According to the latest “China Game Cloud Market Tracking, Second Half of 2023” report released by International Data Corporation (IDC), China's game cloud market reached 1.74 billion US dollars in 2023, and basically remained at the same level over the previous year.
The Zhitong Finance App learned that the latest “China Game Cloud Market Tracking, Second Half of 2023” report released by International Data Corporation (IDC) shows that the size of China's game cloud market reached 1.74 billion US dollars in 2023, which is basically the same level over the previous year. Among them, the solution market growth rate has reached more than 10%, far higher than infrastructure. Industry customers have established usage habits for high-end cloud computing products and industry services, such as cloud databases, audio and video services, business security, and RTA purchase back-end construction, laying the foundation for continuous and orderly market growth.
Market Status and Forecast
In the first quarter of 2024, the game version continued the “normalized distribution” trend of 2023, and maintained the monthly trend of over 100, which began in December 2023, greatly improving the negative expectations brought about by the new regulatory regulations at the end of last year on market growth expectations.
Without major public opinion risks and no major changes in existing regulatory policies and environments, downstream demand will drive the game cloud market to continue to grow, compounded by 2024 entering an intensive new game release cycle. More IT demand, especially game cloud demand, is rapidly emerging. It is expected that the game cloud market will usher in a boom in growth in the short term. The market size is expected to reach US$1.91 billion in 2024, with an average compound annual growth rate of 7.8% in 2023-2027.
Usage tracking
The Internet gaming industry is one of the first to experiment with cloud computing products and services. Most customers have fully understood the unique advantages of public clouds in terms of resource efficiency, resource launch speed, technological leadership, and reduction of capital expenses. Over the past three years, with the exception of individual cycles, game cloud usage has basically maintained a steady growth trend. Using a higher proportion of public cloud products and services in new game projects is becoming an industry consensus; some cloud service providers innovate service methods to support customers to move their own resources into cloud IDC and connect with public clouds in the underlying software and control interface, making it easier for customers to experience the leadership of cloud computing technology, reduce the difficulty of operation and maintenance management, and fully migrate to the cloud later.
The competitive landscape
Game Cloud is a fully competitive market. Participants include not only Internet-based cloud computing service providers (Alibaba Cloud, Tencent Cloud, AWS, Baidu Smart Cloud, etc.), third-party independent service providers (HUAWEI CLOUD, Univer, Jinshan Cloud, etc.), telecom operators (Tianyi Cloud, Mobile Cloud, etc.), but also innovative technology service providers (Weiling Era, Haima Cloud, etc.) in vertical industries or scenarios.
Among them, Internet cloud service providers dominate multiple game cloud sub-markets and consolidated market segments with a deeper understanding of user scenarios/needs, wider resource distribution, and stable resource supply; in the context of gaming overseas, telecom operators' cloud service providers keep up with national and hot regional development trends, and rely on newly built international export route resources in Hainan and other places to provide more convenience for industry customers to go overseas. In 2023, the game cloud infrastructure market reached US$1.39 billion, and the total market share of Alibaba Cloud, Tencent Cloud, HUAWEI CLOUD, AWS, and Jinshan Cloud reached 84%; the total market share of Alibaba Cloud, Tencent Cloud, AWS, HUAWEI CLOUD, and Weiling Era reached 83%.
IDC Research Areas
According to IDC, game cloud refers to cloud solutions customized to meet specific needs such as back-office data aggregation, processing, storage, and distribution in Internet games, as well as video rendering and video streaming distribution solutions for cloud games. In this study, IDC not only investigated and counted the revenue of service providers in various game cloud sub-markets (excluding related transaction revenue), but also the usage of cloud computing products and services (including internal request usage) in some core sub-markets.
Wei Yunfeng, IDC's China Industry Cloud Service Research Manager, said that in the context of “cost reduction and efficiency” sweeping the entire pan-Internet industry, the game cloud market will still complete contrarian growth in 2023 and may usher in a new wave of growth in 2024. Industry customers and cloud services are establishing closer partnerships to jointly address many challenges such as “an increase in DAU”, “increase in flexible demand”, and “increased demand for customization in high load/complex scenarios”, and expand the scope of use of AI technology, products and services, extending from professional data analysis fields such as content review, launch analysis, bot training to design creation and user interaction scenarios; in addition, going overseas has brought new opportunities for market growth, in addition to the emergence of more demand for combat uniforms, lobby uniforms, and platform services, such as “global equivalent” New ways to play And trends may bring new growth opportunities for products and services such as GA and cloud security.