Global Metaverse in Gaming Market Research Report: Forecast (2023-2028)

Market Definition

Metaverse is an open digital ecosystem that runs parallel to the physical world, equipped with high-end technologies like Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), etc., and users can interact with each other and with virtual objects in a three-dimensional environment. It includes tools, platforms, and systems technologies that allow for the creation, simulation, and integration of a fully immersive & interactive virtual world.

Gaming in the metaverse refers to playing through interactive experiences within virtual reality environments, such as virtual worlds, social VR platforms, and related digital spaces. In gaming, the players immerse in virtual reality through the metaverse, using different hardware like VR headsets and playing new forms such as social gaming, multiplayer gaming, and location-based gaming.

Market Insights & Analysis: Global Metaverse in Gaming Market (2023-28)

The Global Metaverse in Gaming Market is projected to grow at a CAGR of around 41.2% during the forecast period, i.e., 2023-28. The market is driven by the expanding implementation of metaverse in different technologies facilitating the adoption of games and related gadgets. In addition, the rising popularity of AR and VR, leading to consumers adopting related devices combined with the trend of owning virtual assets like land and NFTs, has encouraged gamers to play and indulge in metaverse games, fueling the market expansion.

In addition, the spreading adoption of blockchain-based technologies and their integration into different virtual platforms is expected to reflect positively on the industry. Furthermore, the enhanced digital experience made possible through metaverse technology like virtual reality, mixed reality, etc., allows gamers to explore new dimensions and possibilities, resulting in positive acceleration for the expansion of metaverse gaming.

Moreover, the continuous research and development into metaverse by IT giants and its implementations into gaming by gaming companies offer lucrative opportunities for the market players and the industry. Despite the data privacy and data harvesting concerns, the gaming industry is expanding exponentially in significant economies, garnering the attention of many consumers, which is expected to accelerate the market further.

Global Metaverse in Gaming Market Key Driver:

Expanding Implementations of Metaverse and The Popularity of AR and VR - The growing development in Metaverse technology has garnered a huge audience’s attention, and its multiple applications and implementations spreading across numerous sectors and technologies, have been primarily driving the market. Along with it, the rising popularity of AR and VR has further promoted the implementation of metaverse technology in developing next-level games. Moreover, the heavy penetration of gadgets and new devices among consumers has facilitated the adoption of AR and VR devices, consecutively raising the audience for virtual games implementing Blockchain and other metaverse technologies, accelerating the industry further.

Global Metaverse in Gaming Market Possible Restraint:

Concerns of Data Harvesting, Digital Privacy, and Stimulator Sickness - Metaverse gaming heavily depends on AR and VR devices, which are bound to collect different forms of user data as required, which could be personal to users. The high possibility of these devices collecting data that can be subjected to privacy concerns is expected to hamper the industry. For example, the ability of these devices to collect the biometric data of an individual could hamper the digital privacy of the consumer and the ability to collect location data, facial biometrics, etc., and chances of them being shared with the government and private organizations without the consent of the user raise concern and hinder industrial expansion. In addition, stimulator sickness, the type of motion sickness experienced by users when participating in immersive activities, could hamper the audience base and put an obstacle to metaverse expansion.

Global Metaverse in Gaming Market Growth Opportunity:

Technological Development and Innovative Marketing Strategies by Developers - Dedicated research and development in the metaverse by IT giants and game developers to explore new ways to integrate it further into gaming pose a lucrative growth opportunity for the industry. For instance,

• In September 2022, NVIDIA unveiled its Omniverse Cloud Platform, a collection of cloud services allowing designers, developers, and enterprise teams to create, publish and run metaverse gaming apps from any location.

In addition, the excellent range for technological advancement allows and garner’s user’s attention to wait for the subsequent development, and the fragmented & diverse application of the technology provides further scope for expansion for the industry. Along similar lines, innovative marketing strategies by developers and game builders, like owning virtual land and NFTs rewards as the gamer clears certain levels, are bound to garner more attention with the growing popularity of virtual assets, promoting and creating more lucrative opportunities for the industry.

