Cloud Gaming Market by Type (File Streaming and Video Streaming), by Device (Smartphones, Gaming Consoles, PCs, Smart TVs, and Others), by Offering (Infrastructure and Gaming Platform Services), and by Gamer Type (Casual Gamer, Avid Gamer, and Hardcore Gamer) – Global Opportunity Analysis and Industry Forecast 2023-2030

Market Definition

The global Cloud Gaming Market was valued at USD 3.16 billion in 2022 and is predicted to reach USD 95.44 billion by 2030 with a CAGR of 46.3% from 2023 to 2030. Cloud gaming, also known as gaming on-demand or gaming-as-a-service (GaaS) refers to the games that are present on a company’s server and can be streamed on the user’s device through cloud technology. It allows users to play and operate various games on remote servers. The platform provided by the gaming companies is based on a subscription basis to the users.

Cloud gaming contrasts with traditional gaming as the cloud games run easily on a user's video game console, personal computer, and mobile device. It is accessed to a virtualized Windows that allows users to download and install games while normally working on a local computer. Cloud gaming requires substantial infrastructure that includes data centers and server farms for running the games paired with high-bandwidth internet connections with low latency for delivering the streams to users. 

Market Dynamics and Trends

The growing availability of high-speed internet along with the increasing accessibility of smartphones, smart televisions, laptops, and tabs across the globe is driving the cloud gaming market growth. Also, the conventional way of looking up to local storage has been eliminated as less local disk space is required for cloud gaming. This is expected to propel the growth of the market. Moreover, the elimination of hardware costs along with the availability of features that include instant gameplay and interactive video such as swipe, scroll, click, and drag videos are further boosting the demand for cloud gaming.

However, the risk of data confidentiality where data can be used for data mining such as data theft threat via cookies provided by the server is expected to restrain the growth of the market. On the contrary, the implementation of advanced technologies, such as 5G, edge computing, Artificial Intelligence (AI), and Virtual Reality (VR) is expected to create ample growth opportunities for the cloud gaming market in the coming years. These technologies can help to reduce latency, improve performance, and provide a more immersive gaming experience. As a result, cloud gaming is expected to become more popular and accessible, opening up new opportunities for gamers and businesses alike.

Market Segmentations and Scope of the Study

The cloud gaming market report is segmented on the basis of type, device, offering, gamer type, and region. On the basis of type, the market is divided into file streaming and video streaming. On the basis of device, the market is classified into smartphones, gaming consoles, PCs, smart TVs, and others. On the basis of offering, the market is categorized into infrastructure and gaming platform services. On the basis of gamer type, the market is bifurcated into casual gamer, avid gamer, and hardcore gamer. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and Rest of World (RoW).  

Geographical Analysis

Asia-Pacific holds the dominating share of the cloud gaming market and is expected to continue its dominance during the forecast period. This is attributed to the increasing number of gaming providers that are forming partnerships with cloud service providers to launch cloud gaming services in this region. For instance, in September 2023, Alibaba Cloud was selected as the cloud service partner for the 2023 Asian Games, which will be held in Hangzhou, China. It will provide a range of cloud computing services for the 2023 Asian Games, including computing, storage, networking, and artificial intelligence to improve efficiency and reduce costs.

Also, the high adoption of smartphones and gaming setups coupled with cost-effectiveness drive the market. According to the World Economic Forum, China is the largest market for cloud gaming, with an estimated 2021 turnover of USD 49.3 billion. This is driving the demand for cloud gaming in the region.

Moreover, the rapid development of 5G infrastructure in countries such as China, Vietnam, and India helps to improve the audience experience for gaming platforms by reducing latency and enhancing network speeds and stability, thereby propelling the market growth in this region. For instance, in May 2022, Viettel and Qualcomm collaborated to develop a next-generation 5G Radio Unit (RU) with massive MIMO capabilities and distributed units (DUs). This collaboration was aimed at fast-tracking the development and roll-out of 5G network infrastructure and services in Vietnam. 

North America is expected to show a steady rise in the cloud gaming market during the forecast period, due to its large gamer population, online gaming platforms, and cutting-edge technologies, such as Augmented Reality (AR) & Virtual Reality (VR) and 3D gaming. In addition, the presence of leading cloud gaming providers including Xbox Cloud Gaming, GeForce Now, and Google Stadia that offer exceptional gaming experiences to its users fuel the market growth in this region. For instance, in June 2022, Microsoft Xbox announced the integration of cloud gaming service in Samsung smart TVs. The players need to wirelessly connect video game controllers to televisions using Bluetooth. The Xbox application became a part of the gaming hub on 2022 model Samsung smart televisions in 27 countries.

Competitive Landscape

The cloud gaming industry comprising of various market players such as Amazon.com Inc., NVIDIA Corporation, Microsoft Corporation, Sony Interactive Entertainment, Google, IBM Corporation, Samsung, Ubisoft, Meta, and Tencent Cloud. These market players are adopting various strategies such as product launches and innovation across various regions to maintain their dominance in the market.

For instance, in March 2022, Amazon announced the launch of its cloud gaming service ‘Luna platform’ in order to compete in the market. It is currently available in the mainland US and offers a number of games for a monthly subscription fee. 

Moreover, in October 2021, NVIDIA introduced its next-generation cloud gaming on GeForce NOW that allows users access to high resolutions, low latency, and fast framing to provide the smoothest cloud gameplay. It enables games to run at up to 1440p on PC and Mac clients, 4K HDR on NVIDIA SHIELD, and up to 120 FPS in the PC, Mac, and Android apps.

Key Benefits

• The cloud gaming market report provides a quantitative analysis of the current market and estimations through 2023-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the cloud gaming market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints, and opportunities and their impact on the cloud gaming market is provided in the report.

• The competitive analysis of the market players along with their market share in the market is provided in the report.

• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

Cloud Gaming Market Key Segments

By Type

• File Streaming

• Video Streaming

By Device

• Smartphones

• Gaming Consoles

• PCs 

• Smart TVs

• Others

By Offering 

• Infrastructure

• Gaming Platform Services

By Gamer Type

• Casual Gamer

• Avid Gamer

• Hardcore Gamer

By Region

• North America

  • The U.S

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France

  • Italy

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Report Scope and Segmentation