Global Game Streaming Market 2024-2031

Global Game Streaming Market 2024-2031

Game Streaming Market Size, Share & Trends Analysis Report by Solution (Web-based, and App- based), by Revenue Model (Subscription, Advertisement, and Others), by Platform (Mobile Games, PC Games, and Console Games), and by Genre (Action/Adventure Game Streaming, Strategy Game Streaming, Sports Game Streaming, Racing Game Streaming, Simulation Game Streaming, Puzzle/Trivia Game Streaming, and Others) Forecast Period (2024-2031)

Game streaming market is anticipated to grow at a CAGR of 10.8% during the forecast period (2024-2031). Game streaming market is driven by technological advancements such as the deployment of 5G networks and cloud computing that offer convenience, cost efficiency, and diverse game libraries. The growing gaming population globally is further contributing to the global market demand.

Market Dynamics

Rise of Mobile Gaming

Mobile gaming is on the rise owing to the growing popularity of mobile internet, with game streaming services catering to this growing market segment. According to the GSMA Intelligence, in 2022, there were 4.4 billion mobile internet users globally, indicating a penetration rate of 55.0%. Over the past five years, the mobile internet usage gap has significantly decreased from 50.0% in 2017 to 41.0% in 2022 on average. This trend can be attributed to the growing reliance on the Internet for various daily activities, especially amidst the Covid-19 pandemic. Notably, Sub-Saharan Africa faces the widest usage gap, primarily due to challenges such as affordability and limited digital skills. In contrast, Europe and North America exhibit the smallest usage gap.

Mobile gaming and streaming services are increasingly enabled to offer superior gaming experiences on mobile devices owing to the increase in mobile internet usage. According to the Economics of Time, in August 2022, the Indian gaming industry is expected to reach $5 billion by 2025, with over 450 million online gamers by 2023. 5G technology, which offers super-fast connection speeds and reduced latency, is expected to revolutionize the industry, boosting gaming and OTT streaming.

Market Segmentation

Based on solutions, the market is segmented into web-based, and app-based.

Based on the revenue model, the market is segmented into subscriptions, advertisements, and others (donations, merchandise, brand deals, and sponsorships).

Based on the platform, the market is segmented into mobile games, PC games, and console games.

Based on genre, the market is segmented into action/adventure game streaming, strategy game streaming, sports game streaming, racing game streaming, simulation game streaming, puzzle/trivia game streaming, and others (role-playing game (RPG) streaming, and indie game streaming)

Web-based is Projected to Emerge as the Largest Segment

The technological advancements in cloud computing have revolutionized the gaming industry by enabling efficient and immersive gaming experiences through the use of web technologies. For instance, in October 2020, Facebook launched a cloud gaming service for Android and web users, allowing users to play heavy games such as, Asphalt 9, WWE SuperCard, and more without downloading them. The platform will not create separate platforms such as Google Stadia or Amazon Luna, allowing users to access games on their platform.

Regional Outlook

The game streaming market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Economic Factors And Cost Effectiveness In North America Region

Cost-effectiveness is the primary factor driving the growth of cloud gaming in the US since it eliminates the need for expensive consoles and hard media, increasing accessibility to gaming for a larger audience. In October 2023, Netflix launched a cloud gaming service in the US, allowing users to play games on smart TVs and connected devices using their mobile phones as controllers. The service is limited to select devices and requires a controller app. Such market developments are further aiding the high share of the regional market.

Asia-Pacific is Anticipated to Exhibit the Highest CAGR

India's growing digital population presents a significant opportunity for game streaming services, as the increasing number of internet users expands the market's reach and accessibility. According to the India Brand Equity Foundation (IBEF), in January 2024, India is transitioning from an emerging to a developed market economy, with a projected GDP of $26 trillion by 2047. With a growing digital population, India is expected to become an economic superpower with 1.64 billion users. With over 700 million internet connections, India's digital economy is expected to reach $1.0 trillion by 2025.

Market Players Outlook

The major companies serving the game streaming market include Amazon.com, Inc., Apple Inc., Sony Interactive Entertainment Inc., NVIDIA Corp., and Twitch Interactive Inc. among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in March 2023, Optus and Pentanet partnered to deliver NVIDIA GeForceNOW cloud gaming service to Optus customers. The partnership aims to provide a high-speed, low-latency gaming experience leveraging the Optus 5G network and innovative Optus Living Network features. This partnership aims to offer customers a flexible and convenient gaming solution in the home and on the go.