Cloud Gaming Backend Service Market By Type (File Streaming, Video Streaming) By Device (Smartphones, Tablets, Gaming Consoles, PCs & Laptops, Smart TVs) By Gamer Type (Casual Gamers, Avid Gamers, Lifestyle Gamers) - Growth, Future Prospects & Competitive Analysis, 2016 - 2028

About this report

The global cloud gaming backend services market report explores the critical analysis of the cloud gaming backend service industry using key parameters. The report includes investment strategies, the need for investment opportunities in the cloud gaming backend service industry, and the numerous advantages for investors. Importantly, this report outlines significant changes in global technical regulations for the cloud gaming backend service industry, as well as how economic and non-economic barriers are assisting the growth of the cloud gaming backend service market. In addition, the report analyzes historical and projected market sizes at the national, regional, and global levels. The report also includes an in-depth examination of key investment propositions, the demand and supply gap, competitor positioning, SRC analysis, STAR analysis, and Tornado analysis. Other analyses and major technological developments include value chain analysis, PESTEL analysis, Porter's five forces analysis, etc.

Key Highlights of the Report

How are the major segments performing in the cloud gaming backend service market?

• The file streaming segment led the market in terms of type in 2021 and is expected to continue throughout the forecast period. File streaming can lower the costs associated with media production and patch distribution to players. Many gaming brands are currently adopting cloud streaming, which will likely continue in the upcoming years. Some companies choose cloud platforms to host their games, gaining exclusivity and enhanced user security.
• In 2021, the smartphone device segment held the largest global cloud gaming backend service market share. The majority of people own smartphones, which are common and widely available. Smart devices are also widely available and reasonably priced, and many consumers own multiple devices. This factor is expected to help drive segment growth over the upcoming years.
• The casual gamers' type segment dominated the global market in 2021 and is expected to continue over the forecast period. Hyper-casual gaming is presently one of the most popular gaming genres, with the most viewers and the greatest potential for revenue generation. For example, Voodoo's hyper-casual games have gained over 2 billion downloads.

In 2021, the cloud gaming backend service market will be led by the Asia-Pacific region.

The Asia Pacific region dominated the global cloud gaming backend service market in 2021. This can be attributed to the increase in adoption of cloud mobile backend as a service among enterprises across Australia, Japan, China, Singapore, and India, due to extensive usage and dependency on cloud gaming in the region. New gaming genres have increased disposable income, and the young population supports this demand. The rapid development of technology and several significant regional game companies with popular brands, such as Konami, Sony, and Nintendo, are driving the growth of the cloud gaming market in these countries. Increased demand for entertainment and rising smartphone adoption are predicted to fuel further regional market expansion.

The US is expected to have the largest market share for cloud gaming backend services during the forecast period.

The United States is expected to have the largest market share for cloud gaming backend services during the forecast period. The region's rapid adoption of cloud gaming application platforms and the rising number of 5G infrastructure development initiatives are expected to significantly impact the country's cloud gaming marketng number of 5G infrastructure development initiatives are expected to significantly impact the country's cloud gaming market. In addition, the accessibility of cloud gaming platforms encourages the use of these systems among a variety of new customer classes, each of which has a different level of investment in gaming systems. Technological advancements and innovation in cloud backend service platforms will further optimize the product's performance, allowing it to acquire a broader range of gaming applications in the downstream market.

Some big cloud gaming companies are working together to stay one step ahead of their competitors.

Prominent global cloud gaming backend service market players collaborate with other companies to stay ahead of the competition. Key market participants concentrate on cloud backend services, technological development, innovation, and acquiring new platforms to maintain a competitive edge in the gaming industry. For example, Google Cloud officially confirmed the beta launch of game servers in March 2020. This managed service gives game developers the customary backend services they need to run their single-player and multiplayer games in the company's cloud. In addition, Google will make it simple for developers using Agones outside of game servers to enroll those servers with the game servers API and join the managed game servers ecosystem.

Executive Summary

Technical developments in the cloud gaming backend service market

Rapid advancements in cloud technology are opening up sizable markets for cloud gaming backend services globally. Providers are increasingly focusing on partnerships, mergers, and acquisitions with technology partners to develop innovative and advanced solutions that will help them expand their offerings and marketing capabilities. Major corporations launched cloud gaming services to offer a cost-effective solution and broaden the global market for cloud gaming services due to the growing popularity of video games. For instance, NVIDIA introduced its next-generation cloud gaming platform, GeForce NOW, in October 2021, facilitating GeForce RTXTM 3080-class gaming exclusively in a new, high-performance premium service tier. The system will provide the highest frame rates and resolutions in cloud gaming and the lowest latency.

Key investments by the cloud gaming backend service market players

Companies that provide backend services for cloud gaming spend a lot of money and time researching and developing new features and functionalities. Many businesses are investing further in introducing new products to diversify their offering of cloud gaming services. For instance, Intel purchased RemoteMyApp, a backend cloud gaming service, to enter the market in November 2021. As part of the acquisition, Intel gained access to the RemoteMyApp team of skilled cloud service technological designers.

