Global NFT Market To Grow More Than 3-Fold To $13.6 Billion By 2027: Report

A new report says the global NFT (non-fungible tokens) market size is expected to grow to $13.6 billion by 2027.

"The global NFT market size is expected to grow from $3.0 billion in 2022 to $13.6 billion by 2027, at a compound annual growth rate (CAGR) of 35% from 2022 to 2027," the "Global Non-Fungible Tokens Market by Offering (Business Strategy Formulation, NFT Creation, and Management, NFT Platform - Marketplace), End-user (Media and Entertainment, Gaming), Region (Americas, Europe, MEA, APAC) - forecast to 2027" report published Wednesday said.

According to the report, the major factors fueling the momentum of NFT growth include the increasing influence of celebrities on NFT adoption, revolutionizing of the gaming industry and the slow but continuing rise in demand for digital artworks.

The report noted that non-curated platforms provide free access to creators, unlike the curated ones, which have a stringent policy toward creators' selection. "That is why non-curated platforms have been widely accepted by the creators to sell their digital assets," it said.

To expand their growth, various organizations are stepping into the NFT space. For example, Coinbase Global, a U.S. crypto exchange, launched its NFT marketplace. Developments like this have contributed to the growth of the NFT market, the report said.

Further, the report noted that the Americas is expected to be the largest contributor in terms of the market size in the global NFT market. U.S. companies are investing in NFTs despite not having stringent laws, accounting rules and disclosure requirements.

The report highlighted the example of KPMG Canada, which purchased a piece of digital art from the "World of Women" NFT after its corporate treasury made its inaugural investment in cryptocurrency.

NFT marketplace OpenSea, unlike other platforms, does not impose a fee to mint NFTs. The platform charges a payment on the final sale price, which is currently 2.5%. With the OpenSea platform experiencing enormous success in 2021, the business model looks to be viable and is an excellent option for young NFT producers to get started.

Major companies such as OpenSea, Larva Labs, Cloudflare and Dapper Labs are headquartered in North America.

"Investments and creations similar to these are motivating the artists to be a part of this booming NFT world, which can be a major factor in the growth of the NFT market," the report said.