Global Metaverse Market Analysis by Product, Platform, Technology, Offering, Applications, End Users and Region and segments forecast till 2033

Market Overview

The global Metaverse market was worth USD 23,500 million in 2022 and is anticipated to amplify at a CAGR of 20.2% over 2023-2033, thereby accumulating USD 137,170 million by end of the analysis timeline.

Technology has played a vital role in the global development. Each day the technical world is discovering unique functions. Metaverse is one such kind. Metaverse is a web of 3D virtual world focusing on social connection. It is a concept of a persistent, online 3D version that combines several different virtual spaces. It is a future iteration of internet. With the mediation of Metaverse users will be able to work, meet, game and socialise together in the 3D virtual world. Simply put, the Metaverse is where the users can meet, interact, play, and experience the virtual world. With the help of augmented reality and virtual reality, people can communicate with the virtual individual before them.

The term Metaverse has lately been popular, reason being Facebook and Microsoft claiming the ownership. The Metaverse concept is where real life-like avatar i.e. graphical representation of user meets the realistic 3D virtual environment. Since past few years, technology has paved its way for true Metaverse, an online fundamental world that integrates with augmented reality, virtual reality and in collaboration with 3D holographic avatars, video, and other forms of communication giving the users a different feel. The Metaverse platform raises the user experience by creating a digital world where users can immerse in the gaming world, socialise, buy-sell products and enjoy immersive pleasure. As a result of this, Metaverse market is displaying noteworthy improvement.

Metaverse has immerged as one of the trending technology platforms appealing several social and technological networks, and gamers establish their presence in Metaverse market. The Metaverse technology is fast growing mechanization with a considerable rate of followers for various applications such as gaming, business meetings, learnings and trainings, and mostly online shopping. As per the industry experts, Metaverse is expected to infiltrate the global market in numerous ways, creating humongous opportunities in virtual field. This aspect is considered to boost Metaverse market.

Additionally, as per United Nations, in 2018, the global digital economy exhibited 15.5% of total GDP. According to market experts of leading solution providers, contingent on the percentage share and Metaverse market expansion, the potential market opportunity for the Metaverse market is anticipated to be roughly up to USD 12.46 trillion. Subsequently, major market players such as Walmart; Nike, Inc.; Gap Inc.; Verizon, Hulu and many more are entering Metaverse through different medium to get a sense of the digital world.

Report Scope

Impact of COVID

Growing interest of people in newer technologies has given rise to the application of Metaverse concept. The recent pandemic that the hit the globe resulted into unprecedented lockdown across the globe. Consequently, people were stuck to their homes and were forced to work remotely. Besides, government restriction on social gatherings and resulting into schools and colleges to close down, led to students being forced to study online. This created a need for practical trainings and channels to make online connect more realistic. Covid-19 pandemic heightened the importance of online and virtual trainings. During the pandemic year 2020, several tech manufacturers began developing this technology and announced their investments. Due to large investments done on Metaverse, the year 2021 was considered to be a good year for such technology investments. According to market experts, Covid-19 was a lucrative period for Metaverse market.

Product Insights

Based on the Product segment Metaverse market is further sub-divided into following types, of which the Software sub-segment is projected to grow with a highest CAGR with respect to development of advanced software technology and platform by leading partners. The software sub-segment is expected to grow at a high CAGR (compound annual growth rate) over the forecast period, driven by the development of advanced software technology and platforms by leading partners in the industry. These partners are investing heavily in research and development to create cutting-edge software solutions that enhance the user experience and enable new applications within the metaverse. As the metaverse continues to evolve and mature, the importance of the software sub-segment is expected to grow even further, driving continued innovation and growth in Metaverse market. This is likely to create significant opportunities for software developers and other technology partners who are able to create cutting-edge solutions that enable immersive experiences within the metaverse.

Platform Insights

Based on the Platform segment, Metaverse market is further sub-divided into following types. Of all types of platforms, the desktop held the largest market share in 2021 owing to rise in online gaming adoption. This can be attributed to the growing adoption of online gaming and the availability of advanced software technology for desktops. Desktops offer better processing power and graphics capabilities, which are essential for creating a seamless metaverse experience. Moreover, the COVID-19 pandemic has led to an increase in remote work and online activities, which has further boosted the demand for desktops. With the growing popularity of virtual events and social gatherings in the metaverse, desktops are expected to continue dominating Metaverse market in the near future. However, the mobile and console segments are also expected to witness significant growth owing to the increasing use of smartphones and gaming consoles for metaverse activities.

