Cloud Gaming Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Cloud Gaming Market Report is Segmented by Type (video Streaming and File Streaming), by Device (smartphones, Gaming Consoles, PCs, Mobile Devices, and Other Devices), by Gamer Type (casual Gamers, Avid Gamers, Lifestyle Gamers), and by Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Cloud Gaming Market Size

Single User License
Team License
Corporate License
Book before:
Cloud Gaming Market Summary
share button
Study Period 2019 - 2029
Market Size (2024) USD 3.92 Billion
Market Size (2029) USD 25.02 Billion
CAGR (2024 - 2029) 44.91 %
Fastest Growing Market Middle East and Africa
Largest Market Asia Pacific

Major Players

Cloud Gaming Market

*Disclaimer: Major Players sorted in no particular order

setting-icon

Need a report that reflects how COVID-19 has impacted this market and its growth?

Single User License

OFF

Team License

OFF

Corporate License

OFF
Book before:

Cloud Gaming Market Analysis

The Cloud Gaming Market size is estimated at USD 3.92 billion in 2024, and is expected to reach USD 25.02 billion by 2029, growing at a CAGR of 44.91% during the forecast period (2024-2029).

The market's growth is majorly attributed to technological advancements, such as cloud computing, high-speed internet connectivity, streaming technology, and government initiatives related to cloud infrastructure.

  • The recent advancement in advanced cloud technology has turned the idea of cloud gaming into a real scenario. Cloud gaming renders the interactive gaming application remotely in the cloud and then streams the scenes as a video sequence back to the player over the internet. This is the advantage for less-powerful computational devices that are otherwise incapable of running high-quality games.
  • The growing number of internet users and the tendency to play games on mobile devices with storage issues in many devices are major drivers for the market. A significant advantage of cloud-based gaming is that games are available anytime from almost any device, such as smartphones and tablets. Also, mobile cloud gaming is a promising paradigm for gaming delivery, as users can play games on any OS or device. In cloud gaming, the vital server (where all the games are stored) does the computation work, including game scene rendering, game logic processing, video encoding, and video streaming.
  • Further, the growing product launches and collaborations are analyzed to bolster the market growth rate during the forecast period. For instance, in December 2023, Apple announced it would now allow apps to stream games on its App Store. It means that brands like Microsoft and Nvidia can launch native apps for their cloud gaming services, such as Xbox Cloud Gaming and GeForce Now, on the App Store for iPhone and iPad. The new policy is global.
  • A real-time gaming experience is required to adopt cloud gaming services. A high resolution and frame rate should be paired with low latency for a smooth gaming experience that meets gamers' expectations. However, cloud gaming services are held back by current internet technology and struggle to live up to gamers' expectations because developing countries with low bandwidth penetration are poised to avoid the usage of cloud gaming services and instead go with traditional gaming offers offline use.
  • The COVID-19 had a positive impact on the cloud gaming market. During the lockdown, demand for cloud-based games grew as they were free to play on any device and did not need more hardware. Companies like Microsoft, Twitch, and Activision have all reached new heights in player investment. The growing smartphone penetration is one of the significant factors that have contributed to the cloud gaming market.

Cloud Gaming Market Trends

Smartphones Devices Market is Expected to Hold Significant Market Share

  • The growth of cloud gaming solutions supported by the increasing Internet penetration rate worldwide is driving the demand for cloud games in Smartphones, fueling the market growth in the future. For instance, in November 2023, StarHub announced partnerships with cloud gaming distributors CareGame and OnMobile Global to bring over 100 mobile game titles to GameHub+ Mobile Play, a portable gaming category catered to mobile gamers, showing the need for cloud gaming for smartphone users.
  • Additionally, smartphone-based gaming solutions enable gamers to enjoy mobile games by steaming them through the cloud, eliminating the need for powerful mobile hardware and storage space needed to download. Furthermore, gamers would be able to play a wide selection of mobile games, including AAA titles with buttery smooth graphics at ultra-low latency speeds, which shows the benefit of cloud gaming for smartphone users, which would fuel the market growth potential in the future.
  • The growth of High-speed Internet through 5G mobile networks worldwide would raise the number of smartphone usage and their network capability to support the internet data demand for smartphone-based cloud gaming in the market, supporting the market’s growth during the forecast period. For instance, in November 2023, the Ericsson Mobility Report stated that the 5G subscriptions in North America were expected to reach 252.31million in 2023 and are estimated to grow to 405.40 million by 2028, showing the increasing trend of 5G expansion for better mobile connectivity, which would support the growth of cloud-based mobile gaming market during the forecast period.
  • The cloud gaming service market for smartphones is witnessing a significant collaboration among the telecom services providers and the cloud gaming providers to bundle their cloud gaming offerings in the telecom services’ monthly billing, fueling the market’s growth.
  • Therefore, the growth of smartphone penetration, the investments in the 5G services in the countries., and the collaborations of cloud-based game providers with the telecom service providers to increase the target audiences of their smartphone-based cloud gaming portfolio are fueling the market growth during the forecast period.
Cloud Gaming Market: Forecast Number of Mobile 5G Subscriptions, in Millions, by Region, Global, 2020-2028

