Metaverse Market: Overview
The global metaverse market size was worth USD 38 billion in 2021 and is estimated to grow to USD 692 billion by 2030, with a CAGR of approximately 38 percent over the forecast period.
The metaverse, an online alternate reality, is developing into its universe with real estate, works of art, and communities. The novelty of nonfungible tokens (NFT) utilized in the metaverse will give way to their utility. Cyberthreats in the metaverse, however, are impeding business expansion. However, the metaverse market sees possibilities due to technical improvements. With a big user base and a quickly expanding trend, the metaverse is used for different purposes, including online gaming, content creation, social interaction, learning and training, and virtual commerce. The global media, entertainment, and gaming businesses have grown the fastest due to the increasing popularity of AR, VR, and MR technologies. A first-person perspective can be obtained via virtual reality (VR) headsets, MR headsets, HUD, HMD, smart glasses, and smart helmets. The leading market players have made large investments in response to the rising demand for extended reality devices. As significant market players expand their investments and advancements, it is anticipated that the acceptance of the metaverse in gaming and entertainment will improve.
Metaverse Market Drivers:
The rise in interest in using the Internet to integrate the physical and digital worlds, the popularity of mixed reality (MR), augmented reality (AR), and virtual reality (VR), the COVID-19 outbreak, and the developments that follow, and the outcomes of the situation are some of the key factors expected to spur the revenue growth. Additionally, the introduction of metaverse-focused businesses across the globe, growing partnerships to create cutting-edge AR and VR solutions to enhance patient output and the surgical setting overall, and rising investments in R&D activities are anticipated to fuel market expansion in the future.
Metaverse Market: Restraints
Many of the users are unaware of the service and security alternatives available, and the expansion of the metaverse market may be constrained. Issues regarding data security and privacy in these environments, troubles with the user identity, and persuading customers to utilize banking services are some important factors that are projected to hinder the growth of the global metaverse market’s revenue over the forecast period. In the upcoming years, the global market expansion will be hampered by the lack of awareness for smart metaverse products.
Metaverse Market: Segmentation
The global metaverse market has been segmented into components, platforms, technology platforms, and offerings.
Based on components, the market is divided into software, asset creation tools, programming engines, hardware, haptic sensors & devices, smart glasses, Omni treadmills, displays, extended reality (XR) hardware, AR/VR headsets, and others. Among these, the software segment led the market in 2021. This may be caused by the rise in demand for cloud-based tools, software development kits (SDK), AR/VR studios, and tools for creating mobile and web apps for augmented reality (AR). The software market is divided into two submarkets: programming engines and tools for creating assets. The biggest growth rate is seen in demand for metaverse platforms’ software due to the launch of avatar identity producers, centralized and decentralized gateways, and play-to-earn games. On the other hand, the hardware segment is expected to grow at a significant rate over the forecast period due to an increasing focus among companies on manufacturing products that give a better user experience and enable more extended user immersion. Companies are also attempting to create more sophisticated gear, such as VR/AR headsets, haptic devices, and sensors, to enhance the realism of virtual worlds. Another factor expected to contribute to this market’s revenue growth is the creation of user interfaces that allow users to view 3D material on various gadgets, including smartphones, next-generation TVs, and the mixed reality smart glasses known as HoloLens.
Based on technology, the market is classified into AR & VR, mixed reality, blockchain, and others. The mixed reality segment dominated the market in 2021. In mixed reality, people can interact physically with elements from the metaverse. Users can interact with the metaverse without a virtual reality headset. Users could simply utilize a keyboard to communicate with the metaverse, regardless of their level of immersion. To improve the gaming experience and make games more realistic, AR and VR technology are being used in the gaming business. On the other hand, the AR/VR industry segment is expected to grow at a significant rate over the forecast period. It is estimated that the segment will substantially impact the Metaverse market. The expanding gaming industry will increase demand for VR and AR gadgets. 3D virtual environments in the metaverse produce a feeling of virtual presence. Virtual and augmented reality are the technologies used to produce this impression of virtual presence. The most revolutionary technological change in the next five years is the combination of virtual reality and augmented reality. This significant element is anticipated to drive the market throughout the forecast period.
Metaverse Market: Regional Landscape
North America dominated the market for the metaverse in 2021. The primary factors influencing the market’s expansion are the growing emphasis on using the internet to merge the virtual and real worlds and the growing acceptance of mixed reality (MR). Advanced virtual reality, 3D simulation, and augmented reality are being widely adopted by numerous businesses in North America to improve their corporate processes. The growing number of start-up companies developing platforms for the commercialization of the metaverse is another element anticipated to support revenue development in the local market.
Metaverse Market: Competitive Landscape
Some of the main competitors dominating the global metaverse market include- META, NVIDIA Corporation, Epic Games, Microsoft, Snap Inc., Netsch AR Solutions Inc., The Sandbox, Decentral, Roblox Corporation, and Qualcomm Technologies, Inc.
- October 2021-On the development of augmented reality (AR) and virtual reality (VR) hardware, software, and content, Facebook Reality Labs was expected to invest at least USD 10 billion. Meta Platforms, Inc., formerly Facebook, Inc., is the parent company of Facebook Reality Labs.
- November 2021- Epic Games, Inc purchased Harmonic Music Systems, Inc. The Harmonic team will partner closely with Epic Games, Inc. to create musical experiences and Fortnite gameplay while continuing to support already-released products like Rock Band 4.
COVID-19 Impact on Metaverse Market:
The COVID-19 pandemic significantly boosted interest in the idea of the metaverse. There is a need for practical methods or channels to make online contact more realistic as more people have started working from home and attending classes online. Due to lockdowns and closures, the pandemic has expedited the development of virtual online communities that serve as important regions for users’ lifestyles, such as interactive game environments and the growing use of mixed reality. Positive effects of the COVID-19 pandemic have been seen in the metaverse market, which may have helped numerous sectors. The popularity of the metaverse is increasing due to the emergence of digital assets, blockchain technology, and nonfungible tokens (NFTs).
Global Metaverse Market is segmented as follows:
Metaverse Market by Components
- Asset Creation Tools
- Programming Engines
- Haptic Sensors & Devices
- Smart Glasses
- Omni Treadmills
- extended Reality (XR) Hardware
- AR/VR Headsets
Metaverse Market by Platform
Metaverse Market by Offering
- Virtual platforms
- Asset marketplace
- Financial services
Metaverse Market by Technology
- AR & VR
- Mixed Reality
Metaverse Market by Application
- Aircraft maintenance
- Online shopping
- Social media
- Virtual runway shows
- Content creation
Metaverse Market by End User
- Media and Entertainment
- Aerospace and defense
Metaverse Market by Region
- North America
- The UK
- Rest of Europe
- Asia Pacific
- New Zealand
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
|Metaverse Market Report Scope
|Market Size Value in 2022
||USD 52.5 billion
|Revenue Forecast in 2030
||USD 691 billion
||CAGR of 38 % from 2022 to 2030
|Base Year for Estimation
||2017 – 2021
||2022 – 2030
||Revenue in USD million and CAGR from 2022 to 2030
||Revenue forecast, company ranking, Trends
competitive landscape, and growth factors
|| Components, Platform, Offering, Technology, Application, End User, and Region
||North America; Europe; Asia Pacific; Latin America; Middle East & Africa
||U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico and Others
|Key Companies Profiled
||META, NVIDIA Corporation, Epic Games, Microsoft, Snap Inc., Netsch AR Solutions Inc., The Sandbox, Decentral, Roblox Corporation, and Qualcomm Technologies, Inc.