Which Innovative Business Models Drive Growth in the Global Cloud Gaming Sector?
A radical paradigm shift in the videogame industry, driving multiple growth opportunities
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This study examines the trends, challenges, and opportunities found in the global cloud gaming market, and also forecasts the number of users and market size between the years 2022-2025, with the base year being 2021. Cloud gaming enables users to play videogames without the need of downloading the full software or having access to the latest hardware, and it is present across a wide range of devices including PCs, consoles, mobiles, and tablets. Instead of relying on the processing power of the gaming device, cloud gaming works by rendering and playing remotely in servers hosted across specialized data centers, with users watching the gameplay and sending inputs locally.
The report begins by providing a brief explanation on how cloud gaming services are provided, describing existing business models. It then offers a throughout rundown of many of the existing participants in the market, detailing the number of games offered, device compatibility, up-to-date prices, and differentiating factors. The report also discusses several of the drivers and restraints currently affecting the market, such as the advent of 5G connectivity or the entry of major videogame developers when it comes the former and high economic barriers or lack of economies of scale when it comes to the latter.
The cloud gaming market is still in a nascent stage. As a result, it shows outstanding growth for the incoming years, with B2C (business-to-consumer) revenues of $13.05 billion by 2025, compared to revenues $1.6 billion in 2021, showcasing a CAGR (Compound Annual Growth Rate) of 69% for the whole period. As the forecast does not include B2B (business-to-business) revenues, Frost & Sullivan believes that the market holds even more potential for revenue generation. When it comes number of users worldwide, Frost & Sullivan estimates that total users will reach 349.4 million by 2025, compared to 60.6 million users in 2021.
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