Middle East and Africa to Witness Major Growth

  • The Middle East and Africa region includes countries like Saudi Arabia, the United Arab Emirates, Qatar, and South Africa. The Middle East and Africa, cloud gaming market, is mainly benefitting from the evolving role of 5G in cloud gaming, high-speed internet infrastructure, expanding cloud infrastructure with the opening of new cloud regions, and growth in launches of new cloud gaming offerings by major market vendors.
  • Further, government initiatives in many MENA countries to expand cloud computing infrastructure are analyzed to drive the growth of the cloud gaming market over the forecast period. For instance, Saudi Arabia is witnessing a significant increase in cloud computing. The country's government aims to make the Kingdom a regional hub for cloud computing by 2030.
  • Cloud service providers are recognizing the need and expanding their cloud infrastructure in the region, thus positively elevating the growth of effective video streaming in the studied market. For instance, in September 2023, Huawei Cloud announced the launch of the Huawei Cloud Riyadh Region at the Huawei Cloud Summit Saudi Arabia 2023. This cloud Region will help promote digital-led economic growth in the Kingdom. The launch of the Huawei Cloud Riyadh will be Huawei Cloud's focus on serving the Middle East, Central Asia, and Africa, providing secure, innovative, reliable, and sustainable cloud services.
  • Global market vendors are partnering with regional telecom providers to develop the MENA Cloud Gaming ecosystem and cater to the growing demand for cloud gaming from gamers across the region.
Cloud Gaming Market: Cloud Gaming Market: Market CAGR (%), By Region, Global

Cloud Gaming Industry Overview

The cloud gaming market is highly fragmented, with major players like Nvidia Corporation, Numecent Holdings Ltd., Blacknut, Microsoft Corporation, and Parsec Cloud, Inc. (Unity Software INC.). Players in the market are adopting strategies such as partnerships and acquisitions to enhance their solution offerings and gain sustainable competitive advantage.

  • December 2023 - Radian Arc & Blacknut launched a new cloud gaming offer for Malaysian Convergence Services Provider Unifi. Through this partnership with Unifi, Radian Arc will continue to improve the gaming experiences of millions of players in Malaysia and beyond.
  • August 2023 - GeForce NOW announced the launch of Ultimate KovvaK’s challenge. With this launch, Nvidia helps gamers to improve their aim. It fully launches with a limited-time Steam discount. KovaaK’s leads over 20 new games joining the GeForce NOW library.

Cloud Gaming Market Leaders

  1. Nvidia Corporation

  2. Blacknut

  3. Microsoft Corporation

  4. Numecent Holdings Ltd

  5. Parsec Cloud Inc. (Unity Software Inc.)

*Disclaimer: Major Players sorted in no particular order

Cloud Gaming Market Concentration
bookmark Need More Details on Market Players and Competitors?
Download PDF

Cloud Gaming Market News

  • December 2023 - Xbox Cloud Gaming launched its services for the Meta Quest line of VR headsets. After this launch, users can download the app from the Meta Quest Store to play VR-based games without needing other playing devices, showing the future market opportunity for cloud gaming services in various advanced compatible devices.
  • September 2023 - Microsoft has planned to launch its Microsoft next Xbox in 2028, which would be an advanced hybrid game platform capable of leveraging the combined capability of the customer's device and cloud to deliver deeper immersion and entirely new classes of game experiences, showing the increasing demand for the technological advancement in the cloud gaming market in the future, which would create an opportunity for the stakeholders of the market to increase their market share with new offerings.

