Cloud Gaming

Cloud Gaming is the inevitable future, according to a new report

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For those of you who do not understand what this is, just think of it as gaming on demand. Cloud Gaming can only take place online, due to its need for connectivity to the cloud, as the name suggests. The games are run on independent servers which are then streamed live on your device. It’s like a video-on-demand service but for gaming.

The Boom of Cloud Gaming

With digital growth came the booming rise of the gaming industry. From within the gaming community, cloud gaming is set for massive expansions as well. Analysts have estimated a reach of up to 7.24 billion USD by 2027 for the market. The expansion has been determined at a CAGR of 47.9% over the predicted period.

New and Improved Cloud Gaming Models

One of the leading reasons for such massive growth is technological developments. Especially, in cloud technology. Cloud gaming models are being supplied around at the speed of light. As more people get their hands on these models. The more this sector of the gaming industry grows.

Improved models also mean greater access to cloud-based games. Higher performance. A smoother gaming experience. Access to better quality next-gen video games. Lower emphasis on your PC. More emphasis on the cloud. One of the best recent examples for this is the Microsoft Flight Simulator that uses the cloud to stream data directly into your game.

Image: Xbox

5G and Global Expansion

Moreover, with the advent of 5G technology, the cloud gaming market will improve. Gamers will have greater access to online games. At much more reasonable prices that too. Many cloud-based companies are even planning global expansion. Cloud-based gaming companies are teaming up with Telecom. One of the most recent examples is Microsoft.

In January 2020, Microsoft teamed up with SK Telecom Co. Ltd. The reason was to grow the international reach of Project xCloud Preview. The Project xCloud Preview is a game streaming service owned by Microsoft in South Korea.

Cloud gaming is largely mobile-based. With the growing ease of owning a smartphone, the market expands itself each day. With the coming of 5G, even internet deprived areas are added to that market. In fact, 5G itself is predicted to improve the growth of the smartphone segment astronomically.


E-Sports and Online Gaming Competitions grow larger each day. Attracting more and more people into the market. Gaming competitions are now even set to include mobile gaming into their mix. This can only be a green light for expansion to the gaming community based on the cloud.

Image: esportsinsider
Image: esportsinsider


Now, even the educational sector is coming around. Cloud gaming is not just entertainment. It is also an education. It’s being used to improve a student’s intellect. Help them with their social skills. Allow them to focus on and improve their concentration. A remarkable rise in student motivational levels has been noticed as well.

It is cheap. Easy to afford. The license requirements are minimal. The graphics of the games are top of the line. The library of cloud games is never-ending. It’s the perfect tool for education. As the educational demand for cloud gaming rises, so does the overall market for it.

Company Mergers for Cloud Gaming Platforms

Companies are always trying to outwit the other. Many times that comes through mergers and acquisitions. One such instance recently occurred in China. In March 2020, Tencent entered an agreement with Huawei. The goal was to build a cloud-based gaming platform. for the Chinese.

Today that platform is known as GameMatrix. The reason this happened was simple. Tencent saw Huawei’s unchallenged computational prowess. So, Tencent decided to use it to their advantage. What resulted was a cloud-based gaming platform. One that is raking in money as you read this.

Segmenting the Cloud Gaming Market – Equipment

Further research has revealed some insights into the market of cloud gaming. The research has largely helped categorize the market and help us better understand it.

There are two types of cloud gaming outlooks. File streaming is one. Video streaming is the other.

In order to access cloud games, the devices that can be used are your generic consoles and PCs. As well as smartphones and tablets. Smart TVs are being added to the list as well. As are head-mounted displays.

Segmenting the Cloud Gaming Market – People

The people who partake in such activities come in three sizes. Casual gamers who are there just for fun. Avid gamers who play regularly. They’re still a long way from going pro. Lifestyle gamers who live and breathe gaming. These people compete in the championships.

In the North American continent, the US and Canada are home to most of these gamers. For Europe, it’s the UK and Germany. The East Asian font harbors most of its gamers in China, India, and Japan. In Latin America, the Brazilians hold the mantle.

The region where the highest growth in the market is predicted in North America. The growth will be rampant. Furthermore, it is also predicted to be sustainable. The reason behind such massive growth is two-fold. Faster internet bandwidth at affordable prices in all regions. This has led to the addition of gamers to the community on a daily basis.

Segmenting the Cloud Gaming Market – Companies

Microsoft and Sony have reigned over the gaming industry for the longest time. It is cloud gaming where others often find room for themselves as well. Tech giants like Electronic Arts, Inc. have made a name for themselves in this market. Amazon, Apple, Google, and Intel have moved into this market as well. Hardware producer NVIDIA Corp is even trying its hand in this segment.


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