Cloud Gaming Market: Current Analysis and Forecast (2021-2027)

Cloud Gaming Market: Current Analysis and Forecast (2021-2027)

Cloud gaming is a technology that allows users to play video games on remote servers, rather than on their personal devices. The game data and processing are performed on powerful servers located in data centers and streamed to the user's device over the internet, giving the user a seamless gaming experience with reduced hardware requirements. This allows for games to be played on a variety of devices, including those with lower specs and eliminates the need for expensive hardware upgrades.

Rising internet penetration, adoption of smart devices such as phones, laptops, and tablets, and an emerging number of video game users online are some of the market drivers for the cloud gaming market. Furthermore, Cloud gaming services allow game developers to create games for specific hardware without worrying about optimizing them for lower-end consumer consoles or PCs, speeding up the development process and ultimately saving money in the long term. This affordability of cloud gaming services is helping them expand globally, and it is expected that this trend will continue to drive market growth in the future.Based on offering, cloud gaming is segmented into infrastructure and gaming platform services. Gaming platform services segment held the largest share in the cloud gaming market offering owing to the growing demand for both content and PC service. Cloud gaming allows playing PC games on nearly any device on the go, which earlier required expensive hardware. Sony’s PlayStation, Blade’s Shadow, GeForce NOW, Blacknut are some of the major companies providing gaming platform services. The launch of Google’s Stadia and Microsoft XCloud are expected to further drive the platform services market. Based on the device type, the markets segmented into smartphones, tablets, gaming consoles, Pc and laptops, smart TVs, and HMD. The market is dominated by smartphones and is anticipated to maintain its dominance in the upcoming years. With the rapid rise in mobile gaming in recent years, smartphones are expected to gain market traction in the upcoming years. One of the benefits of this technology is its cost-effectiveness. HMD emerges to be the fastest-growing segment, due to the significant increase in the investments by market leaders and increase in the overall demand for the technology used. Based on solutions, the market is segmented into video streaming and file streaming. Video streaming seized the majority of the solutions market in cloud gaming. The market's growth is being driven by the ability to stream games from high-performance servers without having to download or update the games. Furthermore, video streaming service further allows playing games anywhere and, on any platform, as long as it is connected to the internet. There has also been an increase of the wide selection of high-quality games. For a better understanding of the market adoption of the cloud gaming market, the market is analyzed based on its worldwide presence in the countries such as North America (the United States and Canada), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. The North America region is expected to witness a considerable CAGR and is expected to maintain similar growth throughout the forecast period. The growing adoption is mainly attributed to the factors such as increasing internet speed and connectivity, growing demand for gaming, and new gaming technologies. Furthermore, the growing availability of affordable gaming devices in the region. Furthermore, the growing advancements in cloud technology and growing investment in the refinement of the technology is expected to drive the market during the forecast period. Furthermore, the presence of key market players in the industry is expected to influence market growth during the forecast period. Some of the major players operating in the market are NVIDIA Corporation, Microsoft, Amazon.com, Inc, Advanced Micro Devices, Inc, Sony Corporation, Tencent, IBM, Alibaba Group Holding Limited, Shadow, and Intel Corporation Several M&As along with partnerships have been undertaken by these players to develop cloud gaming solutions across the globe.