Cloud Gaming - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Cloud Gaming Market size is estimated at USD 3.92 billion in 2024, and is expected to reach USD 25.02 billion by 2029, growing at a CAGR of 44.91% during the forecast period (2024-2029).
The market's growth is majorly attributed to technological advancements, such as cloud computing, high-speed internet connectivity, streaming technology, and government initiatives related to cloud infrastructure.
Key Highlights
The recent advancement in advanced cloud technology has turned the idea of cloud gaming into a real scenario. Cloud gaming renders the interactive gaming application remotely in the cloud and then streams the scenes as a video sequence back to the player over the internet. This is the advantage for less-powerful computational devices that are otherwise incapable of running high-quality games.
The growing number of internet users and the tendency to play games on mobile devices with storage issues in many devices are major drivers for the market. A significant advantage of cloud-based gaming is that games are available anytime from almost any device, such as smartphones and tablets. Also, mobile cloud gaming is a promising paradigm for gaming delivery, as users can play games on any OS or device. In cloud gaming, the vital server (where all the games are stored) does the computation work, including game scene rendering, game logic processing, video encoding, and video streaming.
Further, the growing product launches and collaborations are analyzed to bolster the market growth rate during the forecast period. For instance, in December 2023, Apple announced it would now allow apps to stream games on its App Store. It means that brands like Microsoft and Nvidia can launch native apps for their cloud gaming services, such as Xbox Cloud Gaming and GeForce Now, on the App Store for iPhone and iPad. The new policy is global.
A real-time gaming experience is required to adopt cloud gaming services. A high resolution and frame rate should be paired with low latency for a smooth gaming experience that meets gamers' expectations. However, cloud gaming services are held back by current internet technology and struggle to live up to gamers' expectations because developing countries with low bandwidth penetration are poised to avoid the usage of cloud gaming services and instead go with traditional gaming offers offline use.
The COVID-19 had a positive impact on the cloud gaming market. During the lockdown, demand for cloud-based games grew as they were free to play on any device and did not need more hardware. Companies like Microsoft, Twitch, and Activision have all reached new heights in player investment. The growing smartphone penetration is one of the significant factors that have contributed to the cloud gaming market.
Cloud Gaming Market Trends
Smartphones Devices Market is Expected to Hold Significant Market Share
The growth of cloud gaming solutions supported by the increasing Internet penetration rate worldwide is driving the demand for cloud games in Smartphones, fueling the market growth in the future. For instance, in November 2023, StarHub announced partnerships with cloud gaming distributors CareGame and OnMobile Global to bring over 100 mobile game titles to GameHub+ Mobile Play, a portable gaming category catered to mobile gamers, showing the need for cloud gaming for smartphone users.
Additionally, smartphone-based gaming solutions enable gamers to enjoy mobile games by steaming them through the cloud, eliminating the need for powerful mobile hardware and storage space needed to download. Furthermore, gamers would be able to play a wide selection of mobile games, including AAA titles with buttery smooth graphics at ultra-low latency speeds, which shows the benefit of cloud gaming for smartphone users, which would fuel the market growth potential in the future.
The growth of High-speed Internet through 5G mobile networks worldwide would raise the number of smartphone usage and their network capability to support the internet data demand for smartphone-based cloud gaming in the market, supporting the market’s growth during the forecast period. For instance, in November 2023, the Ericsson Mobility Report stated that the 5G subscriptions in North America were expected to reach 252.31million in 2023 and are estimated to grow to 405.40 million by 2028, showing the increasing trend of 5G expansion for better mobile connectivity, which would support the growth of cloud-based mobile gaming market during the forecast period.
The cloud gaming service market for smartphones is witnessing a significant collaboration among the telecom services providers and the cloud gaming providers to bundle their cloud gaming offerings in the telecom services’ monthly billing, fueling the market’s growth.
Therefore, the growth of smartphone penetration, the investments in the 5G services in the countries., and the collaborations of cloud-based game providers with the telecom service providers to increase the target audiences of their smartphone-based cloud gaming portfolio are fueling the market growth during the forecast period.
