The non-fungible token (NFT) sector has the potential to be worth over $13 billion by the end of 2027, according to a report from research firm MarketsandMarkets.
In a report titled, “Non-Fungible Tokens Market by Offering (Business Strategy Formulation, NFT Creation and Management, NFT Platform – Marketplace), End User (Media & Entertainment, Gaming), Region (Americas, Europe, MEA, APAC) – Global Forecast to 2027,” the company said, noting that the market size could increase significantly in a few years if investor interest continues to grow.
According to the research firm, the NFT spaces’ current $3 billion valuation will reach $13.6 billion based on the Compound Annual Growth Rate (CAGR) of 35.0%.
Factors responsible for growth
The research firm has identified three main factors necessary for the continued growth of the NFT sector. According to the report, the growth of the gaming community alongside the works of mainstream influencers and the demand for digital artwork would help push the space to new heights.
MarketsandMarkets noted that these three factors have helped the sector achieve mainstream status in the last two years, especially as celebrities’ increased adoption of NFTs has boosted its appeal.
However, the company noted that the following factors will also help drive the space’s growth. This includes new use cases in fashion, retail, and supply chain management.
Asia is expected to have the highest growth in NFTs adoption
While America currently has the largest market share of the NFT market, Asia is expected to have the highest growth rate within the forecast period.
The expected growth in Asia is driven by interest from Asia-Pacific investors, as evidenced by Google search trends for NFT-related topics in the region. Part of the report says,
APAC countries are emerging toward constant developments, and marketplace launches in the given market to give creators and buyers equal opportunities in the ecosystem.
A different report shows the growth of the NFT market
Several reports from various organizations have hinted at the continued growth of the NFT market.
A recent BeinCrypto report revealed that sales in the industry remain strong despite claims to the contrary by traditional media reports. According to the report, the death of NFTs has been greatly exaggerated.
A Nansen report also said that the NFT sector has outperformed the broader crypto market on the metric year-to-date. The blockchain analytics firm has predicted that the valuation of NFTs could reach $80 billion by 2025.
