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The Non-fungible Token (NFT) Market size is estimated to grow at a CAGR of 30.23% between 2023 and 2028. The market size is forecast to increase by USD 68.16 billion. The growth of the market depends on several factors, including the increasing demand for digital art, the growing investments in digital assets, and the unique authentication of ownership of digital assets. A non-fungible token (NFT) is a cryptographic token with a unique identification code. NFTs help create a digital token that represents the ownership of a tangible or intangible asset, such as art, music, in-game items, and videos. One NFT is completely different from another NFT. Therefore, they cannot be traded or interchanged.
The report offers extensive research analysis on the Non-fungible Token (NFT) Market, with a categorization based on Application, including collectibles, sports, arts, and others. It further segments the market by End-user, encompassing personal and commercial. Additionally, the report provides Geographical segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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One of the key factors driving the non-fungible token (NFT) market growth is the unique authentication of ownership of digital assets. Some of the crucial factors driving the growth of the global non-fungible token (NFT) market are the high security and unique authentication of ownership. In addition, NFT uses blockchain technology for storing and authenticating NFTs. Furthermore, the person purchasing the NFT has ownership of the digital asset.
Moreover, with a new purchase, the ownership of the digital asset is marked on a digital ledger called Blockchain. In addition, the blockchain network that backs the non-fungible token (NFT) marketplace records the transaction; as it is a public platform, it provides transparency to the sale. Furthermore, blockchain technology allows NFTs to be publicly authenticated, serving as a digital signature that certifies the ownership and authenticity of the NFT. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the non-fungible token (NFT) 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 non-fungible token 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 non-fungible token 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 (NFT) 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 non-fungible token market. Therefore, it is expected to hinder the market growth during the forecast period.
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 of NFT will fuel the personal segment which will increase the market growth during the forecast period. By utilizing NFTs, 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, NFTs will simplify people's lives in terms of their medical health. Furthermore, Players can utilize NFTs 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 NFT market during the forecast period. One of the main factors which is fuelling the NFT 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 non-fungible token (NFT) marketplace in South Korea. Hence, such developments are driving the market growth in APAC during the forecast period.
The non-fungible token (NFT) 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.
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Global Non-fungible Token (NFT) 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.
Binance Holdings Ltd: The company offers non-fungible token services such as Binance NFT.
Decentraland Foundation: The company offers non-fungible token services such as CryptoPunk and Bored Ape NFTs and NFT based wearable.
Enjin Pte. Ltd: The company offers non-fungible token services such as Enjin Wallet for managing NFTs.
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 non-fungible token (NFT) market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Non-fungible Token (NFT) Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 30.23% |
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Market Growth 2024-2028 |
USD 68.16 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
23.27 |
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Regional analysis |
APAC, North America, South America, Europe, and Middle East and Africa |
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Performing market contribution |
APAC at 39% |
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Key countries |
US, Canada, Thailand, China, and Brazil |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 |
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Market dynamics |
Parent market analysis, 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. |
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Customization purview |
If our 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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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