Cloud Gaming Market Analysis

Cloud Gaming Market Overview

The Cloud Gaming Market size is projected to grow from USD 1.254 Billion in 2024 to USD 32.01 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 49.92% during the forecast period (2024 - 2032). Additionally, the market size for cloud gaming was valued at USD 0.79 Billion in 2023.

The low-latency capability of 5G technology and the growing number of internet users are the significant market drivers augmenting the growth of the market.

Figure 1: Cloud Gaming Market Size, 2023-2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cloud Gaming Market Trends

The increasing mobile cloud gaming trend drives market growth.

The growing mobile cloud gaming trend has been a crucial driver of the cloud gaming market's growth. Mobile cloud gaming enables gamers to play high-quality games directly on their smartphones or tablets, eliminating the need for costly gaming consoles or high-end PCs. This ease of use appeals to a broader audience, including casual gamers and those unwilling to invest in specialized gaming hardware. Players can play mobile cloud gaming anywhere, anytime, as long as they have a stable internet connection, bringing ease and flexibility to their gaming experience. This eliminates the need to install games or carry physical media, allowing users to enter gaming sessions.

Moreover, according to Ericsson's data, 22 service providers out of 106 have already launched mobile cloud gaming services as of October 2020. Globally, there are over 2.4 billion mobile gamers, according to the report. As a result, the rising popularity of cloud-based mobile gaming will likely drive the industry.

Due to governments' substantial cloud infrastructure plans in Europe and North America, numerous regional startups have entered the cloud gaming business. Among the startups in the region are Shadow, Parsec, Blacknut, LiquidSky, and others. Moreover, the US government previously announced the Cloud First Initiative, which aimed to minimize waste and increase efficiency in the US federal government's technology services by cutting government IT expenditures and supporting cloud infrastructure development. As indicated in the European Commission's Data Strategy, Digital Strategy, Industrial Strategy, and EU Recovery Plan, cloud computing aims to strengthen Europe's data sovereignty.

The European Commission's creation of a European Alliance on Industrial Data, Edge, and Cloud will allow for the expansion of various workstreams. The EU Cloud Rulebook for cloud services will provide a consistent European regulatory framework, transparency on compliance, and best practices for cloud use in Europe. These include European cloud markets, where consumers will have a single portal to cloud providers that meet critical EU standards and norms. These efforts will work together to assist in constructing the next-generation cloud supply.

Cloud gaming is progressively integrated into existing subscription services, providing a full gaming experience. Amazon Luna, for example, is a cloud gaming service that enables customers to broadcast games across several devices. It has teamed up with Ubisoft+ to provide access to Ubisoft's library of games for a monthly subscription charge through a channel within Luna.

Cloud gaming benefits from technological developments and smart collaborations to improve performance and reach. The deployment of 5G networks allows quicker and more dependable internet connections, which are critical for cloud gaming. Players may expect lower latency and higher-quality streaming with 5G, which will accelerate the adoption of cloud gaming.

Cloud Gaming Market Segment Insights

Cloud Gaming Type Insights

The global cloud gaming market segmentation, based on type, includes video streaming and file streaming. The Video streaming segment is expected to lead the Cloud Gaming market throughout the forecast period. Video streaming is essential in cloud gaming because it allows gamers to stream their gameplay in real-time from remote servers to their devices. Video streaming is essential for broadcasting esports competitions and events. Esports competitions are live-streamed to millions worldwide, allowing fans to see their favorite professional players and teams in action. YouTube Gaming also functions as an esports content platform, offering live streaming and VOD (Video on Demand) access to tournaments and matches. Esports organizations frequently have official YouTube channels where they broadcast their competitions.

Figure 2: Cloud Gaming Market, by Type, 2022 & 2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cloud Gaming Gaming System Insights

The global Cloud Gaming market segmentation, based on Gaming System, includes G-Cluster, PlayStation, StreamMyGame, Steam In-Home Streaming, Remote Play, and Others. The G-cluster category is expected to hold the major share of the Cloud Gaming market over the forecast period. Ubitus, a cloud gaming technology vendor, created the G-Cluster cloud gaming system. For both gamers and game creators, the G-Cluster gaming system provides a wide range of applications and use cases. G-Cluster has entered the virtual reality (VR) gaming market, allowing users to stream VR games to their devices. This eliminates the need for costly VR hardware and allows gamers to enjoy immersive VR gaming by just streaming the game material to compatible devices.

