Blockchain In Gaming Market Size & Trends Report, 2030 (2024)

Report Overview

The global blockchain in gaming market size was valued at USD 4.83 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 68.3% from 2023 to 2030. Blockchain technology is a digital ledger that is decentralized and distributed, enabling secure transactions and the maintenance of records. It has revolutionized the gaming experience for businesses and players, allowing them to use cryptocurrencies and Non-fungible Tokens (NFTs) to purchase in-game assets. For instance, Axie Infinity is a non-fungible token-based game with millions of players worldwide who use cryptocurrencies based on Ethereum to transact within the game.

The growth of the market can be attributed to the need for a secure, transparent, and decentralized gaming ecosystem. Blockchain technology enables transparency in the gaming market by providing a public ledger of all transactions. This allows players to track the ownership and transfer of their in-game assets and ensures that all transactions are fair and transparent. It provides players with ownership of their game assets and transactions, allowing them to conduct secure transactions without intermediaries.

There has been a significant increase in investments and funding in the blockchain gaming industry in recent years, which can be attributed to the growing popularity of blockchain technology, the increasing demand for decentralized games and assets, and the potential for blockchain games to provide unique gaming experiences and opportunities. For instance, in October 2022, Horizon Blockchain Games, a game development company focusing on building games and experiences on the Ethereum blockchain, raised USD 40 million to scale operations and grow its product portfolio.

The company aims to expand its operations by growing Sequence, an all-in-one developer platform, and smart wallet, simplifying building web3 games and applications. Additionally, the company plans to extend the reach of its flagship game, Skyweaver, by creating more content and reaching a wider audience. The company also intends to introduce Niftyswap, a marketplace for Semi-fungible Tokens (SFTs).

With Artificial Intelligence (AI) and Machine Learning (ML), gaming companies can detect fraudulent behavior and prevent it from occurring in the future. This can include detecting bot accounts or accounts created solely for fraudulent activities. Additionally, AI and ML analyze player behavior and preferences and provide a personalized gaming experience, which includes recommending games and in-game rewards that are more likely to appeal to the player. Also, AI and ML can be used to analyze game data and player feedback to identify areas for improvement in game design.

One of the major restraints on market growth is the regulations imposed by various governments. Government plays an important role in the blockchain gaming market by providing support and regulations. For instance, the United States Securities and Exchange Commission (SEC) regulates the use of digital assets, including tokens and cryptocurrencies, within the US. blockchain gaming companies that use digital assets. These companies are subject to SEC regulations, which include registration and compliance requirements. The Financial Action Task Force (FATF) is an intergovernmental organization, which sets standards for anti-money laundering and counter-terrorism financing. The FATF has issued guidance on using virtual assets, including cryptocurrency, which affects how blockchain gaming companies handle financial transactions.

COVID-19 Impact Analysis

The COVID-19 pandemic has positively impacted the blockchain in the gaming industry. With people staying at home due to lockdowns and social distancing measures, there was a surge in demand for online gaming. Blockchain-based games offer unique and innovative gameplay mechanics, and monetization models; witnessed increased adoption during the pandemic. This has led to a surge in the number of players and the amount of time spent playing games. Additionally, the pandemic had led to an increase in demand for collectibles and digital assets, which has further boosted the growth of the market.

Game Type Insights

The role playing games segment dominated the market in 2022 and accounted for a revenue share of more than 36.0%. The segment's growth can be attributed to the highly immersive and engaging gameplay experience they offer. Role-playing games are known for their deep storylines, character development, and open-world environments, which provide players with a sense of agency and control over their gaming experience. It also offers long-term gameplay elements that encourage players to invest time and resources into the game.

The collectible games segment is anticipated to witness significant growth over the forecast period. Collectible games involve unique digital assets, such as Non-fungible Tokens (NFTs), which are stored on a blockchain and can be traded or sold securely and transparently. This creates a strong value proposition for players interested in owning and collecting rare or unique digital assets. Moreover, collectible games leverage the scarcity and rarity of digital assets to drive engagement and incentivize players to spend time and money on the game. This is achieved through various gameplay mechanics, such as randomized rewards, limited edition items, and rewards for completing specific achievements or milestones.

Platform Insights

The ETH segment dominated the market in 2022 and accounted for a revenue share of more than 32.0%. The segment's dominance can be attributed to its smart contract functionality that allows developers to create decentralized applications (dApps), including blockchain-based games. These smart contracts enable game developers to create unique gameplay mechanics, store in-game assets on the blockchain and create decentralized marketplaces for players to trade these assets. For instance, a smart contract could define the rules for a game that are automatically enforced by the blockchain, ensuring fair gameplay.

