Cloud Gaming Market Size Worth $7.24 Billion By 2027 | CAGR: 48.2%: Grand View Research, Inc.

The global cloud gaming market size is expected to reach USD 7.24 billion by 2027, according to a new study by Grand View Research, Inc. It is anticipated to register a compound annual growth rate of 48.2% from 2021 to 2027. Developments in the cloud technology have enabled the rapid distribution of cloud gaming models. Cloud gaming gives users remote access to interactive games as well as enables streaming videos over the internet. It also allows devices to smoothly run various high-quality next-generation games with lower computational power. These factors are anticipated to drive the cloud gaming market growth over the forecast period.

Key suggestions from the report:

• The file streaming segment is expected to register the highest CAGR over the forecast period, as file streaming enables vendors to offer an enhanced and seamless gaming experience to users despite the lower internet speeds
• The introduction of 5G and the convenience of smartphones, which facilitate seamless cloud gaming, are anticipated to drive the growth of the smartphone segment
• The avid gamers segment is anticipated to record a considerable CAGR over the forecast period. The rise in competitive and immersive gaming on mobile devices is anticipated to drive the segment growth
• North America is anticipated to record remarkable growth from 2021 to 2027. This is attributable to the rising penetration of high-speed internet and the increasing number of gamers in the region.

Factors such as, the rising investments in 5G technology and access to numerous games on cloud at affordable prices are also expected to contribute to the market growth. Furthermore, market players are observed partnering with telecom companies to deliver cloud gaming services globally. For instance, in January 2020, Microsoft Corporation partnered with SK Telecom Co., Ltd. to expand the reach of its Project xCloud Preview, a game streaming solution in South Korea.

Increased demand has been witnessed for cloud gaming as an educational tool in the educational sector as it increases student motivation, intellectual and social skills, and concentration. Cloud gaming offers a library of the latest and graphically advanced games and minimizes license requirements. Moreover, the wide potential for cloud gaming possibilities in an educational environment is now being realized, thus driving the demand for gaming content in the educational sector over the forecast period.

Key market players are focused on offering new products & solutions and adopting mergers & acquisitions, partnerships, and collaboration strategies to remain competitive in the market. For instance, in March 2020, Tencent signed a partnership with Huawei Technologies Co., Ltd. to set up a laboratory for developing a cloud gaming platform called GameMatrix in China. Through the partnership, the company aims to leverage Huawei's computing power to build its gaming platform.