

The market is driven by 5G technology and cloud technology, meeting the rising player demand and interest in diverse games across gaming consoles, laptops, smartphones, and other portable devices. Advancements in VR and AR, coupled with seamless cloud gaming experiences, fuel its growth. However, challenges like internet usage constraints and technical advancement requirements persist. Yet, with innovative game design and gaming analytics, the industry embraces these challenges, setting trends toward enhanced gaming experiences on Smart TVs and beyond. 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.

Key Market Driver

Increased availability of high-speed Internet is notably driving the 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.

Moreover, 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.  

Significant Market Trends

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.

Major Market Challenge

Infrastructural and bandwidth challenges are impeding the 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.

Moreover, 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.  

Market Customer Landscape

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.

Market Customer Landscape

Who are the Major Market Companies?

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:

• 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.

Qualitative and quantitative market growth 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.

What is the Fastest-Growing Segments in the Market?

The market exhibits a dynamic landscape driven by 5G technology and cloud technology, catering to the gaming sector with ever-growing player demand and interest. This market encompasses a vast array of games ranging from top-tier titles to mobile games, offering a comprehensive gaming experience across various platforms such as gaming console, laptop, tablets, and smartphones. The integration of VR (Virtual Reality) and AR (Augmented Reality) technologies enhances immersion, attracting gamers to the realm of Cloud gaming. Video games delivered through Remote servers empower users with seamless access, eliminating the need for high-end Gaming hardware and enabling gaming on Smart TVs and Gaming consoles. Startups and established players in the Gaming industry leverage Gaming analytics and innovative Game design to continually refine the gaming experience. This segmentation underscores the diverse facets driving the evolution of cloud gaming, promising an exciting future for gamers and industry stakeholders alike.

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 1.11 billion 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. 

Which are the Key Regions for the Market?

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North America is estimated to contribute 48% to the growth of the global 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. 

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook
  • Video streaming
  • File streaming

• Device Outlook 
  • Gaming consoles
  • Computing devices
  • Smart TVs
  • Mobile devices

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing rapid growth, driven by various key factors. One significant driver is the advancement in 5G technology that offers ultra-low latency and high-speed connectivity, enabling seamless streaming of top-tier games. Moreover, cloud technology plays a crucial role by providing scalable infrastructure and efficient resource utilization for game streaming services. There is a notable surge in player demand and interest in cloud gaming due to its convenience and accessibility across various devices such as gaming consoles, laptops, and portable devices. This trend is further amplified by the increasing internet usage and popularity of mobile games.

Moreover, technical advancements in VR (Virtual Reality) and AR (Augmented Reality) are enhancing the gaming experience, attracting more avid gamers and hardcore gamers to cloud gaming platforms. Game makers are leveraging cloud computing and game streaming technologies to deliver high-quality gaming content to a broader audience. The telecommunications sector is actively investing in 5G infrastructures to support cloud gaming services, creating new opportunities for startups and the gaming industry. Gaming analytics, game design, and user experience are areas where artificial intelligence (AI), machine learning (ML), virtualization technology, edge computing, and cloud resources are extensively utilized to optimize gaming performance and enhance player engagement.

Furthermore, the market is experiencing a significant surge in demand and innovation, driven by the rapid evolution of gaming technology and consumer preferences. Gaming consoles and laptops have long been the primary platforms for gaming, but the emergence of cloud gaming has expanded accessibility. With cloud gaming, players can now enjoy their favorite games on various devices such as laptops, tablets, and even Smart TVs, breaking the barriers of traditional gaming hardware. The market growth is influenced by gaming console, laptop, Laptop/Tablets, Smart TV. One of the key advantages of cloud gaming is its ability to support a wide range of gaming experiences, including lifestyle games, online gaming, and traditional video games. This diversity caters to different player preferences and gaming styles, making cloud gaming a versatile and inclusive platform.

In addition, behind the scenes, cloud gaming relies on robust remote servers and gaming hardware to deliver seamless gameplay experiences. This infrastructure enables players to engage in multiplayer battles, solve complex puzzles, and connect with friends through social games. The market continues to evolve with advancements in technology, offering improved graphics, faster response times, and enhanced gaming environments. As more players embrace cloud gaming, the industry is witnessing a shift towards digital ecosystems and innovative gaming solutions that prioritize convenience, accessibility, and immersive experiences.

Market Scope
Report Coverage	Details
Page number	171
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 10.54%
Market growth 2023-2027	USD 1.62 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	8.21
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 48%
Key countries	US, China, Japan, South Korea, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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.
Market dynamics	Parent market analysis, market trends and analysis Market forecasting, 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
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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market industry across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough market growth and forecasting analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report analysis of factors that will challenge the growth of market companies

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