Market Overview:

The Global Metaverse Market Was Valued At USD 51.69 Billion In 2022 And It Is Estimated To Surpass Around USD 982.51 Billion By 2030 With A Registered CAGR Of 44.5% During The Forecast Period 2023 To 2030.

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 realized 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.

Main advantage of metaverse is discovery and implementation of novel applications that would fundamentally alter how people use internet and other related digital communication technologies. Benefits of this concept are comparable to those of Web 2.0 and social media, which will result in new value-creating digital goods and services with useful applications, leading leading market players and developers to innovate new possibilities. Creators of meta platforms are aware of how technology can let individuals interact and express themselves more freely. However, modern communication tools, such as Zoom and social networking sites including Facebook, Twitter, and TikTok, limit digital human connection to a two-dimensional plane.

COVID-19 Impact:

In the past few years, the size of the metaverse market has grown a lot. However, when the COVID-19 pandemic broke out, there was a sudden rise in demand for metaverse products. In an April 2022 survey done by J. Clement, more than 92% of the people who answered said they thought the global COVID-19 pandemic sped up the development of the metaverse and related technologies. Also, the COVID-19 lockdowns led to more people working from home and changing the way people interact with each other. This increased demand for metaverse platforms, which continued even after the number of COVID-19 cases went down in late 2021. This made a lot of companies want to take advantage of this chance to sell more products and services on metaverse platforms. For example, Sony Music Entertainment and Lil Nas X held a two-day virtual concert on the Roblox platform in November 2020. More than 30 million people used the platform to watch this concert.

Market Dynamics:

Market Trends:

• Surging Demand of Digital Twins across Developing Regions

As time goes on, both the digital world and the real world get more complicated and powerful. But for them to reach their full potential, systems and data may need to work together across whole business ecosystems. Users can talk to each other online, use sensor data to instantly re-create situations, understand what-if scenarios, make better predictions of what will happen, and send commands to change the environment. It can show the technical specs and dimensions of a brand-new product or all the subcomponents and how they connect to the rest of the supply chain, from the design desk to the customer. It comes up with new ways to make things and gathers information to help make better decisions and predictions that could help automate difficult chemical and biological processes.

Driving Factors:

• Increasing Demand in the Entertainment and Gaming Industry

AR, VR, and MR technologies are being used more and more, which has led to the fastest growth in the global media, entertainment, and gaming industries. The main reasons to use these technologies are that devices like VR headsets, MR headsets, HUD, HMD, smart glasses, and smart helmets can offer a first-person view, act as natural user interfaces, give 6 degrees of freedom, etc., to create virtual scenarios that look real and improve the overall gaming experience for end users. The introduction of these devices and solutions has made the user experience so much better. The best thing that technology has done for people is to let them experience things virtually in real time. Key players in the market have also put in a lot of money because of the growing demand for extended reality devices. The biggest players in the market are putting more money into research and development, which should help the metaverse spread in gaming and entertainment.

• Rising Adoption of Advanced VR Devices and Blockchain

The growth of the market is helped by the growing demand for advanced VR devices from small, medium, and large businesses and consumers around the world. The market is also growing because new technologies like Artificial Intelligence (AI), blockchain, and Mixed Reality (MR) are being used more and more in different ways. Also helping the market grow are rising investments in retail and e-commerce and a rise in the use of platforms to show off products in the virtual world. According to a report from the United Nations Conference on Trade and Development (UNCTAD), e-commerce sales reached USD 26.7 trillion in 2020, an increase from 16% to 19%. With e-commerce sales going up so much around the world, the market has a huge chance to grow during the forecast period.

• Growing Popularity of Crypto Gaming

The growth of the cryptocurrency gaming market also helps the metaverse market grow. Growth is also helped by a growing number of investors who put in a lot of money. Play-to-earn games are popular right now. In these games, players earn items or spend tokens that have real-world value. After getting tokens, you can trade them in for real money or use them to buy things in the game. For example, in November 2021, Fold, a U.S. bitcoin rewards company, teamed up with Niantic, a U.S. software development company, to make a new augmented reality game that lets users earn Bitcoin in the metaverse. At the moment, only a small number of users can play the game, called "Fold AR," for a short time each day to test it out.

