The global market for cloud gaming will reach 23.7 million users and is expected to earn $1.6 billion in revenue by 2021, according to a report by researchers from Newzoo, a global esports analytics and gaming company.
The research estimates revenue will grow to $6.53 billion by 2024. At that time, only 3 percent of the cloud gaming market was exploited globally.
Although the percentage is still small, the amount of income is already very potential. Moreover, during the pandemic, cloud gaming has offered an accessible alternative for players to play games, as well as being an entry point for new game titles, said Newzoo.
At the same time, global chip shortages have hampered the supply of high-end PC components as well as new-generation game consoles, becoming a major obstacle for gamers to have reliable devices until at least 2020, according to Newzoo’s Guilherme Fernandes Market Consultant.
So cloud gaming is a solution, because gamers no longer need to have high-powered devices to play premium games.
Then from the business side, many cloud gaming services have changed their marketing strategies to not emphasize the technology side of cloud gaming from the main narrative. In a Newzoo report, this strategy is the most powerful message from cloud gaming marketing, because it places more emphasis on the ease of playing the latest game titles instantly and seamlessly on any device.
Then the potential for cloud gaming is also getting stronger as 5G services increase in the future, and due to the push of the pandemic, Huawei reveals that 5G is developing faster than expected. More than 140 commercial 5G networks are deployed in 59 countries.
Meanwhile, according to Fernandes, the strongest market for cloud gaming is in emerging markets such as Latin America, the Middle East, and Southeast Asia.
“Player awareness of cloud gaming in the region is actually higher than in the Western market. Most likely, players from this emerging market feel the higher potential benefits of using this technology,” he explained.
However, North America and Western Europe will still dominate the market in 2021, “as gamers from both markets are expected to make up more than half of all consumer spending on cloud gaming this year,” he said.