Middle East and Africa to Witness Major Growth
The Middle East and Africa region includes countries like Saudi Arabia, the United Arab Emirates, Qatar, and South Africa. The Middle East and Africa, cloud gaming market, is mainly benefitting from the evolving role of 5G in cloud gaming, high-speed internet infrastructure, expanding cloud infrastructure with the opening of new cloud regions, and growth in launches of new cloud gaming offerings by major market vendors.
Further, government initiatives in many MENA countries to expand cloud computing infrastructure are analyzed to drive the growth of the cloud gaming market over the forecast period. For instance, Saudi Arabia is witnessing a significant increase in cloud computing. The country's government aims to make the Kingdom a regional hub for cloud computing by 2030.
Cloud service providers are recognizing the need and expanding their cloud infrastructure in the region, thus positively elevating the growth of effective video streaming in the studied market. For instance, in September 2023, Huawei Cloud announced the launch of the Huawei Cloud Riyadh Region at the Huawei Cloud Summit Saudi Arabia 2023. This cloud Region will help promote digital-led economic growth in the Kingdom. The launch of the Huawei Cloud Riyadh will be Huawei Cloud's focus on serving the Middle East, Central Asia, and Africa, providing secure, innovative, reliable, and sustainable cloud services.
Global market vendors are partnering with regional telecom providers to develop the MENA Cloud Gaming ecosystem and cater to the growing demand for cloud gaming from gamers across the region.
Cloud Gaming Industry Overview
The cloud gaming market is highly fragmented, with major players like Nvidia Corporation, Numecent Holdings Ltd., Blacknut, Microsoft Corporation, and Parsec Cloud, Inc. (Unity Software INC.). Players in the market are adopting strategies such as partnerships and acquisitions to enhance their solution offerings and gain sustainable competitive advantage.
December 2023 - Radian Arc & Blacknut launched a new cloud gaming offer for Malaysian Convergence Services Provider Unifi. Through this partnership with Unifi, Radian Arc will continue to improve the gaming experiences of millions of players in Malaysia and beyond.
August 2023 - GeForce NOW announced the launch of Ultimate KovvaK’s challenge. With this launch, Nvidia helps gamers to improve their aim. It fully launches with a limited-time Steam discount. KovaaK’s leads over 20 new games joining the GeForce NOW library.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
The market's growth is majorly attributed to technological advancements, such as cloud computing, high-speed internet connectivity, streaming technology, and government initiatives related to cloud infrastructure.
Key Highlights
The recent advancement in advanced cloud technology has turned the idea of cloud gaming into a real scenario. Cloud gaming renders the interactive gaming application remotely in the cloud and then streams the scenes as a video sequence back to the player over the internet. This is the advantage for less-powerful computational devices that are otherwise incapable of running high-quality games.
The growing number of internet users and the tendency to play games on mobile devices with storage issues in many devices are major drivers for the market. A significant advantage of cloud-based gaming is that games are available anytime from almost any device, such as smartphones and tablets. Also, mobile cloud gaming is a promising paradigm for gaming delivery, as users can play games on any OS or device. In cloud gaming, the vital server (where all the games are stored) does the computation work, including game scene rendering, game logic processing, video encoding, and video streaming.
Further, the growing product launches and collaborations are analyzed to bolster the market growth rate during the forecast period. For instance, in December 2023, Apple announced it would now allow apps to stream games on its App Store. It means that brands like Microsoft and Nvidia can launch native apps for their cloud gaming services, such as Xbox Cloud Gaming and GeForce Now, on the App Store for iPhone and iPad. The new policy is global.
A real-time gaming experience is required to adopt cloud gaming services. A high resolution and frame rate should be paired with low latency for a smooth gaming experience that meets gamers' expectations. However, cloud gaming services are held back by current internet technology and struggle to live up to gamers' expectations because developing countries with low bandwidth penetration are poised to avoid the usage of cloud gaming services and instead go with traditional gaming offers offline use.