Restraining Factors:

• High Installation and Maintenance Costs of High-End Metaverse Components

Hardware for the Metaverse includes XR devices, semiconductor parts, sensors, trackers, and other cutting-edge tools. For the metaverse to feel real and interesting, you need expensive hardware with fast networking, a lot of storage space, and the latest technology. The cost of these metaverse devices goes up even more because they use 3D and other advanced technologies to make a virtual world that looks real.

The engines, 3D modeling software, and rendering tools that are made for business use are expensive. On top of that, installing devices and solutions for augmented and virtual reality costs more money. Their maintenance costs add to the total amount of money that needs to be spent to use this technology. Since installation and maintenance costs are so high, the growth of the global metaverse market is likely to be slowed down.

• Challenges in Creating a Unified System to Verify Owners of Virtual Assets

Putting together a unified virtual world where users can talk to real-world people and their avatars and buy and own different goods and assets is not easy. More and more people are using and investing in NFTs, which encourages them to own tokens and digital assets. The biggest problem would be coming up with a uniform way to verify the owners of virtual assets in the metaverse. This would be similar to how NFTs already represent real-world objects by issuing and verifying ownership rights for art, music, movies, and other media, which is expected to slow the growth of market revenue.

• Lack of Awareness of Service and Security Options

The metaverse market faces problems like security worries, lack of knowledge, government rules and regulations, and more. Also, cyberattacks in the environment have caused major players to lose billions of dollars. The market may not grow as fast if there are more cyberattacks and more sensitive issues.

Opportunities:

• Incorporation of the Metaverse and Adjacent Technologies in Aerospace and Defense Sector

In the aerospace and defense industry, technologies like XR, AI, and analytics are expected to help a lot with training and simulation. By using data-driven applications in real time, these technologies and metaverse should help with hands-on training when used together. So, the metaverse is expected to make it easier and faster for trainees in this vertical/enterprise to learn the right skills and keep those skills in mind. Airlines use extended reality to teach the ground crew how to do pre-flight checks. It is also used to help the ground crew do the necessary things before an airplane takes off. Also, when these technologies are used together, they can be used to check airplanes, look at their data, and find problems before they take off. This makes flying safer. When combined with XR, the metaverse can also help train people to use weapons, train them to fly, and run simulations, which will help the market grow.

• Infrastructure Development in Emerging Nations

The metaverse could grow in a number of ways, all of which depend on an ecosystem of innovation, investment, research, and policy. If the metaverse comes to be, people can expect to have experiences they can't plan for, and anyone who says they know for sure what's going to happen probably doesn't have the flexibility of a curious optimist.

Metaverse has the potential and promise to become an extension of people's lives where they can choose to work, live, and play in real time all the time. Metaverse gives users an immersive experience and opens up new business opportunities for many different companies. But this chance can only be fully taken advantage of if more people have access to the internet through WiFi, fiber-to-the-home, 5G, satellite broadband, private networks, and more. For these services to work, there will need to be a high-speed connection that can support seamless, intensive user experiences on demand. Due to dependence, communications service providers (CSPs) are in a great position to take advantage of the many opportunities this market has to offer and help others do the same. Also, telecom companies, tech companies, and the government need to work together to improve networks and build an infrastructure that can support 5G and other high-end technologies like metaverse. Also, the optimization of the network and the improvement of latency between devices and within radio-accessible networks need to be looked at again.

• Expanded Opportunities for Business-to-Consumer (B2C) And Business-to-Business (B2B) Enterprises

One of the good things about the metaverse is that it makes it much easier for people in emerging and frontier economies to buy things on the market. The Internet has already given people access to goods and services that they couldn't get before. For example, workers from low-income countries may now be able to find jobs in western corporations without leaving their home countries. Virtual reality environments will help improve education because they are a good way to learn that doesn't cost much. Because of these changes, there will need to be clear leadership. B2B marketing includes trade shows, demos of products, meetings with clients, customer service, and commercials. Now, the metaverse has the power to change all of these things in big ways. Since many B2B products are just everyday things, good customer service can make all the difference. The Metaverse blurs the lines between B2B and B2C, which is an interesting side effect. This is a way for companies to grow their regular customer bases without following corporate traditions.

