Art NFT Market is segmented By Type (Paintings, Sculptures, Prints, Digital Art, Photography, Film or Video Art, Others), By Generation (Gen Z, Millennials, Gen X, Bloomers), By Sales Channel (NFT Community, NFT Marketplace), and By Country (U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa)
The Art NFT was estimated at USD XX Billion in 2021 and is expected to reach USD XX Billion by the end of 2032 with a CAGR of 6.7% during the forecast period.
NFTs are a type of crypto asset, but as opposed to Bitcoins that are fungible or interchangeable, NFTs are a unique digital representation of an art that is reshaping the traditional art market. It’s akin to a certificate of authenticity of a digital asset and gets recorded on a “blockchain,” a digital database. The implications for buying and selling art NFTs are interesting not only for the artists but also for collectors, galleries, museums, and auction houses. The sale of Mike Winkelmann’s “Everydays—The First 5,000 Days” NFT in 2021, by a British auction house, Christie’s for a whopping $69m, proved to be the turning point.
NFT Participants Interaction Platforms
The global NFT community primarily coordinates activities and discusses NFTs via popular social media platforms, and trading of NFTs is performed via marketplace websites, which provide escrow services and easy-to-use interfaces that list NFTs for purchase or sale.
• NFT Communities: Some discussion and interaction among NFT market participants occur on sites like Instagram, Facebook, and TikTok, but the majority happens on two social media networks, Twitter and the Discord chat application. Generally, an NFT community creates a Discord server for community members, with gated chat channels only accessible to members that have proven ownership of an NFT in the associated collection. Many influencers on Twitter, have dedicated pseudonymous accounts that discuss only NFTs and display expensive collections.
• NFT Marketplaces: Many NFT Marketplaces have emerged to meet the needs of the participants in the NFT ecosystem, such as OpenSea, Rarible, and LooksRare, offer familiar e-commerce interfaces for buying and selling NFTs, with features such as auctions and “buy-it-now” listings. These marketplaces vet artist-created NFT collections, attempt to ban fraudulent projects, and also verify the legitimacy of NFT collections to facilitate safety for users in their purchases.
The Future of Art NFTs and Updated Art-Market Dynamics
The NFT art market sits at the crossroads of cutting-edge technology and the traditional art market, creating a unique digital culture and a digitally realized marketplace that has the potential to empower artists by adjusting the market power in their favour. The fact that NFTs reside in smart contracts makes it possible for artists to set detailed policies ranging from dictating pricing, sale conditions to anti-hoarding measures that limit the number of purchases of an artist’s work by a single individual. This will lead to a realignment of roles in the traditional / contemporary art market, shifting responsibilities for promotion, sale, and resale to advantage the artists and reduce the power of intermediaries such as galleries while creating high-tech art jobs. Some ways in which the dynamics of NFT marketplaces can surpass traditional art markets are highlighted below.
• No-trust relationships between artists and buyers: NFT sales are executed via a smart contract, which means no trust is required between the parties, i.e., if either side fails to fulfil his/her conditions, the smart contract voids the sale. This guarantees that the artists receive the money they ask for their work while the buyers receive authentic work.
• Mechanized curation of buyer lists for primary and secondary markets: In traditional art markets, vetting buyers is a manual process, and artists and gallerists often prefer to sell to buyers who will cherish an artist’s work and help promote it. The integration of technical properties of smart contracts and decentralized identity automates the process of vetting NFT buyers and NFT sale policies such as discounts for established NFT artists, and “Fair drops” or limiting purchases to one piece per buyer to prevent accumulation by bots.
• Dictating forms and conditions of ownership: With NFTs, smart contracts enforce how works are sold or resold, and enables sellers to overcome mistrust of new collectors. Artists who want to discourage price speculation enable NFTs can enforce a minimum period of ownership of minutes, years, or even for all time and restrict how frequently and to whom the work can be resold.
• Dynamic pricing: As an alternative or complement to holding periods, smart contracts can allow artists to dictate sale prices for both primary and secondary markets, e.g., set dynamic pricing conditions.
• Innovative royalty schemes: One of the key marketplace innovations introduced by NFTs artists will receive certain percentage of the resale value of their works as a royalty. For example, DADA.nyc collectibles pay NFT artists a 30% commission for resales of their work.
