Cloud Gaming Backend Service Market Size, Share, Growth, and Industry Analysis by Type (Professional Services, Support and Maintenance, Access and Identity Management, and Usage Analytics) By Enterprise Size (SMEs, and Large Enterprises) Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights, and Forecast From 2022 To 2030

Updated On: 11 September 2023

Cloud Gaming Backend Service Market Report Overview

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The global cloud gaming backend service market size is expected to be worth USD 409 million in 2022 and is projected to touch USD 1,417.6 million by 2028, exhibiting a CAGR of 19.2% during the forecast period.

Cloud gaming, a streaming service offers high-quality content at the expense of server and internet bandwidth. Customers pay for access to sophisticated hardware so they can stream content through cloud gaming companies, which typically operate on a subscription basis. Because backend services are typically only accessible to trusted code, they may be more difficult to hack. Only other frontend and backend services are provided with interfaces by backend services. An external client cannot speak directly to a backend service. You can typically store and access data using backend services, such as game state information in a database or logging and analytics events in a data warehouse.

These backend platform services adhere to the same design principles as frontend platform services, despite typically lacking an external network route and IP address. Similar to remote desktops and video on demand services, cloud gaming platforms work by storing and running games remotely on specialised hardware owned by the provider, then streaming that video to a player's device via client software. The player's inputs are handled by the client software and then sent back to the server to be used in-game. Some cloud gaming services let users access a virtualized Windows environment where they can download and install software and games just like they would on a local machine.

COVID-19 Impact: Lockdown Imposed Due to COVID-19 to Boost Market Growth 

The global COVID-19 pandemic has been unprecedented and staggering, with the cloud gaming backend service market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden surge in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

Manufacturing and supply chain businesses have been severely impacted by the COVID-19 pandemic. Due to the pandemic, manufacturing facilities experienced temporary shutdowns or 50% operating capacity, supply chain disruptions, material shortages, and closures of international borders, among other things. The supply of hardware items like smartphones, smart TVs, laptops, personal computers, and gaming consoles is negatively impacted by this. Due to the lack of social interaction and outdoor activities following COVID-19, new gamers have opted to subscribe to cloud gaming services. Major corporations launched cloud gaming services to offer a cost-effective solution and broaden the gaming market by capitalizing on the growing popularity of video games, thereby driving the cloud gaming backend service market growth. This growth and trend is expected to remain the same in the coming years.

Latest Trends

"Increasing Significance of Smartphones to Drive Market"

Smartphones will gain a significant amount of market traction in the upcoming years due to the explosive growth of mobile gaming over the last five years. Constantly upgrading consoles and PCs to maintain game performance is way too expensive. While upgrading consoles and customizing PCs requires additional funds, cloud gaming only needs a laptop, a 5G device, or a smart TV. This has given a new group of gamers the ability to play because it makes more casual gaming possible for a much lower cost.

Cloud Gaming Backend Service Market Segmentation

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• By Type

The market is classified into professional services, support and maintenance, access and identity management,  and usage analytics based on type. The professional services segment will lead the cloud gaming backend service market share throughout the forecast period.

• By Enterprise Size

The market is classified into SMEs, and Large Enterprises on the basis of enterprise size. The SMEs segment will lead the cloud gaming backend service market share throughout the forecast period.

Driving Factors

"Scalability of Cloud Services to Drive the Market"

Cloud gaming backend service are dependable and very scalable. By using cloud solutions, SMEs can plan a gradual and planned growth. You can scale up to the next level of services by adding users and servers as soon as the business expands to new locations and grows its team. SMEs and other large enterprises also uses cloud gaming. One of the key factors propelling the market growth is the system's independent operation mode and cost-effectiveness when compared to other traditional gaming consoles. The market's potential is, however, constrained by issues with higher latency and less detail than conventional gaming platforms. Additionally, the development of the cloud gaming network and improved privacy create profitable opportunities for the expansion of the cloud gaming backend service market.

"Low Price of Cloud Gaming Systems to Drive the Market"

Both consumers and game makers can benefit from cloud gaming systems. Users of cloud gaming can save money by not purchasing a physical console or PC. By subscribing to a cloud gaming service, users typically gain access to a library of preloaded titles, which can be played on any device, from anywhere, for only a small monthly fee. In addition, cloud gaming services allow users to save on bandwidth and storage costs by not having to download and wait for a game to install.

Restraining Factors

"High Bandwidth Required to Restrain the Market"

As cloud gaming overtakes most traditional gaming, it will necessitate a boost in cloud computing bandwidth and capacity comparable to the global expansion of streaming video. Cloud gaming has countless advantages, but it also consumes a lot of bandwidth. The difference between cloud gaming and other streaming services like Netflix and YouTube is that the former is exclusively for video games. Cloud gaming requires a lot of bandwidth, much like Netflix, so it works best for users with fast Internet connections. In other words, a fibre Internet connection will give you the best cloud gaming experience. Thus, the higher bandwidth required might affect the market growth.

Cloud Gaming Backend Service Market Regional Insights

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"Asia Pacific to Hold the Largest Market Share Owing to Increasing Number of 5G Infrastructure"

During the forecast period, Asia Pacific is expected to hold the largest cloud gaming backend service market share. Due to the increasing number of 5G infrastructure development initiatives in the region, the cloud gaming market in APAC is predicted to grow at a significant rate. Additionally, the affordability of cloud gaming platforms is promoting their use among a variety of new customer classes, whose levels of investment in gaming systems vary. Due to their large populations and active gaming cultures, China and India will be the two nations that experience the greatest growth. Japan is another strong market for cloud gaming.

After Asia Pacific, North America holds the majority of the cloud gaming backend service market. The market expansion in North America is anticipated to be aided by early adoption of cloud technology, rising demand for online gaming, and widespread accessibility to effective internet infrastructure.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage  "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• AWS (U.S.)
• Microsoft Azure (U.S.)
• Google (U.S.)
• ChilliConnect (Unity) (U.K.)
• Photon Engine (U.S.)
• brainCloud (Canada)
• Tavant Technologies (U.S.)
• Back4App (U.S.)
• ShepHertz (U.S.)
• XtraLife (France)
• Huawei (China)
• Tencent (China)
• LeanCloud (China)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.