The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Cloud Gaming Market Growth & Trends
The global cloud gaming market size is expected to reach USD 7.24 billion by 2027, according to a new study by Grand View Research, Inc. expanding at a CAGR of 47.9% over the forecast period. Developments in cloud technology have enabled the rapid distribution of cloud gaming models. Cloud gaming enables remote access to interactive games and streaming videos over the internet. It also allows devices to smoothly run various high-quality next-generation games with lower computational power. These factors are anticipated to drive the market growth over the forecast period.
Rising investments in 5G technology and access to numerous games on the cloud at affordable prices are also expected to contribute to market growth. Furthermore, market players are observed partnering with telecom companies to deliver cloud gaming services globally. For instance, in January 2020, Microsoft Corporation partnered with SK Telecom Co., Ltd. to expand the reach of its Project xCloud Preview, a game streaming solution in South Korea.
Increased demand has been witnessed for cloud gaming as an educational tool in the educational sector as it increases student motivation, intellectual and social skills, and concentration. Cloud gaming offers a library of latest and graphically advanced games and minimizes license requirements. Moreover, the wide potential for cloud gaming possibilities in an educational environment is now being realized, thus driving the demand for gaming content in the educational sector over the forecast period.
Key Market Players are focused on offering new products and solutions and adopting mergers and acquisitions, partnerships, and collaboration strategies to remain competitive in the market. For instance, in March 2020, Tencent signed a partnership with Huawei Technologies Co., Ltd. to set up a laboratory for developing a cloud gaming platform called GameMatrix in China. Through the partnership, the company aims to leverage Huawei’s computing power to build its gaming platform.
Cloud Gaming Market Report Highlights
- The file streaming segment is expected to register the highest growth rate over the forecast period, as file streaming enables vendors to offer an enhanced and seamless gaming experience to users despite the lower internet speeds
- The introduction of 5G and convenience of smartphones, which facilitate seamless cloud gaming, are anticipated to drive the growth of the smartphone segment
- The avid gamers segment is anticipated to record a considerable growth rate over the forecast period. The rise in competitive and immersive gaming on mobile devices is anticipated to drive the segment growth
- North America is anticipated to record remarkable growth from 2020 to 2027. This is attributed to the rising penetration of high-speed internet and an increasing number of gamers in the region