Technology Insights

Blockchain technology is considered to be one of the most promising technologies for the development of metaverse applications. It offers various benefits such as decentralization, transparency, immutability, and security, which are critical for the operation of a virtual economy within the metaverse. Blockchain allows for the creation of digital assets that can be easily traded and exchanged within the metaverse. It provides a secure and decentralized platform for users to buy, sell, and trade virtual goods and assets, including virtual real estate, in-game items, and cryptocurrencies. Additionally, blockchain technology can enable smart contracts, which can automate transactions and enable new business models within the metaverse.

Moreover, blockchain technology provides a high degree of security and prevents fraudulent activities within the metaverse. Transactions within the metaverse can be tracked and verified on the blockchain, which enhances transparency and trust. Therefore, due to its ability to provide security, transparency, and a decentralized platform for virtual transactions, blockchain technology is currently dominating the metaverse market.

Offering Insights

Virtual platforms are popular because they offer a fully immersive experience, allowing users to enter a completely virtual world and interact with other users in real-time. They offer a wide range of applications, such as virtual events, education, gaming, and socializing, making them versatile and attractive to various industries. Additionally, advancements in virtual reality technology have led to the development of more advanced and realistic virtual platforms, which has further fueled their popularity.

Applications Insights

Based on the Application segment Metaverse market is further sub-divided into following types, of which gaming segment is expected to hold a largest share with respect to rising gaming options, especially live video streaming across all platforms. The gaming segment is expected to hold the largest share in the metaverse market due to the increasing popularity of online gaming, live streaming, and e-sports. With the development of advanced software technologies and platforms, gaming companies are exploring the potential of the metaverse to enhance the gaming experience for their users. The metaverse offers a virtual space for gamers to interact with each other, explore new worlds, and engage in immersive gaming experiences.

Moreover, the COVID-19 pandemic has further accelerated the growth of the gaming industry, as more people are staying at home and seeking entertainment options. This has led to a surge in demand for online gaming and live streaming platforms, driving the growth of the metaverse market in the gaming segment. Additionally, the gaming segment is expected to continue to grow in the future, as more advanced technologies such as virtual reality, augmented reality, and mixed reality are integrated into the metaverse to offer more immersive gaming experiences.

End Users Insights

Media and entertainment companies are leveraging the metaverse to create new revenue streams and engage with audiences in innovative ways. For example, some companies are using the metaverse to create virtual concerts, where users can attend live music events in a virtual environment. Others are creating virtual shopping experiences, where users can browse and purchase products in a virtual store.

In addition, the metaverse also offers opportunities for media and entertainment companies to monetize their content through the use of non-fungible tokens (NFTs). NFTs can be used to represent digital assets such as music, art, and video, and can be bought and sold on blockchain-based marketplaces. This provides a new way for media and entertainment companies to monetize their content and engage with audiences in a more direct and transparent way.

Regional Insights

Based on the geographical view, Metaverse market occupies regions as North America, South America, the Middle East & Africa, Europe, and Asia-Pacific. North America is expected to dominate Metaverse market due to prevalence of several technology industries. Moreover, growing emphasis on integration of digital and physical world through web along with traction of people towards the feel of mixed reality, is the major factor driving Metaverse market.

Competitive Analysis

Key players operating in the worldwide Metaverse Market are Meta Platforms Inc., NVidia, Microsoft Corporation, Tencent Holdings Ltd., Bytedance, Epic Games, Netease Inc., Roblox Corporation, Lilith Games, Nextech AR Solutions Inc., and Unity Software Inc., ByteDance Ltd., NetEase, Inc., Nextech AR Solutions Corp.,The Sandbox Active Theory Decentraland, Microsoft Corporation, Apple Inc., 3i Inc., Atari, Inc., Autodesk Inc., Dapper Labs, Epic Games, Inc., Fastly, Google LLC, IBM Corporation, Madeium, Magic Leap, Inc., Oracle Corporation, PTC Inc., Synthesis AI, Lilith Games are some of the prominent companies that have contributed a significant role in the growth of Metaverse market.

Recent News

·         On April 12, 2022, Roblox Corporation announced its acquisition of a virtual real estate company called Loom.ai. The move is seen as a step towards Roblox's vision of creating a metaverse that is more immersive and social.

·         In March 2022, Epic Games, the company behind the popular game Fortnite, acquired a virtual reality platform called Sketchfab. The acquisition is expected to help Epic Games enhance its own metaverse offerings.

·         On March 21, 2022, Niantic, the company behind the popular game Pokemon Go, announced a partnership with Qualcomm to develop augmented reality (AR) glasses for the consumer market. This move is seen as a step towards creating a more immersive metaverse experience.

·      In February 2022, Decentraland, a blockchain-based virtual world, announced that it had raised USD 100 million in a funding round led by Andreessen Horowitz. The funding is expected to help Decentraland expand its offerings and continue to develop its metaverse platform.