China Cloud Gaming Technology Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)


Posted May 8, 2021 by statzyreports

The market for cloud gaming in China is expected to register a CAGR of 20.2% over the forecast period (2021-2026).

 
With China’s population spending heavily on mobile games, the industry growth rate is five times that of the region's average. Also, with capabilities growing at about four times the rate of its domestic internet service, the country is well on its way to being the leader in meeting the cloud data storage needs of the gaming industry.

- In June 2016, Chinese President Xi Jinping outlined his vision for China to become the leading player in science and technology. It is slowly emerging as a technology superpower, competing with the United States. The rapid growth in the economy, in the technological scenario, has shown improvements in the fiscal deficits and gradual progressive economic reforms.

- In August 2018, the Chinese government asked marketing executives to control their cash flow and curtail spending on new games. It also stopped approving licenses of new games. Chinese gaming giant, Tencent, suffered its first profit decline since 2005 on lower gaming revenue. In December, the government lifted the ban expected on Tencent. These kinds of fluctuations negatively affect the market.

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Key Market Trends

Growth of Smartphones to Drive the Market Demand

- Smartphones provide an inexpensive way and a common platform for users of all demographics to access games over the cloud.

- China is home to many millions of tech-savvy consumers who are keen adopters of games, placing greater demands on developers and network operators.

- Chinese policymakers have taken important steps to modernize the country’s regulatory framework for telecoms, establishing a platform for further digital progression.

- China is also home to several smartphone manufacturers, including Huawei, Vivo, Oppo, and Xiaomi. Demand from Chinese consumers for the latest flagship devices remains strong.

- According to GSM Report 2019, the unique mobile subscribers grew from 1.17 billion in 2018, and it is forecast to grow to 1.22 billion in 2025.

Cloud Proliferation to Expand the Market Reach

- Huge private sector investment, strong government backing, and young talent are together rallying behind the growth of China’s cloud computing industry.

- Gaming companies in China are adopting cloud services, such as content delivery networks, server load balancers, object storage services, and database management tools, to power their businesses.

- According to Alibaba Cloud, cloud sales will grow from 5% to 20%, in the Chinese IT market by 2020

- In April 2019, Microsoft launched its cloud service Dynamics 365 and was operational through local partner 21 Vianet Group Inc.

Competitive Landscape

The market is concentrated with few legacy vendors like Tencent, 37 Interactive Entertainment, and NetEase dominating the market. The gaming scenario is much more controlled by the publishers and channels than the developers.

- April 2019 - Tencent launched a website for a product called “Start” and is allowing people in Shanghai and the Southern China province of Guangdong to sign up for the test. The description on the website, written in Mandarin, translates as “you can play on any device.”

- March 2019 - Intel & Tencent partnered for new game streaming service called 'Tencent Instant Play'.It works similar to already announced services such as Microsoft's Xcloud and Google's Project Stream.

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Issued By Statzy Market Research
Country India
Categories Technology
Tags china cloud gaming technology market , china cloud gaming technology market forecast , china cloud gaming technology market share , china cloud gaming technology market size
Last Updated May 8, 2021