by The global Cloud Gaming Market is estimated to be valued at US$ 513.48 Mn in 2023 and is expected to exhibit a CAGR of 42% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Cloud gaming is a form of online gaming where graphics-intensive games are streamed, on-demand, to gamers through the internet from remote servers that house the infrastructure required to run the games. This allows the user to access graphically-rich games through web browsers or other mostly lightweight clients without requiring powerful computers or game consoles. Some key advantages of cloud gaming include accessibility of games on any device with a web browser or lightweight client, avoiding the need to purchase expensive gaming hardware and storage, faster adoption of new games and updates, and more flexibility for game developers to focus on gameplay instead of hardware optimization. The need for such cloud services has increased significantly with the growing demand for multi-device gaming experience and high-end graphics without large upfront hardware investments.
Market Key Trends:
One of the major trends in the cloud gaming market size is the increasing adoption of 5G network technology. High-speed 5G networks significantly reduce lag and latency issues that have previously hampered the user experience of cloud gaming. 5G allows for much faster data transfer rates and lower latency compared to previous network technologies. This improves the responsiveness and real-time interactions needed for skill-based, fast-paced games. Major cloud gaming service providers are working with 5G network operators to optimize their platforms for 5G infrastructure. Wider availability of 5G networks worldwide is expected to boost the adoption of cloud gaming services over the forecast period.
Porter’s Analysis
Threat of new entrants: Low cost of entry with cloud technology allows new players to enter the market easily. However, established players have strong brand recognition and relationships with content and game publishers which make entry difficult.
Bargaining power of buyers: Individual gamers have high bargaining power due to availability of alternative gaming platforms and free-to-play gaming options. However, most buyers opt for pay-per-use services from top service providers due to reliability and quality of service.
Bargaining power of suppliers: Top game publishers and developers have significant bargaining power over service providers due to their strong portfolios. This compels service providers to offer lucrative deals and platforms to attract top titles.
Threat of new substitutes: Alternatives like mobile, PC and console gaming pose threat due to their advanced capabilities. However, cloud gaming provides seamless accessibility across devices and locations which is hard to substitute.
Competitive rivalry: Presence of technology giants has led to intense competition in delivery of high-quality cloud gaming experience. Service providers focus on partnering with publishers and providing cross-platform support to gain market share.
Key Takeaways
The global Cloud Gaming market is expected to witness high growth, exhibiting CAGR of 42% over the forecast period, due to increasing adoption of cloud-based gaming among casual gamers. Lack of high-end hardware requirements and easy access has boosted the cloud gaming trend.
Regionally, North America dominates the global cloud gaming market led by the U.S. Availability of advanced broadband infrastructure and presence of major service providers in the region has propelled the market. Asia Pacific is expected to be the fastest growing market with rising internet penetration in countries like India and China.
Key players operating in the Cloud Gaming market are Amazon Web Services Inc., Apple, Inc., Electronic Arts, Inc., Google Inc., Intel Corporation, International Business Machines Corporation, Microsoft Corporation, NVIDIA Corporation, Sony Interactive Entertainment LLC, Ubitus Inc., and others. Top players are investing heavily in 5G rollout and partnerships with game developers to strengthen their platforms.
