Cloud gaming, also known as game streaming, allows users to stream and play video games online without consoles, dedicated hardware or software through cloud computing. It enables on-the-go gaming on any device with an internet connection such as smartphones, tablets and laptops.
The global cloud gaming Market is estimated to be valued at US$ 591.53 Billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
With cloud gaming, users can game from virtually anywhere as long as they have an internet connection and supported device. This removes the limitations of conventional gaming which requires dedicated hardware and software. Today’s users demand mobility and convenience which has increased the popularity of mobile gaming. However, mobile games have relatively basic graphics and game styles in comparison to AAA titles on consoles and PCs. Cloud gaming addresses this issue by enabling high-quality console and PC-like gaming on mobile phones, tablets and laptops. The flexibility and mobility offered by cloud gaming is attracting a wide audience beyond the traditional gamers and helping to drive mass adoption of cloud gaming worldwide.
Threat of new entrants: Low barrier to entry enables new entrants to enter the market easily. However, established players have strong customer base and brand loyalty which is a challenge for new entrants.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes. They can switch to other products easily if not satisfied with service and pricing.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of competitive suppliers in the market.
Threat of new substitutes: Potential threat as new substitutes like mobile gaming, VR gaming are innovating continuously and attracting customers.
Competitive rivalry: Intense competition due to presence of established global as well as local players fighting for market share.
Strength: Technology leadership, large customer base, brand recognition.
Weakness: High R&D and infrastructure cost, dependency on internet connectivity, data privacy and security issues.
Opportunity: Growing interest of millennials in cloud gaming, increasing internet penetration in developing nations.
Threats: Short product life cycles due to rapid technological changes, regulated markets with licensing requirements.
The Global Cloud Gaming Market Size is expected to witness high growth.
North America dominates the market currently due to high adoption of advanced technologies. Asia Pacific is expected to grow at fastest pace owing to growing internet subscribers and increasing focus of international players in countries like China and India.
Europe also presents lucrative opportunities for market expansion. Major gaming studios and key players like Microsoft, Nvidia, Google, Sony and Amazon are investing heavily in cloud infrastructure to capitalize on growing user demand.
Key players operating in the cloud gaming market are Daikin Industries Ltd, Sharp Corporation, Mitsubishi Corporation, Hitachi Ltd., Haier Electronics Group Co., Ltd., Carrier, Samsung Electronics, Panasonic, Electrolux AB, and LG Electronics. They are focusing on partnering with internet providers and studios to build robust portfolios. Innovation in 5G technology and edge computing is likely to boost capabilities of cloud gaming platforms.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it