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Leading Element Driving Change in the Cloud Gaming Market in 2025: Internet Penetration Boosts Cloud Gaming Market Driver
Cloud Gaming Market
The growth of the cloud gaming market is anticipated to be driven by the increasing proliferation of the internet. The term internet penetration refers to the fraction of the population with internet access and is determined by the country's ratio of internet users. Cloud gaming relies on an Internet connection because it provides access to games and facilitates connections to remote servers. For example, according to data from Oberlo, a Berlin-based company that provides an online marketplace for entrepreneurs to find and sell products, the global number of internet users has nearly doubled and continues to rise annually. In 2024, this statistic is projected to rise by 1.8% to 5.35 billion. In 2023, global internet penetration was 65.5%, which expanded to 67.1% in 2024. Northern Europe possesses the largest regional share of internet users, totaling 97.6%. Hence, the increasing accessibility of the internet is contributing to the expansion of the cloud gaming market.
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What Is the projected market size and growth rate for the cloud gaming market?
The size of the cloud gaming market has seen a significant increase over the recent years. The growth is expected to jump from $13.65 billion in 2024 to $19.45 billion in 2025, with a compound annual growth rate (CAGR) of 42.5%. The aforementioned progression during the historical period is due to the expansion of the gaming industry, growing popularity of mobile gaming, the prevalence of smart devices, affordable gaming options, decreased latency, and the capability of compatibility across various platforms.
In the upcoming years, the cloud gaming market is anticipated to witness extraordinary expansion, escalating to $92.04 billion in 2029, with a compound annual growth rate (CAGR) of 47.5%. Factors like the rise of game streaming platforms, worldwide proliferation of cloud services, advancement in internet speeds, emphasis on social gaming, synergy with smart TVs, and the growth of gaming content libraries all contribute to this projected growth during the forecast period. Key trends in the gaming landscape during this forecast period will be the proliferation of 5G networks, subscription-centered gaming models, smart device integration, AI and machine learning incorporation, game streaming technologies, and collaborations with game developers.
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What new trends are reshaping the cloud gaming market and its opportunities?
Leading businesses in the cloud gaming industry are making investments in innovative technologies like low-latency streaming and sophisticated graphics processing. These technologies are designed to provide enhanced gaming experiences, improving accessibility and user engagement on a global scale. Developed by Aethir on the Arbitium blockchain, the Testnet is a decentralised cloud platform constructed with the aim of supplying scalable GPU-based computing resources, which can boost cloud gaming and AI applications. In November 2023, Aethir, a company rooted in Singapore and known for creating decentralised cloud infrastructure (DCI), introduced the Testnet. The launching of Aethir Testnet boosts Aethir's Decentralised Cloud Infrastructure (DCI). It offers permissionless integration with gaming portals hosted on Aethir's cloud and paves the way for an advantageous token economy that encourages industry innovation. Recently, Aethir partnered with NVIDIA's Inception Program in pursuit of its goal to transform the gaming and AI sectors.
What major market segments define the scope and growth of the cloud gaming market?
The cloud gaming market size has grown exponentially in recent years. It will grow from $13.65 billion in 2024 to $19.45 billion in 2025 at a compound annual growth rate (CAGR) of 42.5%. The growth in the historic period can be attributed to growing gaming industry, rise of mobile gaming, ubiquity of smart devices, cost-effective gaming solutions, reduced latency, cross-platform compatibility.
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Which region dominates the cloud gaming market?
Asia-Pacific was the largest region in the cloud gaming market in 2024. The regions covered in the cloud gaming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Which key market leaders are driving the cloud gaming industry growth?
Major companies operating in the cloud gaming market are Amazon.com Inc., Google LLC, Intel Corporation, Microsoft Corporation, NVIDIA Corporation, Sony Interactive Entertainment LLC, Ubitus Inc., Tencent Holdings Limited, Electronic Arts Inc., International Business Machines Corporation, Vortex Inc., Playgiga Inc., Blacknut SAS, AMD Cloud Gaming Inc., Hatch Entertainment Ltd., Advanced Micro Devices Inc., Alibaba Group Holding Limited, Crytek GmbH, Playkey Inc., Gamefly Inc., Nintendo Co. Ltd., 2K Games Inc., Ubisoft Entertainment SA, Activision Blizzard Inc., Square Enix Holdings Co. Ltd., Capcom Co. Ltd., Konami Holdings Corporation, Bandai Namco Entertainment Inc., Sega Corporation, Nexon Co. Ltd., NetEase Inc., Perfect World Co. Ltd., Kingsoft Corporation Limited, G-Cluster Global Corporation, Shadow Technologies SAS, Rainway Inc.
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What Is Covered In The Cloud Gaming Global Market Report?
• Market Size Forecast: Examine the cloud gaming market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the cloud gaming market for a structured understanding.
• Key Players Overview: Analyze major players in the cloud gaming market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the cloud gaming market.
• Segment Contributions: Evaluate how different segments drive overall growth in the cloud gaming market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the cloud gaming market.
• Industry Challenges: Identify potential risks and obstacles affecting the cloud gaming market.
• Competitive Landscape: Review strategic developments in the cloud gaming market, including expansions, agreements, and new product launches.
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