Canada, December 20, 2022 / AlexaBlockchain/ – The global Non-Fungible Token (NFT) market size reached $15.54 Billion in 2021 and is expected reach $215B by 2030, registering a CAGR of 34.2% during the forecast period, according to the latest analysis by Canada-based Emergen Research.
NFTs are digital assets that cannot be exchanged or replaced by another identical item, making them scarce and unique. NFTs have revolutionized the way digital art is bought and sold, providing creators with an opportunity to monetize their work in a secure manner.
NFT Market Key Growth Drivers
The increasing acceptance of blockchain technology for a wide range of applications is driving the growth of the NFT market. For instance, decentralized finance (DeFi) projects are now utilizing NFTs to create unique digital assets that can be traded freely on the blockchain. Additionally, interest in NFT-based gaming is on the rise as well, with developers utilizing this technology to create games that allow players to own digital items and assets that can be bought, sold, and traded. This has helped spur the growth of the NFT market as well.
Furthermore, the increasing demand for digital art is driving up prices in the NFT market. Celebrity-endorsed digital art pieces are selling for millions of dollars on platforms such as Superrare and Foundation, demonstrating the potential of this relatively new asset class. This has attracted the attention of institutional investors and venture capitalists seeking to capitalize on this lucrative market opportunity. As a result, more money is being poured into the NFT space, further fueling its growth.
Finally, governments around the world are recognizing the importance of blockchain technology and digital assets. Regulatory frameworks are being put in place to provide transparency and clarity around the NFT market, allowing users to participate more confidently. This is helping to drive a wave of new entrants into this space, bolstering its growth even further.
Thus, with increasing acceptance and adoption of blockchain technology and digital assets on the rise, the global Non-Fungible Token market is expected to experience strong growth over the forecast period. Companies in this space are continuously innovating and striving to create unique products that can capture greater market share, helping to further propel the NFT market growth.
Factors Limiting The Non-fungible Token (NFT) Market Growth
The major issues which are anticipated to limit the growth of the non fungible token (NFT) market are the lack of regulatory clarity, consumer awareness and understanding, and technological infrastructure. Regulatory authorities across the globe have yet to provide clear guidance on how NFTs should be regulated. Many countries also lack an appropriate legal framework for digital assets, leaving investors in a state of limbo.
Additionally, the lack of consumer knowledge and understanding about NFTs is another challenge for the market growth. As most of the projects related to NFTs are still in their early stages, there has been little effort to educate and inform potential investors, who may be put off by the complex nature of digital assets.
Finally, technological infrastructure is an issue that needs to be addressed in order for the NFT market to mature. Blockchain technology needs to be further developed, so as to facilitate faster transactions and reduce latency. Additionally, scalability issues need to be resolved in order for the market size to grow.
NFT – Major Companies and Strategic Developments
ScienceSoft USA Corporation, Innowise Group, Inoru, Zfort Group, Blockchain App Factory, Brugu, Chaincella, AppDupe, Crypto.com, and Ozone Networks, Inc. are a few of the significant firms mentioned in the global market report.
The companies are focusing on product launches, acquisitions and collaborations to gain competitive advantage in the market. For instance, CryptoKitties, a blockchain-based game developed by Axiom Zen, has become one of the most successful NFTs. CryptoKitties made headlines for driving an 8,000 percent spike in Ethereum transactions and for causing network congestion due to its popularity.
In May 2020, OpenSea acquired Fuel Brothers, a gaming studio that specializes in creating digital collectibles. OpenSea is a peer-to-peer marketplace for buying and selling digital collectibles, such as NFTs and cryptocurrencies. With the acquisition of Fuel Brothers, OpenSea expects to expand its range of offerings significantly and build unique experiences for users.
In July 2020, Enjin announced the launch of EnjinX, a non-custodial web wallet that allows users to store, mint and manage their digital assets. The wallet also has an embedded NFT explorer that enables users to discover new projects and explore existing markets for NFTs. Enjin expects the launch of EnjinX will help it stay ahead of its competitors in the market and offer users a better experience.
In August 2020, Crypto.com Chain announced the launch of its NFT Marketplace, which allows developers to create their own digital collectibles and use them for tokenization and trading purposes. The platform is expected to provide users with an easy and secure way to store, exchange and manage their NFTs. With the launch of its NFT Marketplace, Crypto.com Chain hopes to position itself as a major player in the non-fungible token market.
Key Findings From the NFT Market Report
- Metaverse segment is expected to register the highest growth rate over the forecast period owing to the fact that the platform enables users to create, govern, and trade NFTs. It also provides a secure trading layer for virtual goods such as avatars, digital art, gaming items, land ownership records and many more. Non fungible tokens (NFTs) have been gaining substantial traction in various industries due to its ability to provide digitized tokenization of assets, which increases trust and transparency among the stakeholders. The NFT market is expected to experience robust growth owing to the growing adoption by various industries such as media & entertainment, gaming, art & collectibles, wearable devices, digital IDs and many more.
- Gaming segment is expected to register the highest growth rate over the forecast period owing to the increasing adoption of NFTs in gaming industry. For instance, in October 2020, Decentraland launched a gaming platform based on the Ethereum blockchain and created an economy by introducing non-fungible tokens (NFT). Moreover, several well-known game developers such as Ubisoft are also exploring the potential of NFTs to create digital assets that are unique and can be used in a variety of decentralized games. This factor is subsequently expected to drive the growth of NFTs market in near future. Furthermore, growing investments from venture capitalists, angel investors and corporates towards the development of blockchain technology specifically for gaming industry will further aid in the growth of NFTs market. On the other hand, lack of awareness and technical expertise in the adoption of blockchain technology for gaming is expected to hamper the NFTs market growth over the forecast period.
- The Art & Collectibles segment is one of the prominent users of NFTs due to its ability to certify the authenticity and uniqueness of artworks. The segment is expected to be the most prominent and fastest-growing segment in the global NFT market over the forecast period. The high growth of this segment can be attributed to increasing trust, secure peer-to-peer transactions and low transaction costs associated with these tokens.
- North America region is expected to register the highest growth rate over the forecast period owing to the presence of major players in the region, such as Canada and the United States. The increasing demand for digital asset management solutions, high adoption of blockchain technology, and the growing trend of cryptocurrency trading are driving the growth of Non Fungible Tokens Market in North America.
- In Europe, Germany is expected to witness significant growth over the forecast period. The increasing number of start-ups and innovations in the blockchain technology industry, government initiatives to promote blockchain adoption, and the presence of established players are driving the growth of Non Fungible Tokens Market in Europe.
- The Asia Pacific region is expected to witness substantial growth over the forecast period owing to growing investments from venture capitalists in startup companies involved in blockchain technology, increasing business enterprises that are using blockchain technology for digital asset management, and growing awareness regarding the benefits of non fungible tokens.
About Emergen Research
Emergen Research is a market research and consulting company that provides syndicated research reports, customized research reports, and consulting services. Our solutions purely focus on your purpose to locate, target, and analyze consumer behaviour shifts across demographics, across industries, and help clients make smarter business decisions.
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Source: Emergen Research