The Global Metaverse Market Was Valued At USD 51.69 Billion In 2022 And It Is Estimated To Surpass Around USD 1.3 Trillion By 2030 With A Registered CAGR Of 44.5% During The Forecast Period 2023 To 2030.

Metaverse Market Overview

Focusing more on how the digital and real worlds are getting closer together, the fast-growing trends of virtual economy and crypto-gaming, and the growing popularity of online games are all big things that are driving growth in market revenue.

Metaverse is a place where Augmented Reality (AR), Virtual Reality (VR), and the real world all live together. Virtual Reality (VR), Augmented Reality (AR), Extended Reality (XR), which combines the real and virtual worlds, and Artificial Intelligence (AI) are all important technologies that have been used to make the metaverse work well. MR interfaces, which combine real and virtual environments, are also becoming more popular, which is another thing that is helping the market grow. As the number of people using metaverse grows, it could lead to online spaces where users can interact in ways that are more complex than what is currently possible. In metaverse, users will be able to immerse themselves in a place where the real world and the digital world meet. This will allow them to do more than just look at digital information. Big Tech has decided that it wants to make and use its own metaverse. Companies like Microsoft and Meta have realised that the future of the Internet and digital communication will be in more immersive digital spaces that blur the lines between the real world and the virtual world.

The main benefit of metaverse is that it helps people find and use new applications that will change the way people use the internet and other digital communication technologies. The benefits of this idea are similar to those of Web 2.0 and social media. It will lead to new digital goods and services that create value and have useful applications. This will inspire leading market players and developers to come up with new ideas. The people who make meta platforms know that technology can help people connect with each other and express themselves more freely. But modern tools for communication, like Zoom and social networking sites like Facebook, Twitter, and TikTok, limit digital connections between people to a two-dimensional plane. But a platform based on metaverse will make the experience more immersive by appealing to a sense of being there. Because of the Covid-19 epidemic, which began in 2020, businesses in all fields and industries were forced to use digital technology or ways of communicating that could be done online. Work-from-home and remote work agreements have come about as a way for these businesses to stay open and keep people working. Due to limits on face-to-face interactions, even schools had to use technologies and services to help with remote or distance learning, which made people even more interested in the metaverse. Social media platforms and websites have also changed the way media works. So, the rise of social media and its eventual success has made it possible for the general public to become both a messenger and a content creator. This is different from traditional mass communication channels like broadcast and print, where the audience can only receive and read messages. Also, social media platforms have given marketers and companies of all kinds a much better way to advertise their products and services than traditional media.

Market Dynamics

Market Drivers

Web 3.0 and cryptocurrency—Success Metaverse's Mantra

In the metaverse industry, the growing use of new technologies like mixed reality (MR), extended reality (ER), artificial intelligence (AI), and blockchain all help to grow the market. Companies like Roblox, Facebook, NVidia, Fortnite, Epic Games, Microsoft, Google, USM, Oculus, and RTFKT Akira have already built or are in the process of building metaverse XR/extended reality systems and other new technologies. According to research, LG Group filed almost 688 extended reality (ER) patents in about 455 patent families, Sony filed about 87 XR patents in about 78 patent families, and Qualcomm filed almost 80 metaverse patents in about 28 patent families.

In the metaverse, cryptocurrency is used to pay for things. Cryptocurrency is used to pay for almost everything in the metaverse, from avatar shoes to NFT. A study found that 53% of companies invest in cryptocurrencies and 44% invest in non-financial assets (NFAs). A CNBC survey found that 1 in 10 people invest in cryptocurrencies, which are widely used to trade goods like NFTs. Since crypto-exchange is available all over the world, investors can use this currency to sell directly to buyers on the metaverse, which changes the market trends for the better.

In the gaming business, both centralised and decentralised metaverses are possible. However, since the future has been unlocked, gaming companies are focusing on decentralised projects more than centralised ones. It has also brought in a new way to play games called Web 3.0 gaming, which lets users switch their characters between different game experiences. In the world of online games, this is also known as the "play-to-earn" model.

