Analysis of the Global Cloud Gaming Market
Analysis of the Global Cloud Gaming Market
A Radical Paradigm Shift in the Videogame Industry, Driving Multiple Growth Opportunities
This study examines the trends, challenges, and opportunities found in the global cloud gaming market, and also forecasts the number of users and market size between the years 2022-2025, with the base year being 2021. Cloud gaming enables users to play videogames without the need of downloading the full software or having access to the latest hardware, and it is present across a wide range of devices including PCs, consoles, mobiles, and tablets. Instead of relying on the processing power of the gaming device, cloud gaming works by rendering and playing remotely in servers hosted across specialized data centers, with users watching the gameplay and sending inputs locally.
The report begins by providing a brief explanation on how cloud gaming services are provided, describing existing business models. It then offers a throughout rundown of many of the existing participants in the market, detailing the number of games offered, device compatibility, up-to-date prices, and differentiating factors. The report also discusses several of the drivers and restraints currently affecting the market, such as the advent of 5G connectivity or the entry of major videogame developers when it comes the former and high economic barriers or lack of economies of scale when it comes to the latter.
The cloud gaming market is still in a nascent stage. As a result, it shows outstanding growth for the incoming years, with B2C (business-to-consumer) revenues of $13.05 billion by 2025, compared to revenues $1.6 billion in 2021, showcasing a CAGR (Compound Annual Growth Rate) of 69% for the whole period. As the forecast does not include B2B (business-to-business) revenues, Frost & Sullivan believes that the market holds even more potential for revenue generation. When it comes number of users worldwide, Frost & Sullivan estimates that total users will reach 349.4 million by 2025, compared to 60.6 million users in 2021.
• The number of videogame users will grow steadily across all regions, as while the market experienced massive adoption at the start of the COVID-19 pandemic, new users continue to discover the possibilities offered by gaming.
• Users across emerging markets are more aware of cloud gaming, primarily due to both gaming hardware and software being extremely restrictive in these regions, linked to low-income levers and unstable exchange rates.
• The serviceable market for cloud gaming providers will grow at a constant rate, when considering that the market still faces some daunting challenges. This assumption also simplifies the forecast process.
Finally, the report also presents several opportunities still present in the market, such as the mobile and Chinese cloud gaming markets for cloud gaming service providers, the future investment in data centers for telcos and data center providers, or the wide range of opportunities for smart TV makers, streaming platforms, or event organizers. The report also showcases some case studies that provide a deep dive into some of the most influential companies in the market.
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Table of Contents
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top Three Strategic Imperatives on Cloud Gaming Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Cloud Gaming—Scope of Analysis
Cloud Gaming—Infrastructure Overview
Cloud Gaming—Impact on Existing Monetization Models
Cloud Gaming—Market Segmentation
Key Competitors for Cloud Gaming
Key Competitors for Cloud Gaming—Selected Major Participants
Key Competitors for Cloud Gaming—Selected Major Tech Companies
Key Competitors for Cloud Gaming—Selected Challengers
Key Competitors for Cloud Gaming—Selected Challengers (continued)
Key Competitors for Cloud Gaming—Selected Asia-Pacific Participants
Key Competitors for Cloud Gaming—Selected Asia-Pacific Participants (continued)
Growth Drivers for Cloud Gaming
Growth Driver Analysis for Cloud Gaming
Growth Drivers—5G Growth and Increasing Adoption
Growth Drivers—5G Growth and Increasing Adoption (continued)
Growth Drivers—Chinese Cloud Gaming Market
Growth Drivers—Increased Adoption in the Global Videogame Market
Growth Drivers—Mobile Cloud Gaming Market
Growth Restraints for Cloud Gaming
Growth Restraint Analysis for Cloud Gaming
Forecast Assumptions, Cloud Gaming
Forecast and Analysis, Cloud Gaming—Revenues and Users
M&A and Partnership Activities—Major Players
M&A and Partnership Activities—Major Players (continued)
M&A and Partnership Activities—Asia-Pacific Players
M&A and Partnership Activities—Major Technology Companies
Case Study—Nvidia’s GeForce Now
Case Study—Ludium Lab
Case Study—AWG Games
Case Study—Paperspace Gaming
Case Study—now.gg (BlueStacks)
Growth Opportunity 1—Increased Adoption of 5G and High-bandwidth Networks
Growth Opportunity 1—Increased Adoption of 5G and High-bandwidth Networks (continued)
Growth Opportunity 2—Cloud Capabilities for Game Developers and Publishers
Growth Opportunity 2—Cloud Capabilities for Game Developers and Publishers (continued)
Growth Opportunity 3—Edge Computing and Investment on Data Centers
Growth Opportunity 3—Edge Computing and Investment on Data Centers (continued)
Growth Opportunity 4—Mobile Cloud Gaming Market
Growth Opportunity 4—Mobile Cloud Gaming Market (continued)
Growth Opportunity 5—Chinese Cloud Gaming Market
Growth Opportunity 5—Chinese Cloud Gaming Market (continued)
Growth Opportunity 6—Growth and Increased Adoption in the Global Videogame Market
Growth Opportunity 6—Growth and Increased Adoption in the Global Videogame Market (continued)
Growth Opportunity 7—Streaming Platforms, Smart TV Makers, and e-sports
Growth Opportunity 7—Streaming Platforms, Smart TV Makers, and e-sports (continued)
List of Exhibits