Challenges:

• The Threat of Cyber-Based Attacks Targeting the Metaverse is a Primary Concern

The growth of the cryptocurrency gaming market also helps the metaverse market grow. Growth is also helped by a growing number of investors who put in a lot of money. Play-to-earn games are popular right now. In these games, players earn items or spend tokens that have real-world value. After getting tokens, you can trade them in for real money or use them to buy things in the game. For example, in November 2021, Fold, a U.S. bitcoin rewards company, teamed up with Niantic, a U.S. software development company, to make a new augmented reality game that lets users earn Bitcoin in the metaverse. At the moment, only a small number of users can play the game, called "Fold AR," for a short time each day to test it out.

• Global Economic Slowdown Resulting due to COVID-19

Due to the sudden lockdowns in key areas caused by the ongoing pandemic, there is more demand for extended reality devices (Europe, Asia Pacific, and North America). As a result of COVID-19, employees of many organizations are now working from home. This means that there are more needs for virtual meetings, training, and conferences. The pandemic has also affected how extended reality devices are made around the world.

A survey of the US manufacturing industry done by the National Association of Manufacturers (NAM) in 2020 showed that more than 35% of respondents thought that the COVID-19 had changed their supply chain operations, and over 53% thought that their operations would change in the next few months. Some important industrial companies have shut down their plants and are thinking about how many people to lay off to stop the virus from spreading and to save money. Because the pandemic has had such a big effect on the manufacturing industry, extended reality devices are no longer being made anywhere in the world. It has made people spend less on things that aren't necessary. This, in turn, is likely to make it hard for the metaverse market to grow in the short term.

Strategic Development:

• In July 2022 - The Spanish government said that it would give 3.8 million euros ($4.1 million) to independent contractors and small and medium-sized businesses (SMEs) based in the European Union or Spain that were working on research, development, and innovation projects involving Web3 and metaverse technologies. The Spanish Ministry of Culture and Sports has also decided to give 8 million euros ($8.5 million) to the creation of video games and story metaverse experiences.
• In November 2021 - The U.S.-based Roblox Corporation, which runs an online gaming platform, set up a $10 million fund to help online education apps be made for its virtual world. Also, mobile service providers like AT&T Intellectual Property are working together to make educational programs and platforms that use the metaverse.
• In November 2021 - Niantic, Inc., a virtual and augmented reality platform, raised USD 300 million to build a platform for a real-time virtual world. Coatue, a company that makes games like Pokémon GO, gave this money to the company.
• In October 2021 - Facebook's parent company, Meta Platforms Inc., said it was going to invest in the European Union by hiring 10,000 people to help build the metaverse. Meta also teamed up with Colorintech, a non-profit organization based in the U.K. that works toward a more open and inclusive tech company, to run a metaverse competition to support new ideas and awards in the industry.
• In April 2021 - Epic Games Inc. got $1 billion in funding to help it drive the growth of the metaverse market. The Sony Group Corporations plan to invest $200 million in the company as part of the funding round.
• In March 2021 - Advanced Info Services (AIS), which is Thailand's biggest mobile provider, made a metaverse shopping mall so that customers could keep shopping even though there was a pandemic. The V-Avenue metaverse shopping center lets two million different people shop in more than 200 3D stores and interact with each other in virtual reality, just like they would at a real mall.

Key Vendors:

Top market players are

• META

Meta Platforms Inc., which used to be called Facebook Inc., offers solutions for social networking, advertising, and business insight. Through its big products like Facebook, Instagram, Oculus, Messenger, and WhatsApp, the company connects people with their friends, family, and coworkers all over the world and helps them find new products and services from local and global businesses.

• NVIDIA Corporation

NVIDIA Corporation has been making graphics processors since it was founded in 1993. The computer gaming market was the first to accept the company's products. Later, other markets, such as the corporate and mobile PC markets, did the same. NVIDIA has become a major player in the graphics market by adding new products and buying smaller competitors like 3dfx Interactive Inc. Along the way, it has mostly grown by adding new products and expanding its line.

• Epic Games

Epic Games Inc., which goes by the name "Epic Games," is a technology company that makes video games. Through the epic games store and epic online services, the company gives developers and creators a full digital ecosystem for making, distributing, and running games and other content. It also has 3D engine technology and entertainment that you can interact with.

• Microsoft

Microsoft Corporation is a company that makes software. The company sells apps, extra storage in the cloud, and high-tech security solutions. Microsoft has customers all over the world.

• Snap Inc.

