NFTs have been around for a while, but their popularity has only begun to explode in 2021, and this has resulted to a massive increase in global market size. While skeptics might perceive the global NFT boom as yet another bubble, a new forecast predicts that the existing NFT market size can grow even more drastically in the next five years.
A new report from research firm MarketsandMarkets outlines how the existing $3 billion global NFT market size is expected to reach $13.6 billion by the end of 2027. According to the report, some of the contributing factors include the growing involvement of celebrities and influencers in the NFT space, the NFT revolution in the gaming industry, as well as the rising demand for digital artworks that keeps growing over time.
In addition to that, the report also mentions the increasing use cases of NFT in supply chain management, retail, and fashion as a catalyst to the growth of the NFT market. This is on top of the continued efforts of industry giants like Meta and Epic Games toward making metaverse a reality, which is obviously another factor contributing to the increasing market size of the entire NFT industry.
Speaking of Meta, Instagram recently announced that it has started to test NFT integration on its platform, and that Facebook will follow suit soon. With more than three billion combined active users, Instagram and Facebook certainly has the potential to further boost NFT adoption, and ultimately affect the growth of the global NFT market size.
On a regional level, the Americas are estimated to hold the largest market share of the global NFT market in 2022. However, the Asia Pacific is projected to grow its NFT market size at the highest compound annual growth rate (CAGR) during the forecast period. MarketsandMarkets cited data from Google Trends showing Asia Pacific countries as being the most active in searching for information about NFTs, their trends, developments, and investments. The three top APAC countries with the highest number of NFT-related inquiries are China, Singapore, and Hong Kong.
Source: Cointelegraph. Header image: Piggybank via Unsplash.
