The global cloud gaming market size is expected to reach US$7.24 billion by 2027, according to a new study by Grand View Research, expanding at a compound annual growth rate of 47.9% over the forecast period.
The research group says developments in cloud technology have enabled the rapid distribution of cloud gaming models. Cloud gaming enables remote access to interactive games and 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 market growth over the forecast period, says Grand View Research.
Rising investments in 5G technology and access to numerous games on the cloud at affordable prices are also expected to contribute to market growth, the research group adds. What’s rmore, market players are observed partnering with telecom companies to deliver cloud gaming services globally. Other highlights from the report:
- The file streaming segment is expected to register the highest growth rate 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 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 growth rate 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 2020 to 2027. This is attributed to the rising penetration of high-speed internet and an increasing number of gamers in the region.