In line with Web 3.0 gaming, many companies offer game-payment systems and in-game assets like skins and clothes, vehicles and weapons, and props that players can take with them from one platform to another (e.g., console, PC, mobile device). These games depend on the NFT to give their users rewards and tokens. Nearly 3 million people play Axie Infinity, and the in-game goods are worth $2.26 billion. This makes it the most successful NFT game.

Market Restraint

Metaverse is popular, but there are security risks with it.

The metaverse market may not grow as fast as it could because users don't know about their service and security options. Cyberattacks have happened against key players like Tencent Holdings, Globant, etc., which raises high sensitivity and security concerns. SonicWall says that more than 1700 cyberattacks were reported by each organisation between September 2021 and nearly 500 million cyberattacks.

Market Opportunities

The Metaverse in Marketing: The Key to Engaging Customers

Business-to-business, or B2B, marketing includes things like client meetings, trade shows, product demos, commercials, customer service, and so on. All of these things about B2B marketing have gotten a lot better since the metaverse came along. Since most of B2B's products are commodities, great customer service through metaverse can help it grow in a big way. Also, metaverse has almost eliminated some of the biggest differences between B2C and B2B, such as ROI, Target Audience, etc., which will help the market grow in the future.

There are more and more job opportunities in the metaverse all the time. More jobs are being made because people in the metaverse want more products and services, which can help the market grow. A study says that the metaverse will soon create about 10,000 jobs in fields like research, planning, development, safety, storytelling, world-building, cybersecurity, and ad-blocking.

Segment Overview

Product Insights

In 2021, the hardware segment was worth USD 16.58 billion, and its growth is expected to be over 38.0% per year. Because companies are putting more effort into making products that give users a better experience and let them stay immersed for longer, the hardware segment is expected to bring in the most money over the next few years. Companies are also making more advanced hardware, such as VR/AR headsets, haptic devices, and sensors, to make virtual worlds feel more real. The design of interfaces that let people access 3D content on different devices, like next-generation TVs, smartphones, and smart glasses called HoloLens, is also expected to drive revenue growth in this segment.

For example, it is thought that Facebook Reality Labs will spend at least USD 10 billion making hardware for Augmented Reality (AR) and Virtual Reality (VR). Based on the type of product, the global metaverse market is split into segments for hardware, software, and services. The hardware segment is further divided into displays, components for eXtended Reality (XR), and AR/VR headsets. The Extended Reality (XR) components subsegment is further divided into haptic sensors and devices, smart glasses, and omni treadmills. Asset creation tools and programming engines are two smaller parts of the software market.

Platform Insights

From 2022 to 2030, the desktop segment brought in the most money, followed by the headset segment. In 2021, the segment was thought to be worth USD 16.38 billion. Computers used to be the main way to get into the metaverse, but that has changed with the rise of smartphones and wireless networks. With the HTC Vive, Oculus Rift/Rift S, WMR headsets, and Valve Index, users can use the computer in virtual reality with Virtual Desktop. Users can surf the web, watch Netflix movies, and even play games on a huge virtual screen.

More and more VR devices are being used with virtual desktops. Access to the metaverse is now better than ever and almost always available, thanks to smartphones and mobile networks. More and more people are downloading, uploading, and sharing large amounts of data in networked cyberspace. People with mobile phones can post photos and videos to the metaverse and talk to each other using apps for video conferencing and messaging. Users can talk to each other while playing online games with more than one player. The number of people who use smartphones is going up, and they are quickly becoming the most common way to connect to the metaverse.

Offering Insights

During the forecast period, the asset marketplace segment is expected to grow at the fastest rate, with a CAGR of 40.0%. This is because more people are investing in bitcoins, NFTs, Ethereum, and other cryptocurrencies. Because virtual metaverse platforms are growing, the virtual platforms segment is expected to bring in a lot of money during the forecast period. Virtual platforms are the design and management of integrated, usually three-dimensional, virtual simulations, settings, and environments where people and businesses can find, create, socialise, and do a wide range of activities while also running a business.

Popular right now are games like Minecraft, Roblox, the Sandbox, HyperVerse, and Fortnite Creative Mode. Also, more people are getting smartphones and the number of app developers is growing, which is likely to help this market grow in the future. The global market is divided into asset marketplaces, virtual platforms, avatars, and financial services based on what they offer.

