Gaming as a Service Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Platform (PCs and Laptops, Smartphones and Tablets, Gaming Consoles), By Technology (File Streaming, Video Streaming), And By Geography - Forecasts From 2022 To 2027

The global Gaming as a Service (GaaS) market is projected to grow at a CAGR of 38.77% to reach a value of US$18.407 billion by 2027, up from US$1.858 billion in 2020. The increasing number of gamers globally is the major factor behind the growing demand for gaming as a service market.

The growing number of smartphone users coupled with rising internet penetration is supporting the market growth of gaming as a service. An upsurge in competitive gaming on mobile devices, laptops, and consoles, along with increasing expenditure required to customize and upgrade the assembled PCs and gaming laptops in order to play upcoming games, is also contributing to the escalating demand for gaming as a service. Gamers are increasingly demanding advanced hardware requirements to experience the best graphics, refresh rate, and FPS (frames per second) settings. This is encouraging gamers to switch their preferences to other solutions such as gaming as a service (GaaS), thereby, augmenting the market growth.

However, the presence of the substitute, that is, traditional gaming on PCs or consoles in which the game needs to be purchased, downloaded, and updated, is restraining the market growth of gaming as a service. Furthermore, the unavailability of proper infrastructure to provide good internet connection strength and internet speed in some of the developing and emerging economies is another factor that is hampering the growth of this market.

The commercialization of 5G provides a great opportunity for the growth of gaming as a service market during the next five years. In addition, supportive government initiatives to boost the adoption of 5G in emerging economies are also encouraging market players to boost their market share, thereby positively impacting market growth. For example, the Government of India has formed a High-Level 5G India 2020 Forum with the Ministry/Department of Telecom and Ministry of Electronics and Information Technology (MeitY). The goals of this forum are to facilitate the early deployment of 5G in India, which would, in turn, help improve the connection strength and speed, allowing for better and unfettered access to gaming as a service (GaaS).

Furthermore, the key players in the market are involved in collaborations and launching enhanced services in order to boost their market share and contribute to the growth of the market. For example, recently in February 2020, NVIDIA announced the public launch of its cloud gaming/gaming as a service solution. This service provided by NVIDIA is able to run demanding games and is backward compatible, which means that it is able to access data from the previous versions also. Also, in December 2019, the company announced it had entered into a collaboration with Tencent to bring gaming as a service to China. The “START” is gaming as a service product by Tencent, powered by a GPU from NVIDIA, which makes the availability of AAA (Triple-A titles, those that are produced by prominent game producers) games on underpowered solutions for the users and games possible. In addition, in November 2019, Google announced the launch of its new gaming service, “Google Stadia”. Gaming as a service and game streaming product can beam any high-end console and PC games to the Chrome browser, Chromecast dongle, or Pixel 3 smartphone and was launched in select countries such as the United States, United Kingdom, and much of Europe. The gaming as a service (GaaS) market has been segmented based on platform, technology, and geography. By platform, the market has been segmented as PCs and laptops, smartphones and tablets, and gaming consoles. By technology, the market has been segmented into file streaming and video streaming.

The Mobile Phones and Tablets segment holds a significant market share

Mobile phones and tablets are estimated to hold a significant market share owing to the advanced features such as the good amount of RAM and processors that are loaded into mid-level phones and some entry-level phones, which provide a good and cheap gaming platform. For instance, Xiaomi sells a gaming phone called the Black Shark 2, and ASUS also sells a phone series called the “ROG Phone”.

File Streaming to contribute significantly to the market growth over the forecast period

File streaming technology is poised to grow at a decent CAGR during the forecast period. This is due to the fact that the use of this technology enables the streaming of the games easier as by only downloading a small portion of the game, the game is accessible by the players even in low bandwidth and poor internet speed conditions. The market for video streaming technology holds a considerable market share. For video streaming, the game is available on the cloud, and no part of the game needs to be downloaded, although a high bandwidth and high-speed internet connection are required.

The North American region to grow at a noteworthy pace over the forecast period

Geographically, the global gaming as a service (GaaS) market has been segmented into North America, South America, Europe, the Middle East and Africa (MEA), and Asia Pacific (APAC). The North American region is projected to hold a significant market share and grow at a noteworthy pace over the forecast period, which is attributable to the fact that in countries such as the US, there are increasing investments in R&D for the improvement and enhancement of capabilities of this service. Players such as Google and Microsoft are leveraging every opportunity to increase the adoption of this next-gen service. The APAC regional market will experience significant market growth on account of the rising popularity of cloud gaming and the rapidly growing gamer population in APAC countries. Countries such as China and South Korea are among the largest online gaming industries in the world, with mobile gaming increasingly popular in Korea. In conjunction, the increasing investments and initiatives being taken by the market players also support the market growth of gaming as a service in this region. For instance, in September 2019, SK Telecom announced that it would be the operating partner under the tech giant Microsoft, in order to deliver a cloud gaming service based on the 5G network called “Project xCloud” in Korea.

Key Development:

• April 2022- Microsoft announced that it would purchase 98% of the shares of Activision Blizzard. This acquisition will benefit Activision Blizzard by strengthening its game industry position and giving its workers access to new prospects.
• February 2022- Leikir Studio, the creator of Metal Slug Tactics and Rogue Lords, was purchased by Focus Entertainment. The Leikir studio becomes the fifth development studio integrated into the Focus Entertainment firm, validating the multi-production approach.
• January 2022-The ROG FLOW Z13 tablet was introduced by the gaming division of ASUS, Republic of Gamers (ROG). This tablet has a ROG Strix GeForce RTX 3050 Ti Laptop GPU, an Intel Core i9-12900H processor, and Boost: 13.4-inch WQUXGA (3840 x 2400) 16:10 glossy display, 16GB (8*2 LPDDR5 onboard memory), 1TB M.2 2230 NVMe PCIe 4.0 SSD, Dolby Atmos, AI noise-canceling technology, Hi-Res certification, 1085MHz at 40W, 1035MHz Boost Clock+50MHz OC, 35W+5W Dynamic Boost, 3-microphone array and 2-speaker built-in system with Smart Amplifier Technology, and a dedicated MUX Switch that support multiple input types and graphics boost with XG Mobile. ?

Impact of COVID-19 on the Gaming as a Service Market

COVID-19 had a positive impact on the market. Many people choose to spend most of their time in their homes due to the preventive precautions the majority of the world's population took against the coronavirus. The unfortunate circumstances made individuals stressed, anxious, and afraid. Additionally, folks were unable to partake in social gatherings or outdoor activities. All of these elements combined to operate as a driving force for the consumption of various online games, which helped people deal with a range of mental health difficulties. During the nationwide lockdowns caused by the COVID-19 pandemic, some people passed the time by playing video games. These sites thus brought on tens of thousands more users, increasing online traffic. Video game player and revenue trends are accelerating. For instance, according to data from the World Economic Forum released in September 2020, gaming unit sales in the United States increased dramatically, up 37% yearly to USD 3.3 billion.

Gaming as a Service Market Scope:

Market Segmentation

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

NVIDIA Corporation

Microsoft

Google

Tencent

RemoteMyApp Sp. z o.o.

Shadow by Blade

Sony Interactive Entertainment Inc.

Parsec Cloud, Inc.