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The Non-fungible Token Market size is projected to grow by USD 68.16 billion, at a CAGR of 30.23% between 2023 to 2028. The market's expansion is driven by several factors, notably the escalating demand for digital art, increased investments in digital assets, and the implementation of unique ownership authentication for digital assets. The rising popularity of digital art signifies a shift towards digital mediums for artistic expression, driving market growth as collectors seek digital pieces for investment and enjoyment. Concurrently, the surge in investments in digital assets, including cryptocurrencies and non-fungible tokens (NFTs), reflects a broader trend toward diversification and digital ownership. Moreover, the adoption of unique authentication methods ensures the integrity and provenance of digital assets, bolstering trust and confidence among buyers and sellers in the digital art market. These interconnected elements collectively shape the evolving landscape of digital art and asset ownership, driving innovation and investment in the sector.
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The collectibles segment is estimated to witness significant growth during the forecast period. The growth of the collectible segment is fuelled by the growing demand for digital assets across the world. In addition, most industries have gone digital to market their products. Furthermore, the near ubiquity of the Internet and widespread use of mobile devices, along with rising Internet usage, has encouraged companies to expand their offerings and investments related to digital assets.
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The collectibles segment was the largest segment and was valued at USD 4.56 billion in 2018. Moreover, the emergence of tokenization in the digital asset industry is fuelling the growth of this segment. In addition, tokenization helps create a digital token that represents the ownership of any tangible or intangible asset. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The increasing benefits will fuel the personal segment which will increase the market growth during the forecast period. By utilizing it, people can strengthen their identities and prevent fraud in their Web 3 transactions. In addition, the ideal approach to implement digital identifications, which are at the core of the future Internet, is through blockchain-enabled NFTs. Moreover, with a single uncrackable verification mechanism, NFT can do a lot of things, including paying taxes, placing orders, renewing licenses, and managing subscriptions. In addition, it will simplify people's lives in terms of their medical health. Furthermore, Players can utilize it to secure their video game winnings and validate their gains using the digital identity concept. NFTs facilitate trading in games, which can increase value because NFT objects in games can vary in rarity. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors which is fuelling the market growth in APAC is the growing demand for digital assets in countries like Singapore, China, South Korea, the Philippines, and Japan. In addition, Korean retail channels are expanding their footprint into the flourishing NFT business by selling art and fashion items. For example, in January 2022, CJ OliveNetworks Co. Ltd, a subsidiary of South Korea-based CJ Corp., announced that it is partnering with a domestic blockchain company, Galaxia Metaverse, to sell NFT artworks. Moreover, in April 2022, Lotte Home Shopping Inc. is expected to launch a marketplace in South Korea. Hence, such developments are driving the market growth in APAC during the forecast period.
The market is experiencing a seismic shift, catalyzed by the intersection of celebrities, the gaming industry, and digital artworks. Powered by the Ethereum network and blockchain technology, NFTs are reshaping ownership and authenticity in the digital realm. As NFT vendors proliferate, a robust legal framework is emerging to govern transactions and protect creators' rights. NFTs extend beyond static assets, encompassing Augmented Reality (AR), Virtual Reality (VR), and Extended Reality (XR) experiences, enriching the Metaverse. With cryptocurrencies fueling Web 3 and decentralized finance, NFTs offer low-cost digital currency payment systems and tokenization of games. However, challenges such as fraud and data concerns persist, underscoring the need for trustworthy NFT suppliers and secure distribution networks. Yet, NFTs offer unparalleled ownership and scarcity, heralding a new era of digital property and innovation, exemplified by platforms like Magic Eden.
The market is experiencing remarkable growth, fueled by unique authentication of ownership for digital assets within the gaming industry and digital artworks realm. This growth is underpinned by the high security and distinct authentication facilitated by blockchain technology, particularly the Ethereum network. NFTs leverage blockchain for storing and validating ownership, providing purchasers with verifiable ownership of their digital assets.
Moreover, each purchase is recorded on the Blockchain, ensuring transparency and fraud prevention. Blockchain's public nature enables public authentication, serving as a digital signature for NFT ownership. This transparent and secure system is driving market growth, as celebrities and NFT vendors embrace tokenization of games and digital property, offering new avenues for ownership and distribution networks within the Metaverse and beyond.
A key factor shaping the market growth is the growing interest in NFTs among major brands. Several big brands including Visa Inc. and Budweiser are showing more interest in buying NFTs rather than making their own NFTs. For example, in August 2021, Visa Inc. purchased a CryptoPunk, which is a collection on the Ethereum blockchain.
Moreover, NFT for around USD165,000. Visa Inc. added this NFT to its collection of historic commerce artifacts. In addition, the major factor driving the adoption of NFTs in big brands is the potential for additional earnings. Furthermore, these players are focusing on using these NFTs as rewards for their consumers. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
Legal and regulatory challenges associated with non-fungible tokens are one of the key challenges hindering the non-fungible token market growth. A list of laws and regulations are required to be implemented for the NFT marketplace. In addition, businesses should assess whether their NFT is a regulated investment, security, or payment instrument. Furthermore, though NFTs are not regulated strictly, they could trigger legal obligations if they exhibit characteristics of different regulated investment units, such as mutual funds, traded funds, and others.
Moreover, these regulatory obligations vary from know your client identification and verification and associated record-keeping and monitoring obligations as well as different compliance obligations within respective anti-money-laundering laws. Hence, such regulations are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is revolutionizing industries such as gaming, art, and entertainment, offering unique opportunities for artists, athletes, and celebrities to monetize digital artworks and virtual items. Powered by blockchain technology, NFTs provide scarcity and ownership verification for digital property, including game collectibles and sports memorabilia. With smart contracts ensuring secure transactions and decentralized finance enabling low-cost digital currency payment systems, NFTs are transforming distribution networks and consumer protection measures. However, regulatory considerations, including AML and KYC regulations, alongside securities laws and taxation, pose challenges. Projects like Magic Eden and Solana Ventures are driving innovation in the space, while platforms like The White House and online platforms are embracing NFTs for virtual museums and galleries. As the market expands, navigating data privacy and intellectual property concerns becomes crucial for NFT vendors and NFT suppliers alike.
Moreover, the market is witnessing a surge in interest, fueled by the intersection of Augmented Reality (AR), Extended Reality (XR), and Virtual Reality (VR) with the gaming industry and media & entertainment industry. As investors flock to this burgeoning space, the NFT community continues to grow, leveraging the Ethereum network and other cryptocurrencies/assets for transactions. However, amid this growth, Know-your-customers (KYC) regulations and legal frameworks are becoming increasingly important to prevent money laundering and ensure compliance. NFTs offer unique opportunities for tokenization of games and trading cards, including sports collectibles and paintings, digitizing physical assets into electronic assets. With proof of stake and proof of work mechanisms ensuring security, NFTs are transforming the way logistics and vehicle industries operate, offering proof of ownership for third parties and enthusiasts alike.
Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 30.23% |
Market Growth 2024-2028 |
USD 68.16 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
23.27 |
Regional analysis |
APAC, North America, South America, Europe, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, Canada, Thailand, China, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AirNFTs Platform, Asynchronous Art Inc., Binance Holdings Ltd., Blockchain App Factory, Celer Network, Chaincella, Decentraland Foundation, Enjin Pte. Ltd., Foundation Labs Inc., Funko Inc., Gemini Trust Co. LLC, Mintable.app, Ozone Networks Inc., Out The Mud Ventures Inc., Rarible Inc., Sky Mavis, SuperRare Labs Inc., Tiki Labs Inc., Yellowheart LLC, and Axie Infinity |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, the Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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