Web3 Gaming Market Size - By Game Type (Puzzle and Trivia Games, Role-playing Games (RPGs), Sports and Racing Games, Strategy Games, Virtual Worlds), By Device Type, By In-game Purchase, By Mode, By End User & Forecast, 2024 - 2032

Web3 Gaming Market Size

Web3 Gaming Market size was valued at USD 26.38 billion in 2023 and it is anticipated to register a CAGR of over 19.2% between 2024 and 2032. The rising popularity of NFTs is substantially impacting the market. NFTs represent digital assets such as music art, videos, and in-game items. These assets traded with cryptocurrencies and they typically encoded with same underlaying software as cryptos. This uniqueness and ability to prove ownership and provenance digitally have made NFTs particularly valuable.
 

In the gaming industry, NFTs provide players with true ownership of in-game assets. This means players can buy, sell, and trade items, such as characters, weapons, and virtual land, just as they would physical goods. This ownership is secured by blockchain, which ensures that these assets cannot be duplicated or tampered with. The ability to monetize gameplay through sale of NFTs creates new economic opportunities for players. For instance, in June 2024, Wild Forest, a web3 real-time strategy game, launched an NFT collection called the Lords.
 

Investments in Web3 gaming is booming as VCs corporations and blockchain funds are pouring capital into the Web3 gaming market. This influx is critical for studios to develop innovative games and scale operations, which are crucial for development of Web3 gaming forward. Investment enables game developers to accelerate the development process, bringing innovative Web3 games to market faster. This includes funding for research, development, hiring skilled developers and acquiring necessary technology and infrastructure.
 

For example, in April 2024, Gomble Games, a Web3 gaming platform, secured a total of USD 10 million in a cumulative investment. BigBrain Holdings, Foresight Ventures, Hashed, IOSG Ventures, Spartan, and other investors have invested in Gomble Games.
 

The volatile prices of cryptocurrencies and NFTs obstruct the growth of Web3 games. The value of in-game rewards and items is intricately linked to fluctuating digital currencies, creating an unpredictable environment for players and game developers. This uncertainty discourages participation, and players hesitate to invest time and resources due to potential financial risks, potentially impacting overall player experience. From developer's perspective, maintaining a balanced in-game economy amidst such volatility is difficult. Furthermore, unclear regulatory landscape surrounding digital assets exacerbates these issues, potentially hindering the widespread adoption of Web3 games.
 

Web3 Gaming Market Trends

The gaming landscape is evolving to incorporate decentralized financial mechanics. This approach leverages a technology called blockchain, which allows for secure transactions without relying on central authorities. This creates a system such as traditional lending, borrowing, and trading, but applied entirely within the game's digital environment. This integration empowers players to participate in the financial aspects of the game beyond just playing.
 

Players can generate additional income by lending out their in-game assets or NFTs to others, such as loaning items to friends in traditional games. This opens new gameplay possibilities without the need for upfront purchases. They can also stake their tokens or NFTs in DeFi protocols to earn rewards or interest. Maximizing returns through multiple platforms games can also create liquidity pools, and players contribute assets for trading, earning share of transaction fees. Companies are building platforms for the exchange of NFTs.
 

For example, in April 2024, Style Protocol raised USD 2.5 million in seed funding to build Decentralized Metaverse Exchange (DMX). This platform allowed NFTs and digital assets to function interoperable across various virtual worlds. Its key features include converting 2D NFTs into 3D characters. This conversion facilitates cross-platform use, enabling NFT renting and sublicensing. Furthermore, it provides multiple revenue streams for creators, through licensing, renting, and staking.
 

Web3 games are increasingly integrated into metaverse. These interconnected virtual worlds transcend mere gameplay, offering a dynamic environment for player interaction, social connection, and diverse activities. This fosters a robust sense of community and belonging, crucial for long-term player retention in today's competitive industry. The metaverse unlocks novel monetization avenues for players, including virtual real estate transactions, event hosting, and digital content creation.
 

