The Global Cloud Gaming Market size is expected to reach $14.01 billion by 2027, rising at a market growth of 64.1% CAGR during the forecast period.
Cloud gaming refers to a form of gaming that is based on cloud technology. It is designed in a way that allows the users to operate and play a variety of games on remote servers that streams the whole game on the device with which the cloud is connected to. Cloud gaming technology, unlike conventional gaming procedures that runs on the local disk spaces of the gaming device, works as an integration into the cloud technology with lesser requirement of user’s device storage. In other words, Cloud gaming is also called gaming-as-a-service.
For using cloud gaming technology, the user needs a cloud gaming platform which is provided by the developer organization of the game with a subscription pack. These platforms run in a similar fashion like remote desktops and video-on-demand services.
COVID-19 Impact Analysis
The COVID-19 pandemic, along with being a hazardous and contagious virus, arrived as an opportunity for the cloud gaming market. Due to the lockdown and strict stay-at-home orders by the government of all the countries, the cloud gaming market observed a rise in the number of the gamers. People across the world were restricted to step out of their homes without any necessary reasons as well as the infrastructure of all the primary, secondary, and tertiary occupations were shattered. Along with the rising demand for cloud games, the COVID-19 pandemic also impacted the cloud gaming market negatively. The cloud games that rely on external DVDs to run, faced a significant downfall in the cloud gaming market.
Market Growth Factors:
Minimized restrictions for high-end specifications and freedom for cross-platform gaming
A lot of games across the gaming industry demand high-end PCs with ultra-advanced specifications and external sources like graphic cards and additional RAM, which deprives the gamers, without access to these resources, from the gaming experiences. Cloud gaming allows the users to play a wide range of games on a variety of compatible devices without any restrictions of high-end specifications as well as other external resources.
Due to the advent of cloud gaming services in the gaming industry, gamers are now enabled to play games with intensive graphics smoothly on their low-end devices with lesser specifications. The operation of cloud games runs on the capabilities of network connections. The high-scale infrastructure developed intending to smoothen the cloud gaming experience, allows the user to run graphic-intense games on their low-spec devices like mobile phones, laptops, tablets, gaming consoles, and other devices.
Increasing trend of gaming communities
With the increasing interest and attention of people toward rising trend of gaming communities is one of the reason that is encouraging cloud gaming. While playing on cloud gaming platforms, the developers allow the gamers to form a new gaming community or join an existing one on the developer provided cloud gaming platform. The gaming community allow the gamers to interact with various gamers across the world respective to the language and preferences selected by the user. Gaming communities also enable the user to join clans and crews so they can play with few particular gamers across the platform.
Market Restraining Factor:
Addiction to cloud games due to increased access
The diffusion of cloud gaming trend is constantly rising due to the increased access to these games, that too in a very low prices. More people are now capable of reaching cloud games and platforms. With the rising number of cloud game players across the world, the problem of addiction to these games occurs. People have a complete remote access of these games that may increase the vulnerability towards the addiction of these games which can put negative impacts on their mental health. In addition, addiction to these games is expected to disrupt the productivity along with mental well-being.
Offering Outlook
Based on Offering, the market is segmented into Infrastructure and Gaming Platform Services. The advent of the cloud gaming platforms offers a range of lucrative opportunities to the key market players to improvise and invest in the prevailing games and expand their library by providing more content to their users.
Device Outlook
Based on Device Type, the market is segmented into Smartphones, PCs & Laptops, Gaming Consoles, Tablets, Smart TVs and HMDs. HMD segment is anticipated to observe the fastest CAGR in the cloud gaming market. There is a large amount of investments dedicated to the development and enhancements in HMDs. Head mounted devices are designed to be worn on the head and sync with eyes while connecting it with a gaming controller to play cloud games.
Solution Outlook
Based on Solution, the market is segmented into Video Streaming and File Streaming. The file streaming aspect of the cloud gaming market allows the user to download a small portion of the overall game content into their gaming systems in form of bits while the rest of the content keeps downloading in the background while the game is being played.
Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, the North America emerged as the leading region of the market and is expected to showcase a similar trend even during the forecasting period. The region is home to many developed countries and a hub for rapidly enhancing efficient & advanced technologies. The rapid developments and advancements in the technologies across the region are a key reason for the increased adoption of cloud gaming methods. Thus, these factors is expected to accelerate the growth of the market during the forecasting period.
