The blockchain gaming sector is anticipated to exceed a valuation of $600 billion by 2030, as indicated by a recent report released on Monday.
Published by Fortune Business Insights, the report defines blockchain gaming as any video game incorporating features that utilize cryptography-based blockchain technology. The 2023 market value for blockchain gaming is estimated at $154.46 billion, with projections anticipating a substantial increase to $614.91 billion by 2030. This forecast implies a compound annual growth rate of almost 22% between 2023 and 2030.
The report attributes the surge in blockchain gaming to various factors, including the impact of the Covid-19 pandemic. Lockdowns worldwide led to a surge in traffic and usage on virtual gaming platforms, creating significant activity on blockchain-based gaming platforms.
The demand for enhanced gaming experiences and the rise of decentralized gaming further contribute to the industry’s growth. Decentralized gaming offers players ownership of in-game assets, increased transparency, and improved security. The report suggests that decentralized gaming is poised to become the future, fostering substantial market growth during the forecast period.
The emergence of non-fungible tokens (NFTs) and cryptocurrencies is identified as a driving force behind the blockchain gaming industry’s expansion. NFTs and cryptocurrencies introduce ownership and value to the gaming system, transforming the gaming experience and creating multiple opportunities for players.
The report highlights the potential for NFT adoption in blockchain technologies, allowing gamers to have increased ownership and productive opportunities. This, in turn, generates economic returns on their time invested in gaming sessions, contributing to market growth.
Despite the optimistic outlook, the report acknowledges a significant challenge facing the blockchain gaming industry on a global scale. Emerging regulatory frameworks in the cryptocurrency sector may hinder gamers and developers from realizing the industry’s full potential. Exclusion or restriction of cryptocurrencies in various regions creates insecurities for stakeholders, posing a challenge to the industry’s continued growth.
In a related finding, a report from CoinGecko revealed that a considerable number of Web3 video games failed in the past five years. However, the Fortune Business Insights report suggests promising growth for the blockchain gaming industry, particularly in Europe and the Asia Pacific, driven by increased investments and rising popularity.