Snap Inc. (Snap) is a social media and camera company that makes and sells communication apps and tools. Camera, Communication, Spotlight, Stories, Snap Map, Memories, and Spectacles are all products that the company makes. It also offers businesses advertising tools and services, like sponsored creative tools and snap ads.

• Nextech AR Solutions Inc.

Nextech3D AR is an augmented reality and artificial intelligence (AI) technology company that uses its own AI to make 3D experiences for the metaverse. Its main business is making 3D WebAR models that look like real photos for the Prime Ecommerce Marketplace and many other online stores.

• The Sandbox

The Sandbox is a platform for playing games that is built on Ethereum. It lets users play, make, own, and run a virtual world. The main office is in Hong Kong.

• Decentraland

Decentraland is a virtual social platform that is run by the Ethereum blockchain and doesn't have a central server. On the Decentraland platform, users can make content and apps, use them, and make money from them.

• Roblox Corporation

Roblox Corporation makes and sells products and services for fun. The company designs and makes a wide range of online games for kids, teens, and adults, such as 3D internet games and games that teach people how to do things. Roblox has customers all over the world.

• Qualcomm Technologies, Inc.

In 2011, Qualcomm Technologies, Inc. was set up. The company's main business is making semiconductors and other solid-state devices that work with them.

Segmentation Analysis:

The market is segmented on the basis of component, platform, technology, application, end-user and regions.

By Component Outlook:

Based on the type of part, the hardware segment brought in the most money in 2021, and it is expected to grow at a CAGR of 39% from 2022 to 2030. This segment is made up of companies that sell consumer hardware like AR/VR headsets, displays, and extended reality hardware. In this segment, there are also tracking systems, projection, industrial cameras, and scanning sensors, which are all types of hardware. The key things that are driving the growth of the hardware segment are advanced technological progress in ER and VR. The software segment is also expected to grow a lot during the forecast period. There are many companies that sell programming engines and tools for making assets.

Game engines like Unreal Engine and Unity are used to build digital worlds in the gaming industry. In games like Fortnite, the digital world is made with the help of Unreal Engine and unity. Because online gaming is becoming more popular, games are becoming more realistic. This is the main thing that is driving revenue growth in both the software and hardware markets.

• Software
• Asset Creation Tools
• Programming Engines
• Hardware

• Haptic Sensors & Devices
• Smart Glasses
• Omni Treadmills

• Displays
• eXtended Reality (XR) Hardware
• AR/VR Headsets
• Others

By Platform:

Based on the type of platform, desktop had the largest share of the global metals market's revenue until 2021. Augmented reality and virtual reality headsets like the Valve index, HTC vive, and Oculus work well with a powerful desktop computer. It is expected that the revenue growth of the desktop platform segment will pick up in the future, since both the business and consumer spaces are growing. There are a lot of virtual reality experiences that only work on high-resolution PCs.

During the time frame of the forecast, both the desktop and mobile segments are expected to show steady growth in revenue. In the past ten years, the use of smartphones has become very important. Over the past 10 years, there has been a big change in how people watch YouTube videos. Now, about 70% of YouTube videos are watched on mobile phones around the world. In a lot of developing countries, the smartphone is the only powerful media device that people can use. Because of this, the idea of the metaverse on a mobile is getting bigger. In order to reach people in developing countries, many companies are focusing on this area. Due to the COVID-19 pandemic and the lockdown, the metaverse market grew significantly in developing countries. Even in developing countries, the metals market is likely to grow because of the reasons given.

• Mobile
• Desktop

By Technology:

In 2021, the virtual reality and augmented reality segment made up about 36% of the market in terms of technology. With the help of 3D virtual environments, the metaverse makes it feel like you are there. Virtual reality and augmented reality are the technologies that are used to make this feeling of "being there" in a virtual world. Virtual reality and augmented reality are likely to be the most important changes in technology over the next five years. This is one of the most important things that is expected to drive the market during the time frame.

After augmented reality and virtual reality, the block chain segment is also expected to grow steadily over the next five years. Blockchain technology helps with digital proof of ownership, the transfer of value using crypto or governors, and the ability to digitally collect assets. Blockchain-based metaphors like Axie Infinity, Second Life, and Decentraland are giving different companies the chance to meet the growing demand.

• AR & VR
• Mixed Reality 
• Blockchain
• Others

By Application Outlook:

On the basis of application, the gaming segment held largest revenue share of around 28% in 2021.

