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Metaverse Market Overview
The metaverse market was valued at USD 7.91 billion in 2022. The metaverse market industry is projected to grow from USD 11.47 Billion in 2023 to USD 107.49 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 45.2% during the forecast period (2024 - 2030).
The increasing incorporation of digital platforms into industries for daily operations and the increased use of AR, VR, and mixed reality by consumers, particularly in art and recreational activities, are significant market drivers for the growth of the metaverse market.
Figure 1: Metaverse Market Size, 2022-2030 (USD Billion)
Source: Secondary Research, Primary Research, and Analyst Review
Metaverse market Trends
Growing use of metaverse in gaming and recreation to boost the market growth
The internet has seen consumers use online games for recreational activities. This has helped grow the metaverse as it provides a better interface than traditional online gaming platforms. Using equipment and platforms such as VR headsets, smart helmets, and MR displays has helped improve the gaming experience, leading to increased use of metaverse by gaming developers. Thus, this has led to the growth of the market CAGR.The rising interest in cryptocurrency has also helped expand its usage. The increasing popularity of NFTs amongst the younger generation has also led to increased use of metaverse. According to CNBC, the market for NFTs increased by 210% from 2021 to 2022. Retailers and luxury brands have also used metaverse to capture consumers by selling limited edition goods, such as Gucci's collaboration with Roblox to sell limited edition bags and let users win accessories through games. Similarly, artists such as Arian Grande and Imagine Dragons have conducted concerts in the metaverse.
Figure 2: Growth in market cap of cryptocurrency
Source: Secondary Research, Primary Research, and Analyst Review
Additionally, there has been an increase in the adoption of metaverse into various end-use industries such as medicine, defense, aerospace, and other banking sectors. Major BFSI players such as JP Morgan and HSBC have started using it to better connect with their customers. Trading companies have also begun using metaverse to give their customers an interactive way of managing their stock portfolio, thus driving the metaverse market revenue.
However, there have also been trials in the medical field to set up doctor-patient interactions in the metaverse for seamless and anonymous communication. The government sector is expected to significantly boost the market for the metaverse with its implementation in areas such as tourism, defense, and employee training in the forecast period.
Metaverse Market Segment Insights
Metaverse Component Type Insights
The metaverse market segmentation, based on component type, includes hardware and software. The hardware segment held the majority share in 2021, contributing to around ~47-49% of the metaverse market revenue. This is primarily owing to the improvement in technology for components such as VR and MR headsets, sensors, and displays. For instance, the market for AR, VR, and MR headsets in 2021 amounted to about USD 28 billion.
June 2022: Meta Platforms Inc to use Broadcom Inc’s ASIC chips to develop their hardware.
October 2021:Facebook Reality labs announced its USD 10 billion investment in developing and manufacturing AR and VR headsets.
Metaverse Platform Type Insights
Based on platform type, the metaverse market segmentation includes desktop/laptops, mobile, and wearables. The desktop/ laptops segment dominated the market growth in 2021, accounting for around USD 16 billion. The ease of usage of desktops and the higher degree of innovation currently available in the desktop segment are significant factors for the high revenue generation. Moreover, devices such as Oculus Quest and Valve Index can only be used with high-power desktops, further increasing their use. The mobile segment is expected to see the fastest growth in the forecast period due to the rising innovation in virtual reality games as mobile applications.
Metaverse Technology Type Insights
The metaverse market data, based on technology type, includes blockchain, VR & AR mixed reality, and others. The VR & AR segment dominated the market in 2021. The higher degree of user experience that VR and AR provide in areas such as gaming has boosted the revenue gain for the segment. It also helps in improving peer-to-peer interaction within as well as in between the applications. The mixed reality segment is expected to showcase the fastest growth in the forecast period due to its higher performance and enhanced user connectivity and experience properties.
Figure 3: Metaverse market, by technology, 2021 & 2030 (USD billion)
Source: Secondary Research, Primary Research, and Analyst Review
Metaverse Application Type Insights
Based on application, the metaverse industry has been segmented into gaming, online shopping, content creation, social media, and others. The gaming industry is the largest segment in terms of application for the metaverse market, with a market share of about 28% in 2022. This is due to consumers' rising use of AR-VR games as it provides a more holistic gaming experience. The social media segment is expected to register the highest market growth in the forecast period. This is due to the increasing number of content creators and the need for improved social connection and user experience by social media companies.
Metaverse End User Insights
Based on End Users, the metaverse industry has been segmented into consumers and enterprises. The consumer segment for the metaverse industry holds the larger market share as currently. The metaverse is used for recreational activities such as buying NFTs, selling virtual artwork, and cryptocurrency. However, the enterprise segment is expected to register a higher CAGR in the forecast period as more and more companies begin using the metaverse as a marketplace and a place to handle the company’s interactive functions. The increasing use of virtual working models is expected to boost this pattern of using it for practical use in enterprises.
May 2022: Alibaba’s Taobao introduced the “Metaverse Mall” for China’s 618 shopping festival.
Metaverse Regional Insights
The report provides insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North America Metaverse market accounted for USD 3.61 billion in 2022 and showcased a notable CAGR growth during the study period. This is attributed to the higher investments by firms to develop cutting-edge technologies and the higher purchasing power of consumers in the region.Further, countries studied in the market report are The U.S., Canada, Germany, the UK, France, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.
