The Covid-19 pandemic had a notable impact on the Indian cloud gaming market. With people staying home and seeking entertainment options, the demand for cloud gaming services increased. Ever since, the market has been witnessing growth, riding high on its ability to provide an accessible and convenient way to play video games sans high-end hardware.

The Indian cloud gaming market is expanding on the back of better internet infrastructure and a rise in smartphone adoption. Cloud-based gaming services are more convenient and scalable than traditional consoles. Further, collaborations between global and domestic players are enhancing the availability and quality of these services. While challenges such as internet connectivity issues and budget constraints are affecting the widespread adoption of cloud gaming, the long-term outlook for this segment remains promising as infrastructure and user awareness continue to improve in the country.

 

Advantages of cloud gaming

  • Better technology than traditional games: The architecture of cloud games is based on third-party servers. The player’s device handles input and rendering while the game runs on distant servers. In order to meet the needs of server-side processing and data transfer, the architecture necessitates a different development methodology. To this end, developers created a solid back-end infrastructure with strong servers, load balancing, and network optimisation to support a large user base that accesses games remotely.
  • Minimal device limitation: Most traditional video games that are not portable, are mainly limited to specific gaming consoles and desktop computers, the majority of which are Windows-based. As they are incompatible with other devices, they can only be used by a subset of the population that has access to those devices. Cloud games, meanwhile, can be played on more platforms. Games that were previously limited to Windows devices can now be played on personal computers (PCs) and tablets running Linux, iOS, Android and Chrome OS.
  • Game security: By storing user and game data on secure servers and transferring the information over secure connections, cloud gaming systems minimise the risk of hacking and the inconvenience of local data backup. This allows players to enjoy games without worrying about unauthorised access.
  • Compatibility: A scalable platform makes it possible for gamers to play high-end cloud video games on low-end devices and provides an incredible gaming experience by removing limitations on processing power, graphics capability, and memory storage. Modern gameplay and visuals used in cloud gaming do not need pricey installs and updates. It gives Indian players immediate access to the newest games, enabling them to keep up with technological advancements in gaming without going over budget.

Growth trends

According to the Cloud Gaming Market 2024-2031 report by Precision Reports, the global cloud gaming market is anticipated to rise at a considerable rate between 2024 and 2031. In 2023, the market grew at a steady rate and with the rising adoption of strategies by key players, it is expected to grow further over the projected horizon by 2031.

According to the India Gaming Report 2024, the country has the fastest growing mobile gaming market. Its gaming industry is expected to generate almost twice as much revenue annually, increasing from $3.1 billion in 2023 to $6 billion by 2028. As per the report, there will be 240 million paid gamers by 2028 in India, up from 144 million in 2023.

The report predicts that the number of professional players will increase by 2.5 times in the next five years, from 500 in 2023, owing to the government’s recognition of electronic sports (e-sports) and numerous state government-led initiatives to foster e-sports talent.

The affordability of smartphones, mobile data, and phone memory are the main factors driving the Indian gaming industry. According to the report, the upcoming years will see a growth in smartphone shipments of over 820 million, which will increase the affordability of these devices. Over the past five years, companies have increased their phone memory nearly four times to meet the demands of cloud gaming, and various telcos have reduced the cost of their data packs to make them more accessible.

Currently, India is home to about 0.1 million highly qualified gamers. According to the report, the online gaming sector is expected to create 0.25 million new jobs over the next 10 years. It claims that currently there is a talent shortage in the industry, with job openings ranging from 50,000 to 60,000 in a variety of roles, including developers, programmers, testers, artists and customer support.

Stakeholders eyeing opportunities

With its extremely low latency and lightning-fast speeds, 5G is predicted to completely transform cloud gaming in India by reducing lag and improving responsiveness. This will facilitate more rapid reflexes. Given 5G’s enhanced bandwidth, it is expected that more detailed maps and realistic gaming environments will be possible. Further, it will enable players in urban and rural areas to stream top-notch games without the need for pricey consoles or PCs.

Owing to its growing potential, the cloud gaming market is witnessing an increase in collaborations and partnerships to leverage opportunities. For instance, Revenant Esports has collaborated with AMD to strengthen e-sports communities and PC gaming across the country. AMD will be the title sponsor of Revenant Esports. Commenting on the collaboration, Rohit Jagasia, founder and chief executive officer (CEO), Revenant Esports, said, “It is not just about enhancing the brands we collaborate with but also about propelling the gaming industry to greater heights. Therefore, a title partnership with AMD, which is a veteran in the Indian e-sports industry, represents a mutually beneficial deal”.

Meanwhile, Vodafone Idea Limited (Vi) has teamed up with Paris-based CareGame to launch Cloud Play, a mobile cloud gaming service. Vi Cloud Play allows gamers to play instantly without downloading multiple games, offers high fidelity games with rich graphics, and supports multiplayer gaming. It saves device memory and reduces the need for additional handset upgrades, resulting in significant cost savings. Commenting on the collaboration, Avneesh Khosla, chief marketing officer (CMO), Vi, said, “We recognise the potential of the fast evolving gaming landscape with smartphones playing a key role in making gaming accessible anytime and anywhere. It is not just a game, it’s a seamless journey into a world where imagination meets technology”.

Companies are recognising the immense potential of India’s young and engaging audience. These collaborations will create win-win situations, with brands gaining valuable exposure and gamers receiving the resources they need to thrive. There would be even more innovative partnerships emerging in 2024.

Key challenges

The Indian cloud gaming market confronts multiple challenges as it seeks to gain prominence. Internet infrastructure and connectivity issues pose a significant obstacle, with many parts of the country still lacking highspeed and low latency internet access, crucial for a smooth cloud gaming experience. Further, the market faces stiff competition from established gaming platforms and scepticism from gamers regarding the quality and latency of cloud gaming services.

As per the Ericsson Report 2024, 45 per cent people lack reliable equipment, networks, or capable devices for cloud gaming. Although, the number of 5G users playing cloud games is much higher than 4G users, 68 per cent cloud gamers are still on 4G and their level of network satisfaction is lower in comparison to 5G users. As many as 63 per cent of those who are familiar with cloud gaming claim that they would play more cloud games if 5G network coverage was expanded.

The report also mentioned that 36 per cent cloud gamers dropped cloud gaming because the platform did not offer the right games, and there were only a few high quality games in the subscription pack.

The road ahead

A third revolution in video games is being ushered in by cloud gaming technology, which guarantees infinite accessibility for all users. This will be accomplished by the rollout of 5G and the capacity of cloud gaming solutions to adjust to bandwidth limitations, particularly in developing areas where video game access has historically been restricted by low-income and low-bandwidth barriers.

India’s cloud gaming industry has a bright future because of advances in technology and improved infrastructure. Developers, publishers and service providers have the ability to influence the future of the gaming industry at home and abroad as more players embrace cloud gaming. Indian gamers can now connect, explore new worlds, and enjoy gaming in never-before-seen ways because of the power of cloud computing, ushering in a new era of interactive entertainment.