In 2021, the cloud gaming market stood at $4,500.7 million, and it is projected to touch $111,344.1 million by 2030. The market will advance at a CAGR of 42.8% from 2021 to 2030 owing to the launch of better cross-platform gameplays and dedicated gaming smartphones. Furthermore, with the convenience and accessibility of cloud-based games and surging internet penetration, there will be a snowballing of the market revenue. Moreover, the reduced latency and higher bandwidths e offered by 5G technology are assisting in streaming XR games smoothly.
The deployment of the 5G technology will pave the way for cloud gaming market growth. This can be attributed to swift 5G connections and mobile ubiquity that are leveraged by cloud gaming firms to offer AAA-quality gaming to smartphone users. The increasing number of intricate MNOs will drive global market growth, as will the rising acceptance of social media games. Moreover, a prolific feature of cloud games is that users can access them through a remote server directly, without any storage requirement or purchase of the latest gaming console.
Under segment by device, the highest revenue, of around $1,645.6 million, was generated by the smartphones category in 2021. Moreover, this category will advance at a 43% CAGR in the coming years. This can be credited to the consistent growth in smartphone gaming pursuits in the past five years. This has been due to the cost-effectiveness of smartphones in comparison to upgrade computer and laptop hardware and software to maintain game performance.
The surging demand for mobile games is an outcome of the various technological advances in this sector. For instance, AR uses audio and videographic information in a more-realistic setting, which captivates users. Furthermore, through a first viewpoint accompanied by a 360-degree vision, VR offers an extraordinary real-world experience. Moreover, the existence of the 5G network, unlimited data plans, and AR and VR innovations are leading to growth in this market.
Within the type segment, the video streaming category ruled the cloud gaming market in 2021, accounting for more than 62% of the total market share. This is on account of the removal of the requirement for extra equipment to install and run the game. Video streaming offers greater accessibility as it assists users in playing games from any location and on any platform with lower latency, through internet connectivity. To drive their growth, there is a dire need for market players to focus on enhancing online platforms for a real gaming experience.
In 2021, the cloud gaming market was dominated by APAC, which accounted for almost 50% of the total market share. The skyrocketing demand for entertainment, coupled with the surging smartphone penetration, will augment the growth of the market over this decade. This goes hand in hand with the increasing young population, rate of urbanization, and disposable income and, consequently, the escalating purchasing parity of consumers, which enables them to afford the latest gaming genres. As a result, India, China, and Japan are three of the greatest revenue generators in this market.
The outbreak of COVID-19 expanded the market size further, by offering a good leisure activity to people. This is quite evident from the rising number of downloads and greater amount of time spent on these activities post the virus outbreak.
