LONDON--(BUSINESS WIRE)--Technavio research analysts forecast the global cloud gaming market to grow at a CAGR of close to 29% during the forecast period, according to their latest report.
The study covers the present scenario and growth prospects of the global cloud gaming market for 2017-2021. The report segments the market by gamers into hardcore gamers and casual gamers of which the hardcore gamers segment accounted for close to 73% of the market share in 2016.
“Cloud gaming provides gamers a lot of enjoyment as they can choose from a large pool of games without the need to purchase a physical or digital copy of games. It also offers gamers the freedom and flexibility to play the game on various platforms such as laptops, smart TVs, and mobiles, without facing issues of compatibility,” says Ujjwal Doshi, a lead analyst at Technavio for gaming research.
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Technavio media and entertainment analysts highlight the following three market drivers that are contributing to the growth of the global cloud gaming market:
- Reduction in installation costs and time
- Enhancement of gaming features
- Easy updates for games
Reduction in installation costs and time
The ownership cost of gaming consoles such as PlayStation and Xbox is quite high and they require specified equipment and the regular purchase of physical copies of gaming software. Cloud gaming, however, does not require physical copies of software, which is one of the major factors driving the cloud gaming market. Cloud constantly updates and provides backup of the games that are stored on the cloud platform. This decreases the overall cost of gaming substantially.
Cloud gaming eliminates the need for additional workforce for the development of physical copies of the game, as game developers handle and directly upload the updates on the cloud platform. It reduces the cost of game development. Cloud gaming service providers offer games based on the pay-per-use model as opposed to frequent investments that are incurred on physical copies for consoles and PCs.
Enhanced gaming features
The enhanced gaming experience offered by the cloud gaming platform is one of the major factors that has a positive influence on the growth of the cloud gaming market. It uses rendering technology to provide gamers with an uninterrupted gaming experience. This technology takes the rendered screens of a game as an input, encodes the screen, and finally transmits the coded screen to the client device for display. The cloud directly modifies the rendering engine of the game and instructs the engine to send out each game screen update once the rendering is finished. Thus, rapidly advancing gaming technologies are driving market growth.
“Continual advances in electronic components and technology have led to the emergence of 3D, HD, and ultra-HD displays that are compatible with HD multimedia interface and have built-in wireless network access systems. In addition, the availability of high-end sound systems including home theater systems and sound-bars provide users with a real-life-like gaming experience,” says Ujjwal.
Easy updates for games
One of the prominent drivers for the adoption of cloud gaming is the easy updates for cloud games. Updated versions of cloud-based games can be accessed without additional costs if it is within the subscription period. Console gaming requires regular upgrades of hardware components for compatibility with newer games, which increases the cost of gaming considerably. Console game providers require many months or years to publish newer versions of games. However, cloud game developers or publishers can easily update new versions of games on the cloud without being concerned about the hardware capabilities of their clients' devices. This is because these games can be accessed and played on any computer with minimal processing capacity. This factor allows service providers to upgrade games frequently, making advanced versions accessible almost instantly.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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