The polygon segment is anticipated to register the highest CAGR over the forecast period. Polygon's low gas prices and transaction fees can be attributed to its use of a Proof of Stake consensus algorithm that reduces network energy consumption and costs. Polygon also provides multiple layer 2 scaling solutions that allow for fast and affordable transactions. This makes it an attractive option for blockchain-based game developers and users looking for a more scalable and cost-effective blockchain solution.

Device Insights

The web segment dominated the market in 2022 and accounted for more than 31.0% revenue share. The growth can be attributed to the accessible and user-friendly gaming experience provided by it. Players can easily access web-based games through their web browser without downloading or installing any software. This makes it easier for players to get started with blockchain gaming, as they don't need to navigate complex technical requirements.

The android segment is anticipated to register significant growth over the forecast period. The growth can be attributed to the widespread usage, open-source nature, and ease of development of android. It provides several development tools and resources that make it easier for developers to create and distribute blockchain-based games. For instance, Google Play provides a centralized platform for developers to publish and distribute their games, and Android Studio provides a comprehensive set of tools for developing, testing and deploying android applications.

Regional Insights

Asia Pacific region dominated the market in 2022 and accounted for more than 26.0% global revenue share. The growth can be attributed to the growing interest in cryptocurrency and high internet and mobile penetration. There is an increasing interest in cryptocurrency among consumers and investors in the Asia Pacific region, resulting in a growing participation in the cryptocurrency market.

This creates a favorable environment for blockchain gaming, which utilizes cryptocurrency and other digital assets. For instance, in January 2023, Asia Blockchain Gaming Alliance (ABGA), a non-profit organization focusing on blockchain technology in the gaming industry, launched USD 45 million eco fund. The eco fund would be dedicated to supporting and enhancing the development of game developers and companies.

North America is expected to witness significant growth over the forecast period. The region's growth can be attributed to the presence of prominent industry players such as Splinterlands, Uplandme, Inc., Mythical Inc., and ROKO GAME STUDIOS and its large tech-savvy population. Additionally, the regulatory environment in North America is generally favorable towards blockchain technology and cryptocurrencies. This has encouraged the development of blockchain gaming platforms.

Key Companies & Market Share Insights

Blockchain-based game providers are increasingly developing games that can interact with one another, allowing players to use assets from one game to another, creating a connected and dynamic gaming ecosystem. This ecosystem enables players to move seamlessly between different games and experiences. Additionally, with the rise of Non-fungible Tokens (NFTs), many blockchain game providers are developing their own NFT marketplaces, where players can buy, sell, and trade assets in-game. This creates a secondary market for players to monetize their in-game assets and provides a new revenue stream for blockchain-based game developers.

Blockchain gaming providers are collaborating with other technology providers to make their blockchain gaming platform accessible to players worldwide. For instance, in October 2022, Sky Mavis announced a multi-year partnership with Google Cloud to enhance the security of Ronin. Sky Mavis launched Ronin in February 2021, a blockchain network built using the Ethereum virtual machine (EVM). Ronin is designed to increase the speed of transactions and significantly reduce gas fees for its growing user base.

The network enables millions of in-game micro-transactions to occur seamlessly, providing players with a smoother and more efficient gaming experience. As part of their partnership, Google Cloud would play an essential role in ensuring the security and governance of the blockchain network. Additionally, it would be responsible for monitoring the uptime of validators on the network. Some prominent players in the global blockchain in the gaming market include:

• Dapper Labs, Inc.

• Sky Mavis

• Splinterlands

  See Also

  Fundamental Analysis in Crypto InvestingHow To Invest In Crypto Gaming? - GamesPadPlay, Earn, Own: Exploring the Rise of Crypto Gaming - INX One PlatformDeciphering the Game of Strategy in Bitcoin's Network Through Game Theory

• Animoca Brands Corporation Limited

• Immutable

• Uplandme, Inc.

• Illuvium

• Mythical Inc.

• ROKO GAME STUDIOS

• Autonomous Worlds Ltd.

Blockchain In Gaming Market Report Scope

Global Blockchain In Gaming Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global blockchain in gaming market report based on game type, platform, device, and region:

• Game Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Role Playing Games

  • Open World Games

  • Collectible Games

• Platform Outlook (Revenue, USD Million, 2017 - 2030)

  • ETH

  • BNB Chain

  • Polygon

  • Others

• Device Outlook (Revenue, USD Million, 2017 - 2030)

  • Android

  • Web

  • IOS

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    See Also

    Traditional Games vs Blockchain Games: What are the differences?

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa