The global non-fungible token market size was valued at USD 50.11 billion in 2020 and is expected to expand at a CAGR of 10.8% during the forecast period, 2021–2028. The growth of the market is attributed to increasing demand for cryptocurrency. Cryptocurrency is used for low-cost digital currency payment methods.
Non-fungible tokens are used to digitally characterize any item, including online-only resources such as digital artwork as well as real-world assets such as real estate. Digital art is a piece of art or a technique that uses digital technology in a creative or presentation process. The originality and authenticity of creative works is secured by non-fungible tokens; therefore, it is important to artists. Artists benefit directly from their work with NFTs. NFTs eliminate the need for intermediaries, allowing artists and original producers to receive commission every time the NFT is exchanged. Moreover, the second most popular cryptocurrency, Ethereum, is often utilized to pay for NFT purchases. NFTs emerged as a new way for content producers to sell their work while keeping complete transparency and ownership legitimacy.
The COVID-19 pandemic spurred the adoption of technology in a variety of traditional industries, including the arts. Art+Tech start-ups raised USD 380 million since the beginning of 2020, according to Fuelarts, an accelerator that supports innovation in the art business. Prior to the pandemic, these start-ups received a total of USD 640 million in funding during the previous 20 years. Following the emergence of COVID-19, NFTs registered a surge in popularity. For the first time, several platforms have been made accessible to trade NFTs using bitcoin. For instance, MasterCard collaborated with Coinbase to allow customers to customize their Mastercard cards to make purchases on Coinbase's NFT marketplace.
Market Trends, Drivers, Restraints, and Opportunities
- Leveraging digital assets is expected to drive the market during the forecast period.
- Increasing demand for digital artworks is anticipated to boost the market in the coming years.
- Rising demand for a decentralized marketplace is propelling the market.
- Concerns regarding scams and fraud are projected to hamper the market during the forecast period.
- Advent of secondary platforms for reselling NFTs are estimated to create lucrative opportunities for market players.
Scope of the Report
The report on the global non-fungible token market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Non-fungible Token Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Applications (Gaming, Utilities, Metaverse, Collectibles, Art, Sports, Collectibles, and Others), Types (Digital Asset and Physical Asset), End-users (Commercial and Personal)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Takung Art Co., Ltd.; PLBY Group, Inc.; Dapper Labs, Inc.; Funko Inc.; Dolphin Entertainment, Inc.; YellowHeart; OpenSea (Ozone Networks, Inc.); Cloudflare, Inc.; and MakersPlace (Onchain Labs, Inc.)
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Market Segment Insights
Collectibles segment to expand at a considerable CAGR
On the basis of applications, the non-fungible token market is segmented into gaming, utilities, metaverse, collectibles, art, sports, collectibles, and others. The collectibles segment is projected to expand at a considerable CAGR during the forecast period. Collectibles are rare and precious artefacts that collectors seek out and buy. Traders seeking short-term gains and crypto billionaires who enjoy collecting goods are examples of collectors. The categories of collectibles include art, video, music, and games, to name a few. Collectibles provide a variety of benefits, including independence, ease, and liquidity. Unknown artists, for example, can instantly connect with potential buyers and sell their creations. The gaming segment is anticipated to account for a major market share during the forecast period. The gaming industry is evolving with creative advanced games such as Strategy Role Playing Game, in which gamers may create a game character and use NFT to acquire ownership of that character, which can then be sold on other marketplaces.
Digital Asset segment to hold a significant share of the market
In terms of types, the market is bifurcated into digital asset and physical asset. The digital asset segment is expected to hold a significant share of the market in the coming years, due to rising demand for digital artworks. The physical asset segment accounts for a significant market share, due to increasing need of a decentralized marketplace.
Commercial segment to expand at a high rate during the forecast period
Based on end-users, the non-fungible token market is segregated into commercial and personal. The commercial segment is expected to expand at a high rate during the forecast period, due to the increasing demand for NFTs for use in businesses. The personal segment is expected to be the fast-growing segment during the forecast period, owing to transparency and immutability. This ensures that supply chain data is authentic and comes from a trustworthy source.
North America is anticipated to constitute a key market share
In terms of regions, the non-fungible token market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the forecast period, owing to the presence of major players of the market in the region. The market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, due to increasing adoption of cryptocurrencies in some prominent countries.
Segments
The global non-fungible token market has been segmented on the basis of
Applications
- Gaming, Utilities
- Metaverse
- Collectibles
- Art
- Sports
- Collectibles
- Others
Types
- Digital Asset
- Physical Asset
End-users
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Takung Art Co., Ltd.
- PLBY Group, Inc.
- Dapper Labs, Inc.
- Funko Inc.
- Dolphin Entertainment, Inc.
- YellowHeart
- OpenSea (Ozone Networks, Inc.)
- Cloudflare, Inc.
- MakersPlace (Onchain Labs, Inc.)
Competitive Landscape
Key players competing in the global non-fungible token market are Takung Art Co., Ltd.; PLBY Group, Inc.; Dapper Labs, Inc.; Funko Inc.; Dolphin Entertainment, Inc.; YellowHeart; OpenSea (Ozone Networks, Inc.); Cloudflare, Inc.; and MakersPlace (Onchain Labs, Inc.)
In order to improve their market position and extend their client base, these organizations are adopting a number of organic and inorganic growth tactics. PLBY Group, Inc., for example, launched Rabbitars, a new NFT initiative in October 2021. The business joined the blockchain and NFT industry to deliver Playboy's new membership options. It debuted Liquid Summer, a collection of digital artworks developed in partnership with Slimesunday, as its inaugural NFT release. This collection was sold out in 3 minutes after being disseminated through Nifty portals. Vendor initiatives such as these are propelling the market.
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