The COVID-19 had a positive impact on the cloud gaming market. During the lockdown, demand for cloud-based games grew as they were free to play on any device and did not need more hardware. Companies like Microsoft, Twitch, and Activision have all reached new heights in player investment. The growing smartphone penetration is one of the significant factors that have contributed to the cloud gaming market.
Cloud Gaming Market Trends
Smartphones Devices Market is Expected to Hold Significant Market Share
The growth of cloud gaming solutions supported by the increasing Internet penetration rate worldwide is driving the demand for cloud games in Smartphones, fueling the market growth in the future. For instance, in November 2023, StarHub announced partnerships with cloud gaming distributors CareGame and OnMobile Global to bring over 100 mobile game titles to GameHub+ Mobile Play, a portable gaming category catered to mobile gamers, showing the need for cloud gaming for smartphone users.
Additionally, smartphone-based gaming solutions enable gamers to enjoy mobile games by steaming them through the cloud, eliminating the need for powerful mobile hardware and storage space needed to download. Furthermore, gamers would be able to play a wide selection of mobile games, including AAA titles with buttery smooth graphics at ultra-low latency speeds, which shows the benefit of cloud gaming for smartphone users, which would fuel the market growth potential in the future.
The growth of High-speed Internet through 5G mobile networks worldwide would raise the number of smartphone usage and their network capability to support the internet data demand for smartphone-based cloud gaming in the market, supporting the market’s growth during the forecast period. For instance, in November 2023, the Ericsson Mobility Report stated that the 5G subscriptions in North America were expected to reach 252.31million in 2023 and are estimated to grow to 405.40 million by 2028, showing the increasing trend of 5G expansion for better mobile connectivity, which would support the growth of cloud-based mobile gaming market during the forecast period.
The cloud gaming service market for smartphones is witnessing a significant collaboration among the telecom services providers and the cloud gaming providers to bundle their cloud gaming offerings in the telecom services’ monthly billing, fueling the market’s growth.
Therefore, the growth of smartphone penetration, the investments in the 5G services in the countries., and the collaborations of cloud-based game providers with the telecom service providers to increase the target audiences of their smartphone-based cloud gaming portfolio are fueling the market growth during the forecast period.
Middle East and Africa to Witness Major Growth
The Middle East and Africa region includes countries like Saudi Arabia, the United Arab Emirates, Qatar, and South Africa. The Middle East and Africa, cloud gaming market, is mainly benefitting from the evolving role of 5G in cloud gaming, high-speed internet infrastructure, expanding cloud infrastructure with the opening of new cloud regions, and growth in launches of new cloud gaming offerings by major market vendors.
Further, government initiatives in many MENA countries to expand cloud computing infrastructure are analyzed to drive the growth of the cloud gaming market over the forecast period. For instance, Saudi Arabia is witnessing a significant increase in cloud computing. The country's government aims to make the Kingdom a regional hub for cloud computing by 2030.
Cloud service providers are recognizing the need and expanding their cloud infrastructure in the region, thus positively elevating the growth of effective video streaming in the studied market. For instance, in September 2023, Huawei Cloud announced the launch of the Huawei Cloud Riyadh Region at the Huawei Cloud Summit Saudi Arabia 2023. This cloud Region will help promote digital-led economic growth in the Kingdom. The launch of the Huawei Cloud Riyadh will be Huawei Cloud's focus on serving the Middle East, Central Asia, and Africa, providing secure, innovative, reliable, and sustainable cloud services.
Global market vendors are partnering with regional telecom providers to develop the MENA Cloud Gaming ecosystem and cater to the growing demand for cloud gaming from gamers across the region.
Cloud Gaming Industry Overview
The cloud gaming market is highly fragmented, with major players like Nvidia Corporation, Numecent Holdings Ltd., Blacknut, Microsoft Corporation, and Parsec Cloud, Inc. (Unity Software INC.). Players in the market are adopting strategies such as partnerships and acquisitions to enhance their solution offerings and gain sustainable competitive advantage.