Technology Insights

In 2021, over 35.0% of all revenue came from augmented reality (AR) and virtual reality (VR) technology. The Mixed Reality (MR) segment is expected to have the highest CAGR of 40.4% in the technology segment of the global market during the forecast period. This is because more and more people are using MR to interact with the metaverse more effectively. Based on the technology, the global market is split into three groups: blockchain, virtual reality (VR) and augmented reality (AR), mixed reality (MR), and other technologies. AI, IoT, 3D reconstruction, brain-computer interface, machine learning, 5G, etc. are all part of the other segment.

People can interact directly with their metaverse surroundings in the real world. This is called mixed reality. To use the metaverse, people don't need to wear a virtual reality headset. Users could use a keyboard to interact with the metaverse, no matter how immersed they were. AR and VR technology are used in the gaming industry to make games more realistic and give players a better time. But it's expected that the demand for VR and AR devices will grow a lot in the coming years. So, the segment is expected to make a big difference in the Metaverse industry as a whole. Due to the growth of the gaming industry, people are likely to want more VR and AR devices.

Application Insights

In 2021, the gaming segment brought in the most money, with a share of 27.17 %. This was because developers were constantly coming up with new ideas and improving their games, and they were also paying more attention to making games more immersive and realistic. Also, the fact that companies are putting more emphasis on using games to promote their corporate image is likely to lead to more money coming in. The market is divided into gaming, online shopping, content creation and social media, events and conferences, content creation, digital marketing (advertising), testing and inspection, and other uses.

During the forecast period, the content creation and social media segment is also expected to grow by a lot. During the COVID-19 pandemic, the internet and social media were more important than ever. Since there were no signs that the pandemic would slow down, businesses had no choice but to change and build their whole businesses on these platforms. Because of this, a new type of entrepreneur called a "content creator" came into being. Many companies are now using content creation to market their brand and products in order to gain a competitive edge.

Virtual reality training can help airlines and people who work on the ground learn and get better at inspecting planes in a safe way. Virtual Reality (VR) for Aircraft Inspection lets people train in different situations of aircraft inspection on all types of aircraft to reduce the number of problems that could happen while they are in use. By using virtual reality training instead of classroom training, the cabin crew can learn how to handle real-life situations like medical problems, a disaster that is about to happen, or a hijacking. Using virtual reality and augmented reality, aircraft mechanics and MRO technicians can learn how to check different parts of an aeroplane without ever having to leave their desks.

Regional Analysis

In 2021, North America is likely to have the most revenue, with over 46.0% of the total. This is because customers and users in the region are adopting newer, more complicated technologies. The revenue growth of the regional market is also expected to be helped by the fact that more and more start-ups are focusing on building commercial platforms for the metaverse. Also, there are a lot of gaming and metaverse companies in the area, like The Sandbox, Nvidia Corporation, and Epic Games, Inc., which focus on putting metaverse into games. This gives the market room to grow. For example, Nvidia Corporation announced partnerships with Blender and Adobe that will help millions more people use NVIDIA Omniverse, the world's first platform for collaboration and simulation.

During the time frame of the forecast, the Asia-Pacific region is expected to have a very strong CAGR. A growing number of start-ups and organisations, such as The Sandbox in Hong Kong, Bolly Heroes in India, Axie Infinity in Singapore, NextMeet in India, GuildFi in Thailand, and Shenzhen Zhongqingbaowang Interaction Network Co., Ltd. (ZQGame Global), and miHoYo Co., Ltd. in China, are expected to drive market growth in the Asia-Pacific region. These virtual metaverse marketplaces and gaming platforms give users an immersive experience where they can take part in live activities that are run by third-party apps they choose.