Cloud Gaming Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Assessment of Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Technological Advancements, Such as Cloud Computing, High-speed Internet Connectivity, and Streaming Technology

      2. 5.1.2 Government Initiatives Related to Cloud Infrastructure will Help in Market Expansion

    2. 5.2 Market Restraints

      1. 5.2.1 Low Bandwidth Issues is Hindering the Market Growth in Developing Countries

      2. 5.2.2 Regulatory and Legal Challenges

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 Video Streaming

      2. 6.1.2 File Streaming

    2. 6.2 By Device

      1. 6.2.1 Smartphones

      2. 6.2.2 Gaming Consoles

      3. 6.2.3 PC

      4. 6.2.4 Mobile Devices

      5. 6.2.5 Others

    3. 6.3 By Gamer Type

      1. 6.3.1 Casual Gamers

      2. 6.3.2 Avid Gamers

      3. 6.3.3 Lifestyle Gamers

    4. 6.4 By Geography

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 Germany

        2. 6.4.2.2 United Kingdom

        3. 6.4.2.3 France

        4. 6.4.2.4 Italy

        5. 6.4.2.5 Rest of Europe

      3. 6.4.3 Asia-Pacific

        1. 6.4.3.1 China

        2. 6.4.3.2 Japan

        3. 6.4.3.3 India

        4. 6.4.3.4 Rest of Asia-Pacific

      4. 6.4.4 Latin America

      5. 6.4.5 Middle East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles*

      1. 7.1.1 Nvidia Corporation

      2. 7.1.2 Numecent Holdings Ltd.

      3. 7.1.3 Blacknut

      4. 7.1.4 Microsoft Corporation

      5. 7.1.5 Parsec Cloud Inc. (Unity Software Inc.)

      6. 7.1.6 Tencent Holdings Limited

      7. 7.1.7 Utomik BV

      8. 7.1.8 Antplay.tech

      9. 7.1.9 UBITUS KK

      10. 7.1.10 Shadow SAS

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability
bookmark You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Cloud Gaming Industry Segmentation

Users can engage in video games through cloud gaming by streaming directly from remote servers over the internet, eliminating the need to download or install games on local devices. The market for the study defines the revenues accrued from the sales of various cloud gaming platforms worldwide.

The cloud gaming market is defined based on the revenues generated from the device type being used globally. The analysis draws on market insights from secondary research and primary sources, encompassing key factors that influence growth, including drivers and restraints.

The cloud gaming market is segmented by type (video streaming, file streaming), by device (smartphones, gaming consoles, PC, mobile devices, others), by game type (casual gamers, avid gamers, lifestyle gamers), by geography (North America [United States, Canada], Europe [Germany, United Kingdom, France, Italy, Rest of Europe], Asia-Pacific [China, Japan, India, Rest of Asia-Pacific], Latin America, and Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.

By Type
Video Streaming
File Streaming
By Device
Smartphones
Gaming Consoles
PC
Mobile Devices
Others
By Gamer Type
Casual Gamers
Avid Gamers
Lifestyle Gamers
By Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Latin America
Middle East and Africa
customize-icon Need A Different Region Or Segment?
Customize Now

Cloud Gaming Market Research FAQs

The Cloud Gaming Market size is expected to reach USD 3.92 billion in 2024 and grow at a CAGR of 44.91% to reach USD 25.02 billion by 2029.

In 2024, the Cloud Gaming Market size is expected to reach USD 3.92 billion.

Nvidia Corporation, Blacknut, Microsoft Corporation, Numecent Holdings Ltd and Parsec Cloud Inc. (Unity Software Inc.) are the major companies operating in the Cloud Gaming Market.

Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Cloud Gaming Market.

In 2023, the Cloud Gaming Market size was estimated at USD 2.16 billion. The report covers the Cloud Gaming Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cloud Gaming Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Cloud Gaming Industry Report

Statistics for the 2024 Cloud Gaming market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cloud Gaming analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

close-icon
80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!

Cloud Gaming Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)