The metaverse is considered an open digital ecosystem that runs parallel to the physical world. Not close to its full potential but rapidly evolving, it is viewed presently as the future of gaming, entertainment, & e-commerce, among others. However, its best implementation is likely to be for educational purposes. Equipped with high-end technologies like Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), etc., metaverse platforms intend to bridge all gaps between the physical & virtual worlds and deliver immersive user experiences. Many businesses & individuals involved in the world of the metaverse are already building their digital avatars & content in order to expand their reach and stay ahead of their competitors, which projects a big pool of opportunities for the metaverse market in the future.
The Global Metaverse Technologies Market is anticipated to register around 38.2% CAGR during the forecast period, i.e., 2022-27. The market expansion is likely to be propelled by the mounting focus of the leading tech companies on synchronizing digital & physical worlds, coupled with the increasing consumer requirements for applications based on VR, AR, & MR. Moreover, the rising popularity & application of technologies like Extended Reality (XR), edge & cloud computing, & computer vision shall also boost the global market in the forthcoming timeline.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: USA, Canada|
|Europe: Germany, France, Italy, UK, Russia|
|Asia-Pacific: China, India, Japan, South Korea, Australia|
|South America: Brazil|
|Middle East & Africa: Saudi Arabia, Israel, Turkey|
|Key Companies Profiled||Active Theory, ByteDance Ltd., Epic Games, Inc., Globant, Meta Platforms, Inc., Microsoft Corporation, NetEase, Inc., NexTech AR Solutions Corp., Nvidia Corporation, Queppelin, Roblox Corporation, The Sandbox, Tencent Holdings Ltd, Unity Technologies, Inc.|
|Unit Denominations||USD Million/Billion|
Metaverse holds a great potential to deliver a next-level internet experience by creating a virtual world where users can socialize, operate businesses, engage in virtual real estate, play immersive games, enjoy immersive entertainment experiences, and much more. Using Blockchain technology in metaverse platforms further offers services like digital governance, secured transactions, & easy accessibility, among others. As a result, massive investments in Blockchain-integrated virtual world services are promoting the expansion of the metaverse technologies market globally.
Moreover, the concept of digital twin universities, which involves a virtual campus where students can interact, learn, & plan, is also leading to substantial funding on metaverse platforms. Across the retail sector, the metaverse is being implemented in the form of virtual fitting rooms to attract new customers, especially youngsters, who want more from their digital interactions with brands.
Besides, the massive crypto gaming industry is another prominent driver for the Global Metaverse Technologies Market. The growing user inclination toward play-&-earn games that allow players to win tokens within games and either redeem them for real-life values or reuse them as in-game purchases is projecting remunerative prospects for the global market in the gaming sector through 2027.
Key Trends in the Global Metaverse Technologies Market
The metaverse is an open ecosystem that no organization or entity has control over. It represents individuals' genuine ownership of digital assets, and without their consent, it can never be revoked. One of the mega trends in the Global Metaverse Technologies Market is Cryptocurrencies & NFTs (Non-fungible tokens), which already is a massive market. A majority of virtual games being developed in the metaverse are trading their avatars, assets, & all other functional gear in the form of NFTs, whose value is increasing at a significant pace.
On the other front, the swiftly evolving DAOs (Decentralized Autonomous Organizations), which aim to offer users more authority over determining what they want from a digital platform, is another emerging trend in the metaverse world. Presently, centralized decision-making organizations entirely administer all digital avatars, profiles, & virtual augmentations and can take their platform away at any point in time.
Based on Application:
Amongst them all, Gaming, Social Media, & Content Creation are the most prominent contributors to the growth of the Global Metaverse Technologies Market. Online gaming is the largest application in the global market. Technologies like AR, VR, Mixed Reality, Blockchain, etc., are being increasingly utilized in the gaming industry to offer 3D & 360-degree experiences to users.
Metaverse-driven online games promise immersive experiences to the players that enable virtual meetings, immersive interactions, attending concerts, & earning money. As a result, more and more tech leaders have announced the launch of new platforms for online gaming, which, in turn, would boost the use of metaverse technologies in the gaming industry over the coming years.
The growing popularity of ‘play & earn’ games that have portrayed substantial expenditure by players to win prize money is a crucial aspect contributing to the increasing share of the gaming sector in the metaverse technologies market globally. Furthermore, the burgeoning focus of different organizations on leveraging games to promote their respective brands is another crucial aspect projected to boost the market growth for online gaming through 2027.
On the other hand, the demand for metaverse platforms for social media & content creation applications is expecting significant growth during 2022-27, mainly due to the mounting utilization of 3D & VR technologies by various social media companies to evolve social connections & enhance user experience. Moreover, the rapid emergence of 5G networks, Artificial Intelligence (AI) technology, & edge cloud processing is also promoting the market expansion for these applications.
