Non-Fungible Token (NFT) Market Size, Share, Growth, and Global Industry Growth by Type (Art and Collectible, Game, and Others), By Application (Primary Market, and Secondary Market), Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights, and Forecast To 2031

Updated On: 20 November 2023

NON-FUNGIBLE TOKEN (NFT) MARKET REPORT OVERVIEW

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The global non-fungible token (NFT) market size was USD 1553.6 million in 2021 and is projected to touch USD 14228.29 million by 2031, at a CAGR of 24.4% during the forecast period.

A non-fungible token (NFT) refers to financial security. This security consists of digital data stored in a block chain.  It is a form of distributed ledger. It is a kind of encrypted digital equity certificate which cannot be copied, divided, or tampered with. NFT is a reliable proof of authenticity. Further, it has assets such as virtual assets which includes music, image, game, and props. On the other hand, physical assets such as event tickets and physical collections.

Growing influence of celebrities to adopt NFT revolutionizing in the gaming industry is expected to fuel market growth. Rising demand for digital artworks is predicted to accelerate service adoption. Increasing use of NFT in supply chain management of several industries is projected to drive market growth. Growing demand for the service in music, videos, sports and especially gaming are anticipated to accelerate market growth during the forecast period.  Increasing investments made by major market players are predicted to fuel non-fungible token (NFT) market growth.

COVID-19 Impact: Growing Adoption of Digital Space to fuel Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with non-fungible token (NFT) experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to the non-fungible token (NFT) market growth and demand returning to pre-pandemic levels once the pandemic is over.

Outbreak of COVID-19 pandemic encouraged adoption of NFT technology. Growing digitalization and work-from-home culture boosted market growth for NFT. Increasing demand for digital marketplaces increased service adoption. Growing number of online shopping platforms during pandemic accelerated market growth. Growing demand for innovation art market fuel service adoption. Also, increasing number of startups and venture capital post-pandemic which led to witness the fuel of non-fungible token (NFT) market growth.

On the contrary, lockdown restrictions impacted production activities. Lack of employee force due to spread of disease reduced market growth.

LATEST TRENDS

"Revolutionizing in Gaming industry to Stimulate Market Expansion"

Increasing demand for NFTs in the gaming industry is expected to accelerate market growth. Increasing demand from music, videos, and sports are predicted to accelerate market growth. Further, in 2017, Enjin was one of the first mainstream gaming companies which merged its gaming with block chain technology.  These merged games boosted adoption of the NFTs in the gaming industry. Increasing demand for intelligent and innovative games are projected to drive market growth. Growing trend to merge block chain and issuing of gaming cryptocurrency are estimated to accelerate market growth during the forecast period. In addition, increasing preferences for players to sell, buy, and trade earned games assets items. Such trading features in gaming industry is anticipated to boost a non-fungible token (NFT) adoption.

NON-FUNGIBLE TOKEN (NFT) MARKET SEGMENTATION

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• By Type

Based on type, the market is divided into art and collectible, game, and others.

Art and collectibles are the leading part of the type segment.

• By Application

On the basis of application, the market is classified into primary market, and secondary market.

Primary market is the leading part of the market application.

DRIVING FACTORS

"Increasing Demand for Digital Artworks to Accelerate Market Growth  "

Growing need for digital artworks is expected to accelerate market growth. Growing digital mediums such as internet and social media is projected to boost service adoption. Digital artwork is linked with NFT through a token and an artist can set a suitable price for NFT artworks. Such factors are responsible to accelerate market growth during the forecast period. Further, digital artists can sell one or more NFT limited edition offerings by issuing tokens. This is one of the major factors that are estimated to fuel market growth during the forecast period. NFTs allows accessibility to the art word and help to create new artworks are projected to accelerate non-fungible token (NFT) market growth.

"Growing Trend to Convert to Metaverse in Reality to Foster Market Growth "

Metaverse is a vision of an internet-enabled virtual world. This vison is developing rapidly with the evaluation of block chain technology. NFT is expected to hit next revenue model for the metaverse which is projected to boost market growth. Increasing demand for direct access to real-life identities and digital avatars. Such excellent features are expected to increase service adoption. Also, growing use of the service in metaverse use cases such as transactions, socializations, and interaction. Such features are anticipated to accelerate market growth during forecast period. In addition, NFTs allows viewers or creators to connect beyond screen which is estimated to fuel non-fungible token (NFT) market growth.

RESTRAINING FACTORS

"High Costs and Growing Uncertainty to Restrict Market Growth "

High costs associated with the service is expected to restrict market growth. Uncertainty of the market due to scarcity and uniquenessof the service is projected to hamper market growth. Further, high treat of duplication of original work is estimated to restrain service adoption. Lack of legal framework and regulations is projected to hinder non-fungible token (NFT) market growth during the forecast period.

NON-FUNGIBLE TOKEN (NFT) MARKET REGIONAL INSIGHTS

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"Growth in Gaming Industry in North America to Drive Market Share"

North America is expected to hold largest non-fungible token (NFT) market share due to increasing demand for gaming applications. Presence of major market players is estimated to accelerate market growth. Increasing use of the service in industries such as retail and fashion are predicted to boost market growth. Growing trend for digital artwork in the region is estimated to drive market growth during the forecast period. In addition, increasing adoption of the virtual world in the region is predicted to accelerate market growth.

Asia Pacific is estimated to show considerable market growth due to revolutionizing gaming industry. Presence of block chain in gaming companies in the region is estimated to fuel market growth. Growing investments by the major market players for developing better innovation in the service. Such factors are expected to propel market growth during the forecast period.

KEY INDUSTRY PLAYERS

"Leading Players Adopt Strategies to Stay Competitive"

The report covers information about the list of market players and their latest development in the industry. The information includes mergers, partnerships, acquisitions, technological developments, and production lines. Other aspects examined for this market include complete research on companies producing and introducing the latest products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

List of Market Players Profiled

• Larva Labs (U.S.)
• Dapper Labs (Canada)
• Sky Mavis (Singapore)
• SandBox (China)
• Sorare (France)
• Rarible (U.S.)
• SuperRare (U.S.)
• OpenSea (U.S.)
• Foundation (U.S.)
• MakersPlace (U.S.)
• Solanart (France)
• Decentraland

REPORT COVERAGE

This research profiles a report with general studies that explain the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.