Consumer preferences and growing adoption of diverse applications such as video gaming, music, art, and digital collections to unwind novel growth opportunities in the global Non-Fungible Token (NFTs) Market in the coming years
Non-fungible token market is a fast-growing industry and is progressing amidst blockchain technology evolution and cryptography advances. As non-fungible token is one of the core elements of the vast crypto industry, NFT market is also approaching multi-dimensional growth throughout the forecast years, 2021-2028. Global non-fungible token (NFT) market is poised to hit over USD 980 million by 2028, striking a CAGR of 35.23% by the end of the forecast era.
The Covid-19-led shift towards digital and virtual worlds has kickstarted the adoption of cryptocurrency to a great deal, and this is one of the primary growth triggers for the global non-fungible token market. Followed by the tremendous popularity of cryptocurrency and a fast adoption rate across emerging economies such as India, non-fungible token (NFT) are also becoming mainstream in eSports.
Growing consumer awareness about the benefits of NFT (non-fungible token) such as broker-free transactions, zero geographic barriers, and multi-industry adoption across industries such as entertainment and art are unwinding new growth probabilities in the projected timeline for the global non-fungible token market.
One of the most dominant challenges abating growth in the global non-fungible token market is the digital nature of the assets and the high pricing of NFTs. These could hinder the smooth growth curve significantly in the coming years.
Advances in making non-fungible token (NFT) more user-friendly for logistics and licensing applications are poised to stir up new growth opportunities for the global non-fungible token (NFT) market. Amidst rising document forgeries such as visas, passports as well as driver licenses, NFT adoption is believed to curb these existing challenges. One of the most appropriate adoptions of NFT technology is vaccine passports to ensure authentic documentation of Covid-19 vaccination.
The overall competitive arena of the global non-fungible token market is identified to be highly competitive, innovative, versatile, and marginally fragmented. The already established market veterans such as SuperRare and OpenSea are expected to lead the growth curve and revenue maximization.
The aforementioned companies are the preferred NFT providers, and the daily sales on average for both the companies remain between USD 40K to USD 100K per day, which is highly satisfactory to lead the competition.
Alongside, as the non-fungible token market is still fresh and in its infancy, entry barriers and coercion are quite low, thus paving new entry points for emerging players. Some prominent players in the global non-fungible token market include YellowHeart, MakersPlace, Nifty Gateway, Rarible, Funko, PLBY Group, Larve Labs, Decentraland, Dapper Labs, Cloudflare, and Dolphin Entertainment, besides several others.
Key Segments of the Global Non-Fungible Token Market
Type Overview, 2018-2028 (USD Million)
- Real Estate
Application Overview, 2018-2028 (USD Million)
- Personal Use
- Commercial Use
Regional Overview, 2018-2028 (USD Million)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa
Art and Gaming Segments to Steal the Show with Spectacular Revenue Growth in the Forecast Years
In the coming years, with the growing popularity of diverse art forms and advances in art digitalization, the art segment is likely to drive the highest adoption based on type. In this regard, the most recent digital auction held by Christie’s Auction House successfully traded an image collage by Beeple worth USD 69 million. This explains the lucrativeness of the segment.
The next big segment likely to witness a massive boom, is the gaming segment owing to advantages such as the play-to-earn feature supported by blockchain technology. This also ensures the safe transfer of game assets. On similar lines, Gods Unchained, a popular NFT based trading card game, is likely to launch its NFT governance token, $GODS, in an exclusive partnership with Nine Realms. These developments justify the rising growth probabilities of the gaming segment.
Asia Pacific to Sustain as the Most Promising Regional Markets
Asia Pacific region is showing promising growth likelihood as countries such as India launches marketplaces for NFT trade. Besides WazirX, India has also witnessed the launch of other parallel NFT marketplaces such as NFTically. Besides India, China has also launched non-fungible token (NFT) marketplace by Alibaba group called digital collectibles.
Further, in the EU, as NFT gains prominence, Viacom CBS is all set to launch a unique platform to trade digital collectibles via a partnership with Recur. This will solidify Europe’s position as a lucrative regional market for the global non-fungible token market.
Covid-19 Impact and Market Status
The art tech market was fuelled during the pandemic times as art-based companies continued to thrive amidst digitization. This has also skyrocketed the adoption of non-fungible token to ensure the highest authenticity and ownership of digital assets. In recent times, Art-tech companies have garnered immense funding, touching above USD 400 million, which is also fueling the global non-fungible token (NFT) market expansion. As most of the fairs, auctions, and exhibitions shifted to virtual worlds, these developments created rife avenues for NFT adoption. Further, novel payment modes such as Big Data are helping to simplify payment methods.
AMidst the Covid-19 enforced lockdown the global economy went for a toss, unlike the swell of the crypto economy with growing preferences for bitcoin and Ethernum that adequately supported business transformation into the digital space. This has certainly lended a filip to the overall growth of the non-fungible token (NFT) market.
Latest Innovations in the Global Non-Fungible Token Market: a Snapshot
- In early 2021 leading NFT player OpenSea has managed to rope in roughly USD 23 million as part of its latest venture capital funding. Entities such as A16z Crypto, an offshoot of Andreessen Horowitz is one of the members. Other companies are also taking a keen interest in the funding as well.
- NFT vaccine passports to be adopted by San Marino. As per the latest developments, regarding Covid-19 vaccination, San Marino has turned to blockchain technology to enable digital Covid-19 vaccine passports wherein every passport is a NFT asset inter,linked through dual QR codes that verify vaccination record across the VeChain blockchain-based ledger.
- Countries such as India are at the forefront of global growth. India-based WazirX has announced the launch of nonfungible token (NFT) marketplace to ensure NFT trade on Binance Smart Chain.
- WHP has affirmed its partnership with NFT platform, Ethernity to promote its toy range, Toys 'R' Us on NFT platform powered by blockchain technology.