There was a massive surge in engagement and spending across the gaming industry in 2020. Cloud gaming is among the verticals expected to experience continuous exponential growth in 2021.
According to the research data analyzed and published by Safe Betting Sites, annual revenue from the global cloud gaming revenue will surpass $1 billion for the first time in 2021. This is nearly double the estimated revenue for 2020, which was about $585 million.
Analyst firm Omdia offered a much more optimistic outlook, projecting 188% growth for the industry’s revenue. Per its forecast, it will grow to $4 billion in 2021, tripling to $12 billion by 2025.
Global Gaming Industry to Generate $189.3 Billion in 2021
The cloud gaming market was valued at $170 million in 2019 according to Newzoo. Its Total Addressable Market (TAM) is forecast to grow from $12.58 billion in 2018 to $56.57 billion by 2027.
Similarly, mobile gaming is projected to grow massively in 2021. According to AppAnnie, its revenue will rise by 20% in 2021 to reach $120 billion. In 2019, the mobile gaming industry generated $68.5 billion according to Newzoo.
The number of mobile games has also been on the rise, going from 2.3 billion in 2018 to 2.51 billion in 2020. This figure translated to about 30.7% of the global population.
Based on a study by Newzoo, the total number of gamers in the gaming industry is set to rise to 2.8 billion. They will enable the global gaming industry to generate $189.3 billion by the end of the year, up from $174.9 billion in 2020. By 2023, the overall industry revenue could grow to $217.9 billion.
Among the factors driving its growth will be 5G network penetration. By the end of 2021, 16% of smartphones will be 5G-ready compared to 5% in 2020. By 2023, the 5G market share will be at 43%.
Source: Psychic Ventures