While 2021 is already know as “the year of gaming”, an under the radar sub-sector has emerged that’s growing even faster - It’s called Cloud-based gaming.
The new sub-sector is on fire!
Last year, cloud gaming generated $633 million in revenue. But by 2022, it will grow 58% to a billion+. This is remarkable growth considering just a few years ago, cloud gaming did not even exist.
Now, by 2023, less than a year and a half from now, the new cloud gaming sub-sector is expected to begin generating revenues that will surpass $5 billion. And going on through 2027, just 4 years further, it’s expected to generate over $23 billion in revenue, a 48.2% compound annual growth rate.
Thanks to the widespread availability of 5G networks, gamers now have the necessary speed and access to stream and play games from the cloud.
By years’ end, it’s expected that the cloud gaming market will have acquired 24 million unique gamers, opening an entire new world for game developers and publishers. But while 24 million users is big, this user number will grow even bigger, and fast.
By the end of the decade, a majority of casual gamers are likely to be playing cloud-based games only. Some estimates say well over 200 million gamers will be cloud-based. Perhaps as much as a 500 million.
Developers and publishers need to take advantage of this growing opportunity now by incorporating and designing their new launches around the cloud, and cloud gamers.
Here’s where it gets interesting for investors.
Small, nimble developers and publishers with unique cloud-compatible technologies may offer outstanding returns to investors in the coming years.
While the gaming sector, as a whole, is growing very rapidly, the sub-sector of cloud gaming is offering investors even bigger, faster growth.
And smart-money is already on the lookout for opportunities in the space.
It’s important to note, that as more gamers move towards cloud-based games, more consumers are also moving towards cloud-based eCommerce.
The combination of cloud-based gaming and cloud-based eCommerce could be worth trillions.
With this in mind, keep an eye on TCI Entertainment. The Florida-based company has a patented technology they plan to launch this year. It hopes to bridge the gaming sector and the eCommerce sector and could allow for $billions in real-world transactions through the cloud.
Learn more about the cloud gaming market in 2021 HERE
Source: https://www.datamation.com/cloud/cloud-gaming-market-2021/