July 7, 2022
By Anjali Kochhar
The non-fungible token (NFT) market estimates a market value of USD 147.24 billion from 2021 to 2026, a new report by Technavio has revealed.
The report further projected the market to progress at a compound annual growth rate (CAGR) of 35.27%.
As per the report, the non-fungible token (NFT) market share growth by the collectables segment will be significant during the forecast period.
The report noted that the growth of the collectable segment is majorly driven by the growing demand for digital assets across the world. Some of the vendors offering NFT collectables include Funko Inc., Foundation, and Makersplace.
Globally, NFT has gained traction in digital art applications through the Internet, social media, and other digital mediums.
Further, the report said that NFTs permit greater accessibility to the art world. Instead of visiting a gallery, buyers can instantly visit online portals for buying NFT artworks.
The tokens can be used to sell artworks directly through virtual platforms, reducing the turnaround time of purchase. Therefore, such factors are driving the demand for the global NFT market, the report said.
As per the forecast, the growing number of big brands entering the market will impact the industry positively in the forecast period.
Big brands such as Visa Inc. and Budweiser are showing more interest in buying NFTs rather than making their own NFTs. With a growing number of e-commerce brands, consumers are shifting toward Web 3.0.
The digitally native brands such as eBay Inc. and Amazon are showing more interest in NFTs. Such developments are expected to increase the number of transactions in the NFT market, thus fostering market growth in the coming years.
The report segments the non-fungible token (NFT) Market by Application (Collectibles, Sports, Arts, and Others) and Geography (APAC, South America, Middle East, Africa, North America, and Europe).
It said that 43% of the market’s growth will originate from the Asia Pacific region during the forecast period. Singapore, China, and The Philippines are the key markets for non-fungible tokens (NFT) in APAC. However, market growth in this region will be slower than the growth of the market in other regions.
The growing demand for digital assets in countries such as Singapore, China, South Korea, the Philippines, and Japan will facilitate the non-fungible token (NFT) market growth in APAC over the forecast period.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.