South Africa NFT Market Intelligence and Future Growth Dynamics Report 2022: NFT Spend Value will Increase from $1315.8 Million in 2022 to Reach US$7420.2 Million by 2028 - ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “South Africa NFT Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on NFT Investments by Key Assets, Currency, Sales Channels – Q2 2022” report has been added to ResearchAndMarkets.com’s offering.

NFT industry in South Africa is expected to grow by 50.2% on an annual basis to reach US$1315.8 million in 2022.

The NFT industry is expected to grow steadily over the forecast period, recording a CAGR of 35.7% during 2022-2028. The NFT Spend Value in the country will increase from US$1315.8 million in 2022 to reach US$7420.2 million by 2028.

Over the last 12 months, NFTs have increasingly drawn interest from various South African firms across different industry verticals. Many new developments are unfolding locally as blockchain technology continues to grow globally. While the NFT trend is still in its early stages of development locally, many South African firms are identifying huge potential in NFTs. From print media agencies to art galleries, firms across various industries have entered the South African NFT market.

As firms in South Africa continue to become more innovative and identify growth opportunities in the local NFT space, the publisher expects the adoption of NFTs in a wide range of industries, including fashion, real estate, licensing and certifications, as well as in wildlife conservation where technology can be used to represent in-game assets typically represented by a type of wild animal.

More marketplaces are expected to drive the growth of the South African NFT market. Over the next three to four years, the publisher expects that the growth in the South African NFT market will also be driven by the growing number of marketplaces where users can sell, buy, and trade NFTs.

Many artists, musicians, fashion, sports, gaming, entertainment, and retail brands are producing NFTs to engage with customers, consumers, and fans. Consequently, buyers and sellers would be looking for innovative NFT marketplaces that make it easier to trade in NFTs.

Digital artists and musicians are driving the NFT market in South Africa. As the South African NFT industry continues to grow, digital artists and musicians are driving the NFT market in the country. South Africans are fairly active in buying collectibles and selling art. This has supported the growth of the NFT market over the last 12 months in the country.

Besides digital artists and musicians, tech-savvy charities have also jumped on the NFT bandwagon and are looking to raise funding by auctioning pieces of history in South Africa. However, the publisher believes that the key factor contributing to the sustainable growth of the NFT market in the country over the next three to four years is building a solid educational foundation among South Africans regarding NFTs.

Prominent South African figures launching NFTs are driving the market growth and awareness. Globally, celebrities across different industries have entered the NFT space by launching their NFT collection. From film stars to singers and sports players, all have entered the NFT space globally; similar trends are visible in South Africa, where many prominent figures are launching NFTs.

Some of the big names that have entered the South African NFT industry include cricketer AB de Villiers, influencer Diipa Khosla, musician Goldfish and the Kiffness, and filmmaker Dan Mace. The entry of these big names in South Africa has propelled the popularity of NFT among the general public, thereby driving the market growth over the last 12 months. The publisher expects the trend to continue from the short to medium-term perspective as more and more big names enter the NFT space in South Africa.

Art galleries in South Africa look to capitalize on the global trend in the NFT market

In March 2021, Worldart, the South African art gallery, became the first in the country to auction the artwork as NFT. The artwork for sale was in a GIF file, with moving elements added to a painting of local artist Norman O’Flynn’s acclaimed Timekeeper series.

Firms are raising funding rounds to further accelerate their growth in South Africa

In November 2021, NFTfi, the firm that allows users to use their NFTs as collateral for loans, announced that it had raised US$5 million to further accelerate its growth in the country. The funding round was led by early-stage crypto fund 1kx. Maven 11, Sound Ventures, Scalar Capital, and Kleiner Perkins were among the other investors.

Auction houses are partnering with wine producers to offer wine NFT in South Africa

In April 2022, Strauss & Co, the principal South African auction house, announced that it had entered into a strategic collaboration with five of the most respected wine producers in South Africa. Under the strategic partnership, the auction house offered fine wine NFTs. Consisting of the past, present, and future vintages, the unique digital contracts encompass vertical collections of Meerlust Rubicon, Kanonkop Paul Sauer, Klein Constantia Vin de Constance, Mullineux Olerasay, and Vilafonte Series C. Notably, each of the NFTs holds between 20 and 50 vintages having collections from 66 to 288 bottles.

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South Africa NFT Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028

South Africa NFT Market Size and Forecast by Key Assets, 2019-2028