Cloud Gaming - NAFTA | Statista Market Forecast

In NAFTA, revenue in the Cloud Gaming market market is projected to reach US$2.23bn in 2024.
Revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 28.92%, leading to a projected market volume of US$7.95bn by 2029.
Within the Cloud Gaming market market in NAFTA, the number of readers is expected to reach 78.0m users by 2029.
User penetration in NAFTA will be 12.0% in 2024 and is projected to increase to 14.9% by 2029.
The average revenue per user (ARPU) in this region is estimated to be US$36.32.
In a global context, the majority of revenue is projected to be generated the United States, amounting to US$1.94bn in 2024.
In the United States, the cloud gaming sector is rapidly evolving, driven by increasing consumer demand for seamless gaming experiences and enhanced internet infrastructure.

Definition:

Cloud gaming is a form of video game streaming that allows players to play games on their devices through an internet connection, without the need for dedicated gaming hardware or local installation of games. In cloud gaming, games are stored and run on remote servers, and the player's device only needs to send inputs and receive streaming video and audio output. Cloud gaming services often require a subscription fee and offer a library of games for users to choose from, with the ability to play games on demand. The market for cloud gaming has been growing in recent years, with the proliferation of high-speed internet connections and advancements in cloud computing technology.

Additional Information:

The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through subscriptions and consumer spending. Market numbers are also featured in the Advertising & Media Insights. For more information on the data displayed, use the info button right next to the boxes.

Subscription for Cloud Gaming platforms, such as GeForce Now
In-game purchases from Cloud Gaming games, such as game pass

Revenues from digital video games, such as sold video games
Revenues from in-game purchases, such as in-game spending in Fortnite
Revenue from physical video games, such as buying games in stores

The Cloud Gaming market in NAFTA is experiencing significant growth and development due to various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in NAFTA are increasingly drawn to the convenience and flexibility offered by cloud gaming. With cloud gaming, users can access a wide range of games on-demand without the need for expensive gaming hardware. This appeals to a broad customer base, including casual gamers who may not want to invest in gaming consoles or high-end PCs. Additionally, the ability to play games on multiple devices, such as smartphones and tablets, further enhances the appeal of cloud gaming.

Trends in the market: One of the key trends in the Cloud Gaming market in NAFTA is the increasing adoption of subscription-based gaming services. Companies like Xbox Game Pass and PlayStation Now offer a vast library of games for a monthly fee, allowing gamers to access a wide range of titles without the need to purchase individual games. This trend is driven by the desire for cost-effectiveness and the ability to try out different games without committing to a full purchase. Another trend in the market is the growing popularity of cloud gaming platforms. Companies like Google Stadia, NVIDIA GeForce Now, and Amazon Luna are investing heavily in cloud gaming infrastructure and services. These platforms leverage the power of cloud computing to deliver high-quality gaming experiences without the need for powerful local hardware. This trend is driven by advancements in cloud technology and the increasing availability of high-speed internet connections.

Local special circumstances: In the NAFTA region, the Cloud Gaming market is also influenced by local special circumstances. For example, the availability of high-speed internet infrastructure varies across the region. While urban areas may have robust internet connectivity, rural areas may face challenges in accessing reliable and high-speed internet. This digital divide can impact the adoption and growth of cloud gaming in certain regions.

Underlying macroeconomic factors: The growth of the Cloud Gaming market in NAFTA is also influenced by underlying macroeconomic factors. The region has a large and affluent population, with a high level of disposable income. This provides a strong customer base for the gaming industry, including cloud gaming. Additionally, the presence of major gaming companies and technology giants in the region, such as Microsoft, Sony, and Google, further drives the growth of the market. In conclusion, the Cloud Gaming market in NAFTA is experiencing significant growth and development due to customer preferences for convenience and flexibility, trends such as the adoption of subscription-based gaming services and cloud gaming platforms, local special circumstances like internet connectivity, and underlying macroeconomic factors such as a large and affluent population. This market is expected to continue to expand as technology advances and customer demand for cloud gaming increases.

Data coverage:

Figures are based on subscription spending, consumer spending, investment, and funding data.

Modeling approach / Market size:

Market sizes are determined by a Top-Down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use reports, third-party studies, research companies. Next we use relevant key market indicators and data from country-specific associations such as GDP, consumer spending, internet penetration and cloud revenues. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are consumer spending per capita, level of digitalization, and cloud revenues.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Cloud computing is the delivery of hosted services over the internet through the main service delivery segments; infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Revenue in the United Kingdom (UK) from public cloud services, which makes up most of the cloud computing market, amounted to around 12 billion U.S. dollars in 2020. This is a share of almost four percent of the global public cloud market.