March 31, 2023
By Anjali Kochhar
The global blockchain gaming market is likely to reach USD 117.5 billion valuation by 2028, with a compound annual growth rate (CAGR) of 67.40 per cent, as predicted by the International Market Analysis Research and Consulting (IMARC) group. As of 2022, the industry achieved USD 4.6 billion in valuation. Clearly, the next 5 years are crucial for the industry, if it has reached this gigantic target by 2028.
Although global leaders don’t doubt the potential of blockchain gaming, the perspective is slightly nuanced in India. Key questions are being raised – will India witness a similar extent of growth in blockchain gaming? Can this also boost investment in non-fungible tokens (NFTs), beyond the scope of digital art?
Here’s what industry experts believe –
Blockchain Gaming – Parallel Growth in India
Currently, two key predictions are shaping the future of blockchain gaming –
- Industry expected to grow to USD 117.5 billion by 2028, at CAGR of 67.40 per cent
- It is expected to reach USD 1020.02 billion by 2032
What Indians are curious about is whether a parallel level of growth will be witnessed in the subcontinent.
“Absolutely, parallel or even stronger comparative growth in the blockchain gaming industry is expected in India. Owing to the widespread adoption of cryptocurrencies in India and a staggering 115 million population actively participating in the economy and the country ranking 4th globally in the crypto adoption index makes it pretty obvious unless some black swan event occurs”, explained Shubham Gupta, Co-Founder and CPO, STAN
Additionally, heightened internet penetration, a growing mobile gaming market, and a strong developer community are all factors that can boost the blockchain gaming sector in India. Clearly, all signs seem to be aligned for India to witness a booming blockchain gaming economy.
This however, raises another important question – how does the gaming community look in India?
Currently, India enjoys the second-largest gamer base in the world, accommodating 369 million players. This largely young demographic is keen to try out new things. Which is why, Indian gaming startups like Dream11 and MPL became unicorns.
In a nutshell, the country enjoys a huge base of enthusiastic gamers looking to experiment and try something new. Apparently, the perfect recipe for the blockchain gaming industry to succeed.
Can NFT investments witness a boost?
A unique quality of blockchain gaming is the “actual” ownership of in-game assets. Moreover, this ownership is easy to execute and cost-effective, not putting any dent on a youngster’s savings. All this is possible due to NFTs, a type of virtual digital asset (VDA).
With the proliferation of blockchain gaming, the scope of NFTs might just increase, beyond the stereotypical use-case of digital art. But, are experts on the same page?
According to Dr Ravi Chamria, Co-founder & CEO, Zeeve, “If you see the blockchain data, over half of all blockchain activities came from gaming alone. In fact, the in-game NFT market is predicted to reach $15 billion by 2027. This model gives players unprecedented control over their in-game assets, allowing them to use them not only in one game but potentially across an entire ecosystem of game.”
Currently, this sophisticated system is limited to a few games. And true interoperability might be a difficult goal, taking decades to achieve. But the bottomline is – a spread in blockchain gaming can boost NFT utilisation.
It is, however, a tricky territory because NFTs are still in their nascent stage. And under the current volatile market dynamics, players may not be willing to invest in an entirely new asset. What then, can be a solution to this problem?
“What’s needed is a shift in mindset. The users shouldn’t feel like they are on Blockchain and they are here only to make money. Unfortunately, many in the gaming community perceive NFTs as a money grab – something that’s used to extract more money from players. This was exemplified by the backlash Ubisoft received upon releasing its NFTs”, explained Dr.Chamria.
In simple terms, for an NFT-based blockchain game to work, the benefits need to be actively communicated. Only then can both blockchain gaming and NFTs gain a following in India.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.