• “Safe contract” to empower and protect artists: A set of standardized smart contracts for the distribution and resale of NFT artworks protects participants in NFT transactions from the challenges arising in a largely unregulated market.
• Provenance Meets Blockchain Transparency: NFTs are issued, stored, and sold on blockchains, which provide publicly-auditable records of all transactions. This means that tamper-proof records of an NFT’s provenance are always available.
NFT Artwork at the Cutting Edge of Technology
NFT artworks can rapidly benefit from innovations in their creation and purchase and sale, but they may also emerge as a new frontier for tech-savvy criminals.
• Monetization of influence: With more transparent ownership and faster sales cycles, there is an opportunity for well-known collectors and other high-profile individuals who can monetize the artists reputations through implicit or explicit endorsements.
• New forms of crime and forgery: A technologically savvy hacker can forge NFT artworks and to protect against such pedigree-forgery attacks, NFT artists need to maintain good cybersecurity practices. The techniques proposed for protection against cryptocurrency thefts could also help minimize the risk of NFT forgery.
Three Countries and Two Auction Houses Dominate the Global Fine Art Market
United States, China, and the United Kingdom are the leading countries in the global fine art market, cumulatively holding 80 percent of total sales value. In 2021, the United States generated the highest overall value of fine arts transactions, while China retained the highest share of fine art auction revenue worldwide. In terms of auction sales, two auction houses, Sotheby’s and Christie’s dominate the market. In 2021, the total sales of Sotheby’s peaked at USD 7.3 billion and Christie’s also bounced back in 2021 to 7.1 billion, including public auctions and private sales. In terms of revenue, Poly Auction, Heritage Auctions, and Phillips followed as leading auction houses worldwide.
Top Companies and Recent Strategic Developments:
•Artfi, launched in 2022, aims to redistribute fine art ownership through tokenizing and fractionalizing physical works of blue-chip fine art.
•The leading NFT marketplace launched a new Concierge Program in October 2022, aiming to enhance the overall purchasing experience for digital art collectors through customized solutions available on the platform
•In October 2022, London-based contemporary artist Jacky Tsai and his fashion-forward MetaSkull Collection become the designers first foray into the metaverse debuting in Upland, bringing Fashion and Fine Art to the Metaverse.
•Pablo Picasso’s Femme Assise Pres d’Une Fenetre (Marie-Therese) fetched over $100 million, becoming 2021’s biggest auction sale.
•Yayoi Kasama became the first woman in history to become one of the top 10 global artists by turnover.
•Mike Winkelmann’s “Everydays—The First 5,000 Days” NFT was sold in 2021, by a British auction house, Christie’s for a whopping $69m
Years considered for this report
• Historical Years: 2019-2021
• Base Year: 2021
• Forecast Period: 2022-2032
Art NFT Market Research Report Analysis Highlights
• Historical data available (as per request)
• Estimation/ projections/ forecast for revenue and unit sales (2022 - 2032)
• Data breakdown for application Industries (2022 - 2032)
• Integration and collaboration analysis of companies
• Capacity analysis with application sector breakdown
• Business trend and expansion analysis
• Import and export analysis
• Competition analysis/market share
• Supply chain analysis
• Client list and case studies
• Market entry strategies adopted by emerging companies
Industry Segmentation and Revenue Breakdown
Type Analysis (Revenue, USD Million, 2022 - 2032)
• Digital Art
• Video Art
By Generation (Revenue, USD Million, 2022 - 2032)
• Gen Z
• Gen X
Sales Channel Analysis (Revenue, USD Million, 2022 - 2032)
• NFT Community
• NFT Marketplace
Region Type Analysis (Revenue, USD Million, 2022 - 2032)
• North America (United States, Mexico, and Canada)
• Latin America (Brazil & Mexico)
• Europe (Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, and others)
• Middle East & Africa
• Asia Pacific (China, India, South Korea, Indonesia, Australia, Vietnam, and others)
Available Versions of Art NFT Market Report:
The United States Art NFT Market Research Report
Europe Art NFT Market Research Report
Asia Pacific Art NFT Market Research Report
India Art NFT Market Research Report
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