The cloud market is experiencing steady growth and this trend is likely to remain intact for a good part of year 2021. Within the cloud computing segment though, Cloud Gaming is a niche where massive growth is being expected during this year.
Some cloud gaming analysts have forecast that the revenue from this rapidly emerging niche will surpass the US $1 BN mark during the year 2021. Tech consultancy firm Omdia has an even more upbeat projection for cloud gaming revenues this year.
As per the estimates released by Omdia, the revenue from cloud gaming may even touch the US $4 BN mark during 2021. The company further expects cloud gaming revenues to triple by the year 2025, taking the tally of revenue to a whopping US $12 BN by that time.
Why Cloud Gaming?
As with the basic philosophy behind cloud computing, the domain of cloud gaming also works more or less the same way. In this segment, a game will run over a nearby cloud server, and then streamed online to the player.
This in turn frees gamers from relying on powerful gaming PCs or expensive consoles. An additional selling point of cloud powered games is access to a wide range of options, with the added functionality of multi-player or team oriented cloud games.
Role of 5G in Cloud Gaming
One technology that is playing a lead role in the proliferation of cloud gaming is the blazing fast 5G communications technology. Communications Service Providers in most parts of the globe are investing heavily in the development of 5G infrastructures.
When used in tandem with Cloud Computing, 5G delivers an exceptional and engaging end user experience (UX). Due to the super fast capabilities of 5G, the cloud gamers don’t tend to feel latency or speed related issues, which are a major turn-off.
Till date, it is estimated that nearly 106 Communication Service Providers have formally launched 5G services at a commercial scale, after rigorous testing. Among these, another 22 entities have already launched mobile cloud gaming services by now.
5G Industry Trends
Alongside the fast track development of 5G infrastructure, communications providers are either developing their own cloud gaming platforms in-house, or forging partnerships with already well established gaming companies out there.
Most experts believe that 5G is the best and most optimal ecosystem to support a fully vibrant cloud gaming industry. With the constantly improving specs of mobiles or smartphone devices, the mobile gaming market is also doing equally good.
5G, Smartphones and Mobile Gaming
Within the segment of cloud games, it is expected that mobile or smartphone supported games will retain the major chunk. It is expected that the same trend will carry on during the year 2021.
App Annie, an entity that closely monitors the application development industry, expects the revenue from mobile gaming to surpass the US $120 BN. This marks an increase of 20% on a yearly basis.
To put the latest cloud gaming growth figures into context, mobile gaming generated a revenue of US $68 BN during the year 2019. Within a short span of two years, this revenue stream has almost doubled.
Conclusion
One can safely assume that both cloud and mobile gaming have immense growth potential in terms of revenue and profits. By the end of 2021, it is expected that the number of 5G equipped smartphones will rise to a staggering 600 MN devices.
Cloud providers like dinCloud will also be playing their part in this cloud gaming revolution. At dinCloud, we also offer leading cloud gaming solutions with powerful Nvidia graphics processing abilities. Just Contact Us for any further details or questions please.