The PlayStation gaming system segment is expected to be the fastest-growing segment of the Cloud Gaming market over the forecast period. The PlayStation gaming system's principal application is console gaming. A large library of games made exclusively for PlayStation consoles, such as the PlayStation 5 (PS5) or its predecessor, the PlayStation 4 (PS4), is available to players. These consoles include high-quality visuals, engaging gameplay, and a variety of exclusive titles.

Cloud Gaming Deployment Insights

The global cloud gaming market segmentation, based on deployment, includes public cloud, hybrid cloud, and private cloud. The public cloud category is expected to hold the major share of the cloud gaming market over the forecast period. A public cloud deployment methodology can be used to install cloud gaming. Cloud gaming technology is hosted and managed by a cloud service provider, who makes it available online to the general public. Cloud gaming services can benefit from the scalability, flexibility, and global reach of cloud infrastructure by adopting the public cloud deployment architecture. Because the games are processed and produced in the cloud, users may access them from various devices without the need for powerful local hardware.

Cloud Gaming End User Insights

The global cloud gaming market segmentation, based on end user, includes casual gamers, serious gamers, and social gamers. The casual gamers category is expected to hold the major share of the cloud gaming market over the forecast period. Because of its accessibility and convenience, cloud gaming has the potential to attract casual gamers. Cloud gaming reduces the need for costly gaming equipment. Casual gamers who do not want to invest in gaming consoles or high-end PCs can still access and play a large choice of games via cloud gaming services. They only require a suitable gadget and a reliable internet connection.

Cloud Gaming Regional Insights

By region, the analysis offers market insights into North America, Asia Pacific, Europe, and the Rest of the World. The North American Cloud Gaming market is anticipated to lead the market throughout the forecast period. Early adoption of cloud technology, increased demand for online gaming, and widespread availability of efficient internet infrastructure are all expected to drive market growth in North America.

Further, the key countries considered in the market report are The US, Canada, German, France, the UK, Spain, Italy, China, Japan, India, South Korea, Brazil, and Australia.

Figure 3: CLOUD GAMING MARKET SHARE BY REGION 2022 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe Cloud Gaming market accounts for the second-highest market share. The region's cloud gaming market will likely grow as Europe's gaming sector expands. These growing opportunities drive collaboration, investment, and acquisition in Europe's gaming sector. For example, the European Commission authorized Microsoft Corporation's acquisition of ZeniMax Media, a game developer and publisher, in March 2021. Further, the German Cloud Gaming market held the largest market share, and the UK Cloud Gaming market was the fastest-growing market in the European region.

The Asia Pacific Cloud Gaming Market is expected to grow at the fastest CAGR from 2023 to 2032. Growing demand for gaming content from China, Japan, India, and South Korea drives the region's expansion. Furthermore, growing smartphone penetration in these countries is expected to drive the Asia Pacific cloud gaming sector. Moreover, China’s Cloud Gaming market held the largest market share, and the Indian Cloud Gaming market was the fastest-growing market in the Asia Pacific region.

Cloud Gaming Key Market Players & Competitive Insights

The Cloud Gaming market is expanding due to extensive research and development efforts by leading industry players to diversify their product lines. Significant market changes include contracts, mergers and acquisitions, increased investments, and collaboration with other organizations. Furthermore, key industry players are planning various measures to broaden their international reach. The Cloud Gaming business must provide services at reasonable costs to expand and prosper in a more difficult and competitive market climate.

Local manufacturing to lower operational costs is one of the primary approaches organizations use to service clients and expand the market sector in the global Cloud Gaming market. The Cloud Gaming business has recently provided major benefits to casual gamers. Major corporations in the Cloud Gaming market, including Sony Corporation (Japan), GameFly (US), Nvidia Corporation (US), Ubitus Inc. (US), and others, are trying to surge market demand by spending on research and development processes.

Microsoft is a global software company that provides software services, gadgets, and solutions. As a full-service software company, it provides hardware, software, licensing, and support services. R&D investments are key to strengthening the company's product portfolio and its position in cloud gaming services. A new game-streaming platform, Project xCloud, introduced the company's organic growth capability with a quality experience for all gamers. Microsoft introduced Xbox Cloud Gaming in Argentina and New Zealand in June 2022. Subscribers to Xbox Game Pass Ultimate can stream over 100 games on phones, tablets, PCs, and Samsung TVs. Xbox Cloud Gaming, which is powered by special Xbox Series X consoles, is currently accessible in 28 countries.

