Global Blockchain in Gaming Market Outlook to 2030

Global Blockchain in Gaming Market Overview

• In 2023, Global Blockchain in Gaming Market was estimated at USD 5 bn witnessing remarkable growth in the historical period (2018-2023) driven by the increasing adoption of blockchain technology for enhancing transparency and ownership in gaming. Additionally, Blockchain’s ability to offer secure and decentralized transactions is reshaping the gaming landscape.
• Prominent players in the global blockchain in gaming market include Animoca Brands, Dapper Labs, and The Sandbox. These companies are at the forefront of integrating blockchain technology into gaming, offering platforms that enable players to own, trade, and interact with in-game assets securely.
• Cities such as San Francisco, Tokyo, and Seoul are leading the blockchain gaming market due to their vibrant tech ecosystems and investments in blockchain technology. San Francisco benefits from its strong presence of technology companies and venture capital, Tokyo’s advanced gaming industry and tech infrastructure.
• In early 2024, Ubisoft announced a partnership with Immutable X to integrate blockchain technology into its game titles.  Immutable has reported onboarding over 200 games into its ecosystem, with many sets to launch in 2024.This move aims to enhance the security and trading of in-game assets, marking an important development in the market.

Global Blockchain in Gaming Market Segmentation

By Product Type: The blockchain in gaming market is segmented into blockchain-based games, NFTs (Non-Fungible Tokens), and in-game assets management. In 2023, blockchain-based games held the largest market share due to their innovative approach to gameplay and player ownership. This segment’s dominance is attributed to the growing popularity of decentralized games and the increasing number of gamers interested in blockchain-based titles.

By Platform: The market is further segmented into PC and Console Games, Mobile Games, and Web-based Games. Mobile games lead the market in 2023 due to their wide reach and ease of integration with blockchain technologies. The proliferation of smartphones and the accessibility of mobile games make this platform particularly attractive for blockchain integration.

By Region: The global market is segmented into North America, Europe, Asia-Pacific (APAC), Latin America, and Middle East & Africa (MEA). North America dominated the market with a substantial share in 2023 due to its advanced technological infrastructure and high investment in blockchain technology. The presence of major players and a strong gaming culture contribute to its leading position.

Global Blockchain in Gaming Market Competitive Landscape

• Animoca Brands: Animoca Brands has successfully attracted substantial investment, including a recent USD 32 million for its Mocaverse project, with USD 20 million received in 2023. This funding was secured through two tranches via Simple Agreements for Future Equity (SAFEs) from notable investors like CMCC Global and Kingsway Capital.
• Dapper Labs: Dapper Labs recently announced a collaboration with Warner Music Group to launch a new blockchain-based collectible platform. This partnership, revealed in 2023, will integrate Dapper's Flow blockchain to provide unique music-related NFTs. This collaboration aims to leverage Dapper's Flow blockchain to revolutionize the way music fans interact with and collect music-related NFTs (non-fungible tokens).

Global Blockchain in Gaming Industry Analysis

Growth Drivers:

• Adoption of NFTs in Gaming: The integration of NFTs (Non-Fungible Tokens) in gaming is rapidly accelerating. As of 2023, the value of NFTs in gaming transactions reached USD 11.8 billion, driven by increased player interest in owning and trading unique in-game assets. Major game developers, such as Ubisoft and Square Enix, are incorporating NFTs to enhance player engagement and create new revenue streams. This trend is supported by the growing interest in digital ownership and the success of NFT-based games like Axie Infinity.
• Investment in Blockchain Gaming Startups: Investment in blockchain gaming startups is surging, with venture capital funding reaching USD 1.5 billion in 2023.  In 2023, a USD 150 million investment in Line Next and a USD 100 million was raised for Nexon’s MapleStory Universe, reflecting strong investor confidence in the potential of blockchain gaming. This influx of capital is fueling innovation and development in blockchain technologies and new gaming experiences.
• Enhanced Security and Fraud Prevention: Blockchain’s inherent security features are significantly reducing fraud in gaming transactions. As of 2023, blockchain-based gaming platforms reported a substantial decrease in fraud incidents compared to traditional gaming systems. This improvement is attributed to blockchain's decentralized ledger, which ensures transparency and traceability in financial transactions, leading to higher trust among players.

Market Challenges:

• Regulatory Uncertainty: Regulatory uncertainty continues to challenge the blockchain gaming market. In 2024, the European Union proposed new regulations on digital assets and blockchain technologies that could impact how blockchain games operate in Europe. The lack of clear guidelines is causing hesitation among developers and investors, potentially slowing market growth.
• Scalability Issues: Blockchain networks often face scalability issues that hinder their performance in gaming applications. As of 2023, Ethereum-based games reported transaction processing delays during peak usage times. For instance, the average transaction time on Ethereum increased to 15 seconds during high traffic periods, affecting user experience. This bottleneck is prompting developers to seek alternative solutions like layer-2 scaling solutions.

Government Initiatives:

• Blockchain Gaming Grants: The Infocomm Media Development Authority (IMDA) of Singapore offers prototype grants for game development, including projects that may incorporate blockchain technology. Selected proposals can receive USD 37,000 to develop a game prototype under the scheme. This grant is aimed at promoting Singaporean culture through video games and is part of a broader initiative to support the gaming industry.
• China’s Blockchain Support Policies: China’s Ministry of Industry and Information Technology issued a policy in early 2024 to support blockchain applications, including gaming. The policy includes subsidies and tax incentives for companies developing blockchain-based gaming solutions. This support is designed to encourage domestic innovation and integration of blockchain technology across various sectors.

Global Blockchain in Gaming Future Market Outlook

The global blockchain in the gaming market is predicted to grow exceptionally in the forecasted period of 2023-2028 driven by the expansion of metaverse gaming, widespread adoption of virtual reality (VR) integration, and increased regulation and compliance measures.

Future Market Trends

• Widespread Adoption of Virtual Reality (VR) Integration: Virtual reality (VR) integration with blockchain gaming is expected to become more prevalent by 2028. As VR technology advances, it will enhance immersive gaming experiences and enable new forms of player interaction. This integration is projected to increase the adoption of blockchain-based VR games by 2028.
• Increased Regulation and Compliance Measures: In response to growing concerns about digital asset security and consumer protection, stricter regulatory measures are anticipated by 2028. Governments and regulatory bodies are expected to implement comprehensive guidelines for blockchain gaming, focusing on transparency, fraud prevention, and consumer rights. These regulations will aim to create a safer and more reliable gaming environment, fostering industry growth and stability.