Web3 Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 0.73 Billion |
| Market Size (2029) | USD 4.31 Billion |
| CAGR (2024 - 2029) | 42.30 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Web3 Market Analysis
The Web3 Market size is estimated at USD 0.73 billion in 2024, and is expected to reach USD 4.31 billion by 2029, growing at a CAGR of 42.30% during the forecast period (2024-2029).
- The Web 3.0 industry is set for substantial growth, driven by factors including the increasing demand for data privacy enabled by decentralized identity and advancements in internet technology. The rapid adoption of digital assets like cryptocurrencies and the ongoing deployment of 5G technologies is expected to fuel this growth further. The expanding realm of digital assets and cryptocurrencies is aligning with Web 3.0. Integrating blockchain, Decentralized Finance (DeFi), and Non-Fungible Tokens (NFTs) within Web 3.0 applications creates new opportunities for online transactions, ownership, and value generation.
- Several trends are poised to drive the market forward. For example, Web3 and NFTs are set to revolutionize the art and creative industries, offering significant advantages to creators. Through NFT minting software, artists can transform their creations into digital assets as NFTs. This grants artists enhanced control over their work and enables them to compete on a global stage. They can market their art on decentralized online platforms and earn royalties each time their piece is traded. Integrating Web 3.0, NFTs, and the art sector brings forth benefits like ownership, traceability, transparency, and consistent income and rewards.
- Further, Web3 social platforms prioritize decentralization and community engagement, transferring power from major tech corporations to the users of the platforms. Users on these platforms can create, manage, and monetize their content independently, without any central authority's oversight. Enhanced by blockchain encryption, user privacy and transparency are fortified, ensuring the protection of data and assets on Web3 platforms. Unlike traditional platforms, Web3 social media is immune to server outages, data breaches, and privacy infringements. The advantages of Web3 in social networking encompass open-source principles, interoperability, community focus, freedom, in-app payments, transparency, heightened security, and appealing monetization avenues.
- AI shows significant potential for enhancing user experience in digital environments. It enables the creation of intelligent systems that can emulate human behavior, resolve technical issues without programming, and learn from experience. AI benefits Web3 users by providing faster and more accurate information, facilitating informed decision-making and efficient navigation of decentralized platforms. Additionally, AI algorithms improve search engines by recommending web content tailored to individual user preferences, delivering personalized experiences.
- Web3 focuses on user-centric services and features. Low-code development, in contrast, simplifies software creation by reducing the need for extensive coding. It utilizes visual programming tools like drag-and-drop interfaces and API integrations instead of relying solely on text-based programming. This approach streamlines the software development process, enabling users with varying skill levels to modify and enhance software features more easily.
- A significant constraint hindering the widespread adoption of Web 3.0 blockchain technology is the lack of awareness among potential users and businesses. This limited understanding of Web 3.0's features and benefits impedes its growth and potential impact on decentralized applications and services. To fully leverage Web 3.0 technology, increased efforts in education and awareness campaigns are necessary. The complexity of Web 3.0 and blockchain concepts poses a challenge for average users to comprehend, further emphasizing the need for improved understanding in the market.
Web3 Market Trends
Cryptocurrency is Expected to Hold Significant Share
- Distributed ledger technology's expansion and surging venture capital investments in digital assets are the primary catalysts propelling the market's growth. Countries in the developing world are increasingly adopting digital currencies for financial transactions. The rising allure of digital assets, notably Bitcoin and Litecoin, is poised further to fuel this market's ascent in the coming years. Additionally, digital currencies frequently harness blockchain technology, ensuring decentralization and streamlined transactions. Blockchain's attributes—decentralization, speed, transparency, security, and reliability—underscore its appeal. Capitalizing on these blockchain benefits, companies are investing in cryptocurrencies and forging collaborations to enhance user service quality and efficiency.
- Mobile cryptocurrency exchange applications enable users to swiftly access a variety of currencies and trade on the go. These platforms cater to users' interests in cryptocurrency and the broader landscape of decentralized digital currency networks. Leading companies have optimized the sign-up process to elevate user experience. With the growing adoption of smartphones and the continuous introduction of new mobile apps, the expansion of mobile-based crypto trading platforms is set to accelerate.
- Cryptocurrencies enable cost-effective, seamless peer-to-peer value transfers across borders, outpacing traditional methods like bank wire transfers. This efficiency positions them as a preferred choice for international trade, overseas business payments, remittances from foreign workers, and purchases from global online merchants. As globalization and the digitalization of trade accelerate, the adoption of cryptocurrencies is becoming pivotal in promoting borderless commerce. Consequently, traders, importers/exporters, and online marketplaces are increasingly turning to cryptocurrencies for effortless global transactions.
