December 20, 2023
By Sharan Kaur Phillora
The blockchain gaming market, which integrates video games with cryptography-based blockchain technologies, is poised for substantial growth. According to Fortune Business Insights, the market’s value, estimated at USD 128.62 billion in 2022, is projected to skyrocket to USD 614.91 billion by 2030. This represents a Compound Annual Growth Rate (CAGR) of 21.8% from 2023 to 2030.
Here’s what we know:
The surge in the blockchain gaming market is fueled by several factors. The integration of blockchain into Role-Playing Games (RPGs) allows players to create unique characters and items, providing them with a sense of ownership over digital assets.
These innovative features have been exemplified by games like Verse8 and Immortal Rising 2, which were introduced by Planetarium Labs in September 2023. Multiplayer gaming, too, has seen rising popularity, especially in segments that require unique digital assets that can be securely and transparently stored and traded on a blockchain.
Web-based games currently dominate the blockchain gaming market, attributed to their ease of accessibility and user-friendly experiences. However, the Android segment is expected to grow substantially over the forecast period, driven by the widespread adoption of smartphones and in-app purchases.
Notable developments in this sector include the introduction of a crypto-gaming platform by Zone in March 2023, aimed at providing gamers in Kenya with a web-based platform for playing games and managing payouts.
Regionally, North America is leading the market, holding the highest share in 2022, largely due to the popularity of NFTs among users. In contrast, Europe is expected to see significant growth during the forecast period, driven by investments from governments and tech giants to develop the gaming industry.
The Asia Pacific region, particularly China, Japan, and South Korea, is anticipated to experience the highest CAGR over the forecast period due to the large number of gaming players and developers, coupled with heavy investments from Web2 gaming companies in adopting Web3 components.
Despite these optimistic projections, the blockchain gaming industry faces significant challenges. A high failure rate of blockchain games has been observed, with over 75% of games launched between 2018 and 2023 failing.
This underlines the need for continuous innovation and adaptation in the sector. Regulatory frameworks in the crypto sector also pose a challenge, potentially hindering industry expansion. These frameworks may restrict the full potential of blockchain gamers and developers, as varying laws across different regions create insecurities.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.