Cloud Gaming - South America | Statista Market Forecast

In South America, revenue in the Cloud Gaming market market is projected to reach US$140.70m in 2024.
This revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 29.28%, leading to a projected market volume of US$508.10m by 2029.
Within the Cloud Gaming market market in South America, the number of readers is anticipated to amount to 9.4m users by 2029.
User penetration in South America will be 1.8% in 2024 and is expected to increase to 2.2% by 2029.
The average revenue per user (ARPU) in South America is expected to amount to US$18.99.
In global comparison, the majority of revenue will be generated the United States, which is projected to reach US$1.94bn in 2024.
Cloud gaming in Brazil is rapidly gaining traction, driven by increasing internet penetration and a growing appetite for digital entertainment among consumers.

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 South America has been experiencing significant growth in recent years, driven by changing customer preferences and the increasing availability of high-speed internet connections in the region.

Customer preferences: One of the key factors driving the growth of the Cloud Gaming market in South America is the increasing demand for convenience and flexibility among gamers. Cloud gaming allows users to play games on-demand, without the need for expensive hardware or physical game copies. This appeals to a wide range of gamers, from casual players to hardcore enthusiasts, who are looking for a more accessible and cost-effective gaming experience. Additionally, the rise of mobile gaming has also contributed to the growth of the Cloud Gaming market in South America. With the increasing popularity of smartphones and tablets in the region, more and more gamers are turning to cloud gaming platforms that offer a wide selection of mobile games that can be played on-the-go.

Trends in the market: One of the key trends in the Cloud Gaming market in South America is the increasing adoption of subscription-based models. Many cloud gaming platforms in the region offer monthly or yearly subscription plans, which provide users with unlimited access to a library of games. This model not only offers gamers a cost-effective way to access a wide range of games, but also provides a steady revenue stream for cloud gaming providers. Another trend in the Cloud Gaming market in South America is the growing popularity of game streaming services. These services allow users to stream games directly to their devices, eliminating the need for lengthy downloads or installations. This trend is particularly appealing to gamers in South America, where internet speeds can be slower compared to other regions. Game streaming services enable users to play games instantly, without the need for high-end hardware or fast internet connections.

Local special circumstances: One of the unique challenges in the Cloud Gaming market in South America is the region's diverse infrastructure and internet connectivity. While major cities in countries like Brazil and Argentina have relatively good internet infrastructure, rural areas and smaller towns may still face challenges in terms of internet speed and reliability. Cloud gaming providers in South America need to take these local circumstances into account and ensure that their platforms are accessible to users across the region.

Underlying macroeconomic factors: The growth of the Cloud Gaming market in South America is also influenced by underlying macroeconomic factors. As the region's economies continue to develop and the middle class expands, more consumers have the disposable income to spend on entertainment and leisure activities, including gaming. Additionally, the increasing penetration of smartphones and internet access in South America is providing a larger user base for cloud gaming platforms. In conclusion, the Cloud Gaming market in South America is experiencing significant growth due to changing customer preferences, such as the demand for convenience and flexibility, as well as the increasing availability of high-speed internet connections. Subscription-based models and game streaming services are emerging as key trends in the market. However, the region's diverse infrastructure and internet connectivity present unique challenges for cloud gaming providers. The underlying macroeconomic factors, such as the growing middle class and increasing smartphone penetration, are also contributing to the growth of the market.

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.