Cloud gaming market expected to reach $6.80 billion by 2028
The cloud gaming market which is currently valued at USD 1.69 billion in 2023 is anticipated to witness remarkable growth, reaching $6.80 billion by 2028. That’s a compound annual growth rate (CAGR) of 32.14% during the forecast period.
Cloud gaming platforms are increasingly attracting thousands of new visitors in online traffic, a trend that started during the pandemic. According to Verizon’s report, the US alone has seen a 115% increase in gaming usage compared to a general day before COVID-19. The live streaming services and online gaming platforms also continued to break their records for concurrent users throughout March and April 2020. An increase in gaming traffic was witnessed during peak hours by 75% over the last year.
Cloud gaming is an emerging technology across the gaming industry, that enables users to play high-end games on hand-held devices, such as laptops, tablets, and mobiles, with fast network connectivity. A particular defining attribute of cloud gaming is the eradication of the need for constant hardware upgrades. Gamers can indulge in games on their existing devices or even on low-spec gadgets that support cloud-based gaming.
The impact of cloud gaming is anticipated to extend beyond the elimination of cost and platform barriers, and likely synergise with the deployment of 5G technology. This will all come as great news for for developers, publishers, and game platforms who can take advantage of the influx of new gamers to increase their profit margins.
The biggest opportunity for vendors right now is to access smartphone gamers, who comprise a substantial share of the gaming audience and prefer to play PC and console games easily on their mobile devices.
One particular region poised for substantial growth due to its fervent gaming culture and an expansive industry is the Asia Pacific. But also, notable gaming countries such as China, Japan, and South Korea boast a robust gaming tradition and a sizable population of ardent gamers, and promise ample opportunities for the gaming market expansion.