China Cloud Gaming Technology Market Size

China Cloud Gaming Technology Market Analysis

The market for cloud gaming in China is expected to register a CAGR of 20.2% over the forecast period. With China's population spending heavily on mobile games, the industry's growth rate is five times that of the region's average. Also, with capabilities growing at about four times the rate of its domestic internet service, the country is well on its way to becoming the leader in meeting the cloud data storage needs of the gaming industry.

• In June 2016, Chinese President Xi Jinping outlined his vision for China to become the leading player in science and technology. It is slowly emerging as a technology superpower, competing with the United States. In the technological scenario, rapid economic growth has resulted in reduced fiscal deficits and gradual, progressive economic reforms.
• China has taken the lead in creating 5G technology and constructing base stations nationwide. China had roughly 1.4 million stations installed by the end of last year, according to the Chinese official website gov.cn, and China Mobile promised in November last year to roll out nationwide 5G signal deployment by the end of the current year. The prevalence of cloud gaming is highly dependent on the universal use of 5G.
• Many of the country's big players in the sector have started their projects in the expanding market due to China's rapid infrastructural development, which offers favorable conditions for cloud gaming. For instance, GameMatrix and START are two cloud gaming platforms created by Tencent. GameMatrix, originally CMatrix, specializes in cloud games for mobile devices. START's most well-known game is the cloud version of Fortnite, a well-known battle royale shooting game on PC and console, which is now a free platform for cloud games on PC and console.
• While ByteDance launched a closed test for its cloud gaming platform Aoligame in January last year, NetEase started its beta test for NetEase Cloud Game in late 2019. Another significant gaming company in China, Seasun, created a cloud game client that reduced the size of their well-known MMORPG, XJ Online III, from 80GB to just 26MB. Live-streaming platforms also brought attention to cloud gaming. The two most significant streaming services in China, Huya and Douyu, respectively, launched their cloud gaming services in July and March last year.
• Leading Chinese IT companies, in addition to game developers, have taken the lead in pushing cloud gaming upstream by successively creating tech-driven cloud platforms. China Mobile, China Telecom, and China Unicom, the country's top three telecom providers, have invested in cloud-based gaming services. Huawei has also put a lot of effort into gaming through its Huawei Cloud division. The company wants to use "new technology for low prices and a better experience" in cloud gaming.
• The COVID-19 pandemic resulted in game delays and scope scale-downs expected to prevent the console gaming sector from witnessing the same gains as a mobile platform. But it has also been helpful because people are playing on-demand games on their phones or consoles when they have free time. This means that serious gamers, casual gamers, and social gamers all want cloud gaming.