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Cloud Gaming Market Overview
The Cloud Gaming
Market size is analyzed to grow at a CAGR of 56.3% during the forecast 2021-2026
to reach $4,98 Million by 2026. Cloud gaming, also known as game streaming, is a
process of playing various video games with the support of remote servers for a
premium gaming experience. The promising emergence of sophisticated and
affordable gaming consoles that support Android devices, PC, remote desktops, and Mac with iOS development accelerate the growth of the Cloud Gaming
Industry. Simultaneously, the advent of several opportunities to play on
LTE, and the rise of 5G provide high-end mobile game streaming options with
high bandwidth connections, and ultra-low latency, resulting to promote market growth. In recent times, most game services offer streaming games, such
as the Netflix-for-games model that is available as the PlayStation Now, and the
surge of the online game players, along with the rise in smartphone users are
some of the factors that have contributed successfully to the growth of the
Cloud Gaming market. Rapid shifting preference towards cloud gaming due to
access to numerous high-quality titles, engagement of multi-players, and
availability of Head-Mounted Displays drive positive market growth. Hence, the
introduction of the technologically advanced platforms and constant launches of
OTT gaming services for Video Streaming is estimated to drive the Cloud Gaming
Market.
Report Coverage
The report: “Cloud Gaming Industry Outlook – Forecast
(2021-2026)”, by IndustryARC covers an in-depth analysis of the
following segments of the Cloud Gaming Industry.
By Offering:
Infrastructure, Gaming Platform Services
By Device Type:
Smartphones, Tablets, Gaming Consoles, PCs & Laptops, Smart TVs, HMDs
By Solution:
Video Streaming and File Streaming
By Geography:
North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain,
Russia, and Others), APAC(China, Japan India, South Korea, Australia, and
Others), South America(Brazil, Argentina, and others)and RoW (the Middle East and
Africa)
Key Takeaways
- Asia pacific is estimated to hold the major share in Cloud Gaming Market of 45% in 2020, owing to the massive investment in 5G infrastructure, and other relative developments such as telecom towers establishment to power up the mobile connectivity and growing smartphone users across Korea, China, India, Singapore, Japan, and other regions.
- The rising digitalization, along with the notability of 5G Services across the globe to provide high-speed data connectivity, in reference to support numerous applications, including Edge computing and unified Internet of Things (IoT), resulting in the growth of the market.
- The Gaming Platform Services is analyzed
to hold the maximum share of 58.7% in 2020, owing to the significant rise of
the major companies, such as Sony, Microsoft, Blade, and others providing
advanced gaming platform service to play on any devices, without the assistance
of any expensive hardware installation.
Cloud Gaming Market, By Region, 2020
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Cloud Gaming Market Segment Analysis – By Offering
Based
on offering, the Cloud Gaming
market is segmented into Infrastructure and Gaming Platform Services. The
Gaming Platform Services is analyzed to hold the maximum share of 58.7% in 2020,
owing to the significant rise of the major companies, such as Sony, Microsoft,
Blade, and others providing advanced gaming platform service to play on any
devices, without the assistance of any expensive hardware installation. In
September 2021, Microsoft announced the launch of its Xbox Cloud Gaming
(xCloud) service across Brazil, Australia, Mexico, as well as Japan. In Brazil
and Mexico, the XCloud is available to Xbox Game Pass Ultimate subscribers, and
technically launched in the month of October in Japan and Australia to all the
Xbox Windows apps, Android and through the web for iOS and various other
devices. Over the past few months, Microsoft has been testing the various
possibilities of streaming Xbox Game Pass Ultimate games in these markets to
expand the xCloud technology. Therefore, the potential launches of the online
gaming platform service by Google, Microsoft, and others are inducing the growth
of the Cloud Gaming Market.
Cloud Gaming Market Segment Analysis – By Solution
By Solution, the Cloud Gaming
market is segmented into Video Streaming and File Streaming. The video segment
is estimated to hold the maximum market share of 54% in 2020. The factor that
promotes market growth is the luxury to play anywhere, anytime, and on
any platform. With the advancement of cloud game solutions, a varied selection
of high-quality games can be directly streamed from servers without any
requirement to update or download. In June 2021, Sony acquired Housemarque, the
Finnish studio of the recent PS5 exclusive Returnal, and also announced the
next acquisition of the studio, Bluepoint Games of the Demon’s Souls remaster. As
Housemarque is renowned for developing games in various platforms, such as iOS,
PC and the Xbox 360, the acquisition will help to strengthen the platform of
Sony. Thus, the competitive Gaming Consoles market and growing virtual creative
ambitions to invest further to develop exclusive games are estimated to drive
the Cloud Gaming Market.