- Various companies are partnering with Web 3 firms to enhance their presence in the market. For example, MEXC Ventures, the investment arm of the global cryptocurrency exchange MEXC, has made headlines with its monumental investment in The Open Network. This move is the most significant layer-1 investment to date, underscoring a strategic alliance with The Open Network (TON) Foundation. MEXC and TON share a unified vision: to bolster global Web3 accessibility by dismantling entry barriers. In a parallel development, Ripple, a player in enterprise blockchain and crypto solutions, has forged a new alliance with Uphold, a prominent global Web3 financial platform. Uphold is equipping Ripple with enhanced crypto liquidity tools through this partnership, thereby fortifying Ripple's cross-border payments framework.
- Accoridng to CoinMarketCap, as of 2023, there were over 9,000 cryptocurrencies in existence, although this number was significantly higher in the early months of 2022. An increasing number of central banks are investigating the potential issuance of their own digital currencies. This development could significantly alter the way money is used and perceived, potentially leading to faster, more cost-effective, and secure transactions.
North America is Expected to Hold Significant Share
- North America is poised to command a substantial share of the web 3.0 blockchain market. It is driven by its swift and early embrace of blockchain technology, bolstered by a strong technological infrastructure and a supportive regulatory landscape. The region boasts a dense cluster of blockchain startups alongside significant tech firms, both at the forefront of innovation and investment in blockchain research and applications. Moreover, the U.S.'s well-entrenched financial sector has catalyzed the adoption of blockchain in banking and finance. North American regulators have also taken a proactive stance, setting clear guidelines for blockchain and cryptocurrency use, fostering a stable and growth-friendly environment.
- In September 2023, SunSpear Games, the developer of the eagerly awaited real-time strategy game IMMORTAL: Gates of Pyre, has entered a strategic alliance with Immutable, a prominent player in the Web3 gaming arena. This partnership seeks to enhance the gaming experience by weaving in Immutable’s zkEVM technology. This integration will empower users to customize and adjust their in-game experiences through Web3 innovations. As the game is being developed for PC, this new integration stands out by promising genuine ownership of in-game assets, underscoring a pivotal leap in Web3-driven gaming.
- Further, in September 2023, BIGG Digital Assets Inc. is a globally recognized and innovative player in the Digital Asset, Blockchain, and Metaverse sectors, boasting a diverse portfolio that includes Netcoins (Netcoins.com), Blockchain Intelligence Group (BlockchainGroup.io), and TerraZero (TerraZero.com). The firm planned to share that big-data division, Blockchain Intelligence Group (BIG), has inked a deal with Web3 Enabler, Inc., aiming to deliver Cryptocurrency payment processing compliance for Salesforce clients.
- Decentralized Finance (DeFi) is propelling the growth of the U.S. cryptocurrency market. DeFi aims to create financial applications on the blockchain, facilitating peer-to-peer transactions without intermediaries. With its potential to challenge traditional financial services, investors are increasingly backing DeFi projects. The U.S. is a pivotal centre for DeFi innovation, hosting many of the industry's leading projects. In the U.S., the regulatory landscape for cryptocurrencies is intricate, as various agencies share overlapping jurisdictions and hold differing views on defining a security versus a commodity.
- Moreover, recently, PayPal introduced cryptocurrency conversion features for web3 payments, allowing users in the United States to convert cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) to U.S. Dollars within their PayPal wallets. The company's new off-ramp feature is available to wallets, decentralized applications (dApps), and non-fungible token (NFT) marketplaces, including integration with MetaMask, a widely used Ethereum wallet and dApp browser. This development enables users to engage with the expanding web3 ecosystem while utilizing PayPal's established payment infrastructure.
Web3 Industry Overview
The Web3 market is semi-consolidated due to the presence of many players. Some of the major players in the market are Chainlink, Polygon Technology, Moralis Web3 Technology, Amazon, Helium Foundation and many more. The players are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain a competitive advantage.
The Web3 market is poised for remarkable growth, driven by advancements in decentralized technologies and increasing consumer demand for user-centric internet solutions. Various applications illustrate the transformative potential of Web3 technology across various industries, emphasizing decentralization, user empowerment, and enhanced security as core principles driving its adoption.
Web3 Market Leaders
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Chainlink
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Polygon Technology
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Moralis Web3 Technology
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Amazon
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Helium Foundation
*Disclaimer: Major Players sorted in no particular order
Web3 Market News
- July 2024: Wirex, a Web3 money app, has partnered with Visa, a global leader in digital payments, to promote the adoption of digital currencies in the UK and the European Economic Area (EEA). This collaboration aims to harness innovative Visa cards and streamline payment experiences. By merging their strengths, consumers can trust Visa's established payment network while benefiting from Wirex's innovative products. A standout feature of this partnership is the introduction of Wirex Pay, a modular Zero Knowledge (ZK) payment chain developed by Wirex. Wirex Pay aims to transform the way users handle and utilize both cryptocurrencies and traditional currencies.
