Growing number of mobile gamers to influence cloud gaming market growth
Publisher : Fractovia | Published Date : 2019-07-08Request Sample
Increasing popularity of console and mobiles games among people from different age groups has offered a momentous platform for cloud gaming market to reach an immense large consumer base. While most users play games for recreational purposes, many people consider gaming as a stress-relieving activity at the end of a chaotic day for calming the mind and body. Established developers as well as emerging players in the gaming sector are looking for ways to make their products more accessible to users, fostering advancement of cloud gaming industry.
Europe Cloud Gaming Market Revenue, By Device, 2018 & 2025 (USD Million)
A cloud-based gaming solution apparently provides game developers with an efficient way to build a platform where people can play desired titles without having to own expensive hardware, besides cutting out middlemen such as physical and online stores. Recent advancements in cloud technology have enabled devices with lower computational capacity to operate some of the best high-quality next-generation games. In addition, increasing prices of gaming consoles and components, rise in hardware specifications and surging investments in faster internet networks have allowed access to several games at cost-effective rates, stimulating the global cloud gaming industry size.
Mobile devices were solely designed for communication purpose, but technological enhancements have enabled them to deliver numerous other applications like gaming. Introduction of the revolutionary 5G technology is expected to drastically transform the cellular network infrastructure, which has opened up another dimension for the gaming sector. Cloud gaming market could see massive adoption from the smartphone and tablets segment with the growing availability 5G mobile networks. Countries across the globe including the United States, South Korea, China, and Japan, have made investments in 5G technology to garner micro-economic profits and reinforce the overall communication landscape.
Latest addition to the world of cellular networks, 5G is basically a next-generation wireless communication technology that offers lightning-fast data transmission rates. As most cloud-based games require high data speeds of 10Mbps or more, the deployment of 5G infrastructure serves as key factor enabling different gaming giants to launch their products in the region. Moreover, 5G technology also resolves various latency issues, providing the users with a smooth and lag-free gaming experience, which in turn will accelerate the use of business-to-consumer cloud gaming platforms.
A key advantage provided by cloud gaming for mobile phones is that users don’t have to download games onto their gaming devices anymore, which offers twin benefits. Firstly, it saves a lot of space which can be utilized for installing other necessary applications or for storage of data. Further, users can discover and try brand-new games and start playing without having to wait for the game to download. Instead of gamers only downloading games stacked up on their download lists, they will be more willing to experiment with new games, opening up considerable opportunities for cloud gaming industry.
Spurred by globally acclaimed multiplayer games such as PUBG and Fortnite, cloud gaming market has the potential to evolve rapidly according to consumer trends. Given the excellent throughput and latency requirements of creating a mobile gaming experience similar to console-based platforms, the blend of 5G technology with EDGE will stimulate the sector growth. Apart from big game studios, small scale developers will also have a much more comfortable way of engaging a wider audience with their games and products through business-to-business model offered by cloud gaming market.
Microsoft, Sony, and Electronic Arts are some of the leading players in the cloud gaming industry owing to their extensive cloud technology experience and financial resources. Minimizing latency will be the key concern which requires placing servers close to gamers in multiple cities across the world. Microsoft and Sony recently unveiled their new partnership which will focus on transforming the future of cloud solutions, especially cloud gaming platforms, to compete with major rivals like Google. Undoubtedly, collaborations and product innovations will fuel cloud gaming market size over the forecast timespan.
Electronic Arts announced a brand-new cloud gaming platform in 2018, Project Atlas, that will enable players to stream the latest games to their computers or mobile devices. Nvidia’s GeForce Now has also become one of the few cloud-based gaming services to be tested firsthand, which with an adequate internet connection will revolutionize the cloud gaming experience. Several other competitors can also be expected to bring more flexible and cost-effective solutions for consumers in the coming years.
Owing to the increasing adoption of cloud technologies to host and develop games, as well the imminent deployment of 5G network and related technologies, cloud gaming services will witness remarkable consumption. Cloudzen, Parsec, Apple, Numecent and PlayKey are some other players outlining the industry dynamics. Reports estimate that global cloud gaming market will reach annual valuation of nearly USD 8 billion by 2025.