December 2023 - Radian Arc & Blacknut launched a new cloud gaming offer for Malaysian Convergence Services Provider Unifi. Through this partnership with Unifi, Radian Arc will continue to improve the gaming experiences of millions of players in Malaysia and beyond.
August 2023 - GeForce NOW announced the launch of Ultimate KovvaK’s challenge. With this launch, Nvidia helps gamers to improve their aim. It fully launches with a limited-time Steam discount. KovaaK’s leads over 20 new games joining the GeForce NOW library.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of Impact of COVID-19 on the Market
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Technological Advancements, Such as Cloud Computing, High-speed Internet Connectivity, and Streaming Technology
5.1.2 Government Initiatives Related to Cloud Infrastructure will Help in Market Expansion
5.2 Market Restraints
5.2.1 Low Bandwidth Issues is Hindering the Market Growth in Developing Countries
5.2.2 Regulatory and Legal Challenges
6 MARKET SEGMENTATION
6.1 By Type
6.1.1 Video Streaming
6.1.2 File Streaming
6.2 By Device
6.2.1 Smartphones
6.2.2 Gaming Consoles
6.2.3 PC
6.2.4 Mobile Devices
6.2.5 Others
6.3 By Gamer Type
6.3.1 Casual Gamers
6.3.2 Avid Gamers
6.3.3 Lifestyle Gamers
6.4 By Geography
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.2 Europe
6.4.2.1 Germany
6.4.2.2 United Kingdom
6.4.2.3 France
6.4.2.4 Italy
6.4.2.5 Rest of Europe
6.4.3 Asia-Pacific
6.4.3.1 China
6.4.3.2 Japan
6.4.3.3 India
6.4.3.4 Rest of Asia-Pacific
6.4.4 Latin America
6.4.5 Middle East and Africa
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Nvidia Corporation
7.1.2 Numecent Holdings Ltd.
7.1.3 Blacknut
7.1.4 Microsoft Corporation
7.1.5 Parsec Cloud Inc. (Unity Software Inc.)
7.1.6 Tencent Holdings Limited
7.1.7 Utomik BV
7.1.8 Antplay.tech
7.1.9 UBITUS KK
7.1.10 Shadow SAS
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of Impact of COVID-19 on the Market
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Technological Advancements, Such as Cloud Computing, High-speed Internet Connectivity, and Streaming Technology
5.1.2 Government Initiatives Related to Cloud Infrastructure will Help in Market Expansion
5.2 Market Restraints
5.2.1 Low Bandwidth Issues is Hindering the Market Growth in Developing Countries
5.2.2 Regulatory and Legal Challenges
6 MARKET SEGMENTATION
6.1 By Type
6.1.1 Video Streaming
6.1.2 File Streaming
6.2 By Device
6.2.1 Smartphones
6.2.2 Gaming Consoles
6.2.3 PC
6.2.4 Mobile Devices
6.2.5 Others
6.3 By Gamer Type
6.3.1 Casual Gamers
6.3.2 Avid Gamers
6.3.3 Lifestyle Gamers
6.4 By Geography
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.2 Europe
6.4.2.1 Germany
6.4.2.2 United Kingdom
6.4.2.3 France
6.4.2.4 Italy
6.4.2.5 Rest of Europe
6.4.3 Asia-Pacific
6.4.3.1 China
6.4.3.2 Japan
6.4.3.3 India
6.4.3.4 Rest of Asia-Pacific
6.4.4 Latin America
6.4.5 Middle East and Africa
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Nvidia Corporation
7.1.2 Numecent Holdings Ltd.
7.1.3 Blacknut
7.1.4 Microsoft Corporation
7.1.5 Parsec Cloud Inc. (Unity Software Inc.)
7.1.6 Tencent Holdings Limited
7.1.7 Utomik BV
7.1.8 Antplay.tech
7.1.9 UBITUS KK
7.1.10 Shadow SAS
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET
