Sign in Subscribe
Software industry

Cloud Gaming Market to Reach $30 Billion by 2030, with Tech Giants and Telcos Competing for Subscribers

Strategic Insights

— 1 min read

The cloud gaming market is poised to revolutionize the video games industry over the next decade, following the footsteps of video and audio streaming. With a market size of over $1 billion in 2020, it is expected to grow at a compound annual growth rate (CAGR) of 40% to reach $30 billion by 2030. This forecast suggests that cloud gaming will disrupt how games are distributed, consumed, and monetized, with traditional PC and console games being replaced by games hosted in the cloud.

Key Takeaways:

  • The global cloud gaming market is expected to reach $30 billion by 2030, growing at a CAGR of 40% over the next 10 years.
  • Cloud gaming accounted for less than 1% of the video games industry in 2020 but has the potential to become a significant player in the market.
  • Tech giants like Google, Microsoft, Sony, and Nvidia are investing heavily in subscription models, positioning themselves as the "Netflix of gaming".
  • Exclusive content will be critical to attracting and retaining subscribers, with companies like Microsoft, Sony, and Tencent having a significant advantage due to their existing libraries of exclusive games.
  • Providers of subscription-based cloud gaming services without exclusive games will struggle to compete in the market.
  • The value chain in cloud gaming comprises four layers: content, service, connectivity, and device, each playing a crucial role in the delivery of cloud gaming services.
  • Companies like Activision Blizzard, Electronic Arts, and Ubisoft have formed partnerships with service providers to increase their prominence in the developing market.
  • The cloud gaming market is expected to be disrupted by telcos like Deutsche Telekom, Verizon, AT&T, Vodafone, KT, and China Mobile, who are expanding their offerings to include cloud gaming services.

Statistics:

  • The global cloud gaming market size: $1 billion in 2020 and expected to reach $30 billion by 2030.
  • Compound annual growth rate (CAGR): 40% over the next 10 years.
  • Cloud gaming's share of the video games industry: less than 1% in 2020.
  • Number of companies investing in cloud gaming: 17, including tech giants, telcos, and game publishers.

Sources:

  • "Cloud Gaming - Thematic Research" report published by ResearchAndMarkets.com, source: https://www.researchandmarkets.com/r/v4sh7.
  • Businesswire.com: "ResearchAndMarkets.com Adds Report: Cloud Gaming - Thematic Research to Offering", source: https://www.businesswire.com/news/home/20210426005311/en/.

Read more