Nintendo Co Ltd (Nintendo) is a Japanese company that designs, manufactures, and sells electronic home entertainment goods. With the help of numerous firms and organizations, the company develops hardware and software for handheld and home console video gaming systems. Its main items include computer-enhanced dedicated video game systems, playing cards, karuta, and other gaming-related items. Nintendo Co sells games under the Nintendo and Wii brands. Nintendo delivers information and services via the Internet, including Internet-based competition games and digital software and services. Nintendo Switch and Nintendo 64 are two of the company's game systems. It has business operations throughout Europe, the Americas, Asia Pacific, and other regions. Nintendo's headquarter is situated in Kyoto, Japan. Nintendo purchased SRD Co. Ltd in February 2022. This acquisition will increase Nintendo's software development resources, allowing it to improve development efficiency and create even more polished games in the future.

Key Companies in the Cloud Gaming market include

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  Sony Corporation (Japan)

  
  


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  GameFly (US)

  
  


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  Nvidia Corporation (US)

  
  


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  Cirrascale Corporation (US)

  
  


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  Tsinghua Tongfang Co., Ltd (China)

  
  


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  Ubitus Inc. (US)

  
  


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  Playkey (US)

  
  


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  PlayGiga (Spain)

  
  


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  Microsoft Corporation (US)

  
  


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  Zynga Inc. (US)

  
  


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  Google, LLC (US)

  
  


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  Hatch Entertainment Ltd. (Finland)

  
  

Cloud Gaming Industry Developments

• November 2023 – The Xbox Cloud Gaming application testing is live and available for all Meta Quest VR users on the beta version. Subscribers of the Ultimate Pass Xbox Game can now enjoy streaming playing their Quest headsets while using Xbox controllers. The Xbox cloud gaming feature can be employed regardless of the type of Bluetooth controller supported, as Meta is also developing support for PS5 during future updates. All Xbox, PS4 and Switch Pro controllers are already employed as default, and the beta up is free to use.


• November 2023 - Cloud gaming has been added to mobile phones by one of the most well-liked smartphone market participants, Samsung Electronics Co. This initiative seeks to capitalize on the vast potential of its one billion Galaxy users, which has been hindered by the adverse scenario in Page.


• November 2023 - In its beta phase, people can now play Netflix on smart TVs and other devices together with cloud games offered by Netflix, where phones are the controllers. US, Canada, and UK countries offered the service on a test run in the past. But for this deployment, content is limited in variety and a separate application is needed to use the controller’s function.


• March 2023 - A new partnership was formed between Ubitus K.K. and Google Inc. in an attempt to improve the technology in game streaming through the cloud. On the other hand, Ubitus' GameCloud solution has selected Google Cloud as its cloud vendor.


• March 2023 – Microsoft Corporation has joined hands with Boosteroid, which is a cloud gaming platform developer, so as to increase the number of gamers in different areas of the globe and seeks to enhance gaming activities in Ukraine as well as Russia.


• January 2023 - Ubitus K.K., a company that deals with cloud gaming and operates from Japan, sealed a deal with JioGames with a focus on developing cloud gaming solutions based on 5G in India specifically to enhance cloud gaming within the country’s gaming ecosystem.


• October 2021 - NVIDIA Corporation, in an effort to provide more products to its clients, introduced a new gaming platform on GeForce RTX 3080, which is already on its GeForce NOW lineup. With a subscription to the GeForce RTX 3080, gamers are expected to record the fastest frame rates with high resolutions along with minimal latency.


• September 2021 - Amazon Web Services, Inc. made available new gaming options after they launched a new subscription-based plan to benefit more families. These new changes provide users with Wandersong, Overcooked, Adventure Pals, Spongebob Squarepants and 36 other kid-appropriate games for USD 2.99 when added to Luna+.

Cloud Gaming Market Segmentation

Cloud Gaming Type Outlook

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  Video Streaming

  
  


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  File Streaming

  
  

Cloud Gaming Gaming System Outlook

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  G-Cluster

  
  


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  PlayStation

  
  


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  StreamMyGame

  
  


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  Steam In-Home Streaming

  
  


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  Remote Play

  
  


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  Others

  
  

Cloud Gaming Deployment Outlook

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  Public Cloud

  
  


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  Hybrid Cloud

  
  


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  Private Cloud

  
  

Cloud Gaming End User Outlook

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  Casual Gamers

  
  


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  Serious Gamers

  
  


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  Social Gamers

  
  

Cloud Gaming Regional Outlook