- June 2024: WSPN, a player in global digital payments, has forged a significant partnership with DigiFT. DigiFT stands out as the first regulated exchange for on-chain real-world assets (RWA) and has been approved as a Recognised Market Operator. This recognition comes with a Capital Markets Services license from the Monetary Authority of Singapore. The collaboration highlights both entities' shared vision of pushing the boundaries of stablecoin applications and spearheading Web3 payment and investment solutions globally. As a testament to this alliance, WSPN's flagship stablecoin, the Worldwide USD (WUSD), pegged to the USD, will find its place on DigiFT's exchange.
- August 2024: Immutable X has forged a strategic alliance with Squid, a renowned cross-chain liquidity router, aiming to bolster the web3 gaming ecosystem. This partnership focuses on simplifying the token-swapping process across diverse blockchain networks, ensuring users enjoy both convenience and security. With Squid's advanced technology integration, Immutable X is poised to advance its commitment to leading innovation in the web3 gaming arena. Squid, celebrated for its adept cross-chain liquidity solutions, empowers users to seamlessly exchange digital assets across multiple blockchains, granting fluid access to decentralized applications (dApps) spanning various chains.
Web3 Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Adoption of Blockchain Technologies
5.1.2 Demand for secure and transparent digital transcations
5.2 Market Restrains
5.2.1 Extensive Regulatory, scrutiny, and evolving regulatory prespective
5.3 Key Use Cases and Case Studies
6. MARKET SEGMENTATION
6.1 By Application
6.1.1 Cryptocurrnecy
6.1.2 Converstional AI
6.1.3 Data and Transcation Storage
6.1.4 Payments
6.1.5 Smart Contract
6.1.6 Others
6.2 By End User
6.2.1 BFSI
6.2.2 E-Commerce and Retail
6.2.3 Media and Entertainment
6.2.4 Healthcare and Pharmaceutical
6.2.5 IT and Telecom
6.2.6 Others
6.3 By Geography***
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 Germany
6.3.2.2 United Kingdom
6.3.2.3 France
6.3.3 Asia
6.3.3.1 China
6.3.3.2 India
6.3.3.3 Japan
6.3.3.4 Australia and New Zealand
6.3.4 Latin America
6.3.4.1 Brazil
6.3.4.2 Mexico
6.3.5 Middle East and Africa
6.3.5.1 Saudi Arabia
6.3.5.2 UAE
6.3.5.3 South Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Chainlink
7.1.2 Polygon Technology
7.1.3 Moralis Web3 Technology
7.1.4 Amazon
7.1.5 Helium Foundation
7.1.6 Antier Solutions
7.1.7 ALCHEMY INSIGHTS, INC
7.1.8 Biconomy
7.1.9 Coinbase
7.1.10 Huwaie Cloud
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OUTLOOK AND FUTURE
Web3 Industry Segmentation
Web 3.0, also referred to as Web3, represents the third generation of the World Wide Web. It is characterized by its decentralized nature, universal accessibility, and foundation in blockchain technologies. Web 3.0 builds upon developments in the Semantic Web, which envisions the internet as a network of meaningfully interconnected data. This new iteration aims to create a more open and user-centric online environment, utilizing a bottom-up design approach.
The Web3 market is segmented by application (cryptocurrency, conversational AI, data and transaction storage, payments, smart contract, others), by end user (BFSI, e-commerce and retail, media and entertainment, healthcare and pharmaceutical, IT and telecom, others) and by geography (North America [United States, Canada], Europe [Germany, United Kingdom, France], Asia Pacific [China, India, Japan], Latin America [Brazil, Mexico], Middle East and Africa [Saudi Arabia, UAE, South Africa]). The report offers market forecasts and size in value (USD) for all the above segments.
| By Application | |
| Cryptocurrnecy | |
| Converstional AI | |
| Data and Transcation Storage | |
| Payments | |
| Smart Contract | |
| Others |
| By End User | |
| BFSI | |
| E-Commerce and Retail | |
| Media and Entertainment | |
| Healthcare and Pharmaceutical | |
| IT and Telecom | |
| Others |
| By Geography*** | ||||||
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Web3 Market Research FAQs
How big is the Web3 Market?
The Web3 Market size is expected to reach USD 0.73 billion in 2024 and grow at a CAGR of 42.30% to reach USD 4.31 billion by 2029.
What is the current Web3 Market size?
In 2024, the Web3 Market size is expected to reach USD 0.73 billion.
Who are the key players in Web3 Market?
Chainlink, Polygon Technology, Moralis Web3 Technology, Amazon and Helium Foundation are the major companies operating in the Web3 Market.
Which is the fastest growing region in Web3 Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Web3 Market?
In 2024, the North America accounts for the largest market share in Web3 Market.
What years does this Web3 Market cover, and what was the market size in 2023?
In 2023, the Web3 Market size was estimated at USD 0.42 billion. The report covers the Web3 Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Web3 Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Web3 Industry Report
Statistics for the 2024 Web3 market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Web3 analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
