Prediction Markets Poised for Massive Boom as Analysts See 5x Revenue Growth by 2030

Prediction markets could become one of the fastest-growing segments in finance, with industry revenues projected to rise five-fold to more than US$10 billion by 2030, according to analysts at Citizens Financial Group.

The sector, which allows users to trade on the outcomes of real-world events, is currently generating an estimated US$2 billion annually. Platforms like Kalshi and Polymarket have seen explosive growth in trading volumes as users place bets on sports, politics, and cultural events through regulated contracts.

Citizens analysts highlighted Robinhood’s integration of Kalshi contracts as a major signal of momentum. The product is reportedly the fastest-scaling offering in Robinhood’s history and already contributes roughly 10% of the company’s revenue, underscoring growing mainstream adoption.

While sports betting has driven much of the early activity—particularly in regions where traditional gambling is restricted—analysts believe this is only the starting point. The real expansion is expected to come from institutional use cases, including hedging and forecasting around central bank policy decisions, macroeconomic indicators, and mergers and acquisitions.

Prediction markets stand out for their ability to rapidly launch contracts and offer binary, precise exposure to specific outcomes—something traditional financial instruments often struggle to isolate. Analysts suggest these markets could eventually play a role similar to options, credit spreads, and implied volatility in professional investing.

Major financial players are already moving in. Intercontinental Exchange plans to invest up to US$2 billion in Polymarket, while CME Group has launched a new trading app in partnership with FanDuel.

Despite unresolved regulatory challenges, analysts argue there is a clear path forward, pointing to how crypto and options markets evolved. If adoption continues, prediction markets could soon become a core tool in global financial decision-making.