Cloud gaming market size is set to grow by USD 1.61 billion from 2022-2027. North America is estimated to contribute 48% to the market growth - Technavio
NEW YORK, Nov. 19, 2023 /PRNewswire/ -- The global cloud gaming market size is estimated to grow by USD 1.61 billion from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 10.54%. The growth in mobile cloud gaming is a key trend shaping the cloud gaming market. The increasing popularity of mobile cloud gaming is driving the need for smartphones and tablets as they allow players to access high-quality games without the need for powerful devices, giving them more flexibility in terms of when and where they can play games. Additionally, mobile cloud gaming services such as Google Stadia, Microsoft xCloud, and NVIDIA GeForce Now have made accessing games on the go without having to carry around a console or gaming PC easier. Factors such as the convenience of playing games on the go and the increasing power and performance of mobile devices are driving this trend. For more insights on the historic period (2017 to 2021) and forecast market size (2023 to 2027) - Request a sample report.
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Cloud gaming market - Segmentation assessment
Segment overview
Technavio has segmented the market based on 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).
The video streaming segment market share growth will be significant during the forecast period. In cloud gaming, video streaming plays a key role as it allows gamers to access games over the internet without downloading or installing them. Cloud gaming providers typically use video streaming technology to deliver games to users in real-time, allowing them to access high-quality games across various devices. The segment was valued at USD 1,108.45 million in 2017 and continued to grow until 2021. There are several video streaming approaches for cloud gaming. Using a thin client architecture is a common approach. In this approach, the game runs on a remote server, and the video is streamed over the internet to the player's device. However, the player's device must be powerful enough to allow video streaming and send input back to the server. Another approach is to utilize a powerful client device that can handle processing locally. In this approach, part of the game runs on the local device and part on the remote server. Although this reduces latency and improves the overall gaming experience, the approach requires more powerful devices and more complex architectures. Furthermore, in both cases, the video streaming technology used must be able to handle the high bandwidth and low latency demands of cloud gaming. Overall, the segment is expected to witness moderate growth during the forecast period.
Geographical Analysis
North America held the largest share of the global market in 2022 and is estimated to contribute 48% to the market growth during the forecast period. In recent years, cloud gaming has increasingly gained popularity in North America. The region has a presence of many companies offering cloud gaming services. For instance, Google Stadia, one of the leading cloud gaming companies, was launched in 2019 and has since added many features to better cater to its customers better. The company allows users to play games across devices such as laptops, desktops, TVs, and mobile devices via a controller or mouse, and keyboard. Besides, it offers a game library that allows users to purchase games individually or access them through a monthly subscription. Similarly, xCloud, another major player in the region, allows users to play Xbox games on their mobile devices and supports streaming to PCs. NVIDIA GeForce Now, another notable cloud gaming services in the region, allows users to stream PC games to a variety of devices. Hence, the increasing adoption of secure cloud services and the adoption of advanced technologies such as 5G and artificial intelligence in gaming will boost the growth of the market during the forecast period.
For insights on the market contribution of various segments, including country and region-wise historic data (2017 to 2021), and forecast market size (2023 to 2027) - Download a sample report
Cloud gaming market – Market dynamics
Key driver – The increased availability of high-speed Internet is notably driving the cloud gaming market growth. With increasing internet speeds globally, streaming games from the cloud has become easier for gamers. Hence, cloud gaming service providers can offer higher-quality graphics and faster response times. Cloud gaming services offer greater convenience by allowing users to access games from any device connected to the internet. This has boosted the video game industry growth significantly in recent years, with more people playing games than ever before. This has also created a huge market for cloud gaming services as people seek new and innovative ways to play their favorite games over better internet connections. Hence, the availability of high-speed internet is expected to boost the growth of the market during the forecast period.
Major challenge – Infrastructural and bandwidth challenges are impeding the cloud gaming market growth. To streamline high-quality games, users must have a lot of bandwidth. This can pose a challenge for users with access to limited data plans or slow internet connections. Although high-speed internet has increased the accessibility of cloud gaming, many parts of the world are still lacking the necessary infrastructure for reliable high-speed internet access. This can make cloud gaming challenging or impossible in certain countries due to issues such as delays (latency) between user input and game response. Although some cloud gaming service providers have significantly reduced latency by updating their software and browsers, this factor still poses a significant challenge for the market during the forecast period.
What are the key data covered in this cloud gaming market report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the cloud gaming market between 2023 and 2027
- Precise estimation of the size of the cloud gaming market and its contribution to the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the cloud gaming market across North America, APAC, Europe, South America, and Middle East and Africa
- Thorough analysis of the market's competitive landscape and detailed information about vendors
- Comprehensive analysis of factors that will challenge the growth of cloud gaming market vendors
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Related reports:
The subscription-based gaming market size is estimated to increase by USD 4,409.54 million from 2022 to 2027 at a CAGR of 8.17%.
The mobile gaming market size is estimated to increase by USD 59.62 billion between 2022 and 2027 at a CAGR of 9.96%.
Table of contents –
- Executive Summary
- Market Landscape
- Market Sizing
- Historic Market Size
- Five Forces Analysis
- Market Segmentation by Application
- Market Segmentation by Device
- Customer Landscape
- Geographic Landscape
- Drivers, Challenges, and Trends
- Company Landscape
- Company Analysis
- Appendix
About US
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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Website: www.technavio.com
SOURCE Technavio
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