Global NFT Gaming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global NFT Gaming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global NFT Gaming Market is expected to grow at a CAGR of 32.56% during the forecast period from 2022-2027. NFTs are revolutionizing the way gamers think about online gaming and in-game asset purchases. The technology used such as blockchain-built games and decentralized applications (dApps) enables players to capture the utility and value of in-game purchases and asset acquisitions more effectively.

Key Highlights

• Further, Blockchain technology in gaming is driven by non-fungible tokens (NFTs), digital assets that represent in-game content. These tokens are unique, rare, and indivisible, while the blockchain networks that underpin NFTs facilitate player ownership, provable scarcity, interoperability, and immutability.
• It has various benefits. For instance, when a player purchases an armor upgrade in a traditional game, their only benefit is enhanced gameplay within the context of that one game. However, in a gaming ecosystem that utilizes cross-platform non-fungible tokens (NFTs), the same armor can be tokenized in a way that transforms in-game purchases into transferable assets that may confer benefits across interconnected games or be exchanged for money or other digital assets.
• According to research conducted by Finder in March 2022 and a survey of Internet users across 26 countries found that India has gained the top position in the popularity and adoption of NFT gaming, with 34% of respondents having played the Play to Earn games and 11% wanting to play it in future.
• When the pandemic hit major countries, jobless people made quite a handsome. For instance, Vincent Gallarte was laid off in July 2020, following which he started playing an online game that rewards players in cryptocurrency. In his first two weeks of Pokémon-like questing and battling, Gallarte earned more than PHP 37,000 (USD732), three times what he would have made at his “real job.”

Key Market TrendsIncreasing move towards metaverse is expected to increase the demand

• The rise of the “metaverse” concept has opened new possibilities. Rather than NFT interoperability across games, pioneers increasingly see a bottom-up model that will have games emerging from NFT ecosystems: think races between CryptoKitties or platform-jumping Bored Apes.
• Cross-platform transferability would also present balance and player-experience issues for designers. An NFT is little more than a marker of ownership and wouldn’t define the actual utility of game items in any consistent way. For instance, there’s no reason an NFT of a sword that’s moderately powerful in one game couldn’t be made completely overpowering in another.
• There are also challenges at the level of the graphical interface. 3D visual assets for games can be created with a variety of design tools such as Unreal or Unity. ​​These things have proprietary data formats that are linked to particular rendering engines. However, It’s not an easy thing to make them work together.
• The increasing demand has encouraged entrepreneurs to launch solutions making metaverse an approachable factor. For instance, in June 2022, MetaverseGo announced to launch of an app that the company will make access easier for NFT-based games. Often, these games need users to create a crypto wallet, among other steps that require some time and effort to understand. The app will perform some of these steps for the user and will only require a mobile number.

Increasing demand of online gaming platform is expected to drive the market

• The recent advancement in advanced cloud technology has turned the idea of cloud gaming into a real scenario. Cloud gaming renders the interactive gaming application remotely in the cloud and then streams the scenes as a video sequence back to the player over the internet. This is the advantage for less powerful computational devices that are otherwise incapable of running high-quality games. Industrial pioneers, such as Onlive and Gaikai, witnessed success in the market with large user bases.
• In cloud gaming, the vital server (where all the games are stored) does the computation work, including game scene rendering, game logic processing, video encoding, and video streaming. Several players, such as Onlive, G-Cluster, StreamMyGame, Gaikai, and T5-Labs, are already offering such commercial cloud gaming services. This sector is also seen as a potential competitor for the traditional gaming market.
• This has also prompted video game majors, such as Sega, Ubisoft, Epic Games, Warner Bros, and Disney Interactive Studio, to establish partnerships with Onlive for distributing their games. Also, in May 2020, Nvidia GeForce added 19 games to its cloud gaming library and further announced additional 18 new games that will be available on GeForce Now.
• In February 2021, PM Connect and RemoteMyApp announced to a partnership to capture the opportunities in the cloud gaming market. Following the partnership, titles including Fortnite, Rocket League, and Grand Theft Auto were hosted on Vortex. gg, thereby enabling gaming fans to play the latest release without purchasing expensive software and consoles.

Competitive Landscape

The Global NFT gaming market is highly competitive and consists of major players. In terms of market share, few of the major players currently dominate the market. However, with extensive adoption of cloud computing and blockchain is increasing the demand of the market. Many of the companies are increasing their market presence by securing new contracts and by tapping new markets.

• June 2022 - Cryptoys, an NFT-centric gaming platform, alongside its parent company OnChain Studios, has raised USD 23 million in a Series A funding round led by Andreessen Horowitz. The startup intends to use the funds to build an NFT-based gaming universe that will host play-and-earn games, as well as allow players to engage with collectible toys. Cryptoys will also be working on a brand-new animated series.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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