Despite the recent shutdown of Google Stadia, cloud gaming is a rapidly growing segment of the gaming industry. According to Newzoo, this market will reach $2.4 billion in revenue by the end of this year.
- As reported by Newzoo, the cloud gaming market will grow by 74% this year. Revenue is expected to grow at a CAGR of 51%, reaching $8.2 billion in 2025.
- In 2020, global cloud gaming revenue was $633 million, hit nearly $1.4 billion last year.
- Asia-Pacific is the top region in terms of cloud gaming revenue, accounting for 36.5% of total spending. It is followed by Europe (30.3%) and North America (27.1%).
- The market will reach 31.7 million paying users in 2022. This number will likely reach 86.9 million by 2025.
- By 2022, the usable market (SOM) for cloud gaming – the number of people who live in areas where cloud gaming is available and are interested in it – will reach 220.2 million.
- Asia-Pacific accounts for almost half of this number, followed by Europe (17.4%), Latin America (14.4%) and North America (8.5%) .
- SOM is expected to reach 464.9 million in 2025.
Newzoo also noted that there was no need to adjust its forecast following the Stopping Google Stadia because its market share was minimal. “Some current Stadia users may leave the cloud gaming market following this announcement, but we expect the vast majority to simply switch to another cloud gaming service,” the report said. “After all, barriers to entry have been steadily falling in the cloud gaming market and consumer satisfaction with the technology is generally high.”
More data, including interviews with industry experts, can be found in the full report.