Cardinal Matrix - Cloud Gaming Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation is the major forerunner in the Cloud Gaming Market. Companies such as Amazon.com, Inc., Intel Corporation, Tencent Holdings Ltd. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Activision Blizzard, Inc., Advanced Micro Devices, Inc., Microsoft Corporation, Amazon.com, Inc., Intel Corporation, Meta Platforms, Inc., NVIDIA Corporation, Sony Corporation, and Tencent Holdings Ltd.
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Partnerships, Collaborations and Agreements:
- Oct-2021: Facebook (Meta Platforms, Inc.) entered into a partnership with Jam City, My.Games and Gameloft, leading mobile game publishers. Following the partnership, the entities aimed to introduce three prominent games like Family Guy Another Freakin’ Mobile Game, Disney Emoji Blitz, and Harry Potter: Hogwarts Mystery to Facebook Gaming as cloud games. My.Games is expected to make its cloud gaming debut with Rush Royale and three more games on Facebook. Lastly, Gameloft is expected to introduce War Planet Online, the eighth part since the launch.
- Oct-2021: Advanced Micro Devices along with Radian, formed a partnership with Blacknut, a Cloud Gaming Service. Following the partnership, Blacknut is expected to introduce a cloud gaming solution that is based on Radian Arc’s turnkey Infrastructure as a Service (IaaS) GPU-Edge platform which is powered by AMD Radeon PRO V520 GPUs and AMD EPYC CPUs, at Mobile World Congress Los Angeles 2021. Moreover, Blacknut and Radian Arch have designed a turnkey solution for cloud gaming utilizing AMD Radeon PRO V520 GPUs and AMD EPYC CPUs to harness a high-performance gaming architecture, delivered across ISPs including 5G networks.
- Sep-2021: NVIDIA came into partnership with Electronic Arts, an American video game company. The partnership aimed to launch the best titles under NVIDIA GeForce NOW cloud gaming service. The first five games are Battlefield 1 Revolution, Mirror Edge Catalyst, unravel Two, Dragon Age Inquisition, and Apex Legends.
- Jul-2021: Facebook (Meta Platforms, Inc.) formed a partnership with Ubisoft Entertainment, a leading mobile game publisher. The partnership aimed to strengthen its cloud-gaming platform with titles like Assassin Creed and is expected to allow the user to access titles which include Hungry Shark Evolution, Hungry Dragon, and the Assassin’s Creed franchise.
- Jan-2021: NVIDIA formed a partnership with Pentanet, a high-speed internet service provider. Following this partnership, Australian gamers is expected to get access to GeForce NOW – NVIDIA’s popular cloud-based game streaming service, powered by Pentanet.
- Dec-2020: Tencent came into partnership with TCL, Hisense, Changhong, and Suning Biu. Following the partnership, Tencent announced introduced the TV version of its START cloud gaming service. With this launch, the company has expanded its footprint into the Chinese market.
- Nov-2020: Intel partnered with Tencent, a Chinese multinational technology conglomerate holding company. Following the partnership, the two companies is expected to accelerate the volume-based server deployment of the GameMatrix cloud gaming platform by Tencent, providing above 100 popular games. Tencent is expected to offer a high-density, low-power, low-latency, Android gaming solution in a cost-effective manner with Intel Xeon scalable processor, H3CXG310 PCIe add-in card, and a comprehensive software stack.
- Apr-2020: Advanced Micro Devices signed a multi-year partnership with Oxide Games, a Maryland-based game studio and the developer behind Ashes of the Singularity. Following the partnership, the two companies is expected to develop a powerful set of tools and technologies for cloud rendering developed from the ground up to adopt the real-time demands of cloud-based gaming by integrating AMD’s excellent gaming hardware and graphics expertise with proven development capabilities and innovative Nitrous game engine of Oxide.
- Mar-2020: Tencent entered into a partnership with Huawei, a Chinese multinational technology corporation. Under this collaboration, these two Chinese companies is expected to jointly develop GameMatrix, a co-innovation lab. The new platform is expected to be based on the Huawei Kunpeng processor.
Product Launches and Product Expansions:
- Nov-2021: Microsoft introduced the availability to play games through Xbox Cloud Gaming on Xbox One or Xbox Services X/S consoles. This launch is expected to need a Game Pass Ultimate subscription and is expected to be accessed in 25 regions with Brazil adding onto the list soon. Additionally, cloud gaming on the Xbox consoles showcases many useful applications.
