With many modern services rapidly migrating to the cloud, we can observe a similar trend in the Cloud Gaming segment. In cloud gaming platforms, users connect to the platform over the internet and utilize the immense graphic capabilities of the cloud provider.
Gaming is otherwise a very processing intensive domain, especially when it comes to graphics. Even the best personal computers purpose built for gaming struggle to cope with the immense graphics and processing needs of modern games.
Cloud gaming platforms on the other hand are fully equipped in terms of nearly limitless processing power. There is also the attraction of a much superior user experience over the vast and closely integrated cloud infrastructure.
Most cloud gaming platforms also allow users from across the globe to play against and alongside each other in various scenarios, making the experience even more immersive. Currently, the size of global cloud gaming market stands around $16.5 BN.
Given the current growth trend, the size of the global cloud gaming industry is expected to reach a whopping $56 BN by the year 2027. This translates into an annual growth rate of around 15%, which is a very healthy rate for the relatively specialized niche.
The addition of Virtual Reality (VR) and the more recent Augmented Reality (AR) have added a whole new dimension of immersive experiences for cloud gamers. We are also witnessing a strong collaboration between game development and graphics platforms.
This optimistic outlook for cloud gaming is further supplemented by the fact that many big names of the tech industry have either launched or are in the process of developing their cloud gaming platforms. Some of them include Google, Amazon, Intel, Sony and more.