Metaverse Gaming, NFTs Could Account for 10% of Luxury Market by 2030: Morgan Stanley

The bank expects the total NFT market to grow to $300 billion by that year.

AccessTimeIconNov 22, 2021 at 12:57 p.m. UTC
Updated May 11, 2023 at 4:02 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Luxury goods companies don’t generate much digital revenue now, but that could change soon, according to a research note from Morgan Stanley that was published last week.

  • Metaverse gaming and non-fungible tokens could represent a revenue opportunity of 50 billion euros for the luxury market by 2030, Morgan Stanley said. That would be 10% of the total addressable market.
  • ”NFTs and social gaming present two near-term opportunities for luxury brands, allowing them to monetize their vast IP (intellectual property) built over decades,” the report says. Dolce & Gabbana’s sale of nine NFTs for $5.7 million last month shows the huge potential for “virtual and hybrid luxury goods,” and the bank estimates that the total NFT market will grow to around $300 billion by 2030.
  • By 2030, luxury brands could expand their total addressable market by more than 10% and industry earnings before interest and taxes (EBIT) by about 25%. Demand for NFT collectibles will lead to strong demand for luxury goods in the medium term, analysts led by Edward Stanley said in the report.
  • Morgan Stanley notes that luxury goods companies are already exploring collaborations with gaming and metaverse platforms, with an increasing number of revenue sharing deals. The firm said that could add $10 billion to $20 billion to the luxury sector’s total addressable market.
  • France-based Kering, the owner of such luxury brands as Gucci and Yves Saint Laurent, is best placed to take advantage of the metaverse because of its “brand demographics and given head start in innovative digital collaborations,” Morgan Stanley said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Author placeholder image

Will Canny is CoinDesk's finance reporter.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.