PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462790
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462790
According to Stratistics MRC, the Global Cloud Gaming Market is accounted for $1.46 billion in 2023 and is expected to reach $18.34 billion by 2030 growing at a CAGR of 43.5% during the forecast period. Cloud gaming is a streaming service that enables users to play video games remotely via the internet, eliminating the need for high-end hardware. Games run on powerful servers in data centers, with video and input streamed to the user's device in real-time. This allows gamers to access and play high-quality games on various devices, including smartphones, tablets, computers, and smart TVs, regardless of their processing capabilities.
Rise of mobile gaming
With the widespread adoption of smartphones and tablets, mobile gaming has become increasingly popular, reaching a diverse and expansive audience. Cloud gaming extends this trend by offering console-quality gaming experiences directly on mobile devices, eliminating the need for powerful hardware and expanding gaming possibilities beyond traditional gaming consoles and PCs. Moreover, they leverage advancements in streaming technology and internet infrastructure, which drive market growth.
High cost
Delivering high-quality gaming experiences over the cloud entails significant ongoing operational costs, including bandwidth expenses, server maintenance, and software licensing fees. Additionally, the development of streaming technology, content delivery networks, and security measures further adds to the expenses incurred by cloud gaming providers. This pricing model can deter price-sensitive gamers from subscribing to cloud gaming services, further constraining market growth.
Technological advancements
Continuous improvements in cloud computing infrastructure, streaming technology, and internet connectivity deliver high-quality gaming experiences to a wide range of devices with minimal latency. Moreover, advancements in video compression algorithms and encoding techniques optimize bandwidth usage, allowing for high-definition graphics streaming even over limited internet connections. These technological advancements not only improve the performance and reliability of cloud gaming services, which are propelling this market.
Limited expertise
The interdisciplinary nature of cloud gaming, which combines elements of software development, networking, and gaming, makes it difficult to find individuals with the required skills and experience. This shortage of expertise can lead to various setbacks, including delays in platform development, suboptimal performance, and security vulnerabilities. Moreover, there is a shortage of professionals with the necessary expertise in these domains, resulting in challenges for companies looking to enter or expand within the cloud gaming space thereby hampering this market.
Covid-19 Impact
The COVID-19 pandemic has had several negative impacts on the cloud gaming market. The economic downturn resulting from the pandemic has led to financial constraints for many consumers, causing them to prioritize essential expenses over discretionary spending on gaming services. This has resulted in slower adoption rates and decreased subscription renewals for cloud gaming platforms. Furthermore, the cancellation or postponement of major gaming events and conventions due to COVID-19 has hindered marketing efforts and limited opportunities for cloud gaming.
The smart TVs segment is expected to be the largest during the forecast period
The smart TVs segment is estimated to hold the largest share during the forecast period, due to the integration of cloud gaming services directly into internet-connected televisions. By leveraging the processing power and internet connectivity of smart TVs, users can enjoy a wide range of games with minimal setup requirements. In addition, smart TVs with cloud gaming capabilities typically come equipped with the necessary software and hardware to stream games directly from remote servers which is driving this segment's growth.
The hardcore gamers segment is expected to have the highest CAGR during the forecast period
The hardcore gamers segment is anticipated to have highest CAGR during the forecast period due to players demand for high-performance gaming experiences without compromising on quality or immersion. Hardcore gamers access their favorite titles seamlessly across various platforms, including PCs, consoles, and mobile devices, fostering a truly multi-platform gaming experience. Moreover, for hardcore gamers, cloud gaming represents a gateway to uninterrupted gaming sessions, as it mitigates concerns related to hardware limitations, maintenance, and geographical constraints, which is boosting this segment's expansion.
Asia Pacific commanded the largest market share during the extrapolated period. Due to a burgeoning population of tech-savvy consumers and increasing internet penetration, the demand for accessible and immersive gaming experiences has soared. There are some of the major players, such as Microsoft Corporation, Samsung Electronics, and Google. Furthermore, partnerships between cloud gaming providers, telecommunications companies, and content creators are further catalyzing market growth by expanding access and enhancing service offerings.
Europe is expected to witness highest CAGR over the projection period, owing to a combination of factors including technological innovation, increasing demand for gaming content, and widespread access to high-speed internet. Countries such as the United Kingdom, Germany, France, and the Nordic countries are emerging as key players in this expanding market. In addition, regulatory frameworks in Europe are generally supportive of digital innovation, further fueling the growth of the cloud gaming industry.
Key players in the market
Some of the key players in the Cloud Gaming Market include Amazon web services, Utomik B.V., Parsec Cloud Inc, Samsung electronics, Sony, Nvidia Corporation, Google, LiquidSky Software Inc., Numecent Holdings Ltd., Ubitus Inc, GameFly, Microsoft Corporation, IBM Corporation, Paperspace and CiiNow, Inc.
In March 2024, Leidos announced it has entered into a multi-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS). The agreement will leverage each company's unique strengths to accelerate innovation for new and existing customers in both the public sector and select commercial markets.
In January 2024, Google Cloud and Hugging Face announced a new strategic partnership that will allow developers to utilize Google Cloud's infrastructure for all Hugging Face services, and will enable training and serving of Hugging Face models on Google Cloud.
In December 2023, IBM announced that it has entered into a definitive agreement with Software AG, a company majority owned by Silver Lake, to purchase StreamSets and webMethods, Software AG's Super iPaaS (integration platform-as-a-service) enterprise technology platforms, for €2.13 billion in cash.
In October 2023, IBM announced an expansion of its relationship with Amazon Web Services (AWS) to help more mutual clients operationalize and derive value from generative artificial intelligence (AI).