5G Cloud Gaming Market Size, Share, Opportunities, And Trends By Device (Smartphones, Gaming Consoles, PC, & Laptop, Mobile Devices, Smart TVs), By Subscriber (eMBB, Moderate-performance Gamers, Advanced Performance Gamers), By Gamer Type (Casual, Action, Arcade, Others), And By Geography - Forecasts From 2023 To 2028

  • Published : Dec 2023
  • Report Code : KSI061616370
  • Pages : 140

The global 5G cloud gaming market is expected to grow at a CAGR of 71.28% from US$565.029 million in 2023 to US$14,266.267 million in 2028.

Cloud gaming, often known as gaming on demand, is a type of web gaming in which games are directly streamed to the user's personal computer (PC), mobile device, or console. Cloud gaming is altering the mechanics of content delivery in the game business. The technology promises inexpensive solutions for gamers to play anywhere, without the need for players to constantly purchase hardware updates or expensive games.

GROWTH DRIVERS

  • 5G imperative for cloud gaming

The global success of cloud gaming is expected to be aided by the arrival of 5G technology and the availability of limitless data plans. Because gamers are willing to invest more or switch to 5G mobile connectivity to enjoy the best possible high-quality gaming experience players prefer mobile gaming, and there is a growing need for cloud gaming services on mobile devices. Gamers are anticipating a transformative experience from 5G technology, where they can engage in global competition with minimal delays and in high-resolution quality. This newfound immersion and interaction within games are expected to be facilitated by powerful devices enabled by 5G and high-performance GPUs. Furthermore, considerable investments in 5G infrastructure and the predicted rise of 5G mobile subscribers underscore the critical role of 5G in supporting the expansion of cloud gaming.

For instance:

  • In March 2023, Optus and Pentanet Limited revealed a strategic partnership to provide the NVIDIA GeForce NOW cloud gaming service to Optus customers. This collaboration is aimed at tapping into the growing cloud gaming sector and utilizing 5G technology to enhance the overall user experience.
  • In June 2021, AT&T and Google will launch Stadia gaming on their own networks.  AT&T has collaborated with Google to provide a 6-month subscription to Stadia Pro for its wireless and fiber customers. This exclusive offer combines access to a vast gaming library with over 170 titles with AT&T's high-speed and secure AT&T 5G and fibre networks. AT&T and Stadia's cloud gaming partnership allows users to determine when, where, and how they engage in gaming.

The ecosystem of collaborative partners

5G cloud gaming necessitates a collaborative effort among mobile operators, gaming firms, IT service providers, and technology players. This model hinges on the synergy of gaming titles, technological capabilities, and delivery and distribution channels, all underpinned by a dependable and robust connectivity infrastructure. Achieving success and creating a mutually advantageous business scenario for 5G cloud gaming relies on forming network partnerships with operators, commercial alliances with gaming companies, and technological collaborations with IT service providers, technology platforms, and cloud providers.

  • In September 2023, ZTE and Netgem joined forces to introduce a fresh and immersive TV experience featuring cloud gaming on Android TV. This collaboration introduces the N9000 Android TV Set-Top Box (STB) and Netgem's innovative 'Immersive TV' service. The N9000 Android TV STB, in conjunction with Netgem's Immersive TV, marks a remarkable collaboration between ZTE and Netgem, presenting a cutting-edge solution for telecom-grade cloud gaming services that ensures an unmatched user experience.
  • In March 2021, Telia and Microsoft formed an exclusive Cloud Gaming partnership. Today, Telia Sweden stands as the first EU operator to provide its customers with Xbox Game Pass Ultimate. Cloud gaming is gaining momentum, and through this collaboration with Microsoft, Telia is dedicated to providing an exceptional cloud gaming experience. This partnership represents a vision of the future in which mobile network operators utilize cloud-based computing resources in conjunction with 5G.

