Non-fungible Token Market by Offering (Business Strategy Formulation, NFT Creation and Management and NFT Platform – Marketplace), by End User (Media and Entertainment, Gaming, and Others) – Global Opportunity Analysis and Industry Forecast, 2024 – 2030

Market Definition

The Non-fungible Token Market size was valued at USD 3.10 billion in 2023 and is predicted to reach USD 18.55 billion by 2030 with a CAGR of 29.6% from 2024-2030.

A non-fungible token (NFT) is a financial security consisting of digital data stored in a blockchain, a form of distributed ledger. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded. NFTs can be created by anybody, and require few or no coding skills to create. NFTs typically contain references to digital files such as photos, videos, and audio. Because NFTs are uniquely identifiable assets, they differ from cryptocurrencies, which are fungible. The market value of an NFT is associated with the digital file it references.

Market Dynamics and Trends

The growing digitalization of assets, including artwork, music, collectibles, and virtual real estate, creates demand for the tokenization of unique digital items using NFTs, fueling market growth. According to the data by Security.org reveals that approximately 4% of Americans engaged in buying or selling NFTs in 2022, translating to around 9.3 million U.S. residents participating in NFT transactions.

Moreover, the rapid technological advancements in blockchain infrastructure, such as scalability improvements, interoperability solutions, and reduced transaction costs, enhance the efficiency and accessibility of NFT platforms, encouraging broader adoption and market participation.

As outlined in the PwC report, the global market is projected to achieve a value of USD 1.43 trillion by 2030, with an impressive compound annual growth rate (CAGR) of 85.9%. The expanding utility of blockchain across various sectors like supply chain management, financial services, trading, and more is driving this growth trajectory.

In addition, the incorporation of NFTs into gaming environments, virtual realms, and metaverse platforms facilitates the ownership, exchange, and monetization of in-game items, virtual properties, and digital collectibles, fueling interest among gamers and members of virtual communities.

However, the presence of regulatory ambiguity, dynamic legal structures, and the need for compliance in NFTs, cryptocurrencies, and digital asset markets pose significant compliance hurdles and legal uncertainties for market players, impeding institutional acceptance and widespread incorporation.

These factors act as barriers to the expansion of the NFT sector. On the contrary, the rising advancements in smart contract technology (e.g., Ethereum's EIP-721, EIP-1155) enable developers to create more versatile and efficient NFT contracts, supporting features such as batch minting, royalties, and programmable ownership rights. Therefore, it is expected to create opportunities for the NFT industry in the coming years. 

Market Segmentations and Scope of the Study

The non-fungible token market is segmented on the basis of offering, end user and region. On the basis of offering, the market is divided into business strategy formulation, NFT creation, and management and NFT platform. On the basis of end user, the market is classified into media and entertainment, gaming, and others. Regional breakdown and analysis of each of the previously mentioned segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the predominant share of NFT market and is expected to continue its dominance during the forecast period. This is attributed to the factors such as the increasing celebrity endorsements and brand partnerships between celebrities, artists, and brands contribute to the popularity of NFTs, driving demand as fans and collectors seek unique digital assets associated with their favorite personalities and brands.

For instance, the major Hollywood celebrities such as Paris Hilton, Snoop Dogg, and Shawn Mendes have embraced the NFT marketplace, launching their own NFTs to capitalize on this growing trend in the crypto space. 

Moreover, the market expansion in the region is enhanced by the adoption of NFTs by the airline sector propels the demand for the market. For example, Volaris becomes the inaugural Mexican airline to venture into the NFT market, introducing the Volaris Annual Pass, a pioneering product merging NFTs with travel experiences.

On the other hand, Asia-Pacific is expected to show a steady rise in the NFT market due to the growing partnerships such as the alliance between Asia Innovations Group and AI3 Labs, launching live-streaming NFTs driven by Generative AI, play a crucial role in propelling the NFT sector forward.

This innovative step where AI intersects with blockchain technology transforms the creator economy by providing distinctive interactive NFTs, ultimately boosting user engagement in the digital entertainment realm. 

Furthermore, growing demand for NFTs in the prominent food & beverage outlets across the region is fueling the market growth. For instance, Starbucks Korea debuts the first NFT in Asia, introducing the STARBUCKS STAR LIGHT project to promote the use of personal cups and eco-friendly practices.

Competitive Landscape

The non-fungible token market comprises of various market players such as OpenSea, Rarible, Axie Infinity, Decentraland, NBA Top Shot (Dapper Labs), CryptoPunks (Larva Labs), Bored Ape Yacht Club (BAYC), Sorare, ArtBlocks, SuperRare, Foundation, Async Art, Zora, The Sandbox, and Terra Virtua among others. These market players are adopting various launches and collaborations across various regions to maintain their dominance in the NFT market.

For instance, in November 2023, RaribleX, introduced by Rarible, is a marketplace solution empowering mainstream brands and developers in Web2 and Web3. It offers customizable features like NFT drops, secondary marketplaces, and integrated crypto wallet support.

Moreover, in April 2023, OpenSea introduced OpenSea Pro, a platform targeting professional NFT traders, offering advanced features to enhance trading efficiency and cater to the needs of experienced traders. Also, in March 2022, The Sandbox partnered with the first of its kind NFT community, World of Women, to provide them grand funding of USD 25 million to amplify the representation of women in the digital spaces. In addition, in March 2022, The Sandbox partnered with the first of its kind NFT community, World of Women, to provide them grand funding of USD 25 million to amplify the representation of women in the digital spaces.

Key Benefits

• The non-fungible token market report provides the quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the non-fungible token market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints and opportunities and their impact on the non-fungible token market is provided in the report.

• The competitive analysis of the market players along with their market share in the non-fungible token market.

• The SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

Key Market Segments

By Offering 

• Business Strategy Formulation

• NFT Creation and Management

• NFT Platform - Marketplace

By End User 

• Media and Entertainment

• Gaming

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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