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How has the cloud gaming market grown in recent years?

The expansion of the cloud gaming market has been remarkable in past years. From $13.65 billion in 2024, it’s anticipated to reach $19.45 billion in 2025, marking a compound annual growth rate (CAGR) of 42.5%. This substantial progression during the historical phase is largely due to several factors, including an expanding gaming industry, the increase in mobile gaming, proliferation of smart devices, economical gaming alternatives, reduced lag and cross-platform compatibility.

How is the cloud gaming market size expected to evolve during the forecast period?

Expectations indicate the cloud gaming market size will witness a remarkable increase over the coming years, swelling to a value of $92.04 billion in 2029 with a compound annual growth rate (CAGR) of 47.5%. Several factors contribute to this forecasted growth, such as the rise of game streaming platforms, the worldwide growth of cloud services, increasing internet speeds, a concentration on social gaming, integration with smart TVs, and the expansion of game content libraries. Notable trends during this forecast period include the broadening of 5G networks, gaming models based on subscription, integration with intelligent devices, incorporation of AI and machine learning, game streaming technologies, and collaborations with game developers.

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Which key drivers are propelling the cloud gaming market’s growth?

The proliferation of internet access is anticipated to fuel the expansion of the cloud gaming market in the future. The representation of the population with internet access, known as internet penetration, is determined by the nation’s ratio of internet users. In the context of cloud gaming, an Internet connection is vital because it gives access to the games and fosters links to distant servers. For example, data from Oberlo, a Berlin-based firm that offers a platform for entrepreneurs to locate and sell products online, reveals that the global population of internet users has virtually doubled, increasing progressively each year. Projections for 2024 indicate a further increase of 1.8%, totaling 5.35 billion users. In 2023, the worldwide rate of internet penetration was 65.5%, rising to 67.1% in 2024. Northern Europe holds the majority regional share with 97.6% penetration. Consequently, the escalation in internet access is contributing greatly to the progress of the cloud gaming market.

What are the market segments in the cloud gaming industry?

The cloud gaming market covered in this report is segmented –

1) By Gaming Type: Video Streaming, File Streaming

2) By Offering: Infrastructure, Game Platform Services

3) By Device: Smartphones, Tablets, Gaming Consoles, PCs And Laptops, Smart TVs, Head-Mounted Displays

4) By End User: Casual Gamers, Avid Gamers, Hardcore Gamers

Subsegments:

1) By Video Streaming: Action Games, Adventure Games, Role-Playing Games (RPGs), Sports Games, Strategy Games

2) By File Streaming: Single-Player Games, Multiplayer Online Games, Indie Games, Legacy Games

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Which leading companies are shaping the growth of the cloud gaming market?

Major companies operating in the cloud gaming market are Amazon.com Inc., Google LLC, Intel Corporation, Microsoft Corporation, NVIDIA Corporation, Sony Interactive Entertainment LLC, Ubitus Inc., Tencent Holdings Limited, Electronic Arts Inc., International Business Machines Corporation, Vortex Inc., Playgiga Inc., Blacknut SAS, AMD Cloud Gaming Inc., Hatch Entertainment Ltd., Advanced Micro Devices Inc., Alibaba Group Holding Limited, Crytek GmbH, Playkey Inc., Gamefly Inc., Nintendo Co. Ltd., 2K Games Inc., Ubisoft Entertainment SA, Activision Blizzard Inc., Square Enix Holdings Co. Ltd., Capcom Co. Ltd., Konami Holdings Corporation, Bandai Namco Entertainment Inc., Sega Corporation, Nexon Co. Ltd., NetEase Inc., Perfect World Co. Ltd., Kingsoft Corporation Limited, G-Cluster Global Corporation, Shadow Technologies SAS, Rainway Inc.

What key trends are currently impacting the cloud gaming market’s development?

Top firms within the realm of cloud gaming are opting to invest in innovative technologies, such as modernized graphics processing and low-latency streaming to offer interactive gaming experiences that amplify accessibility and engagement for gamers around the globe. Developed by Aethir on the Arbitrum blockchain, the Testnet is a cloud infrastructure platform that is decentralized, specifically designed to offer scalable GPU-based computing services to augment cloud gaming and AI applications. Aethir, a company based in Singapore known for creating decentralized cloud infrastructure (DCI), launched the Testnet in November 2023. This launch by Aethir advances its DCI, enabling seamless integration with Aethir’s cloud-based game portals and setting the groundwork for advantageous token omics that foster industry innovation. Aethir is a recent entrant into NVIDIA’s Inception Program in a bid to escalate its ambition of transforming the gaming and AI sectors.

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Which geographic areas are influencing the growth of the cloud gaming market?

Asia-Pacific was the largest region in the cloud gaming market in 2024. The regions covered in the cloud gaming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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