Global Metaverse in Gaming Market Key Trend:

The Growing Popularity of Owning Virtual Assets Like NFTs - The rewarding experience of owning virtual assets, like land in a metaverse and NFTs, has become a popular trend leading to users adopting to metaverse faster and investing in it to own virtual assets. Consecutively, the perception of online gaming is changing with the reward of earning virtual assets like land, money, and NFTs through leveling up, participating, and exploring the games has been fueling the industry forward. Additionally, the spreading prevalence of growing opportunities to own virtual assets with the rising popularity of such metaverse games has been expanding the market.

Global Metaverse in Gaming Market (2023-28): Segmentation Analysis

The Global Metaverse in Gaming Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the Technology, and Age Group the market has been further classified as:

Based on Technology

• NFTs
• Blockchain
• Virtual Reality
• Augmented Reality
• Mixed Reality
• Extended Reality

Here, Virtual Reality (VR) and Augmented Reality (AR) are expected to grow exponentially and dominate the industry with larger market shares. Both AR and VR are tied close to and contribute majorly to gaming through the metaverse, bridging the digital and physical worlds. Users add virtual gaming objects using AR, while VR allows them to explore unlimited possibilities, therefore raising the adoption of metaverse games to experience the leveled-up gaming industry.

Moreover, integrating and implementing 3D computer modeling, allowing users to immerse themselves in the 3D virtual gaming environment, further fuels industrial expansion. On the other hand, AR's cost-effectiveness compared with VR also contributes to the segment’s development.

Based on Age Group

• Below 10
• 11-19 Years
• 20-35 Years
• 35-50 Years
• Above 50 Years

Age group-wise, 20-35 Years dominated the market, owing to the high cost of AR and VR devices and the newly earning population being able to afford them and invest in their gaming hobby. On the other hand, a large amount of adult content, with a game involving topics such as violence or gore-based storylines, also facilitates segment domination.

Furthermore, the unknown dangers of prolonged access and exposure of children to AR and VR environments also contribute to the expanding the 20-35 age group’s gaming investment. As with time, the number of gamers is increasing exponentially, and gamers focusing on making children-friendly games for entertainment and educational purposes, below 10 and 11-19 age groups are expected to expand considerably in the coming years.

Global Metaverse in Gaming Market Regional Projection

Geographically, the Global Metaverse in Gaming Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Globally, North America dominated the market during the historical period and is expected to continue by acquiring the largest market share in the forecast period. The market expansion is attributed to the presence of a tech-savvy population, major IT giants such as Google, NVIDIA, and Microsoft, and leading gaming companies like Sandbox and Roblox.

Other than this, the region’s greater acceptance of the integration of Blockchain technology and the spreading popularity of multiple games based on metaverse are contributing to the region’s growth and demand for advancements in VR and AR. Moreover, the greater availability of disposable income among the population and burgeoning investments by the market participants promise further acceleration to the industry.

On the other hand, the Asia-Pacific region is expected to witness the fastest market acceleration in the forthcoming years, aided by the increasing adoption of digital technology and gadget among the populace and the growing availability of VR and AR devices. Furthermore, with the rising gaming population and industries investing more in technological research and availability to the people, the market is expected to experience exponential growth.

• In June 2022, Tencent Holdings Limited, a leading company of metaverse gaming in China, launched X.R/extended reality units to increase the usage of 3D graphics within the metaverse gaming platforms and more.

Global Metaverse in Gaming Industry Recent Developments 

• In September 2022, Epic Games collaborated with Haedan intending to invest 30 million USD in developing Haedan’s metaverse gaming infrastructure. 
• In October 2021, Tencent Holdings Limited announced the establishment of an F1 studio under the subsidiary TiMi Studio Group to focus on metaverse development.

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