By integrating Web3 games, companies can cultivate more immersive experiences while simultaneously expanding revenue streams through player-driven activities like event management and content creation, fostering a thriving virtual economy. For example, in June 2024, Yaku Corp, a subsidiary of Raijin Labs, partnered with Xai, to enhance the development and delivery of their highly anticipated web3 cyberpunk Metaverse game, Yaku.

Web3 Gaming Market Analysis

Based on game type, the market is segmented into puzzle and trivia games, role-playing games (RPGs), sports and racing games, strategy games, virtual worlds, and others. In 2023, the virtual worlds segment accounted for the largest market share with over 27.5% of the revenue.
 

• Virtual worlds offer immersive expansive environments where players can interact, create, and explore, often facilitated by blockchain technology. These games leverage decentralized platforms such as Decentraland and The Sandbox. By using these platforms, players can own and trade virtual real estate, create unique content using NFTs, and participate in vibrant virtual economy. Ownership of digital assets appeals to players seeking tangible value and investment opportunities within gaming, leading to notable user retention.
   
• Moreover, these online worlds within Web3 gaming often revolve around social interaction and building communities. Players can team up on projects, attend events in the virtual space, and even participate in virtual marketplaces, creating a strong sense of community and shared experiences. Blockchain technology, with its emphasis on transparency and security, strengthens these social dynamics by ensuring trust in transactions and interactions within the virtual world.
   

Based on device type, the Web3 gaming market is divided into PC/desktop, mobile, consoles, and VR/AR. In 2023, the VR/AR was the fastest growing segment, growing at a CAGR of over 20%. The market value of the VR/AR segment is expected to reach over USD 18 billion by 2032 due to this significant growth rate.
 

• The recent surge in VR/AR adoption within Web3 gaming highlights several important developments. One key trend is the synergy between technological leaps and immersive gaming experiences. VR and AR offer a level of realism, spatial awareness, and interactivity that traditional platforms simply can't match, making gameplay fundamentally more engaging.
   
• Furthermore, the affordability and accessibility of VR/AR devices are on the rise, along with improvements in hardware power and content quality. This accessibility boom is fueling segment growth. Companies are actively integrating blockchain technology into VR/AR experiences, creating groundbreaking features like true in-game ownership through NFTs. Additionally, the combination of enhanced social interaction and the convergence of VR/AR with blockchain is significantly boosting the appeal of virtual world gaming. This paves the way for innovative monetization models like virtual marketplaces and digital asset trading.
   

North America Web3 gaming market held the largest share of over 35% in 2023. North America dominates the market due to strong technological infrastructure and high concentration of blockchain, gaming companies, and tech-savvy gaming population. Major tech hubs, such as Silicon Valley, and cities such as New York and Los Angeles host numerous startups, which compete in innovation with established companies in Web3 gaming.
 

North America’s high disposable incomes attract players to invest in new gaming experiences, including Web3 games. Significant venture capital investments exist here, and funding for blockchain projects drives the development of high-quality Web3 games. This attracts both players and developers, further boosting the Web3 gaming market in the region.
 

China is rapidly evolving as a significant player in the Web3 gaming market. This evolution is driven by its massive gaming population and advanced technological infrastructure. The country is home to some of the world’s largest gaming companies, such as Tencent and NetEase. These companies are now exploring blockchain technology to create decentralized gaming experiences.
 

While regulations on digital currencies remain strict, the government recognizes the potential of this technology for advancement. This environment fosters innovation, allowing companies to develop these new gaming models. With a vast market and technological edge, China has the potential to become a leading hub for the future of decentralized gaming.
 

Germany is steadily gaining momentum in the Web3 gaming market bolstered by its strong emphasis on technology and innovation. The country has a robust gaming industry and showcases a growing blockchain ecosystem supported by numerous startups. Established companies are also significantly investing in these fields. German developers are renowned for developing high-quality and immersive gaming experiences.
 

