Market Definition
Non-Fungible Tokens are unique cryptographic tokens designed in such a manner that allows them to differentiate from the physical form of currencies and cryptocurrencies. Since they work on a blockchain mechanism and possess a particular identification code, exchanging them and transferring their ownership becomes impossible. One of the significant features is that they are created to store important information and assets of an individual in a virtual form, including property, personal identification, videos, music files, images, etc.
Market Insights
The Global Non-Fungible Tokens Market is projected to grow at a CAGR of around 34% during the forecast period, i.e., 2023-28. As art galleries and other NFT-related assets were shut down due to the lockdown at the start of the pandemic, art vendors and collectors were forced to move into the digital sphere.
In addition, given art fairs becoming online, galleries mastering virtual reality, and auction houses offering mixed bids integrating art and luxury products, the demand for innovation in the art industry has increased, and numerous companies and venture capitalists have been drawn to the sector. This has led to a boom in new payment methods and tools for creating, managing, and selling non-fungible tokens, opening up prospects for users to take advantage of the Art+Tech-fueled NFT technology.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 34% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Italy, Rest of Europe | |
| Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Rest of South America | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa, Rest of MEA | |
| Key Companies Profiled | Cisco, Fireeye Inc., IBM, Manageengine [ZOHO], Netscout Systems, Niksun, Novetta Solutions, Opentext, Palo Alto Neworks, RSA Security, Solarwinds, Sonicwall, Symantec [Broadcom], Vectra AI, Viavi Solutions, Others [Graylog, Difose, etc] |
| Unit Denominations | USD Million/Billion |
Other than artworks, numerous factors contributing to the rise of the non-fungible tokens include the rising awareness of virtual assets, the emerging trend of blockchain technology-based gaming experience, the introduction of the Metaverse concept, and rapid migration from physical to cryptocurrencies, among others. Thus, the bank accounts of such token creators are expected to get flooded with monetary funds due to augmenting demands for these tokens. Meanwhile, it has some severe limitations as well. Owing to the absence of regulations and licensing authorities, there arises the risk of cloning such assets. Thus concerns related to the cloning of famous compositions or creations may discourage the trade of NFTs, hindering the market expansion during the forecast period.
Market Dynamics
Key Drivers: Expansive Incorporation of NFTs by the Gaming Industry
The gaming sector is already developing games that will offer users the leverage of virtual assets to purchase and restore them. Every asset might possess its unique identifying code for trading or selling. For instance, an individual gamer can use non-fungible tokens to buy virtually any character, skins, properties, arms, and ammunition in the game. However, multiple games are still waiting to be onboard that might be witnessed taking into use the tokens. Altogether, this would create a center of attraction for more and more audiences and establish a true sense of entertainment along with progress. It will also encourage upcoming users to indulge and deeply dive into blockchain technology-based gaming experiences. Eventually, the large influx of such investments will revolutionize the gaming sectors, enabling the market to be worth progressing in the long run.
Possible Restraint: The Absence of Regulations and Legal Framework Poses Cloning Risk
The first and foremost factor restraining the market from flourishing further includes the absence of regulations and legal framework. Although the NFTs are designed to own the assets in a virtual form, they bring the risks of being copied or circulated online. Creations, including pictures, music, etc., can be replicated within a fraction of a second. So far, the marketplace is still processing building a diversified legal framework to help the owners claim the copyrights of their assets.
Growth Opportunity: Turning Metaverse into A Hit Concept by The Sharks of the Industries
A long-term vision intended by the industry giants is to make Metaverse a hit concept. Since the entire baseline of Metaverse revolves around digital avatars and having to allow the access of virtual assets to its users with the help of Augmented Reality (AR), Extended Reality (ER), and Virtual Reality (VR), NFT can change the whole picture by enabling real-life characters to pile up the new ambition of the virtual digital era. Besides, the tokens can modernize the blockchain ecosystem if they go hand in hand with Metaverse to establish virtual socialization, interaction, and transactions. Backed by these aspects, the market is likely to open up new opportunities for the leading players.
Key Trend: Elevating Investment in Rare and Tangible Assets for Long-Term Value
People, in recent times, are looking forward to investing in NFTs to get long-term value. Since it follows the blockchain mechanism, users can easily make their investments and expect a good deal in the future, similar to investing in the share market and cryptocurrencies. The potential to survive for a more extended period in the market, alongside the probability of being a tangible asset, projects the exact value of an NFT and encourages consumers' inclination towards such tokens.
Market Segmentation
Based on Application,
The Gaming segment is anticipated to acquire the lion's share in the Global Non-Fungible Tokens Market through 2028 because of the sector’s willingness to integrate blockchain technology into the numerous gameplays. All because blockchain methodology enables users to own any desirable character, land, weapon, and even costumes or ammo in the games. User engagement, gaming interface, and transactions in the form of NFTs will enable real rollercoaster progress in terms of revenue.
Eventually, the investments will revolutionize the industry to be worth carrying forward since each token will have its unique identifying code through which gamers will substantially become able to trade or sell them for profits. Secondly, the gaming assets will now have their owners. Hence, it is a new strategic way to initiate investments and enjoy the benefits of selling or holding them for long-term financial gains.
Based on Offering:
Business Strategy Formulation acquired the highest revenue share, among other offerings, in the Global Non-Fungible Market in the historical period. It owes principally to the plethora of revenue models and benefits that NFTs offer to several businesses, including media and entertainment, gaming, finance, healthcare, and so on. Additionally, a substantial number of audiences and small organizations are inclined toward innovation and growth prompted by blockchain technology. In view of this, the industry behemoths have already stretched their horizons to cope with the endless boundaries of blockchain methods, due to which they can speculate a massive growth during the projection period.
Regional Projection
Geographically, the Global Non-Fungible Tokens Market expands across:
In accordance with the regional projection, North America collected the maximum revenue compared to the remaining regions in 2022. This is because North Americans understood the market dynamics even before the NFTs became the uproar of the blockchain ecosystem. As a result, it remains a notable region for the entire market of such types of assets that have been created so far. Furthermore, users of the nation are driving their interest toward the same since the elite organizations out there started employing the token as a gesture of rewards and incentives. Another significant factor that led to the positive impact of NFTs in the region includes the successful operation of Metaverse.
Recent Developments in the Market
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Frequently Asked Questions
A. The Non-Fungible Tokens Market is projected to grow at a CAGR of around 34% during 2023-28.
A. Expansive incorporation of NFTs by the gaming industry is likely to drive the Non-Fungible Tokens Market during 2023-28.
A. Cloudflare, Inc. (America), Gemini Trust Company, LLC (America), Open Sea (America), Dapper Labs (Canada), Rarible, Inc. (America), SuperRare (America), Semidot Infotech (India), Mintbase (Germany), Axie Infinity (Vietnam), Larva Labs (America), AppDupe (India), and Yellowheart (America).
A. Business Strategy Formulation is the leading 'offering' in the Non-Fungible Tokens Market during 2023-28.
A. North America would present growth prospects in the Non-Fungible Tokens Market during 2023-28.
A. Elevating investment in rare and tangible assets for long-term value is likely to shape the growth of the Non-Fungible Tokens Market during 2023-28.
A. A long-term vision intended by the industry players is to make Metaverse a hit concept. Meanwhile, the rising advancement of blockchain technology is pushing the limits of NFTs to create a tremendous revolution in the market.
