Cloud Gaming Market Size, Share & Industry Analysis, By Device (Smartphone, Laptop/Tablets, Personal Computer (PC), Smart TV and Consoles), By Streaming Type (File Streaming and Video Streaming), By End-Users (Business to Business (B2B) and Business to Consumers (B2C)), and Regional Forecast, 2020-2027

The cloud gaming market size (addressable) stood at USD 12.53 billion in 2018 and is projected to reach USD 56.57 billion by 2027, exhibiting a CAGR of 15.7% during the forecast period.

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Cloud gaming is the future of the gaming industry, wherein cloud is an important part providing seamless and direct playability for gamers across all devices without the need for additional hardware setup.

Further, entry of major players, including Google, Microsoft, and Tencent, amongst others, highlights the changing landscape of the gaming industry. In November 2019, Google introduced game streaming service, Stadia, providing online streaming of games across smartphones, laptops, tablets, and others. Furthermore, the rise in popularity of gaming services owing to the integration of Augmented (AR) and Virtual Reality (VR) would act as a market driver. Further, the focus towards next-generation network including 5G products and services will offer new opportunities for the content creators and game developers, which in turn will aid the cloud gaming market revenue

MARKET TRENDS

Rising integration of cloud platform in gaming hardware devices

Emerging trends in the global cloud gaming market include the rising adoption of cloud in gaming consoles to stream high-end games. Game developers are focused on launching cloud based games and services for customers. For instance, in September 2019, Apple, Inc. launched a video game subscription service, Apple Arcade. This service offers high-end console-quality graphics and superior gameplay experience.

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MARKET DRIVERS

Surging Adoption of Augmented (AR) and Virtual Reality (VR) Technology in Gaming Industry estimated to drive the market in the near future

Virtual and augmented reality technology in the gaming industry has transformed the gaming experience for the user as it provides more compelling and interactive content. AR has enhanced the mobile gaming experience with the support of the cloud platform. The introduction of games such as Pokémon GO, Brickspace, are some examples. Furthermore, players such as Apple, Inc., and Google LLC are also investing in their AR technology with products such as ARCore or ARKit. This rising application and integration of AR and VR technologies in gaming is projected to drive the cloud gaming market in the forthcoming years.

MARKET RESTRAINT

Latency and Responsiveness Issue will hinder the Market Growth

Streaming games on a cloud platform requires a low latency network and high bitrates with the required bandwidth. However, the cost associated with obtaining an internet connection with a required bandwidth may be high and may not available in some countries. If the necessary network and bandwidth requirements are not meet, latency and responsiveness can create a problem. Having said that, latency and responsiveness is expected to be a short period hindrance for the cloud gaming market, as telecom providers are initiating to introduce high-speed connectivity and major players such as Google LLC, Microsoft Corporation among others are investing in data servers

MARKET OPPORTUNITY

Investment in Data Center and Next Generation Network Connectivity will create an Opportunities for the market

Data Center and high-speed network connectivity will provide significant support for cloud gaming services. Telecom providers are introducing next-generation internet connectivity, including 5G, which will eliminate latency and introduce new opportunities for mobile devices. For Instance, in June 2018, Google LLC announced to open cloud servers for media and entertainment in Los Angeles to provide low latency connections and storage resources. Cloud-based gaming in the 5G environment will provide a unique experience to the gamers. Additionally, few cloud gaming market players have taken the initiative to increase the number of data centers in UAE, India, among others.

SEGMENTATION

By Device Analysis

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 Rising Adoption of Smartphones Predicted to Boost the Market Growth

Based on devices, the market is segmented into smartphones, laptops/tablets, personal computers (PC), smart TV, and consoles. Among these, the smartphone device is estimated to provide a substantial opportunity for the market in terms of revenue and hold maximum market share globally.

Besides this, smart TV is projected to grow at a gradual CAGR in the near future. Furthermore, increasing investment in 5G network and affordable data plans in various regions, is likely to drive the adoption of cloud gaming services.

By Streaming Type Analysis

Video Streaming type is expected support market growth

Based on the streaming type, the market divided into file streaming and video streaming segments. The video streaming segment is expected to grow with a substantial CAGR during the forecast period.

The rising demand for cloud-based gaming services will aid the video streaming segment growth. Also, increasing demand from gamers for high-quality streaming options for games on smartphones and smart TV is likely to boost the adoption of online gaming in the coming years. Furthermore, few players that support video streaming are LiquidSky, Shadow, Vortex, GeForce Now, among others.

By End Users Analysis

Cloud-based gaming will provide platform range of possible experiences for gamers

Based on End-users, the market is segmented into Business-to-Business (B2B) and Business to consumers (B2C). These segments are further sub-segmented into casual and hardcore gamers. With the rising demands for rich media based on high-quality graphics, interactive content, and others there is the implementation of advanced technology and platforms in gaming industry.

