Market Trends of Cloud Gaming Industry
Smartphones Devices Market is Expected to Hold Significant Market Share
- The growth of cloud gaming solutions supported by the increasing Internet penetration rate worldwide is driving the demand for cloud games in Smartphones, fueling the market growth in the future. For instance, in November 2023, StarHub announced partnerships with cloud gaming distributors CareGame and OnMobile Global to bring over 100 mobile game titles to GameHub+ Mobile Play, a portable gaming category catered to mobile gamers, showing the need for cloud gaming for smartphone users.
- Additionally, smartphone-based gaming solutions enable gamers to enjoy mobile games by steaming them through the cloud, eliminating the need for powerful mobile hardware and storage space needed to download. Furthermore, gamers would be able to play a wide selection of mobile games, including AAA titles with buttery smooth graphics at ultra-low latency speeds, which shows the benefit of cloud gaming for smartphone users, which would fuel the market growth potential in the future.
- The growth of High-speed Internet through 5G mobile networks worldwide would raise the number of smartphone usage and their network capability to support the internet data demand for smartphone-based cloud gaming in the market, supporting the market’s growth during the forecast period. For instance, in November 2023, the Ericsson Mobility Report stated that the 5G subscriptions in North America were expected to reach 252.31million in 2023 and are estimated to grow to 405.40 million by 2028, showing the increasing trend of 5G expansion for better mobile connectivity, which would support the growth of cloud-based mobile gaming market during the forecast period.
- The cloud gaming service market for smartphones is witnessing a significant collaboration among the telecom services providers and the cloud gaming providers to bundle their cloud gaming offerings in the telecom services’ monthly billing, fueling the market’s growth.
- Therefore, the growth of smartphone penetration, the investments in the 5G services in the countries., and the collaborations of cloud-based game providers with the telecom service providers to increase the target audiences of their smartphone-based cloud gaming portfolio are fueling the market growth during the forecast period.
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Middle East and Africa to Witness Major Growth
- The Middle East and Africa region includes countries like Saudi Arabia, the United Arab Emirates, Qatar, and South Africa. The Middle East and Africa, cloud gaming market, is mainly benefitting from the evolving role of 5G in cloud gaming, high-speed internet infrastructure, expanding cloud infrastructure with the opening of new cloud regions, and growth in launches of new cloud gaming offerings by major market vendors.
- Further, government initiatives in many MENA countries to expand cloud computing infrastructure are analyzed to drive the growth of the cloud gaming market over the forecast period. For instance, Saudi Arabia is witnessing a significant increase in cloud computing. The country's government aims to make the Kingdom a regional hub for cloud computing by 2030.
- Cloud service providers are recognizing the need and expanding their cloud infrastructure in the region, thus positively elevating the growth of effective video streaming in the studied market. For instance, in September 2023, Huawei Cloud announced the launch of the Huawei Cloud Riyadh Region at the Huawei Cloud Summit Saudi Arabia 2023. This cloud Region will help promote digital-led economic growth in the Kingdom. The launch of the Huawei Cloud Riyadh will be Huawei Cloud's focus on serving the Middle East, Central Asia, and Africa, providing secure, innovative, reliable, and sustainable cloud services.
- Global market vendors are partnering with regional telecom providers to develop the MENA Cloud Gaming ecosystem and cater to the growing demand for cloud gaming from gamers across the region.
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