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Cloud gaming set to become a $3 billion industry in 2022, says GlobalData

Beatrice by Beatrice
January 11, 2022
in Cloud, Data, Internet, Networking, News
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The cloud gaming market will see a significant 59% rise between 2021 and 2022, according to GlobalData, reaching a valuation of $3 billion. However, the leading data and analytics company’s latest report ‘Tech, Media, & Telecom (TMT) Predictions 2022 – Thematic Research’, highlights that this potentially disruptive sector will remain niche in 2022 unless companies can provide exclusive games and reasonable pricing.

Rachel Foster Jones, Analyst on the Thematic Team at GlobalData, shares her views on cloud gaming in 2022:

Exclusive content is critical for attracting customers

“In 2022, cloud gaming services will try to boost their popularity by offering exclusive and trending gaming titles. Not only will cloud gaming tech giants become publishers within their own right, but independent games publishers will become attractive targets for acquisition as they look to add exclusive titles to their portfolios. This will trigger a wave of consolidation in the market.”

Apple will lose out in cloud gaming

“Apple is the only big tech company without a gaming service. Cloud gaming services will purposely avoid Apple’s App Store due to its strict policies and app approval processes. To sidestep this, the likes of Nvidia, Microsoft and Amazon will opt for web-based routes to start targeting iOS users in 2022.

“If successful, Apple will lose control over its customers, and it will be difficult for Apple to launch a competitive gaming service. Apple will therefore struggle to gain a foothold in the cloud gaming space.”

New white-label platforms will intensify competition

“We are going to see an increase in the number of cloud gaming providers in 2022, with companies adopting Google’s now white-labelled Stadia. Competition will intensify between cloud gaming providers as start-ups will follow suit.

“Arguably, Intel is positioning itself well to compete with the likes of Nvidia and Google. Intel’s acquisition of RemoteMyApp will directly compete with Google as Intel will use RemoteMyApp’s streaming technology to offer cloud gaming solutions to businesses. Nvidia will face competition around data center chips.”

Smartphones will be the primary gaming platform

“The most popular platform for cloud gaming will be the smartphone, with Android set to benefit most from this. Samsung Electronics, BBK Electronics, Xiaomi, and Huawei will be positioned well if they partner with cloud gaming providers to successfully position their 5G smartphones in the mobile gaming space.”

Tags: 2022analysisClouddatafeaturedgamingGlobal Datagrowthmarketprediction
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