Web3 Gaming Market to Hit $124.74B by 2032 Despite 2025 Downturn

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The global web3 gaming market is projected to grow from $25.63 billion in 2025 to $124.74 billion by 2032, at a compound annual growth rate (CAGR) of 19.34%, according to a new report by market research firm SNS Insider.

Web3 Gaming Growth

According to SNS Insider, the rapid expansion is being driven by the increasing integration of blockchain technology, growing demand for non-fungible token (NFT)-based gaming, and the continued popularity of play-to-earn (P2E) models that reward players with real-world value. 

The research shows that these web3 innovations offer players decentralized ownership, asset interoperability, and transparent in-game economies, factors that continue to reshape the gaming experience.

By game type, NFT-based games are forecast to grow at the highest rate, with a 20.40% CAGR from 2025 to 2032, as gamers increasingly value tradable in-game assets. 

On the other hand, the P2E model dominated the market in 2024, contributing 39% of total revenues, particularly attracting users in developing regions seeking new income sources.

PC and desktop platforms held a 40% revenue share in 2024, driven by their technical advantages and seamless integration of Web3 tools such as crypto wallets and decentralized applications. 

Casual gamers made up the largest user segment, also with a 40% revenue contribution, due to easy onboarding, mobile-first design, and accessible gameplay formats.

Adoption Per Region

In addition, SNS Insider revealed that in 2024, North America accounted for 40% of the global web3 gaming market, driven by advanced blockchain infrastructure, strong developer talent, and robust venture capital support. The report noted that the region’s early adoption of decentralized technologies and familiarity with in-game monetization made it a natural fit for play-to-earn models, helping to accelerate user growth and innovation.

Consequently, Asia Pacific is projected to record the fastest growth through 2032, with a CAGR of 21.27%. SNS Insider noted that the forecast is based on the region’s advantages, including a mobile-first gaming culture, increasing smartphone penetration, expanding crypto adoption, and favorable government policies in countries such as Japan, South Korea, and India. 

The report added that emerging markets in Southeast Asia are also adopting web3 gaming as a tool for digital revenue generation and economic participation.

Recent Web3 Games News

The web3 gaming sector is experiencing a string of shutdowns in 2025, with at least 15 titles—including Nyan Heroes, Mystery Society, Blade of God, and Tatsumeeko—either paused, closed, or set to shut down.

This decline coincides with a 71% drop in web3 gaming investments in Q1 2025, falling to $91 million, as investor interest shifts toward AI and real-world assets, according to DappRadar. The user base also dropped by 6% quarter-over-quarter, with 5.8 million daily unique active wallets.

Footprint Analytics further reported a 19.3% decline in web3 gaming market cap in January 2025, down to $22.3 billion, along with a 12.4% drop in transaction volume, citing platform consolidation, decreased funding, and intensified chain competition as key challenges.

This article is published on BitPinas: Web3 Gaming Market to Hit $124.74B by 2032 Despite 2025 Downturn

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