Frost & Sullivan’s recent research, Analysis of the Global Cloud Gaming Market, finds that the global video game market is experiencing disruption with the advent of cloud gaming. It allows users to enjoy the latest gaming titles without high-end hardware or downloading the full software on their computers or other devices. This buoyant market’s business-to-consumer (B2C) segment will likely garner $13.05 billion in revenue by 2025 from $1.6 billion in 2021, registering a staggering compound annual growth rate (CAGR) of 69%. In addition, total users are expected to reach 349.4 million by 2025, compared to 60.6 million users in 2021.
“The entrance of major gaming companies into the cloud gaming arena and the adoption of 5G technology are prominent drivers boosting the global cloud gaming market growth exponentially,” said Diego Dell Orco, Digital Content Services Research Analyst at Frost & Sullivan. “Major technology companies have already shown interest in the market, with significant offerings that could be fully released in the next two or three years.”
Dell Orco added: “Cloud gaming is available across a diverse number of devices, such as cell phones and smart TVs, which also enables the creation of new revenue streams for a wide range of companies. These notable possibilities should encourage cloud gaming providers and interested entrants to invest in the sector before competition heats up.”
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The cloud gaming industry is a sunrise sector and presents immense growth prospects for market participants, including:
Increased adoption of 5G and high-bandwidth networks: Telcos will diversify their portfolio and boost customer traffic, enabling them to monetize other aspects of their business besides bandwidth.
Cloud capabilities for game developers and publishers: Video game companies will capture new audiences and better serve their hardcore user base as developers create massive and complex products thanks to cloud capabilities.
Edge computing and investment in data centers: Companies that focus on co-location services will experience rising demand, especially those that are strategically placed to cover promising geographical regions such as Latin America, Southeast Asia, and Sub-Saharan Africa.
Mobile cloud gaming market: Video game firms and cloud gaming companies should be aware of how mobile user acquisition will change with cloud gaming.
Chinese cloud gaming market: The Chinese government is focusing on deploying 5G networks and data centers around the country as part of a comprehensive digital infrastructure plan that aims to revitalize the economy. This creates unparalleled potential for cloud gaming services in China.
Opportunity for smart TV manufacturers: These companies should focus their efforts on creating cloud gaming platforms, optimized for high resolutions.
Analysis of the Global Cloud Gaming Market is the latest addition to Frost & Sullivan’s Information & Communication Technology research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.