Some major players in the cloud gaming backend service market are AWS, Tencent Holdings Ltd., Sony Interactive Entertainment, Nvidia Corporation, International Business Machines Corporation (IBM), Apple Inc., Google Inc., Electronic Arts Inc., Intel Corporation, Microsoft Corporation, and Ubitus Inc.

Major driving factors for the cloud gaming backend service market

Growing high-speed internet penetration, rapidly increasing smart device adoption, rising use of gaming as a service, and emerging digital transformation in the entertainment and media industries are some key factors propelling the growth of the cloud gaming backend service market. The rapidly increasing popularity of mobile video games and the digitalization of gaming technologies are the main factors fueling the market's growth.

Major Risks in the Cloud Gaming Backend Service Market

One of the main issues impeding the development of the cloud gaming backend service market is the risk to privacy and security. It is crucial to safeguard enterprise-level data, especially financial subscription data, for confidentiality and privacy reasons.

Smartphone devices are expected to grow the fastest during the forecast period.

The smartphone device segment is expected to grow the fastest during the forecast period. The explosive growth of mobile gaming over the past five years will help smartphones gain significant market traction in the coming years. Cloud mobile backend as a service (BaaS) is a web-based service intended to be a one-stop shop for backend app development. It includes real-time notifications, security, network management, data and database strategic planning, and more. The need for real-time applications such as chat or messaging in mobile cloud gaming apps is driving demand for cloud mobile backend as a service, which is expected to drive cloud gaming backend service market growth during the forecast period.

Regional performance of the cloud gaming backend service market

In 2021, the Asia Pacific region held a dominant position in the cloud gaming backend service market. The region's demographics and the high population of gamers are key drivers of market expansion. This is due to the cost-effectiveness of cloud gaming platforms, which encourages usage among various new regional customer classes with varying levels of investment in gaming systems. The largest percentage of gamers worldwide is found in China and India. Cloud gaming backend services are also gaining popularity in Japan.

The North American market is expected to play a significant role in implementing cloud gaming backend services. The U.S. is the primary market in the region for cloud mobile backend as a service adoption because of the proliferation of online gaming applications and the rise in adoption of newer and technological innovations by large telecom giants to enhance their business productivity and operational efficiency across the nation. Moreover, the existence of well-established players who provide cloud mobile backend as a service is anticipated to boost the North American cloud gaming backend service market.

Regulatory landscape of the cloud gaming backend service market

Providers of cloud backend services offer the connectivity necessary for users to access the network created and served by cloud data centers. Managed cloud hosting services allow you to follow various regulatory service guidelines. National government policies, particularly those about telecommunications and information access, significantly impact these access networks. For instance, the All-India Gaming Federation (AIGF), founded in May 2016, is India's leading industry organization for online skill gaming. The AIGF aims to promote recognition for the Indian economy's one of its fastest-growing industries, online skill gaming. The main goal of the AIGF is to ensure international best practices throughout the online gaming ecosystem by helping its representatives and other stakeholders effectively self-regulate in areas like responsible gaming and player protective measures.

The market size of the cloud gaming backend service

The global cloud gaming backend service market is expected to grow at a significant CAGR of 19% in the coming years. The global cloud gaming backend service industry is expected to be worth USD 467.5 million in 2021 and USD 1327.58 million by 2028.

Future plans of the major players in the cloud gaming backend service market

The growing efforts of market players to streamline backend processes are one of the main drivers behind the demand for the deployment of the cloud-based gaming backend as a service. New cloud gaming applications are being released more frequently owing to these initiatives. For instance, Typhoon Studio, a triple-A Montreal-based game development studio, was purchased by Google's Stadia cloud gaming division in December 2020. Stadia's strategy was to rely on locally created talent to create unique content for the Stadia platform, which was made available to early adopters in November. Moreover, major market players in the video gaming sector have entered the market due to its ease of use and financial benefits. A few others are researching and developing their cloud backend services to do the same. For example, Electronic Arts Inc. has been testing the functionality of the backend services for its upcoming cloud gaming portfolio.

Segmentation of Global Cloud Gaming Backend Service Market-

Global Cloud Gaming Backend Service Market – By Type

• File Streaming
• Video Streaming

Global Cloud Gaming Backend Service Market – By Device

• Smartphones
• Tablets
• Gaming Consoles
• PCs & Laptops
• Smart TVs
• Head-mounted Displays

Global Cloud Gaming Backend Service Market – By Gamer Type

• Casual Gamers
• Avid Gamers
• Lifestyle Gamers

Global Cloud Gaming Backend Service Market – By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK.
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • South-east Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of the Middle East and Africa

Frequently asked questions about the global cloud gaming backend service market