Non-Fungible Tokens Market Expected to Reach $395.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Non-Fungible Tokens Market, By Offering (Business Strategy Formulation, NFT Creation And Management, NFT Platform-Marketplace), By Application (Collectibles, Utilities, Art, Gaming, Metaverse, Others), By End User (Personal, Commercial): Global Opportunity Analysis And Industry Forecast, 2023-2032" The non-fungible tokens market was valued at $22.5 billion in 2022, and is estimated to reach $395.6 billion by 2032, growing at a CAGR of 33.5% from 2023 to 2032.

The non-fungible tokens market trends witnessed the introduction of new use cases and applications as virtual real estate, metaverses, and in-game objects have all acquired traction as significant NFT assets. Virtual land ownership and the construction of immersive virtual worlds present prospects for developers, players, and investors. Furthermore, digital art and collectibles remain prominent NFT categories, with artists experimenting with new forms of digital expression. Moreover, environmental problems have gained prominence in the NFT sector. The energy usage related to blockchain networks, notably Ethereum, has prompted concerns about the carbon footprint of NFTs. As a result, there is a growing desire for more sustainable blockchain solutions and the creation of eco-friendly alternatives.

Furthermore, major market players are undertaking various strategies to increase the competition and offer enhanced services to their customers, for instance, on May, 2022, the Dubai government was an early adopter of bitcoin and the metaverse. The Dubai Virtual Assets Regulatory Authority (VARA) announced the purchase of a plot of land in The Sandbox metaverse to house its virtual headquarters. Furthermore, it aspires to attract a global audience while also increasing environmental sustainability and social inclusion, as a virtual headquarters would require fewer physical resources to handle day-to-day operations. Moreover, on December 2022, Enjin launched wallet 2.0, one of the most secure, simple, and seamless NFT and cryptocurrency management tools for beginners, gamers, and crypto native communities. It allows users to hold assets ranging from Bitcoin and Ethereum including Ethereum-based assets such as Binance Smart Chain assets and Enjin Coin assets to assets generated on Efinity, Polkadot's NFT chain, and select para chains. Advanced users can leverage multi-address capability to divide assets into distinct addresses from the same interface. Therefore, these strategies reflect the non-fungible token industry's efforts to expand its global footprint and leverage technology to deliver enhanced services to clients.

By offering, the NFT platform-marketplace segment attained the highest growth in 2022. This can be attributed to the fact that these platforms act as centralized centers for NFT artists, allowing them to promote and offer their digital assets to a global audience of potential purchasers. They offer an easy-to-use interface, quicker transaction processes, and a secure environment for NFT operations. Furthermore, NFT platforms provide useful discovery and editing tools, assisting users in navigating the enormous number of available NFTs. They frequently use search filters, categories, rankings, and trending areas to help consumers explore and find NFTs that are relevant to their interests. This customized experience increases user engagement and transaction volume. Moreover, the same segment is expected to be the fastest growing segment in the Non-fungible tokens market during the forecast period.

Region-wise, North America attained the highest market share in 2022 and emerged as the leading region in the non-fungible token market. This can be attributed to the fact that Venture capital firms, technology businesses, and institutional investors have made major investments in the North American NFT industry. These investments have accelerated the region's Non-fungible tokens market growth and aided in the creation of innovative NFT projects and platforms. Furthermore, North America's strong regulatory framework and legal safeguards give participants in the NFT industry a sense of security and confidence. Clear norms and the enforcement of intellectual property rights lead to a better business climate, attracting creators, buyers, and investors. However, the Asia-Pacific region is projected to be the fastest-growing region for the non-fungible tokens market forecast period. This growth can be attributed to the fact that favorable legislative frameworks in several Asia-Pacific countries have offered clarity and support for the development of the NFT business. Clear norms and legal protections for digital assets and intellectual property rights have contributed to a favorable environment for NFT acceptance and growth.

The COVID-19 pandemic had a positive impact on the non-fungible tokens industry. As people explored alternatives to real contacts, the pandemic resulted in an increase in digital engagement and a move towards virtual experiences. This produced a fertile climate for the NFT market to grow, as NFTs provide a unique form of digital ownership as well as a way for artists, creators, and collectors to communicate and transact in the digital arena. Raise in online time, combined with a growing interest in digital art and collectibles, contributed to the increasing demand for NFTs during the pandemic. However, it is crucial to note that the market has also faced significant obstacles, including excessive volatility and environmental issues related to the energy consumption of blockchain networks.  Therefore, the impact of COVID-19 on the non-fungible tokens market size might be considered primarily positive.

Key Findings of the Study

• By offering, the NFT platform-marketplace segment led the non-fungible tokens market growth in terms of revenue in 2022.
• By application, the collectibles segment accounted for the highest Non-fungible token market share in 2022.
• By end user, the personal segment accounted for the highest Non-fungible tokens market share in 2022
• By region, North America generated the highest revenue in 2022.

The report analyzes the profiles of key players operating in the non-fungible tokens market analysis such as Binance, CONSENSYS, Enjin, Gala Games, Mintable., Nifty Gateway., Ozone Networks Inc, Rarible Inc., SuperRare, and The Sandbox. These players have adopted various strategies to increase their market penetration and strengthen their position in the non-fungible token market.