Music NFT Market Size, Share, Growth, And Industry Analysis by Type (Single Song, Album & Others) by Application (Independent Artist, Record Companies & Others) and Regional Forecast to 2032

Updated On: 02 September 2024

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MUSIC NFT MARKET REPORT OVERVIEW

The global Music NFT Market size was valued at USD 128 million in 2023 and is anticipated to reach USD 686.19 million by 2032, witnessing a CAGR of 19.9% during the forecast period.

An NFT is an abbreviation for Music Non-Fungible Token which means it indicates your ownership of a unique piece of music, album, or anything related. The basis of NFTs is blockchain technology; thus, because of such distinctive features these tokens cannot be forged. Artists can use NFTs to sell their exclusive or limited content such as unreleased songs, special album editions and concert tickets including backstage passes.

There are various factors driving the music NFT market growth such as, growing adoption of music NFT among artists and fair compensation offered to artists by NFTs. The possession and genuineness of music NFTs is checked through blockchain technology that enables it to be certain that any material presented is original and not replicated.

COVID-19 Impact: Growing Adoption of Music NFT During Pandemic Led To Increased Demand

The COVID-19 pandemic has been unprecedented and staggering, with music NFT markets experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels once the pandemic is over.

The music industry has been seriously affected by this COVID-19 pandemic since they stopped live performances and disrupted traditional revenue streams. It is during these times that Music NFTs gained popularity among artists in need of new ways to interact with fans and generate income from their creations. In the pandemic, where social distance was necessary, artists began using music NFTs as a way to offer unique content exclusively, chat directly with fans and make money. Thus, during the pandemic period, people began wondering what these things actually are that have made them so valuable and integral in the digital music industry.

LATEST TRENDS

"Increasing Use of Block Technology in Music Industry is a Latest Trend "

This is the most important trend that is driving the growth of the Music NFT market is the increase in the use of blockchain technology in the music business. Using blockchain allows for safe, transparent and decentralised transfers. Musicians can thereby sell their work straight to consumers absolving any middlemen. The reliability this technology gives users helps to avert piracy and ensure that royalties reach musicians through smart contracts. With this new system, artists can now create tokens for their pieces of work which are unique digital items that fans may collect or trade in an easy manner. As more people continue to embrace it, the music sector is changing as artists gain power while fans become more involved.

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MUSIC NFT MARKET SEGMENTATION

By type

Depending on the global music NFT market given are types: Single Song, Album & Others.

Single Song: Only single songs can be converted into NFT. It means that the artist is claiming ownership of the single song.

Album: NFTs that encompass entire albums, offering fans a chance to own a digital copy that may include exclusive content, such as bonus tracks or artwork.

Others: The others include concert tickets, music records and other type of music documents.

By Application

The market is divided into Independent Artist, Record Companies & Others.

Independent Artist: Independent artists use NFT to directly monetize their work and bypass traditional music industry intermediaries like record labels.

Record Companies: The record companies also use NFT to monetize their work and create exclusive streams.

Others: Others such as clubs, music platforms & others also use NFTs to claim their work.

DRIVING FACTORS

"Growing Adoption of Music NFT Among Artists Drive Growth in Market"

The growing adoption of music NFT among artists is one of the reasons driving the music NFT market growth. As conventional sources of income decline, musicians are progressively utilising NFTs to sell their works and engage with audiences straight. Music NFTs offer artists an exceptional platform for they can publish special things, including limited-tracks or online concerts, thus enhancing their fans’ feeling of being involved. This transition whereby artists remain the actual proprietors of their productions and revenues leads to the promotion of a more sustainable and inventive musical ecosystem capable of captivating both new entrants and veteran talents.

"Fair Compensation Offered to Artists by NFTs Increases the Market Demand"

Another important reason driving the market is the fair compensation offered to artists by NFTs. NFTs enable musicians to receive a higher percentage of profits generated from their own music than prior structures for selling musical works, which were beset by many intermediaries who in most cases took a lion’s share of income. Hence, musicians can always earn from what they have created because secondary sales will trigger automatic royalty allowances through intelligent contracts. Such a fair payment scheme not only motivates singers to accept NFTs but also helps create a more balanced atmosphere that encourages new ideas and creativity in the whole field of music.

RESTRAINING FACTORS

"Low Technological Literacy and Technical Issues Hamper the Market Growth"

One limiting factor affecting the music NFT market is the low technological literacy and occurring technical issues. Many people who could use it do not understand blockchain technology, making it hard for them to comprehend cryptocurrency transactions or know what an NFT platform is all about. Other reasons that could hinder participation include platform reliability issues or technicalities like safety problems. These are obstacles that stop some musicians from getting into the NFT world, stifling its development potential as regards music industry as a whole.

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MUSIC NFT MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America and Middle East & Africa.

"North America to Dominate the Market due to Fast Adoption of Technology"

The market in North America is the most dominant region and largest market share as well as exhibiting very high profitability. The United States of America is ready to overtake the Music NFT market, and this is all due to its fast acceptance of technology alongside innovations. This area has strong digital infrastructure with many people who are good at using technology hence an area that will nurture music non-fungible tokens (NFTs). Prominent musicians and record companies are progressively making use of NFTs to connect with their followers and convert songs into remuneration, thus driving the market growth forward. In addition, hosting some well-known NFT platforms and marketplaces plays an important role in outlining how music NFTs will look like in years to come.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

The music NFT market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of music options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• OpenSea (U.S.)
• Royal (U.S.)
• Audius (U.S.)
• Glass (U.S.)
• Unchained Music (U.S.)
• Foundation (U.S.)
• Anotherblock (Sweden)
• Nifty Gateway (U.S.)
• one of (U.S.)
• Sound xyz (U.S.)
• Superrare (U.S.)
• Rarible (U.S.)

INDUSTRIAL DEVELOPMENT

February 2021: DJ and electronic music producer 3LAU is the first artist to release a whole album in NFT form. He had 33 NFTs to sell out his record including special things like personalized titles, limited edition vinyls, and access to unreleased tracks. For 3LAU, the transaction collected $11.7 million dollars making him the biggest NFT winner.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.