Newzoo report indicates that the cloud gaming market could approach US$7 billion by 2024

A market research report by Newzoo indicates that cloud gaming is set to register significant growth over the next three years. The report states that, by 2024, the global cloud gaming market could touch US$6.5 billion, up from around US$1.5 billion this year. The cloud gaming user base is also expected to grow significantly from approximately 20 million paying users in 2021. According to the report, there are a number of key reasons as to why cloud gaming is registering growth right now.

For starters, the continued GPU/console supply crisis means that it’s difficult or impossible for many gamers to get their hands on newer hardware. Parts like the GeForce RTX 3080 continue to sell for more than twice their sticker price. This makes cloud gaming a more economical option, at least in locations with the requisite internet connectivity. This is especially relevant when it comes to next-gen titles with hardware requirements that leave eighth-gen consoles and older PCs behind. 

Another factor the report touches on is heightened market awareness. Google, Microsoft, NVIDIA, and Sony have all pushed information about their cloud gaming services, meaning the average consumer is more aware about these services and how they work than before. 

If the Newzoo report pans out, it could mean that platforms like xCloud and PlayStation Now might one day become the default choice for gaming. That is still quite a ways away: even if the cloud gaming market hits US$6 billion by 2024, it’s important to note that a single game, Grand Theft Auto 5, has generated more revenue. Cloud gaming is almost certainly going to grow in the years to come, but it might be a decade or more before the cloud replaces consoles and PC.