May 25, 2024
Cloud Gaming Market

Cloud Gaming Market to Witness Steady Growth due to Rising Smartphone and Internet Penetration

Cloud gaming, also known as gaming on demand or gaming streaming, is a type of online gaming that allows video games to be streamed to devices such as computers, consoles, and smartphones. It enables users to stream games over the internet on any device without requiring powerful local hardware or dedicated gaming consoles. This allows players to access advanced games on all kinds of devices including mobile phones. Major players in the market such as Google, Microsoft, Nvidia, and Sony offer game streaming services.

The Global Cloud Gaming Market is estimated to be valued at US$ 591.53 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the Global Cloud Gaming Market Demand: Key players include Daikin Industries Ltd, Sharp Corporation, Mitsubishi Corporation, Hitachi Ltd., Haier Electronics Group Co., Ltd., Carrier, Samsung Electronics, Panasonic, Electrolux AB, and LG Electronics.

Key opportunities in the market: Rising penetration of smartphones and high-speed internet across the globe along with increasing preference for online gaming due to COVID-19 is expected to present opportunities for players to expand their offerings and target new customers. Growing popularity of eSports also offers scope for partnerships with sports clubs and leagues.

Global expansion of the market: Major cloud gaming platforms are investing in expanding their infrastructure globally to provide low latency services across regions. Growing gamer base in developing economies such as Asia Pacific and Middle East & Africa offers tremendous potential for market growth in the coming years.

Market drivers

The key driver for the growth of the cloud gaming market is the rising penetration of smartphones and high-speed internet connectivity across the globe. Users can now access advanced games on their phones without high-performance hardware. Significant investments by companies in 5G networks and Wi-Fi 6 technology is further expected to improve user experience and drive adoption. The COVID-19 pandemic also accelerated digital transformation and increased preference for online and cloud-based gaming due to lockdowns and movement restrictions imposed globally.

PEST Analysis

Political: The cloud gaming market faces policies related to data privacy and cyber laws. This includes regulations around data usage, storage and cross border data transfer.

Economic: With increasing investments and development of 5G infrastructure, the cloud gaming market is expected to get a boost. Lower subscription costs due to virtualization of games will attract more users.

Social: Rising internet and smartphone penetration along with an increasing young population inclined towards gaming is positively impacting this market. Cloud gaming removes the need for expensive hardware and allows users to access games across devices.

Technological: Major technological developments enabling cloud gaming include high speed internet, advancement in edge computing for lower latency and 5G rollout. Technologies such as AI and machine learning are being used to enhance the gaming experience through personalization and recommendation engines.

Geographical regions with high market concentration

North America holds the largest share of the cloud gaming market currently due to high internet speeds and smartphone ownership in the region. Countries like the US and Canada have advanced networks and infrastructure allowing for wider cloud gaming adoption.

Fastest growing region

The Asia Pacific region is expected to grow at the fastest pace due to rising internet infrastructure investments and growing youth interest in gaming. Countries like China, Japan and South Korea are major contributors to the growing gaming community in APAC and its future market potential. Increasing affordability of gaming due to the cloud model will further drive uptake.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it