Additionally, Germany's supportive regulatory environment for blockchain technology and digital assets encourages market players to invest in these games, insuring steady growth in Web3 gaming. The combination of technological innovation and the growing gaming market make Germany a promising player in Web3 gaming space.
 

Japan has deep-rooted gaming culture and history of leading technological innovations. Some of world's most renowned gaming companies are based in the country, such as Nintendo and Sony. These companies are now exploring blockchain technology. The Japanese gaming community known for its receptiveness to novel concepts, presents fertile ground for Web3 features. These include in-game asset ownership and play-to-earn models. Furthermore, the Japanese government's supportive stance toward blockchain innovation strengthens Japan's position as key player in this evolving space. This is evident in its efforts to establish a regulatory framework conducive to Web3 gaming development.
 

South Korea boasts robust internet infrastructure and high smartphone penetration, creates an ideal platform for Web3 gaming industry. Leading Korean game developers including Nexon and Netmarble are at vanguard of Web3 gaming development. The South Korean government has demonstrated positive stance towards blockchain technology through enacting supportive legislation. This confluence of government backing vibrant gaming culture and technologically adept populace. It positions South Korea as strong contender for leadership in future of Web3 gaming advancements.
 

Web3 Gaming Market Share

Sky Mavis Pte. Ltd. and Animoca Brands Corporation Limited hold a significant share of over 15% in the market. Sky Mavis Pte. Ltd. and Animoca Brands Corporation Limited hold a significant share of over 15% in the market. Sky Mavis Pte Ltd. is known for developing Axie Infinity. This popular blockchain-based game has gained attention and user engagement. Animoca Brands Corporation Limited is a powerhouse.  It has established itself through a diverse portfolio of games and strategic partnerships, and these efforts enhance user experiences, expanding market reach.
 

Companies, such as Dapper Labs Inc., Decentraland Foundation, Gala Games Immutable Pty Ltd., and Mythical, are pioneers in integrating blockchain technology into mainstream entertainment and sports licensing. They offer scalable solutions for developers to create and launch blockchain games efficiently. Their innovative approaches to blockchain gaming infrastructure drive adoption and innovation in the market. As these players continue to expand their offerings, the market is poised for dynamic growth.
 

Web3 Gaming Market Companies

Major players operating in the Web3 gaming industry are:

• Sky Mavis Pte. Ltd.
• Animoca Brands Corporation Limited
• Dapper Labs Inc.
• Decentraland Foundation
• Gala Games, Inc.
• Immutable Pty Ltd
• Mythical, Inc.
   

Web3 Gaming Industry News

• In July 2024, OKX, a leading cryptocurrency exchange, announced the launch of OKX GameSphere, an innovative launchpad for Web3 game developers. The new platform aimed to build a thriving GameFi ecosystem by providing comprehensive technical services to blockchain networks and game projects.
   
• In April 2024, Tencent Cloud partnered with MultiversX to Simplify Web3 Development. Tencent Cloud launched blockchain infrastructure solution for MultiversX to simplify Web3 development of the new 1-click node hosting service. This allowed developers to quickly set up and manage MultiversX blockchain nodes without the typical hassle of deploying and maintaining underlying infrastructure.
   

The Web3 gaming market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Game Type

• Puzzle and trivia games
• Role-playing Games (RPGs)
• Sports and racing games
• Strategy games
• Virtual worlds
• Others

Market, By Device Type

• PC/Desktop
• Mobile
• Consoles
• VR/AR        

Market, By In-game Purchase             

• USD
• Ethereum
• USDC
• Others

Market, By Mode        

• Play-to-earn (P2E)
• Free-to-play (F2P)
• Subscription-based
• Hybrid models

Market, By End User 

• Casual gamers
• Hardcore gamers
• Investors/Speculators
• Collectors
• Community builders

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA