The scale of China's cloud gaming industry is estimated to reach a value of $2.6 billion in 2029, according to a report released by market research firm International Data Corp on Friday.

The cloud gaming industry in China is expanding at a compound annual growth rate of 6.9 percent between 2024 and 2029, according to the report.

The size of the industry reached $1.87 billion in 2024, seeing a 7.1 percent growth year-on-year.

The gradual release and full cloud deployment of new games have become the mainstream choices for Chinese game companies and publishers, laying a solid foundation for market growth.

AI is empowering and reshaping the game development processes, bringing new development opportunities to the cloud gaming market.

The IT demand of the game industry will continue to drive the further growth of the game cloud market based on the current industry regulatory policies and industry development trends, said the report.