Although cloud gaming has been present for some time now, the entire market is set to witness explosive growth in 2023, with revenues and users rising to all-time highs. According to data presented by SafeBettingSites.com, global cloud gaming revenues are expected to surge by a massive 62% year-over-year and hit $4.3bn in 2023.
The Biggest Annual Revenue Growth So Far
Over the past few years, cloud gaming has revolutionized the gaming industry and become one of the top choices for recreational gamers. Google Stadia, Xbox Game Pass, and PlayStation Now have allowed gamers to stream a game to any display they own instead of buying a console and a disc. That means they can play the latest AAA games even on their smartphones. At the same time, developers can sell games as a service instead of dealing with physical copies and downloads.
According to a Statista survey, the entire market grossed around $580 million in revenue in 2018, including subscriptions for cloud gaming platforms and in-game purchases from cloud gaming titles. Two years later, revenue jumped to over $1bn, growing 43% year-over-year. Statistics show 2021 also witnessed a huge 53% year-over-year growth, with the market reaching a $1.67bn value. This figure increased by another 59% to $2.67bn in 2022.
Statistics show 2023 is set to witness the biggest annual growth, with people spending $4.34bn on cloud gaming, 62.5% more than last year. Statista expects the entire market to continue growing by a CAGR of 44.1% in the next four years and reach an $18.7bn value by 2027.
Around 100 million New Users per Year
In global comparison, the United States generates the highest cloud gaming revenue. According to Statista data, the US cloud gaming market will gross over $1.2bn in revenue this year, or 28% of the world`s total. As the second-largest globally, the Chinese market will see 25% less cloud gaming revenues or around $900 million. Far below, Japan, the United Kingdom, and Germany follow, with $364.7 million, $198.3 million, and $179.8 million, respectively.
Besides impressive revenue growth, the cloud gaming segment saw its user base surge by an average of 100 million people per year. In 2022, 182.3 million people worldwide used cloud gaming services, up from 102.6 million a year before that. This figure is expected to jump to 295 million in 2023, and by the end of 2024, the entire market is forecast to reach more than 395 million users worldwide.