Cloud Gaming Market Segment Analysis – By Geography
Asia Pacific is estimated to hold the major share in Cloud Gaming Market of 45% in 2020, owing to the massive investment in 5G infrastructure, and other relative developments such as telecom towers establishment to power up the mobile connectivity and growing smartphone users across Korea, China, India, Singapore, Japan, and other regions. Moreover, the increasing volume of the cost-effective nature of cloud gaming platforms influences players of all ages to invest and thus contribute to the growth of the Cloud Gaming Market. In fact, for greater reach, Developers, publishers, and platforms are designing a number of ways to monetize in these regions as there are 3 million cloud game platform users in the Asia Pacific. With 5G and unlimited data plans, the market across these regions is booming for Cloud Gaming, and thus Microsoft launched a cloud-based gaming service for Japan and Australia in September 2021, at Tokyo Game Show. Hence, the rollout of 5G for the superfast connectivity and strong demand to play high-quality games across PCs and smartphones are some of the pertinent factors that are estimated to drive the market growth.
Cloud Gaming Market Drivers
The upcoming 5G Service sectors drive the Cloud gaming Market successfully
The rising digitalization, along with the notability of 5G Services across the globe provides high-speed data connectivity, in reference to support numerous applications, including Edge computing and unified Internet of Things (IoT), resulting in the growth of the market. According to the U.S tech giant Microsoft, there are three billion gamers worldwide, and there is tremendous demand for high fidelity and immersive games. Due to the technology potentials, Microsoft is involved in some massive enrollment in the gaming industry, by investing $7.5 billion with the acquisition of Bethesda, the game studio of Fallout and Doom. In another acquisition, Microsoft is interested to invest $10 billion in a social media platform, known as Discord, more popular with gamers. Therefore, the presence of the expansive category in the entertainment sectors, and the popularity of the various social media platforms are driving the growth of the Cloud Gaming Market.
The increasing adoption of Cloud Computing drive the Cloud gaming Market massively
The
surge in the adoption of cloud computing due to the growing demand for automation
and agility is expected to drive market growth. The escalating
adoption of IoT is another major reason to develop new revenue opportunities
for the vendors to invest in online gaming sectors. Many of the small and
mid-sized enterprises are emerging with SaaS-based collaboration tools to
strengthen cloud gaming solutions with leading players, such as Facebook. As
there are already 380 million users playing games per month on Facebook, the
company has decided to integrate Facebook Gaming within the Facebook app.
Facebook Gaming, also known as Press Start, is very popular as there are
already 234 million gameplay sessions. Hence, the growing momentum of the
online gaming influencers and potential downloads in casual mobile gaming solutions
in 2020 are some of the factors that are estimated to drive the Cloud gaming
market.
Cloud Gaming Market Challenges
Rising Cyberbully is found to hamper the growth of the Cloud Gaming Market
Today, Cloud gaming
is a trend and is also growing massively among the younger generation due to
seamless internet connectivity. Most of the time, the gamers are engaged with
computers and smartphones to play online games that sometimes bring various
negative impacts to the users. Considering the drawbacks, the two most
potential disadvantages of online gaming are the risk of hacking and
Cyberbullying. It has been observed that most of the players are underage and
are often targeted for cybercrimes. Therefore, playing cloud gaming for
extended periods can induce various illegal activities, which is eventually
regarded as a hindrance to the growth of the cloud gaming market.
Cloud gaming Market Landscape
Product launches, acquisitions, and
R&D activities are key strategies adopted by players in the Cloud
gaming Market report. The Cloud
gaming top 10 companies include:
- NVIDIA
- Intel
- Microsoft
- Amazon
- Advanced Micro Devices
- Sony
- IBM
- Tencent
- Jump Gaming
Acquisitions/Technology Launches/Partnerships
In October 2019, Google launched their cloud gaming
service, known as Stadia, which is easily deployed through the cloud and rendered
in the smartphone, Chromecast and browser-on-the-fly.
In November 2019, Apple Inc. launched a video game subscription service, which is termed as Apple Arcade for iPadOS, iOS, macOS, and tvOS.
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