The rapid adoption of 5G

The widespread deployment of 5G networks, as well as the increasing availability of compatible devices, has greatly enticed mobile subscribers to migrate to 5G. Cloud gaming is reshaping how gaming content is delivered, offering cost-effective options for gamers to play without the need for frequent hardware upgrades or expensive game purchases. Leading platforms like Xbox, Stadia, and PlayStation are incorporating cloud gaming into their subscription models to attract players and ensure ongoing revenue streams. As a result, gamers can enjoy a wide range of games from any location through affordable monthly subscriptions. The extensive deployment of robust networks and the accessibility of compatible devices have encouraged mobile users to transition to 5G. This surge in cloud gaming presents a significant opportunity for service providers as they can offer and profit from various features like network slicing and edge computing

According to the Ericsson 5G cloud gaming report for 2022 forecasts that cloud gaming is set to achieve 15 million subscribers and 2 million Cloud gaming subscribers with a 5G subscription in North America by the conclusion of 2022 and anticipates 99 million subscriptions within the next ten years. In addition, 87 million subscriptions during the next six years with a 42.5% growth. The adoption of 5G subscriptions in North America has exceeded expectations, with the region boasting the highest 5G subscription penetration of 41 percent by the end of 2022. The report also suggests that cloud gaming is poised to make up around 23 percent of 5G subscriptions in North America by 2031. In addition, around 67 percent of cloud gamers will own 5G devices within the next five years, with this figure predicted to reach 100 percent by the end of the decade. Service providers can capitalize on the connectivity needs of this captive and expanding market sector in North America by using the benefits of 5G networks.  This surge is driven by five main factors: a growing emphasis on mobile gamers, appealing gaming subscription offerings, a change in gamer preferences, the evolution of the cloud services ecosystem, and the swift adoption of 5G technology.

EMERGING OPPORTUNITIES IN THE 5G CLOUD GAMING MARKET

Edge-based analytics

By harnessing the edge computing capabilities within 5G networks, processing is brought closer to the end-user, minimizing latency and enhancing the overall performance of cloud gaming. Edge computing will assume a vital role in delivering and distributing cloud gaming. This will happen both at the access network and at the device's edge, where GPU rendering on devices like 5G smartphones can deliver an exceptional gaming experience. By utilizing advanced analytics and AI on the Edge, data will be processed in real-time, offering users location-specific insights and recommendations, which will lead to highly personalized experiences for gamers. For operators and businesses, this presents an opportunity to better understand consumers and offer contextually relevant dynamic advertisements and promotions, ultimately enhancing user experiences and creating new monetization avenues.

In March 2022, Tech Mahindra revealed its new Cloud Gaming as a Service offering. The company aims to provide Cloud Gaming as a Service to telecommunications companies, cable providers, and OEMs. This service leverages its expertise in 5G, Edge computing, and network technologies to bring low-latency gaming experiences to consumers. This collaboration, in partnership with Ludium Labs, will offer a 5G-powered low-latency gaming service. It's designed as a plug-and-play solution that grants access to a library of more than 150 AAA games stored in the cloud. Gamers can play these games on various devices, with processing taking place on the edge for optimal performance.

GEOGRAPHICAL PRESENCE

  • In January 2023, JioGames, a division of Reliance Jio, entered a 10-year strategic alliance with Game Stream, a white-label cloud gaming service company based in Paris, France, to introduce JioGames Cloud in India. This partnership aims to provide 1.4 billion Indians with continuous and location-independent access to cloud gaming within the country.
  • In January 2023, JioGames gaming service revealed a partnership with Ubitus KK to introduce cloud gaming on 5G in India. They will offer a substantial collection of multi-genre games available to users on JioGamesCloud, India's native cloud gaming platform, enhanced by 5G technology.
  • In October 2022, Vodafone Idea (Vi) announced its plans to introduce and demonstrate new cloud gaming features as part of the 5G service to offer a premium 5G Mobile Cloud Gaming experience to Indian users by partnering with Care Game, a gaming technology company based in Paris.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include NVIDIA Corporation, Microsoft Corporation, Google LLC, Sony Interactive Entertainment, and Tencent Holdings Ltd, these players are anticipated to have a huge impact on the future of cloud-based gaming as the 5G infrastructure develops and grows.

 For instance:

 

COMPANY NAME

 

PRODUCT NAME

 

DESCRIPTION

NVIDIA Corporation

GeForce NOW

GeForce NOW  the Next Generation in Cloud Gaming links up with digital PC game stores, enabling users to connect to a virtual computer. This virtual setup allows them to install their pre-purchased games from various digital distribution platforms and play them remotely, particularly emphasizing the utilization of 5G networks to provide a compelling experience for subscribers.

