The cloud gaming market is predicted to hike from over $1 billion in 2018 to $8 billion by 2025, according to a 2019 Global Market Insights report. Cloud gaming would provide an inexpensive alternative for gamers to explore numerous games simultaneously, driving the cloud gaming market growth.
Cloud gaming bypasses the requirement of purchasing any additional gaming hardware devices and allows users to play various resource-intensive games irrespective of the specifications of their tech devices.
The streaming mechanism consumes large amounts of bandwidth and demands stable Internet connectivity over the entire duration of the gameplay. This has been the primary factor limiting its usage in certain developing countries. The ability of the file streaming approach to offer uninterrupted and high-quality gaming experience is driving its adoption among major cloud gaming platforms such as Sony and Microsoft.
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The major players are working on forming partnerships with each other to strengthen their existing cloud gaming product portfolio. For example, in May 2019, Microsoft entered into a partnership with Sony to jointly develop new & innovative cloud gaming platforms and content streaming solutions.
The connected television cloud gaming market is expected to witness a CAGR of over 15% from 2019 to 2025. The television manufacturers are constantly working on various new strategies to augment the features of their offerings to differentiate their products from their competitive counterparts. The advent of cloud gaming has provided television manufacturers with lucrative opportunities to further enhance their product capabilities and generate new revenue streams through subscription fees. This is encouraging television providers to form tie-ups with platform providers to integrate the cloud gaming functionality in the offerings.
GPU-as-a-service can render and stream several demanding games while providing “unparalleled” gaming performance. The cloud gaming services would employ GPU-as-a-service, enabling over hundreds of graphically intense games to run concurrently at higher frame rates while reducing latency. The start-ups in the cloud gaming landscape are forming tie-ups with GPU-as-a-service providers including NVIDIA, AMD, and Huawei to enhance the performance of their existing streaming services.
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North American Market
The Business-to-Business (B2B) cloud gaming market is anticipated to register a CAGR of over 40% during the forecast timespan. This is attributed to the technological advances in the connectivity landscape. The telecom providers are focusing on generating additional revenue through their existing fiber investments by collaborating with cloud gaming platform companies. The cloud gaming platforms are focusing on signing partnerships with Internet Service Providers (ISPs) and telecom companies to further extend the distribution network of their services. Furthermore, the set-top box manufacturers and telecom operators are showing interest in monetizing their fiber investments. The Business-to-Consumer (B2C) model is mainly adopted by gaming giants such as Sony, Microsoft, and NVIDIA. The inherent requirement for high capital expenditure is limiting its adoption among smaller players and start-ups.
The advent of 5G technology has marked a new beginning in the connectivity landscape and brought about a fundamental shift in the gaming industry. Countries such as China, U.S., South Korea, and Japan have made significant strides toward bolstering the 5G infrastructure in the country. In April 2019, the major south Korea-based telecom providers, Korea Telecom, LG Uplus, and SK Telecom launched 5G mobile networks nationwide.
The North America cloud gaming market held over 45% industry share due to presence of large players such as Microsoft, Electronic Arts, and Google. These prominent players are conducting various strategic R&D initiatives to enhance the product capabilities.
Examples of the enterprises present in the cloud gaming market include Apple, Cloudzen, Loudplay, Numecent, Paperspace, Parsec, RemoteMyApp, RemotrCloud, NVIDIA, PlayKey, Rainway, Playcast, Playgiga, Microsoft, Electronic Arts, Advanced Micro Devices Broadmedia GC, Sony, and Wiztivi.
The full report, ‘Cloud Gaming Market Size By Type (File Streaming, Video Streaming), By Device (Consoles, PCs & Laptops, Smartphones & Tablets, Connected Television), By Business Model (Business-to-Consumer [B2C], Business-to-Business [B2B]) Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Spain, Netherlands, Australia, China, India, Japan, South Korea, Brazil, Mexico, UAE, Saudi Arabia), Growth Potential, Competitive Market Share & Forecast, 2019 – 2025’ can be found here: https://www.gminsights.com/industry-analysis/cloud-gaming-market.