Cloud Gaming Market Size, Share, Opportunities, And Trends By Platform (Smartphones, PCs, Others), By Service Type (Video Streaming, File Streaming), And By Geography - Forecasts From 2024 To 2029

The cloud gaming market is estimated to reach US$18.664 billion in 2029, with a CAGR of 52.91%, from US$2.233 billion in 2024.

Cloud gaming involves playing video games on a remote server that uses hardware for managing, processing, and hosting the game. A gamer does not require any physical copies, updates, or backup as the game is stored on a cloud platform, reducing the overall cost of playing the game.

Booming 5G subscriptions and smartphone penetration, followed by a growing cloud ecosystem, are majorly driving the demand for cloud gaming applications, thereby propelling the market growth. Moreover, the reduction in access time and the declining cost of purchasing games are further fuelling the demand for cloud gaming.

Additionally, rising social media and booming online gaming trends have created a shift towards free-to-play online games, affecting the market's growth during the forecast period.

Cloud Gaming Market Drivers:

• Smartphone adoption will drive the cloud gaming market growth.

The cloud environment is gaining traction in the gaming sector, fueled by the growing emphasis on providing high-quality video games to users across various platforms, such as tablets and smartphones, with fast network connectivity. This would prevent the requirement for regular gaming consoles. Technological advancements such as AR/VR have also provided a wider scope for cloud gaming platforms. A poll by the Mobile Video Industry Council suggested that mobile operators forecasted cloud gaming to generate 25-50% off 5G data traffic by the end of 2022.

The emergence of 5G and unlimited data plans are also expected to be critical factors in aiding the success of cloud gaming worldwide since most gamers today prefer playing games on their mobile phones. According to Ericsson, 5G mobile subscriptions in the Asia-Pacific region alone are estimated to reach around 1,545 million by 2025.

• Growing cloud infrastructure propels market expansion.

The growing prevalence of cloud infrastructure has provided storage, several computing, and communication resources in a cost-effective, reliable, and low-maintenance manner. The gaming sector aims to optimize the growing cloud environment by providing multiple gaming services through a single network that uses high-speed internet. Major economies, namely Japan, China, and the USA are investing in cloud gaming platforms that will allow users to stream & download their favourite video games.

• The growing online gaming trend propels the market growth.

The gaming culture is witnessing a drastic change, with users demanding more flexible, convenient, and time-saving options, owing to which the preference for online gaming is witnessing significant growth. The lucrative sector holds a wider scope for the overall gaming industry. With growing technological advancement, high-speed internet access, and smartphone penetration, the prevalence of online gaming is also expected to increase. According to the American Gaming Association, in 2023, online gaming generated US$16.55 billion in revenue, which accounted for 24.9% of the total gaming revenue generated in the USA.

Cloud Gaming Market Restraints:

• Stringent government regulations on online gaming can hinder market growth.

Cloud gaming offers a wider gaming spectrum for players; however, companies in the regional market and planning to invest overseas must comply with certain rules laid by the governing authorities. For instance, the European Gaming & Betting Association is the highest regulatory body in the EU that possesses 267 online gambling licenses with each having its compliance requirements.

Cloud Gaming Market Geographical Outlook

• Asia Pacific will account for a significant share of the market.

Geography-wise, the Asia Pacific region is estimated to constitute a significant market share, which is attributable to bolstering growth in the gaming sector in major regional nations namely China, Japan, South Korea, and India. According to the Red Apple Technologies “Global Gaming Industry 2023” report, China is the leader in the gaming industry, having a valuation of US$50.18 billion. To optimize this growing potential, major companies are investing in the Asian market and forming strategic collaborations.

Japan is also among the world's key players in the gaming market after China and the US. With the steady growth of technological adaption, many leading gaming companies, including Konami, Sony, Nintendo, and others, have actively participated in new launches. For instance, in February 2024, Konami launched “Super Crazy Rhythm Castle” on the Black Nut Gaming platform, with which the Japanese gaming publisher formed a partnership in 2023.

Other major economies, namely South America and India, which harbor a high percentage of younger people who are major end-users of gaming platforms, are experiencing technological innovations in their gaming industry. With the ongoing digitization trend, the market is also set to show positive growth in such nations.

Cloud Gaming Market Key Developments

• April 2024: Vi, in collaboration with a European cloud gaming company, launched its mobile cloud gaming service “Cloud Play” in India. It will be available for Android and iOS in a “Try and buy” mode. It will provide AAA premium games across various genres, including adventure, arcade, sports & racing, strategy, and action.
• March 2024: Google Cloud formed a collaboration with Sequence that involved providing the latter’s Web-3 technology to game developers via Good Cloud. This will help them develop, scale, and launch Web-3-enhanced games on any platform.
• February 2024: Blacknut Cloud Gaming teamed up with Wyplay to provide global cloud gaming solutions to the latter’s Pay TV operators. Wyplay’s versatile technology integrates a variety of devices and offers an inclusive platform to its viewers.
• March 2023: Microsoft formed a 10-year collaboration with cloud gaming provider Boosteroid, which involved bringing the former’s Xbox PC games, inclusive of its popular “Call of Duty” series, to the latter’s cloud gaming platform.
• February 2023: NVIDIA Corporation and Microsoft formed a 10-year partnership agreement that will bring the latter’s Xbox PC games to the former’s “GeForce NOW” cloud gaming service, which has more than 25 million members globally. Through the collaboration, gamers will be able to stream Xbox PC games via GeForce NOW through their PCs, smartphones, Chromebooks, and other devices.

Cloud Gaming Market Scope:

The Cloud Gaming market is segmented and analyzed as follows:

• By Platform
  • Smartphones
  • PCs
  • Others
• By Service Type
  • Video Streaming
  • File Streaming
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Taiwan
    • Others