Cloud gaming refers to the process of playing video games on servers located remotely in data centers. It requires a high speed, stable and low-latency internet connection to stream the game on the cloud gaming platform; there is no need to download or install games on any device. The games can be played with the help of a controller in various devices, such as a smart TV or a gaming console, which transmits data to the server, in the form of input. The output information is projected on the display module by the server. This in turn, provides critical information to the data center and the game is rendered and played on a remote server with local interaction on devices. It provides the benefits to gamers to play any game, any time and in any device. It also served as a source of socialization and entertainment at the time of the pandemic. Cloud gaming platforms are in high demand as they provide better gaming experience and reach out to a large number of gamers in the new normal (post-pandemic).
The year 2021, was an annus mirabilis for cloud gaming with a surge in the number of internet users and consumer spending, which has been increasing year on year. Furthermore, expected growth in 5G infrastructure is likely to drive the demand for the cloud gaming market by reducing latency issues when streaming video games. The long-term market outlook seems favourable, with ample growth opportunities across regions. Also, the ongoing shift from consoles to cloud-based gaming will continue to create ample growth opportunities for the market stakeholders. Overall, the cloud gaming market is estimated to grow at an impressive CAGR of 29.1% during the forecast period to reach a value of US$ 10.5 Billion in 2027.
Segment Analysis
Based on the streaming type, the market is bifurcated into video streaming and file streaming. Video streaming is likely to remain the bigger demand generator for cloud gaming platforms in the foreseen future. The key factors driving the segment's dominance are on-demand streaming requirements as well as the ability to be effective for shorter periods of play. Furthermore, a paradigm shift from console and disc-based gaming to cloud-based gaming ensures a massive demand for cloud gaming platforms in the coming years.
Based on the device type, the market is segmented as PC & laptops, smartphones, smart TVs, and gaming consoles. Smart TVs remain at the nucleus for all the leading market stakeholders serving the cloud gaming industry. A smart TV provides better gaming experience to its gamers with the features such as 4K display and better feasibility in using cloud gaming platforms with the help of a controller. Partnerships with smart TV manufacturers, OTT providers, and setup box providers to reach a large number of cloud gaming users are likely to provide market stakeholders with enormous growth potential. It is also anticipated that Smart TV will remain the most preferred device type in the cloud gaming market in the foreseen future.
Based on the genre type, the market is segmented as puzzles & social games, adventure & sports, and arcade. Among these genre types, puzzles & social games are the most widely played category on cloud gaming platforms, as players choose to play these games with their friends in order to socialise with them, implying that the market for puzzles & social games is rising. In addition, comprehending the game takes less time in this category.
Based on the gamer type, the market is segmented as casual gamers and hardcore gamers. Between these gamer types, casual gamers dominate the market, whereas hardcore gamers continue to prefer console gaming. Casual gamers prefer cloud gaming because it is more cost-effective.
In terms of regions, Asia-Pacific is expected to remain the largest market for cloud gaming over the forecast period. In addition, the region is likely to witness healthy market growth in the coming years. Japan, India, and South-east Asia are the preferred destinations of gaming companies to expand in Asia. The leading player of the market, Sony Corporation is having expansion plans in the region. Already existing 5G infrastructure in countries such as Malaysia and Thailand are creating healthy demand for the cloud gaming market. Partnership between Blacknut and Celcom telecommunication, Tencent to launch its cloud gaming platform in the south-east Asian countries, and development of 5G infrastructure in the key Asian economies such as India and China are likely to generate huge demand for cloud gaming in the region.
Key Players
The cloud gaming market is gradually consolidating with major companies performing mergers & acquisitions to quickly gain the leading position and to tap growing opportunities in this rapidly expanding market. For an instance, Sony Corporation, a leading provider of cloud gaming across the regions, acquired Bungie. After the acquisition, Sony Corporation successfully leaped ahead in the market with the added capabilities and expansion of its game titles. However, the market entry of several new players is likely to make business environment challenging for the major players.
The supply chain of the cloud gaming industry comprises cloud computing providers, game developers, cloud gaming providers, telecommunication partners and end-users. Major players are striving hard to integrate vertically to gain competitive edge in the market.
The following are some of the key players in the cloud gaming market:
- Sony Corporation
- Nvidia Corporation
- Microsoft Corporation
- Amazon Inc.
- Ubitus K.K.
- Report Features
This strategic assessment report provides a comprehensive analysis that reflects today’s cloud gaming market realities and future market possibilities for the forecast period of 2022 to 2027. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with the publisher's internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. The publisher conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The cloud gaming market is segmented into the following categories:
Cloud Gaming Market, by Streaming Type
- Video Streaming (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- File Streaming (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Cloud Gaming Market, by Device Type
- PC & Laptops (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Smartphones (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Smart TVs (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Gaming Consoles (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Cloud Gaming Market, by Genre Type
- Puzzles & Social Games (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Adventure & Sports (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Arcade (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Cloud Gaming Market, by Gamer Type
- Casual Gamers (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Hardcore Gamers (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Cloud Gaming Market, by Region
- North America (Country Analysis: The USA and Rest of North America)
- Europe (Country Analysis: Germany, France, The UK and Rest of Europe)
- Asia-Pacific (Country Analysis: China, Japan, India, South-East Asia, and Rest of Asia-Pacific)
- Rest of the World (Sub-Region Analysis: Latin America, Middle East and Others)
Table of Contents
- Report Scope
- Report Objectives
- Market Segmentation
- Research Methodology
- Secondary Research
- Key Information Gathered from Secondary Research
- Primary Research
- Key Information Gathered from Primary Research
- Breakdown of Primary Interviews by Region, Designation, and Value Chain Node
- Data Analysis and Triangulation
Companies Mentioned
- DEWALT Inc.
- EJOT Holding GmbH & Co. KG.
- Fischer Group
- Halfen GmbH
- Hilti Corporation
- Illinois Tool Works Inc.
- SANKO TECHNO Co. Ltd.
- Simpson Strong-Tie Company Inc.
- Rawlplug S.A.
- Würth Group
Methodology
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