According to a report by Technavio, the cloud gaming market size is expected to increase by $5.73 billion from 2021 to 2026, with a compound annual growth rate of 31.13%. The report also says that the most significant factor supporting the gaming market is the low cost and ease of access.
Stating that esports is one of the most fundamental categories contributing to this growth, the report mentions that the global cloud gaming market is expected to offer esports services in the future.
Strong internet infrastructure is the most basic need of cloud games, which players can access without any hardware expense. Nvidia Senior Product Manager, Candice Mudrick, made the following statement in an interview with Mobidictum:
“For a game developer, cloud gaming can expand the TAM of any game by making it available on a broader range of devices than it was originally designed for, with relative ease.”
When users cannot provide fast and reliable internet connections, it is not possible to broadcast these games healthily. The report mentions that the inability of people living in rural areas to access fast internet technologies such as 5G and fiber will slow the growth of the cloud gaming market. In addition, it is estimated that companies will spend significant capital on investments in these areas.
Majority of growth will come from North America
The report says that game consoles will provide the most significant growth in the cloud gaming market. It is thought that consoles with motion and facial recognition technology will substantially increase the cloud gaming market with AR / VR support. Computers, smart televisions, and mobile devices come right after game consoles. With the development of cloud gaming in the mobile device space, Logitech and Tencent announced that they are working on a portable cloud gaming device.
The country that will contribute the most to growth is expected to be North America, with 46%. North America was also a leader in blockchain game investments in the first half of 2022. The report’s data appears to fit with the report published by Perforce. Perforce said in its report that cloud streaming will become the dominant gaming platform by 2025.
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