Cloud Gaming is Estimated to Witness High Growth Owing to Rising 5G Network Adoption
The Cloud Gaming Market is estimated to be valued at US$ 513.48 Mn in 2023 and is expected to exhibit a CAGR of 42% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The cloud gaming market involves delivery of games through cloud computing technology. Games are hosted on servers located in data centers and gamers can play these games through different connected devices such as computers, smartphones, tablets, and consoles without installing them locally. Cloud gaming provides advantages such as no upfront investment in gaming hardware, ability to play games across devices, and instant access to new titles.
Market key trends:
One of the primary trends fueling the growth of the cloud gaming market size is the rising adoption of 5G networks. The high-speed connectivity and low latency offered by 5G networks enable seamless access to cloud gaming services. 5G is likely to facilitate enhanced user experience in cloud gaming with higher resolution video streaming, more complex interactive controls, and richer multiplayer experiences. As 5G network deployment accelerates globally, it will attract a substantial number of gamers to the cloud gaming platform by solving issues related to latency and bandwidth limitations which were prevalent with 4G networks. This, in turn, will boost the demand for cloud gaming services over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the cloud gaming market requires high initial investment and need specialized skills and technologies. However, established players are helping reducing entry barriers due to advancement of technologies.
Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have options of various cloud gaming services to choose from based on pricing, content quality, and games. The need for specialized devices and internet bandwidth also impacts buyer preference.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key suppliers including cloud infrastructure providers, game developers, and hardware providers have control over pricing and delivery timelines. However, established players have negotiating power due to large business volumes.
Threat of new substitutes: The threat of new substitutes is low as alternate gaming modes like console, PC and mobile gaming have different experience than cloud gaming. New technologies are emerging complementary to cloud gaming.
Competitive rivalry: is high due to presence of major tech giants focusing on cloud gaming space through M&A and partnerships.
SWOT Analysis
Strength: Cloud gaming provides accessibility of visually enriched games across devices without need for specialized hardware. It offers cost saving by eliminating need for high-end gaming PCs or consoles.
Weakness: Network bandwidth and latency issues impact gaming quality. Pricing models and availability of subscription/games vary across geographies and platforms.
Opportunity: 5G rollout and investments in improving broadband infrastructure to enhance user experience. Partnering with game developers, publishers and hardware manufacturers to expand content portfolio.
Threats: Data privacy and security concerns around critical user data stored on cloud. Pressure on profit margins from ongoing technology upgrades and investments.
Key Takeaways
The global cloud gaming market is expected to witness high growth, exhibiting CAGR of 42% over the forecast period, due to increasing smartphone and broadband penetration enabling access to immersive gaming experiences.
The North American region currently dominates the cloud gaming market owing to high consumer spending on gaming and presence of major cloud service providers. Asia Pacific is expected to offer lucrative growth opportunities amid growing internet and gaming user base in countries like China and India.
Key players operating in the cloud gaming market are Amazon Web Services Inc., Apple, Inc., Electronic Arts, Inc., Google Inc., Intel Corporation, International Business Machines Corporation, Microsoft Corporation, NVIDIA Corporation, Sony Interactive Entertainment LLC, Ubitus Inc., and others. Players are focusing on expanding game libraries, enabling cross-platform capabilities and developing low latency solutions to gain competitive edge.
Get more insights on this topic: https://creativenewsalert.blogspot.com/2023/12/cloud-gaming-is-fastest-growing-segment.html
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