Global Cloud Gaming Market Set for 42.7% CAGR as Smartphones and 5G Fuel Adoption

According to the latest market research study published by P&S Intelligence, the global cloud gaming market is set for explosive growth, with its value projected to reach USD 12.6 billion in 2024 and expand at a remarkable CAGR of 42.7%**** between 2024 and 2030, ultimately hitting USD 107.2 billion by 2030. This rapid rise is driven by the growing popularity of cloud-based games and the increasing availability of enhanced, cross-platform gameplay experiences. As internet penetration deepens and access to online gaming becomes more convenient, a wider global audience is adopting cloud gaming as a preferred mode of entertainment.

Another major catalyst for this market is the rollout of 5G technology, which delivers higher bandwidth and dramatically lower latency—key requirements for seamless XR and AAA-level gaming experiences. Smartphone adoption is simultaneously soaring worldwide, further accelerating the shift toward mobile-first cloud gaming ecosystems. Service providers are taking advantage of mobile ubiquity and ultra-fast 5G networks to offer premium gaming experiences directly through smartphones.

Additionally, cloud gaming eliminates the need for high-end hardware by allowing users to stream games from remote servers, thereby simplifying access and reducing costs for consumers. Features such as improved speed, scalability, and enhanced content delivery across various smart devices are making cloud gaming more appealing. The pandemic also played a crucial role in expanding the user base, as consumers spent more time at home discovering new digital entertainment avenues.

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Key Insights

• The market benefits from increasing internet penetration, which makes cloud games easily accessible and drives greater adoption across user groups seeking on-demand entertainment experiences.
• With 5G services rolling out across multiple countries, cloud gaming is poised to grow rapidly as low latency and high bandwidth become standard, enabling seamless XR streaming and real-time competitive gaming.
• A surge in smartphone usage, supported by the global base of 4.3 billion smartphone users (2023), continues to strengthen the dominance of mobile-based cloud gaming, particularly as players prefer the convenience of gaming on handheld devices.
• Social media platforms such as Instagram, Facebook, and Reddit are boosting cloud gaming adoption as users increasingly engage with interactive games embedded within these networks.
• The cloud gaming ecosystem is strengthened by its ability to eliminate local storage needs, removing the requirement for costly gaming consoles and high-performance PCs.
• Enhanced user experiences—including improved speed, advanced insights, and cross-device scalability—are contributing to the rising popularity of cloud-based platforms worldwide.
• During the pandemic, cloud gaming saw a substantial increase in user engagement, with a spike in game downloads and time spent on gaming apps, which in turn attracted a wave of smaller market entrants.
• Platforms such as ATechnos’ GoGames.Run, offering over 500 games including VR and amplified experiences, showcase the variety and innovation fueling post-pandemic growth.
• 5G connectivity remains a defining market trend due to its low latency and high bandwidth, which are essential for real-time action, multiplayer competitions, and long-distance data transmission required by cloud-hosted games.
• Rising leisure and personal entertainment spending, especially among urban populations, is supporting market expansion as users increasingly turn to gaming for relaxation and stress relief.
• Mobile gaming’s popularity plays a significant role, with consumers spending 1 hour and 45 minutes per day on gaming and over 16 hours per week on mobile phones, creating fertile ground for cloud gaming uptake.
• Edge data centers are emerging as a key opportunity, reducing latency for users in regions where 5G adoption is still limited, while supporting data security by minimizing long-distance information transfers.
• Spending on edge data centers is projected to surpass USD 53 billion by decade-end, creating lucrative avenues for cloud game publishers.
• In device segmentation, smartphones lead with a 40% revenue share in 2024 and are also the fastest-growing category, with a 43.1% CAGR, driven by affordability, AR/VR integration, and the availability of unlimited data plans.
• The market’s service type segmentation shows video streaming dominating with a 70% share in 2024 and registering the fastest growth at a 43.2% CAGR, owing to reduced hardware dependency and widespread support from major vendors like Shadow, GeForce Now, LiquidSky, and Vortex.
• In terms of end users, casual gamers make up the largest segment in 2024 due to the abundance of freemium games offering flexible play options, while avid gamers represent the fastest-growing group because of their preference for premium experiences and multiplayer features.
• APAC leads the global market with a 40% share in 2024 and the highest anticipated CAGR of 48.5%, driven by high smartphone penetration, rising youth population, emerging gaming genres, and strong contributions from Japan, China, and India.
• Countries such as China, Japan, and India stand out due to the presence of established gaming companies like Sony, Nintendo, and Konami, alongside rapid government investments in 5G and data center infrastructure.
• The cloud gaming market remains fragmented, with numerous players competing through product launches, acquisitions, and partnerships; low entry barriers further intensify competition due to minimal hardware requirements and evolving data security regulations.
• Major players shaping the competitive landscape include Amazon Luna, Blacknut Cloud Gaming, Google LLC, Microsoft Corporation, NVIDIA Corporation, Shadow, Sony Group Corporation, Tencent, and Ubitus K.K.
• Recent industry developments include Now.gg’s launch of Tower of God: New World, Microsoft expanding Xbox Cloud Gaming availability via Fire TV, Vodafone Idea introducing a cloud gaming subscription in India, and new keyboard-and-mouse support for Xbox cloud gaming across major browsers and apps.