DUBLIN, September 15, 2022 /PRNewswire/ — That “Report to Analyze Global Non-Fungible Tokens Market Size, Share, and Industry Trends by Type, End-Use, Application, Regional Outlook and Forecast, 2022 – 2028” Report has been added ResearchAndMarkets.com Offer.
The size of the global non-fungible token market is expected to be reached $97.6 billion to 2028, increasing at a market growth of 31.6% CAGR during the forecast period.
Non-fungible tokens (NFTs) are blockchain-based cryptographic assets with unique metadata and identification codes separating them from one another. Unlike cryptocurrencies, they cannot be bought or exchanged at face value. This is in contrast to fungible tokens like bitcoins, which are all similar and can therefore be used as a medium of exchange.
The unique construction of each NFT allows for a variety of applications. They’re a great way to digitally represent real things like real estate and artwork. NFTs can also be used to eliminate intermediaries, connect artists with audiences or for identity management as they are based on blockchains. NFTs can eliminate intermediaries, streamline transactions and open up new markets.
NFTs, like Bitcoin, contain proprietary information to facilitate identification as well as transfer between token holders. In NFTs, owners can add additional metadata or aspects related to the asset. For example, Fairtrade tokens can be used to represent coffee beans. Artists can also sign their digital artworks with their own signature in the metadata.
The ERC-721 standard led to NFTs. ERC-721 defines the basic interface, such as ownership details, security, and metadata, required for the distribution and exchange of gaming tokens. The ERC-1155 standard extends this notion by reducing transaction and storage costs for non-fungible tokens and combining multiple types of non-fungible tokens in a single contract.
For example, Decentraland, an Ethereum-based virtual reality platform, has already implemented this concept. It may become possible to deploy the same concept of tokenized land (varying by value and location) in the physical world as NFTs become more complex and integrated with financial infrastructure.
The most widely used token standard for NFTs is Ethereum. The ERC-1155 and ERC-721 token specifications are commonly used to construct NFTs. Blockchains like Flow, EOS, and Tezos offer token specifications alongside Ethereum for building NFTs.
In addition, it is predicted that Ethereum’s upcoming shift from proof-of-work to proof-of-stake will significantly reduce the energy consumption of the blockchain. As a result, the use of Ethereum tokens for NFTs is expected to increase globally.
Market Growth Factors:
Generation of economic prospects
For a long time, the main focus of the NFT experts was on their essential properties. In modern times, NFTs have a wide range of applications in the field of digital content. The main reason for the viability of NFTs in the digital content space lies in the diversity of industries.
Content creators are often concerned that competing platforms are eroding their income and earning potential. For example, a digital artist who posts content on social media can monetize the site by selling ads to the artist’s audience. While the artist gets decent visibility, it doesn’t help the artist make money in exchange for platform perks.
Enables intellectual property building with authenticity
The fundamental benefit of NFTs is that they enable people to own intellectual property. When intellectual property is contained on a blockchain, it is easier to monitor ownership. It’s also easy to ensure that the IP holder doesn’t violate anyone else’s IP. For example, a fashion designer can design a piece of clothing and then embed it in a blockchain smart contract.
The blockchain can then store the unique design as well as the designer’s ownership of it. The designer then has the option of selling the design to a customer. The consumer can use the blockchain to authenticate the design and confirm that it has not been replicated.
Marketing Limiting Factor:
The threat of digital copy generation
While the integrity of a blockchain is unassailable, NFTs can also be used to propagate fraud. There are various cases where several artists have reported offering their works for sale as NFTs on online marketplaces without their permission. This clearly goes against the purpose of using NFTs to facilitate the commercialization of paintings.
The value proposition of an NFT is that it uses a unique token to verify a physical work of art, ensuring that the owner of the token also owns the original work of art. If someone develops an electronic copy of the original work, attaches a token to it, and sells it on a virtual marketplace, there are serious concerns.
Based on the type, the market is segmented into digital asset and physical asset.
In 2021, the Digital Assets segment acquired the largest revenue share of the non-fungible token market. The rising growth of the segment is attributed to the increasing use of NFTs by artists around the world to secure ownership of their digital assets. Artists can benefit from their work by retaining ownership of it through NFTs and not having to make it available to other platforms for promotion. At the same time, the increasing use of NFTs to sell digital properties in both the real and virtual world is likely to propel the market.
Stop using Outlook
Based on end use, the market is segmented into residential and commercial.
In 2021, the commercial segment recorded a significant revenue share of the non-fungible token market. The increasing use of NFTs for business goals such as supply chain management and logistics innovation is likely to drive the industry. Companies in the logistics industry are increasingly integrating blockchain technology into their operations and opening up new expansion opportunities for the industry.
Based on application, the market is segmented into collectibles, art, games, sports, utilities, metaverse and others.
In 2021, the collectible segment sourced the largest revenue share of the non-fungible token market. NFT coins that can be minted in NFT exchanges are called crypto collectibles. The increased demand for crypto assets can be coupled with benefits such as asset independence and ease of use. For example, sports collectibles allow fans to interact directly with their heroes, game collectibles allow players to interact and play, and artist collectibles allow them to connect with potential customers and sell their work.
2021, North America accounted for the largest revenue share of the non-fungible token market. Millennials in the region are increasingly adopting NFTs, driving regional market growth. At the same time, the number of artists who like digital artworks in nations is increasing The United States and Canada should boost regional market growth. The presence of major players in the blockchain business in the region is also encouraging for the regional market.
Important market participants
- Cloudflare, Inc.
- Gemini Trust Company, LLC
- Ozone Networks, Inc.
- Dapper Labs, Inc.
- Semidot Infotech
- The Sandbox (BACASABLE Global Limited)
scope of the study
- digital asset
- physical asset
According to end use
- To play
According to geography
- North America
- the rest of North America
- United Kingdom
- the rest of Europe
- Asia Pacific
- South Korea
- the rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
For more information about this report, visit https://www.researchandmarkets.com/r/z7b0x6
research and markets
Laura WoodSenior managers
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SOURCE Research and Markets