Cloud Gaming Market Size, Share Global Analysis Report, 2022 – 2028

Industry Insights

[203+ Pages Report] According to the report published by Facts Factors, the global cloud gaming market was worth around USD 1,592.40 million in 2021 and is estimated to grow to about USD 13,333.41 million by 2028, with a compound annual growth rate (CAGR) of approximately 42.50% over the forecast period. The report analyzes the cloud gaming market drivers, restraints/challenges, and their effect on the demands during the projection period. In addition, the report explores emerging opportunities in the cloud gaming market.

Market Overview

Cloud gaming platforms provide players and game developers with a more affordable option. Customers who play games in the cloud can save money by avoiding the need to buy a hardware console or PC. Instead, customers may pay a minimal monthly price when subscribing to a cloud gaming service, which normally offers access to a library with certain pre-loaded game titles that can be played on any device and from anywhere. Additionally, customers of cloud gaming services can save money on storage and bandwidth charges because they no longer have to worry about downloading, waiting for a game to install, and managing storage space for new games. In addition, cloud gaming services give video game creators the ability to make games for specific hardware without considering a minimum system optimization for lower-end consumer consoles or PCs, which speeds up development and, ultimately, saves them money. The accessibility of cloud gaming services is enabling their global expansion, and this trend is anticipated to last into the future. Demand for cloud-based games is rising due to their accessibility and growing internet ubiquity. Additionally, 5G provides greater bandwidths and lower latency, enabling gamers to stream XR games easily. In addition, the growing use of smartphones is anticipated to boost market expansion globally.

COVID-19 Impact:

The user base of cloud gaming increased during pandemics since it provided one of the best entertainment choices for those confined to their homes. The quantity of software downloaded and the time spent playing online games have significantly increased. In addition, COVID-19 has led to an increase in the number of smaller services entering the cloud gaming space, particularly in more developed markets. Despite being on a smaller scale, these services expand the pool of people who can access cloud gaming.

Key Insights

• As per the analysis shared by our research analyst, the global cloud gaming market value grew at a CAGR of 42.50% over the forecast period.
• In terms of revenue, the global cloud gaming market size was valued at around USD 1,592.40 million in 2021 and is projected to reach USD 13,333.41 million by 2028.
• Demand for cloud-based games is rising due to their accessibility and growing internet ubiquity. Additionally, 5G provides greater bandwidths and lower latency, enabling gamers to stream XR games easily. In addition, the growing use of smartphones is anticipated to boost market expansion globally.
• By offering, the gaming platform category dominated the market in 2021.
• By device type, the smartphone category dominated the market in 2021.
• The Asia Pacific region dominated the cloud gaming market in 2021.

Growth Drivers

• 5G technology’s low-latency capability drives the market growth

The global cloud gaming market is expected to expand rapidly due to rising investments from top organizations and increased use of cutting-edge technology. To enhance the gaming experience, the major market players concentrate on reinventing online gaming solutions. Additionally, 5G technology's low-latency capability offers enhanced support for gaming systems. The numerous technical developments in cloud gaming, such as the introduction of VR, AR, and 5G, have increased the demand for mobile games. Improving network access, quick-play games, and gameplays that don't require download or installation on nearly all platforms and devices, including Android, Linux, Mac, iOS, and Chrome OS, also fosters market expansion.

Restraints

• Latency and responsiveness issues may hinder the market growth

On a cloud platform, game streaming requires a low latency network with high bitrates and enough bandwidth. However, in some nations, the cost of setting up an internet connection with the necessary performance may be prohibitive. If the proper network and bandwidth requirements are not met, latency and responsiveness may be problematic. However, the limiting constraint may be eliminated in the future as telecom providers start to offer high-speed internet and important corporations, like Microsoft Corporation and Google LLC, invest in data servers.

Segmentation Analysis

The global cloud gaming market is segmented based on the offering, device type, solution, and region.

Based on the offering, the market is segmented into infrastructure and gaming platform services. The gaming platform segment accounted for a high share globally in 2021 due to the rising demand for PC services and content. Cloud gaming allows playing PC games on almost any device while on the road when this previously needed expensive gear.

Based on device type, the market is segmented into smartphones, tablets, gaming consoles, PC & laptops, smart TV, and HMD. The smartphone segment dominated the market in 2021. The smartphone dominated the global cloud gaming market share, and it is anticipated that it will continue to do so in the future. Smartphone use is expected to increase in the upcoming years due to the explosive growth of mobile gaming over the previous five years. The affordability of this technology is one of its benefits. Constantly upgrading consoles and PCs to maintain game performance is way too expensive.

Based on the solution, the market is segmented on video and file streaming. The video streaming segment dominated the market in 2021. As a result of reducing the need for additional technology, video streaming is growing in popularity. In addition, consumers may access and play games through the internet from any platform and place with less latency, thanks to video streaming services. The global demand for cloud gaming is driven by vendors' greater focus on creating platforms that offer a better gaming experience.

Recent Developments

• April 2021: Blacknut and the communications and entertainment company NOS collaborated to deliver the 5G gaming experience throughout Portugal. Over the 5G network, the cooperation hopes to provide access to more than 500 worldwide games. Following the introduction of 5G technology, NOS provided consumers with direct access to Backnut's gaming service.
• November 2020: To introduce the new gaming platform GameMatrix, Tencent teamed together with Intel Corporation. The company's overall goal is to provide more than 100 well-known games in addition to Tencent's high-density, low-power, low-latency Android gaming solution.

Report Scope

Regional Landscape

• The Asia Pacific dominated the cloud gaming market in 2021

In 2021, Asia Pacific dominated the global cloud gaming market. It is projected that rising entertainment demand and smartphone use would fuel market expansion in the region. This is supported by the emergence of new gaming genres, more disposable income, and an aging population. Japan, China, and India are a few of the countries that have made the most contributions to the global gaming industry. Due to growing telecommunications and 5G infrastructure expenditures, China is predicted to dominate the market over the projected period. Due to important cloud gaming industry participants, Japan will witness substantial expansion over the projected term. The rapid development of technology and the presence of multiple significant game companies, including Konami, Sony, and Nintendo, who have long been household names, are driving the growth of the gaming industry in these countries.

Competitive Landscape

• AMAZON LUNA 
• BLACKNUT 
• GOOGLE LLC. 
• MICROSOFT CORPORATION 
• NVIDIA CORPORATION 
• SHADOW 
• SONY GROUP CORPORATION 
• TENCENT 
• UBITUS K.K. 
• VORTEX (REMOTEMYAPP SP. Z O. O.)

Global Cloud Gaming Market is segmented as follows:

By Offering

• Infrastructure
• Game Platform Services

By Device Type

• Smartphones
• Tablets
• Gaming Consoles
• PCs & Laptops
• Smart TVs
• HMD

By Solution

• Video Streaming
• File Streaming

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America