Microsoft Corporation

Xbox Cloud Gaming (Beta)

Explore the realm of cutting-edge 5G gaming with Xbox Cloud Gaming, enabling you to engage in a plethora of console games on your existing devices. Dive into free-to-play titles like Fortnite using your Microsoft account, or gain access to a vast library of games with a Game Pass Ultimate subscription.

Sony Interactive Entertainment

PS5

Sony Interactive Entertainment is making strides in the realm of cloud gaming by introducing the PS5 cloud streaming feature for PlayStation Plus Premium subscribers. This encompasses supported PS5-native games accessible via the PlayStation Plus Games Catalog and Game Trials, along with digital PS5 titles owned by users. Initially available for Premium members in specific markets like Japan, with plans to expand to Europe and North America.

 

5G Cloud Gaming Market Scope:

 

Report Metric Details
Market Size Value in 2023 US$565.029 million
Market Size Value in 2028 US$14,266.267 million
Growth Rate CAGR of 71.28% from 2023 to 2028
Base Year 2023
Forecast Period 2023 – 2028
Forecast Unit (Value) USD Million
Segments Covered Device, Subscriber, Gamer Type, and Geography
Regions Covered North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered Activision Blizzard, Inc., Nvidia Corporation, Ubitus Inc., Microsoft Corporation, Tencent Holdings Ltd., Hatch
Customization Scope Free report customization with purchase

 

SEGMENTATION

The global 5G cloud gaming market has been analyzed through the following segments:

  • By Device
    • Smartphones
    • Gaming Consoles
    • PC, & Laptop
    • Mobile Devices
    • Smart TVs
  • By Subscriber
    • eMBB
    • Moderate-performance gamers
    • Advanced performance gamers
  • By Gamer Type
    • Casual
    • Action
    • Arcade
    • Others
  • By Geography
    • Americas
      • United States
      • Others
    • Europe, Middle East and Africa
      • Germany
      • UK
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • Others

Frequently Asked Questions (FAQs)

The global 5G cloud gaming market is expected to reach a market size of US$14,266.267 million by 2028.
5G Cloud Gaming Market was valued at US$565.029 million in 2023.
The 5G cloud gaming market is expected to grow at a CAGR of 71.28% over the forecast period.
Asia Pacific is expected to dominate the 5G cloud gaming market.
The global success of cloud gaming is expected to be aided by the arrival of 5G technology and the availability of limitless data plans.

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Market Segmentation

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Bandwidth Availability

4.4. Number of Users

5. GOVERNMENT REGULATIONS/POLICIES

6. 5G CLOUD GAMING MARKET, BY DEVICE 

6.1. Introduction

6.2. Smartphones

6.3. Laptops/PCs

6.4. Smart TVs

6.5. Others

7. 5G CLOUD GAMING MARKET, BY SUBSCRIBER

7.1. Introduction

7.2. eMBB

7.3. Moderate-performance gamers

7.4. Advanced performance gamers

8. 5G CLOUD GAMING MARKET, BY GAME TYPE

8.1. Introduction

8.2. Casual 

8.3. Action

8.4. Arcade

8.5. Others

9. 5G CLOUD GAMING MARKET, BY GEOGRAPHY

9.1. Introduction

9.2. Americas

9.2.1. United States

9.2.2. Others

9.3. Europe, Middle East and Africa

9.3.1. Germany

9.3.2. UK

9.3.3. Others

9.4. Asia Pacific

9.4.1. China

9.4.2. Japan

9.4.3. South Korea

9.4.4. Others

10. RECENT DEVELOPMENT AND INVESTMENTS

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Vendor Competitiveness Matrix

12. COMPANY PROFILES

12.1. Activision Blizzard, Inc.

12.2. Nvidia Corporation

12.3. Ubitus Inc.

12.4. Microsoft Corporation

12.5. Tencent Holdings Ltd.

12.6. Hatch


Activision Blizzard, Inc.

Nvidia Corporation

Ubitus Inc.

Microsoft Corporation

Tencent Holdings Ltd.

Hatch