- Oct-2021: NVIDIA launched GeForce RTX 3080- class gaming on GeForce NOW, an advanced cloud gaming platform. The platform memberships give gamers access to the best-ever generational leap in GeForce history, providing cloud gaming’s highest resolutions and fastest frame rates, along with the lowest latency.
- Sep-2021: Amazon unveiled New World. It's an online multiplayer game in which players take part in factions, fight monsters, fight one another and colonize a fictional island in the Atlantic Ocean. The game includes several free and exclusive items through Prime Gaming. Moreover, the game supports the values and boosts player and community interaction.
- Jun-2021: Microsoft unveiled Netflix for games, new cloud-based gaming services. The cloud gaming services of the company is expected to provide access to a wide range of games that are developed in-house and even sourced from third-party developers.
- Nov-2020: Intel launched Intel Server GPU, its first discrete graphics processing unit for the data center. The unit is developed on the Xe-LP architecture and is suitable for high-density, low-latency Android cloud gaming, and media streaming.
- Oct-2020: Facebook (Meta Platforms, Inc.) rolled out several cloud-streamed games in the app and browser, that could be played instantly without any downloads. Through this launch, the company is expected to provide an unparalleled gaming experience on every screen.
- Sep-2020: Amazon launched Luna, a new cloud gaming service. The initial access to this service is expected to be available on PC, Mac, Fire TV, iPhone, and iPad with an Android version. Moreover, the company aimed to provide more than a hundred games with the Luna Plus channel. Additionally, the titles of games include Resident Evil 7, Control, Panzer Dragoon, A Plague Tale Innocence, The Surge 2, Yooka-Laylee, GRID, Abzu, and Brothers A Tale of Two Sons.
- Sep-2020: Microsoft unveiled Project xCloud, a new game streaming service. This launch is expected to provide the consumer with the opportunity to play high-quality games which is expected to need a strong Xbox game console, with an internet connection of 10Mbps or higher.
Acquisitions and Mergers:
- Oct-2021: Sony Interactive Entertainment PlayStation studios, a division of Sony Group, took over Bluepoint Games, an American video game developer based in Austin and Texas. Through this acquisition, the company strengthened its vision to provide improved gaming experiences for the users.
- Jul-2021: Sony acquired Nixxes Software, a PC port developer. Following the acquisition, Nixxes is expected to join the PlayStation Studios Technology, Creative & services Group to offer best-in-class in-house technical and development for the studios.
- Mar-2021: Microsoft took over ZeniMax Media, the parent company of Bethesda Softworks and its eight studios. Following this acquisition, Microsoft aimed to change the landscape of the gaming industry by bringing popular and best-selling franchises into the Xbox family. These franchises include The Elder Scrolls, Fallout, and many more.
- Sep-2020: NVIDIA signed a definitive agreement with SoftBank Group, a Japanese multinational conglomerate holding company. Following the agreement, NVIDIA is expected to acquire Arm Limited from SBG and the SoftBank Vision Fund. The acquisition is expected to integrate NVIDIA’s AI computing platform with Arm’s massive ecosystem to develop a prominent computing company in the domain of artificial intelligence. This is expected to eventually expedite the innovation while entering and expanding into large and high-growth markets.
Scope of the Study
Market Segments Covered in the Report:
By Offering
- Infrastructure
- Gaming Platform Services
By Device Type
- Smartphones
- PCs & Laptops
- Gaming Consoles
- Tablets
- Smart TVs
- HMDs
By Solution
- Video Streaming
- File Streaming
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- IBM Corporation
- Activision Blizzard, Inc.
- Advanced Micro Devices, Inc.
- Microsoft Corporation
- Amazon.com, Inc.
- Intel Corporation
- Meta Platforms, Inc.
- NVIDIA Corporation
- Sony Corporation
- Tencent Holdings Ltd.
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Table of Contents
Companies Mentioned
- IBM Corporation
- Activision Blizzard, Inc.
- Advanced Micro Devices, Inc.
- Microsoft Corporation
- Amazon.com, Inc.
- Intel Corporation
- Meta Platforms, Inc.
- NVIDIA Corporation
- Sony Corporation
- Tencent Holdings Ltd.
Methodology
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