The social media segment is expected to grow strongly during the forecast period. There's an increasing focus in order to enhance the social interactions of various users on the social media platforms. This happens to be the key factor which is driving the trend in the market. Virtual reality and 3D of the metals are being used by maybe social media companies to improve their social connections and to enhance the experience of the users. Due to the introduction of 5G networks and artificial technology apart from cloud processing are the key factors that are expected to support the revenue growth of the social media segment in the future. Across the gaming sector the adoption of metaverse is expected to gain momentum. There are many increasing investments in play to earn gains which is helping the gamers in earning money. There is also an increase in spending of money over virtual skins, virtual avatars, virtual events and other virtual items.

• Aircraft maintenance
• Gaming
• Online shopping
• Social media
• Virtual runway shows
• Content creation
• Others

By End-User:

In 2021, 39% of the market was made up of media and entertainment. Metaverse can change the content and experiences in all of these areas. The media and entertainment industry is helping people get along better with each other. Companies are using metaphors to add value to their entertainment brands and improve how they do things like build worlds, tell immersive stories, and let fans use their own creativity. Immersive storytelling, building wards, and letting Frank's creativity flow or helping to build the franchise are all things that can be done. It also helps to get more people involved in these kinds of activities. The idea of telling a story will be improved by the immersive and interactive experience. During the pandemic, the media and entertainment sector was well-supported. Due to the strict lockdowns during the pandemic, many artists had to play virtual concerts in the year 2020. Roblox and Insomniac worked together. With the help of this platform, a music event was put together.

During the forecast period, the defense and aerospace segment is also likely to grow a lot. There are many examples of the Navy, Army, and Air Force training with the help of metaverse, which has improved the quality of training and made it more likely that missions will go well. The training of soldiers and other staff was a very immersive, entertaining, and fun experience. It makes people more interested and helps them understand the concept better, which helps them learn more.

• Media and Entertainment
• BFSI
• Retail
• Aerospace and defense
• Education
• Automotive
• Others

Regional Insights:

North America is likely to bring in the most money in 2021, more than 46.0% of the total. This is because customers and users in the area are switching to newer technologies that are harder to use. The fact that more and more start-ups are focusing on building commercial platforms for the metaverse is also expected to help the regional market's revenue grow. Also, there are a lot of gaming and metaverse companies in the area, like The Sandbox, Nvidia Corporation, and Epic Games, Inc., that focus on putting metaverse into games. This leaves room for the market to grow. For example, Nvidia Corporation announced partnerships with Blender and Adobe that will help millions more people use NVIDIA Omniverse, which is 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 high CAGR. The growth of the market in the Asia-Pacific region is expected to be driven by a growing number of start-ups and organizations, 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. These virtual metaverse marketplaces and gaming platforms give users an immersive experience where they can take part in live activities run by third-party apps they choose.

• 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

Scope of Report:

Report Attribute	Details
Study Period	2017-2030
Base Year	2022
Estimated year	2023
Forecast period	2023-2030
Historic Period	2017-2022
Units	Value (USD Billion)
Growth Rate	CAGR of 44.5% from 2023 to 2030
By Component	Software Asset Creation Tools Programming Engines Hardware Haptic Sensors & Devices Smart Glasses Omni Treadmills Displays eXtended Reality (XR) Hardware AR/VR Headsets Others
By Platform	Mobile Desktop
By Technology	AR & VR Mixed Reality  Blockchain Others
By Application	Aircraft maintenance Gaming Online shopping Social media Virtual runway shows Content creation Others
By End-User	Media and Entertainment BFSI Retail Aerospace and defense Education Automotive Others
By Companies	META NVIDIA Corporation Epic Games Microsoft Snap Inc. Nextech AR Solutions Inc. The Sandbox Decentraland Roblox Corporation Qualcomm Technologies, Inc.
Regional Scope	North America Europe Asia-Pacific The Middle East & Africa Latin America
Reasons to Purchase this Report and Customization Scope	6-month post-sale analyst assistance. 10% Free Customization and 15 Company Profiles in addition to the ones specified

Conclusion:

• The report also gives information about the latest industry, share, growth, trends, research, overview, and metaverse market trends.
• It also looks at how technologies are being used around the world at a fast pace.
• It also talks about some of the things that help the market grow and things that slow it down.
• The report also has an overview and an analysis of the industry.