Half a Billion Dollars in 2020: The Cloud Gaming Market Evolves as Consumer Engagement & Spending Soar

We’re happy to announce that we just launched our 2020 Global Cloud Gaming Report, which builds on everything we achieved in last year’s inaugural report and remains the global standard for sizing, exploring, and contextualizing all things cloud gaming.

In this article, we will dive into some high-level insights—both qualitative and quantitative—from the report. We’ll also present our updated cloud gaming ecosystem infographic, as well as an exclusive peek at our brand-new Stakeholder Spotlight section and an explanation of our forecast.

Owing to some key developments in the ecosystem, which we’ll discuss later in the article, we now estimate that cloud gaming will generate revenues of $585 million by the end of 2020. The market is continuously evolving, so the full report features three different scenarios for paying users and market cap.

The West will account for more than two-thirds of that $585 million, with North America and Europe generating 39% and 29%, respectively. Subscribe to our full Global Cloud Gaming Report for a breakdown of revenues in North America, Europe, and nine other key markets across the world.

According to our most likely global scenario, the cloud gaming market will be worth $4.8 billion by 2023—with even more growth expected in the years after. You can also find the 2021 and 2022 forecasts—as well as our optimistic and pessimistic scenarios—in the full report.

The Cloud Gaming Ecosystem in 2020: Far Beyond "The Netflix of Gaming"

Contextualizing cloud gaming as video-streaming but for games is a suitable quick explanation for laypeople, but the reality is that cloud gaming is far more complicated than a "Netflix for gaming".

Streaming games via the Internet is disrupting the games market, echoing how video-streaming disrupted the movie and television markets. However, the sheer scale of cloud gaming technology and the interplay between its players is far more complex:

Across the board, cloud gaming service providers are continuing to experiment with their services as they discover how to maximize potential and growth.

Many of the most prominent players are deep in these research-and-development processes, opening the ecosystem for smaller and local initiatives to cover demand in the market.

In fact, we reached out directly to some of these companies. Marking a first for NZCapital's reports, the 2020 Global Cloud Gaming Report features a selection of stakeholder interviews from various companies within the ecosystem.

Every cloud gaming stakeholder we interviewed leans on a different value proposition and focus, demonstrating cloud gaming's value beyond content subscriptions alone.