Figure 4: METAVERSE MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, and Analyst Review
Europe's metaverse market is fast-moving due to the expanding gaming sector in countries such as Germany, France, and the UK. Government initiatives such as AEGLE and MIDAS are also expected to boost investment into the market. For instance, Facebook is expected to provide about 10,000 jobs in the European Union. Moreover, UK metaverse market held the largest market share, and the Germany metaverse market was the fastest growing market in the region.
The Asia-Pacific metaverse market is expected to grow with the fastest CAGR from 2022 to 2030. This is due to rapid digitization initiatives by governments in developing countries such as China and India. Moreover, the economic growth in Asian countries is also expected to boost the use of metaverse in the region, helping the market to grow at a higher pace. The favorable regulations by governments for technology driver startups are also expected to be a significant factor for market growth. For instance, Meta Platforms partnered with the Indian IT Ministry to launch an accelerator, the XR Startup Program, to assist early-stage startups with innovation in emerging technologies. In 2021, Tencent Holdings, Ltd. partnered with the AIDF to improve Asia’s education, research, and entrepreneurship in the fintech industry. Further, the China metaverse market held the largest market share, and the India metaverse market was the fastest growing market in the region.
Metaverse Key Market Players & Competitive Insights
Major market players have high investments in R&D to improve their products, which will help the metaverse market grow. Market participants are taking various strategic initiatives to expand their presence, with market developments such as new product launches, contracts, mergers and acquisitions, and collaboration with other organizations. Competitors in the metaverse industry must offer technologically unique products to survive in an increasingly competitive environment.
One of the primary business strategies adopted in the metaverse industry to benefit clients and expand the market sector is to invest in mergers and technological developments. In the metaverse market, major players such as Meta (US), Microsoft (US), Tencent (China), and others are working on expanding the market demand by investing in partnerships and product enhancements.Meta Platforms (US) is a multinational technology conglomerate. Meta changed its name from Facebook to Meta Platforms in October 2021 to align with their work in building the metaverse. The company is the parent of major social media and communication applications such as Facebook, Instagram, and Whatsapp, among other products and services. In October 2022, Meta launched Meta Quest Pro, a VR headset that provides an open periphery and lets users multitask. They also come with sensors that capture facial emotions and track eye movements.
Also, Nvidia (US) is a multinational technology company that develops software and hardware. Nvidia is a market leader in artificial intelligence. The company manufactures graphics processing units, application programming interfaces, and systems on chips for mobile and automotive markets. It also provides CUDA, an API used in supercomputers worldwide. In August 2021, Nvidia corporation signed partnerships with Blender and Adobe to create nvidia omniverse, the world’s first collaboration and simulation platform.
Key Companies in the metaverse market include
- Meta Platforms Inc.
- Nvidia
- Microsoft Corporation
- Tencent Holdings Ltd.
- Bytedance
- Epic Games
- Roblox Corporation
- Lilith Games
- Nextech AR Solutions Inc.
- Netease Inc.
- Unity Software Inc
- Antier Solutions, among others
Metaverse Industry Latest News
May 2024
Alpha testing phase 1.0 of the developing metaverse platform with its headquarters in Dubai has begun. For the firm, this is a major advancement in its goal of building a linked and lifelike virtual environment. Users of the site will have a unique chance to tour Nexara, the capital city.
Users will receive a first look at VYUG's universe during this first testing phase, which includes elements like a virtual environment tour and map familiarisation. The alpha test is about collecting insightful user comments in addition to exploration. Before the platform is officially launched, this input will be very important to make it a very user-centric and out-of-the-box experience.
Aspects of human life are to be integrated into the metaverse, according to the VYUG team. Important industries including Education, Corporate, Politics, and E-Commerce are intended to be given not just a virtual presence but also a significant effect with visible outcomes via the platform. Strongly emphasizing innovation and user experience, it is now poised to make a significant contribution to the quickly changing metaverse scene. J-block in Nexara City is already operational and offers early adopters a restricted experience. They envision showcasing the actual potential of the metaverse and what one can do if one makes use of it.
Within the ecosystem of the platform is an internal VYUG Token with a 3.5 billion supply created using Polygon Blockchain technology. With Polygon, which interfaces with the Ethereum blockchain, quick transactions and low costs are made feasible. With the Polygon platform, blockchain gained additional flexibility, scalability, and sovereignty while keeping its security, interoperability, and structural benefits.
Though the firm is fresh to the Metaverse space, its Map area and integration sections are what give the idea promise. Whereas the J-block is 96 square kilometers, the map is 1209 square kilometers. Plots made up of each block are 20 by 20 square kilometers.
Metaverse Market Segmentation
Metaverse Component Outlook
- Hardware
- Software
Metaverse Platform Outlook
- Desktop/Laptops
- Mobile
- Wearables
Metaverse Technology Outlook
- Blockchain
- VR & AR
- Mixed Reality
- Others
Metaverse Application Outlook
- Gaming
- Online Shopping
- Content Creation
- Social Media
- Others
Metaverse End User Outlook
- Consumer
- Enterprises
Metaverse Regional Outlook
-
North America
- US
- Canada
-
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
-
Rest of the World
- Middle East
- Africa
- Latin America
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