The blockchain gaming industry is expected to surpass over $600 billion in value by 2030, according to a new report released Monday.
Blockchain gaming is booming
The report, published by Fortune Business Insights, defines blockchain gaming as any video game “with features utilizing cryptography-based blockchain technology” and values the 2023 blockchain gaming market at $154.46 billion.
However, by 2030, the report estimates that the number will be $614.91 billion. That means between 2023 and 2030, the blockchain gaming industry will see a compounded annual growth rate of nearly 22%.
“Better gaming experiences” are driving the way forward
The report cites numerous reasons for the blockchain gaming boom, including the Covid-19 pandemic.
“With most of the world’s population under lockdown, virtual gaming platforms experienced a spike in traffic and usage,” the report reads. “This created major activity on blockchain-based gaming platforms, notably higher than usual.”
Furthermore, the report notes demand for “better gaming experiences” and an increase in growth in decentralized gaming experiences, offering “players ownership of in-game assets, transparency, and better security.”
“With the potential to transform the gaming industry, decentralized gaming will become the future, favoring significant growth in the market during the forecast period,” the report reads.
Aiding market growth for the blockchain gaming industry is the emergence of NFTs and cryptocurrencies, with the report noting that they “introduce ownership and value to the gaming system” while transforming “gamers’ experience” as well as creating “multiple opportunities” for the player.
“With the adoption of NFTS in blockchain technologies, gamers can have more ownership and productive opportunities,” the report reads. “This also helps generate economic returns on their time invested in gaming sessions, fueling the growth of the market.”
The blockchain gaming industry’s biggest challenge
However, the blockchain gaming industry is facing one major obstacle globally.
The report argues that emerging regulatory frameworks on the crypto sector may prevent blockchain gamers and developers from discovering the industry’s full potential, as the exclusion or restriction of cryptocurrencies in different parts of the world has created “insecurities” for gamers and developers.
Moreover, a recent report from CoinGecko revealed that three out of every four Web3 video games in the past five years have failed. Moreover, in 2023 alone, more than 70% of Web3 video games have met their demise.
However, the Fortune Business Insights report could prove promising, as the blockchain gaming industry is expected to rapidly expand in both Europe and Asia Pacific thanks to a number of investments and rising popularity.