Cloud Gaming Backend Services Industry Research

Published Date: 2022-08-03
General overview of the development of the cloud game back-end service industry during the 13th Five-Year Plan period (2017-2021) and the 14th Five-Year Plan period (2021-2025)

During the 13th Five-Year Plan period (2017-2021), the global cloud game back-end service market size in 2017 was US$108.80 million. Due to the impact of the epidemic in the past two years, according to the latest QYR survey, the global cloud game back-end service market size in 2021 The annual compound growth rate during the five-year period from 2017 to 2021 was 37.82%.

During the 14th Five-Year Plan period (2021 to 2025), the global scale is expected to reach US$902.48 million in 2025, with a compound annual growth rate of 23.14% from 2021 to 2025

The main characteristics of the development of the cloud game back-end service industry

At the technical level, the rapid development of cloud-native technologies such as containers, microservices, and DevOps has provided downstream users with more agile and elastic application development services, and can also quickly realize migration between multiple clouds, which has attracted a lot of market attention.

In terms of IT usage threshold and comprehensive cost, the cloud game back-end service encapsulates the underlying IT infrastructure through resource pooling, "shielding" its complexity from users, and realizes the subscription system and pay-as-you-go. This model reduces the cost of The customer's early IT capital expenditure and later operation and maintenance costs also greatly reduce the hardware equipment compatibility and configuration requirements of end game players.

In terms of user stickiness, once downstream users use cloud game back-end service products, they will not migrate at will in order to ensure the stability of their IT systems.

In terms of scale effect, it can achieve greater scale effect by realizing multi (massive) user rental and making full use of the resources of the resource pool.

Barriers to Entering Cloud Game Backend Service Industry
[Technical barriers] Cloud game back-end services need to provide a large amount of computing resources. Faced with multi-point, real-time, and resource allocation requests, downtime is not allowed. Therefore, the requirements for virtualization and resource management software are very high. Only companies with comprehensive technical reserves can provide stable and efficient services. Including fast and stable network connection capabilities, comprehensive resource operation capabilities, complete network security capabilities, etc.

[Barrier of financial strength] The back-end service of cloud games is ultimately a market of scale effect. The initial infrastructure investment is very large, and the profit effect can only be generated after accumulating a certain amount of customer resources. Manufacturers with a large amount of financial strength will become the leaders of the industry.

[Operation and management barriers] The global cloud game back-end service providers are developing towards standardization and super-large-scale development. Small and medium-sized manufacturers cannot meet such high operational requirements and it is difficult to catch up in the short term.

Cloud game backend service development trends and suggestions
[Competitive trend] From the perspective of enterprise competition, due to the high technical barriers in the cloud game back-end service industry, the existing international leading manufacturers have strong technical capital and have been deeply involved in the industry for many years, and will continue to maintain a leading position in the industry in the future.

[Market size and development trend] In recent years, the development of the cloud game back-end service industry has accelerated, and downstream customers have greater demand in the game development field. In addition, many countries around the world have vigorously supported the cloud computing industry. The growth rate of the development of the service industry will remain at a relatively high level.

Global cloud game back-end service industry scale and forecast analysis
In 2021, the global cloud gaming backend service market size will reach USD 392.48 million, and it is expected to reach USD 1,425.83 million in 2028, with a compound growth rate (CAGR) of 19.05% from 2022 to 2028.

From a regional perspective, the Chinese market has changed rapidly in the past few years. In 2021, the market size will be 36.58 million US dollars, accounting for about 9.32% of the global market. It is expected that the market size will reach 162.81 million US dollars by 2028. Compared with more than 11.42%, the compound growth rate from 2022 to 2028 is 21.72%.

From a product perspective, professional services have the largest market share, exceeding 34% in 2021. Professional services are the key segment of the entire cloud game back-end service. The further development and optimization of cross-platform access, real-time multiplayer games, game acceleration, and game storage are the key layout and expansion directions for product developers. By continuously satisfying downstream customers Efficient game development needs and better game experience for end game players to continuously seize and expand market share.

From the perspective of product market application, the application of small and medium-sized enterprises has a larger market size during the forecast period. With the rapid development of the e-sports game industry, there are more and more small and medium-sized enterprises entering the field of game development. Due to the high barriers to capital, technology, and operation management in the back-end of game development, small and medium-sized enterprises cannot achieve full-cycle development in a short period of time. With its high development efficiency and low cost advantages, the terminal service caters to the needs of more small and medium-sized cloud game developers.

At present, major global companies include AWS, Google, Microsoft Azure, Tencent and Tavant Technologies, etc. The top five companies will account for more than 51% of the shares in 2021. It is expected that the industry competition will be more intense in the next few years, especially in the Chinese market.