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Cloud Gaming Market Size

Report ID: GMI2368
Published Date: Jun 2019
Report Format: PDF

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Cloud Gaming Market Size

Cloud Gaming Market size surpassed USD 1 billion in 2018 and is anticipated to grow at a CAGR of more than 30% from 2019 to 2025.

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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 around the world are investing in 5G technology to gain broader microeconomic benefits. Countries such as China, U.S., South Korea, and Japan have made significant strides toward bolstering the 5G infrastructure in the country. 5G technology is a next-generation wireless technology that can enable faster data transmission speeds. As the cloud gaming technology requires high transmission speeds of over 10 Mbps, the deployment of the 5G infrastructure serves as a key enabling factor, allowing companies to launch their platforms in the region. The 5G technology also effectively deals with various latency issues, providing users with a seamless gaming experience, promoting the usage of cloud gaming platforms.

Cloud Gaming Market Report Attributes
Report Attribute	Details
Base Year:	2018
Cloud Gaming Market Size in 2018:	1 Billion (USD)
Forecast Period:	2019 to 2025
Forecast Period 2019 to 2025 CAGR:	30%
2025 Value Projection:	8 Billion (USD)
Historical Data for:	2014 to 2018
No. of Pages:	250
Tables, Charts & Figures:	234
Segments covered:	Type, Device, Business Model and Region
Growth Drivers:	High cost gaming hardware’s and consoles Increasing demand for on OTT gaming services Increasing investment on 5G infrastructure in certain economies Simultaneous access of numerous games at affordable prices Growing popularity of GPU-as-a-service
Pitfalls & Challenges:	Lack of awareness regarding cloud gaming platforms Absence of high speed internet connectivity in underdeveloped economies

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In the current scenario, purchasing a high-end gaming system requires substantial investments. The assembly of a typical low-end gaming system along with the right consoles will cost over USD 300 to 400. The top-end gaming machines range from USD 4,000 to 5,000. The average gamer usually invests USD 800 to 1,000 in purchasing or assembling a gaming system. The prices of the gaming components fluctuate from year-to-year and generation-to-generation. The price surge associated with gaming systems is preventing its adoption in over 70% of its potential customers. Over 60% of the users across the globe do not have access to computer systems that can handle demanding requirements of the AAA level games at acceptable quality. The cloud gaming model can allow companies to increase their profitability, gaining access to various new potential customers.

Authors: Suraj Gujar, Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The cloud gaming market surpassed USD 1 billion in 2018 and is predicted to cross USD 8 billion by 2025, according to a GMI report.

The industry share of cloud gaming to grow at a CAGR of more than 30% from 2019 to 2025.

The Asia Pacific market is anticipated to grow at a CAGR of over 46% from 2019 to 2025 led by increasing number of 5G infrastructure development initiatives in the region.

According to the analysts at GMI, the smartphones and tablets segment in the market is expected to observe around 45% growth rate during the forecast timeframe.

The key industry players are Advanced Micro Devices, Apple, Broadmedia GC, Cloudzen, Electronic Arts, Loudplay, Microsoft, Numecent, NVIDIA, Paperspace, Parsec, Playcast, Playgiga, PlayKey, Rainway, RemoteMyApp, RemotrCloud, Sony, and Wiztivi.

The cloud gaming industry has created a need to partner with other companies to expand the distribution network of the services and boost consumer demand.