According to the Q2 2022 NFT Survey, NFT industry in Malaysia is expected to grow by 49.9% on an annual basis to reach US$536.7 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$536.7 million in 2022 to reach US$3028.8 million by 2028.
Non-fungible tokens (NFTs), which have recorded significant growth globally, also see phenomenal growth in Malaysia. Many Malaysian artists have ventured into the NFT space over the last two years as they seek to capitalize on the growing trend and earn financial freedom through NFTs.
With NFTs helping industry players make art more accessible to the public and widening the pool of collectors, NFTs are expected to surpass the conventional art market auctions as it continues to gain wider acceptance and accessibility with buyers in art auctions. The growing NFT momentum in the country has disrupted the local art scene ecosystem. In 2021, Malaysian graffiti artist, Katun, made more than RM 1.6 million through the sale of the NFT collection, which was sold out within 24 hours.
Since then, many artists have entered the NFT space in Malaysia as more and more people see NFTs as the future of ownership. In this growing awareness and adoption of NFTs, several local NFT marketplaces have emerged and have recorded strong growth in the country. There has been a significant spike in Malaysia's NFT transaction value and volume over the last 12 months.
Corporations and associations have jumped onto the NFT bandwagon to mint their artwork. Amid this growing trend for NFTs in Malaysia, it has become crucial for art galleries to change their mindset and embrace digital assets, or they will be left behind. One Malaysian art gallery that has embraced NFTs is the Kelantan Art Gallery, featured on a local NFT platform, Pentas.io.
With the NFT adoption rate being one of the highest in Malaysia, the growing popularity of digital assets among the general public is expected to further drive market growth over the next three to four years.
Adoption of NFTs across different industries is expected to further drive market growth in Malaysia
The popularity of NFTs has surged significantly over the last 12 months among Malaysians. With the trend expected to continue from the short to medium-term perspective, the publisher expects more and more brands to enter the NFT space in Malaysia. Already, several different brands across industries, such as fashion and quick-service restaurants, have jumped onto the NFT bandwagon in the country. As the digital asset gains momentum and becomes mainstream in Malaysia, the publisher expects more firms across different industry verticals to adopt NFTs. This will subsequently promote innovation in the market, thereby driving higher transaction value and volume from the short to medium-term perspective. An increasing number of NFT marketplaces driving the market growth in Malaysia
With the popularity of NFTs increasing among the general public, more and more startups are entering the NFT space by launching their own NFT marketplace. These marketplaces make it easier for Malaysians to buy, sell, and trade in NFTs, resulting in higher transaction value and volume over the last 12 months.
As the demand for NFTs continues to grow in Malaysia and more and more brands enter the digital asset space, the publisher expects more local and global players to expand their footprint in the NFT sector over the next three to four years. This will keep promoting market growth and competition in Malaysia from the short to medium-term perspective.
Malaysian artists turning to NFTs to gain financial freedom is driving market growth in the country
Before the global pandemic outbreak closed art and performing spaces in March 2020, the art galleries and festivals in Malaysia provided a lifeline and inspiration to the artists in the country. However, with the pandemic-caused disruption, most of the artists in the country struggled to survive financially.
In the wake of this disruption, some artists started to venture into the newly emerging world of NFTs. While it was initially taken as a fun pastime, the market's growth has changed the way artists now see digital assets in Malaysia. Moreover, with some artists making hundreds of thousands of dollars in NFT sales, many artists have turned to NFTs to gain financial freedom.
Scope
This report provides in-depth, data-centric analysis of NFT Market in Malaysia and below is the summary of key market segments:
Malaysia NFT Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Malaysia NFT Market Size and Forecast by Key Assets, 2019-2028
Collectibles and Art
Real Estate
Sports
Gaming
Utility
Fashion & Luxury
Other
Malaysia NFT Market Size and Forecast by Key NFT Collectible Assets, 2019-2028
Digital Art
Music & Sound Clip
Videos
Memes & Gif
Other
Malaysia NFT Market Size and Forecast by Currency, 2019-2028
Ethereum
Solana
Avalanche
Polygon
BSC
Flow
Wax
Ronin
Other
Malaysia NFT Market Size and Forecast by Sales Channels, 2019-2028
Primary
Secondary
Malaysia User Statistics, 2019-2028
Reasons to buy
Based on data and analysis, develop country-level strategies.
Identify investment opportunities in growth segments.
Exceed competition by incorporating forecast data as well as market trends.
Use the relationships between major data sets with valuable insights to improve strategy.
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