Scope Analysis:

Recent Developments

• In January 2022, The Sandbox announced a partnership with Warner Music Group to launch the first music world in The Sandbox's metaverse. Warner Music Group (WMG) would take its first steps into the Metaverse and NFT sectors with this alliance.
• In November 2021, Tencent Holdings, Ltd announced that it had partnered with the Asian Institute of Digital Finance. The companies will collaborate in education, research and entrepreneurship to support Asia's fintech industry.
• In November 2021, Epic Games, Inc acquired Harmonix Music Systems, Inc. While continuing to support existing products such as Rock Band 4; The Harmonix team will be working closely with Epic Games, Inc to develop musical adventures and gameplay for Fortnite.
• As of October 2021, Facebook Reality Labs is estimated to have spent at least $10 billion developing hardware, software, and content for augmented reality (AR) and virtual reality (VR). Facebook Reality Labs is the division of Meta Platforms, Inc, formerly known as Facebook, Inc.
• In August 2021, Nvidia Corporation announced partnerships with Blender and Adobe that will enable NVIDIA Omniverse, the world's first collaboration and simulation platform, to reach millions more users.
• In July 2021, Epic Games, Inc acquired Sketchfab, Inc. Sketchfab is a 3D asset marketplace that allows users to publish, download, view, share, sell, and buy 3D models.
• In June 2021, Tencent's games division, TiMi Studios, announced a new agreement with SNK CORPORATION to produce a new, untitled mobile game based on the famous arcade franchise Metal Slug.
• In March 2021, NetEase, Inc. NetEase Cloud Music and Merlin Network expanded their strategic alliance in China to enable a broader range of collaborations. The original partnership between Merlin Network and NetEase Cloud Music was signed in 2018.

Market Segmentation

This portion of the study on the Metaverse Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.

By Product

• Hardware
  • Displays
  • extended Reality (XR) Hardware
    • Haptic Sensors & Devices
    • Smart Glasses
    • Omni Treadmills
  • AR/VR Headsets
  • Others
• Software
  • Asset Creation Tools
  • Programming Engines
• Services

By Platform

• Desktop
• Mobile
• Headsets

By Technology

• Blockchain
• Virtual Reality (VR) & Augmented Reality (AR)
• Mixed Reality (MR)
• Others

By Offering

• Virtual Platforms
• Asset Marketplaces
• Avatars
• Financial Services

By Application

• Gaming
• Online Shopping
• Content Creation & Social Media
• Events & Conference
• Digital Marketing (Advertising)
• Testing and Inspection
• Others

By End-use

• BFSI
• Retail
• Media & Entertainment
• Education
• Aerospace and Defense
• Automotive
• Others

By Companies

• META
• NVIDIA Corporation
• Epic Games
• Microsoft
• Snap Inc.
• Nextech AR Solutions Inc.
• The Sandbox
• Decentraland
• Roblox Corporation
• Qualcomm Technologies, Inc.

Overview of the regional outlook of the Metaverse Market:

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Reasons to Purchase this Report:

• Qualitative and quantitative analysis of the market based on segmentation involving both economic and non-economic factors;
• Provision of market value (USD Billion) data for each segment and sub-segment;
• Indicates the region and segment that is expected to witness the fastest growth and to dominate the market;
• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the market's dominance by region;
• Analysis by product/service type
• Competitive landscape that includes the market ranking of the top competitors, as well as new service/product launches, collaborations, business expansions, and acquisitions of companies featured during the previous five years
• Extensive company profiles with business overview, company insights, product benchmarking, and SWOT analysis for the leading market players
• The current and future market outlook of the industry in light of recent developments (which include growth opportunities and drivers as well as challenges and restraints of both emerging and developed regions)
• Includes an in-depth analysis of the market from multiple perspectives using Porter's five forces analysis Provides market insight across the Value Chain
• Market dynamics situation, as well as development potential for the market in the coming years
• 6-month post-sale analyst assistance

Frequently Asked Questions-

What is the CAGR of Metaverse Market?

The Metaverse Market is growing at a CAGR of 44.5% During Forecast Period.

What are the key Product of Metaverse Market?

Hardware, Software, Services, Other

What are the key Application of Metaverse Market?

Gaming, Online Shopping, Content Creation & Social Media, Events & Conference, Digital Marketing (Advertising), Testing and Inspection, Others

Who are the key players in Metaverse Market?

META, NVIDIA Corporation, Epic Games, Microsoft, Snap Inc., Nextech AR Solutions Inc., The Sandbox, Decentraland, Roblox Corporation, Qualcomm Technologies, Inc.