Moreover, hardcore and casual gamers are also demanding for rich media gaming content. This increasing demand is catered by streaming games from remote internet servers, as it provides rich media content experience to gamers across different devices such as smartphones, tablets, smart TV, among others. PUBG and Call of Duty are an example of rich media content, interactive & engaging, operating through a cloud platform, etc. These are most played games across smartphones by both hardcore and casual gamers. Therefore, many players in the market are investing in introducing games through the cloud platform, which will provide enhanced gaming experience and high-quality graphics to gamers during the forecast period.

REGIONAL ANALYSIS

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Geographically, the cloud gaming market is segmented across five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

North America generated a notable market opportunity in the gaming industry in 2018. The growth is owed to the rising development and initiative in the U.S. gaming industry.

Asia Pacific cloud gaming market growth is anticipated and create noticeable opportunities in the near future, due to the increased spending for gaming content in countries such as China, India, and Japan. Furthermore, China has the largest market share in the entire gaming industry, which is attributed to the to the presence of a large number of smartphone users in the country. Moreover, major telecom and data centers service providers in this region are investing in 5G network infrastructure and its expansion.

Some of the popular mobile games in China and Japan are Game for Peace (Tencent), Killing Virus (Kunpo), Mario Kart Tour (Nintendo), Roller Splat (Voodoo), and others. The rising adoption of mobile gaming is likely to facilitate the market growth the market growth in the near future. However, the Indian market is in the initial stage of growth, despite the presence of players such as Vortex and GeForce NOW players.  The gaming industry in India will be driven by the dropping price of gaming devices and the adoption of on-demand gaming services. 

Besides this, the Middle East and Africa and Latin America cloud gaming market are projected to grow at a steady CAGR during the forecast period. Growth of the cloud gaming market in MEA and Latin America is slow, and it will grow at a constant rate during the forecast period. This growth is primarily attributable to rising government initiatives and the entry of emerging players. Furthermore, in MEA, a smartphone is a major platform for playing games. Besides, there will be an opportunity for the market due to the rising preference for gaming through smartphones. Ubisoft and Valve, amongst others, are developing infrastructure in MEA for setting up gaming development centers, by collaborating with the regional players. Furthermore, acquiring local gaming content owners in MEA will provide new opportunities for prominent players in the market.

Microsoft is planning to launch xCloud testing in western Europe, Canada, Japan, and India. Facebook acquired PlayGiga, a cloud-based gaming service provider in countries such as Spain, Argentina, Italy, and Chile. The above developments showcase that expansion, merger, and acquisition are effective business strategies adopted by the companies looking to expand into new markets and compete with existing players.

KEY INDUSTRY PLAYERS

Introduction of advanced games by Microsoft Corporation, Google LLC, and Nvidia Corporation is likely to create significant market opportunities in the near future

Google Stadia, announced to launch more games allowing it to provide above 100 games on its platforms in 4k content. This will prove to be stiff competition for the existing players.

Furthermore, Microsoft is planning to launch a game streaming service project xCloud, which aims to stream games to any screen such as mobile, tablet, console, and others.

List of Key Companies Profiled:

• Microsoft Corporation (United States)


• NVIDIA (United States)


• Ubitus (Taiwan)


• Vortex (United States)


• Google Inc. (United States)


• Amazon (United States)


• Intel Corporation (United States)


• Tencent (China)


• Sony Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• May 2019 – Microsoft Corporation collaborated with Sony Corporation to provide enhanced and innovative gaming content streaming solutions and cloud-based gaming platforms.


• March 2019 – IBM Corporation announced a startup named RemoteMyApp would use IBM cloud service to expand its Vortex gaming platform worldwide.

FUTURE OUTLOOK

In the gaming industry, the introduction of cloud-based gaming will change the gaming landscape in a few years. Improvements in internet infrastructure will enable high-speed network connectivity to deliver cloud based services. Furthermore, rising internet penetration and adoption of upcoming 5G technology projected to bring opportunities for the market in the future.

Moreover, playing the same games across different devices and platforms will bring alluring experience for gamers and the opportunity for market growth. Few of the players are investing in this opportunistic market and developing their online gaming platform, which include Microsoft Corporation, Google LLC, Tencent, Amazon.com, Inc., and others. Moreover, telecom service providers have an opportunity in this market and compete with the existing players of the market

REPORT COVERAGE

The global cloud gaming market report offers qualitative and quantitative insights on gaming devices & services and detailed analysis of market size & growth rate for all possible segments in the market.

An Infographic Representation of Cloud Gaming Market

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Along with this, the report provides an elaborative study of market dynamics, emerging trends, opportunities, and competitive landscape. Key insights offered in the report are the adoption trends of recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

Report Scope and Segmentation