In 2020, with the advent of Covid-19, social media & the internet became more vital than ever, and uncertainty of the pandemic situation compelled organizations to adapt these platforms for business continuity. It, in turn, gave rise to content creation as a new opportunity for individuals & businesses. Due to this, many organizations are now leveraging content creation to advertise their corporate image & product portfolio and, in turn, gain an edge in the cut-throat competition.
Besides, metaverse platforms can bring concerts, films, & sports, among other events, into a 3D virtual world, i.e., another growth opportunity for the global market in the social media & content creation applications in the years to follow.
Based on End-Users:
Here, the media & entertainment sector holds the largest market share, owing to the mounting focus of companies on improving social interactions using metaverse platforms, providing enhanced immersive experiences, and propelling media consumption.
Moreover, the increasing global access to high-speed internet services, the introduction of advanced AR & VR devices, and the Covid-19 pandemic in 2020 that derived the concept of virtual concerts are other crucial aspects contributing to the market growth across the media & entertainment sector.
Metaverse holds immense prospects to enrich the user experience of the content generated by the media & entertainment sector. It offers a secure & user-friendly platform for developing & operating digital assets. Besides, being compatible with various NFTs like Cryptokitty, Cryptogoods, etc., is another factor that supports its relevance in this industry.
As a result, the leading companies in the media & entertainment sector are actively focusing on turning this into reality by massively investing in launching various versions of the metaverse. Besides, the ability of metaverse platforms to help users connect with a community & have shared experiences is another prominent factor fueling the growth of the global market across the media & entertainment sector.
Geographically, the Global Metaverse Technologies Market expands across:
Amongst all regions globally, the Americas clearly dominate the Metaverse Technologies Market, and the same trend is likely during 2022-27. It attributes to the extensive presence of companies (in the world of games & metaverse) like Epic Games, Inc., The Sandbox, Nvidia Corporation, Meta Platforms, Inc. (formerly Facebook, Inc.), etc., across the US & Canada, coupled with their massive investments in developing metaverse platforms to provide users with more immersive gaming & entertainment experiences.
Besides, various research centers & academic institutes in these countries working actively toward exploring the prospects of the metaverse & related virtual environments are also contributing to the regional market growth.
Across the region, the leading players in the media & entertainment, and IT sectors are joining forces with each other to design & create digital worlds for end-users. Interactive media platforms are being utilized increasingly for movie marketing campaigns, and the entertainment industry is incorporating gaming services.
The rise in consumer inclination toward innovative & complex technologies, significant advancements in AR & VR devices, and the growing focus of the rapidly establishing startups on the commercialization of metaverse platforms are other crucial aspects promoting the growth of the Metaverse Technologies Market across the Americas.
Recent Developments in the Global Metaverse Technologies Market
Key Driver: Increasing Application of AR & VR in Different Industries Globally
The rapid rise in the adoption of advanced AR & VR devices, MR, AI, & Blockchain technologies, among others, by both organizations & individuals is driving the Global Metaverse Technologies Market.
Integrating AR technology into metaverse platforms provides users with a whole new experience. For instance, the introduction of virtual trial rooms by the leading online clothing stores enables users to select the right size, which, in turn, minimizes the chances of order returns.
Moreover, prominent automakers are leveraging these technologies and launching virtual showrooms to help customers experience their favorite cars in 360 from anywhere in the world. Hence, the growing applications of AR & VR technologies in sectors like retail, healthcare, education, automotive, etc., is a prominent growth prospect for the global market during 2022-27.
Possible Restraint: Privacy & Security Concerns Due to Increasing Cyberattacks
The increasing use of technologies like the IoT (Internet of Things), AR, VR, MR, etc., in metaverse platforms, has created new pathways for cybercriminals to attack individuals & businesses. As a result, there are growing consumer concerns over data security & privacy and their identity, which might hinder the growth of the Global Metaverse Market during 2022-27.
Metaverse has the ability to access the personal data of users, which may pose several risks to their privacy by collecting valuable information from their social accounts. Devices like smart glasses, VR headsets, etc., used in the metaverse are a point of some serious concern for many users as they detect & process their surroundings on an automated basis and, in turn, breach their privacy. Hence, the increasing innovations in these devices might act as a notable growth restraint for the global market over the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Metaverse Technologies Market is projected to grow at a CAGR of around 38.2% during 2022-27.
A. A rapid surge in the application areas of AR & VR in different businesses is the key factor projected to drive the Global Metaverse technologies market during 2022-27. However, the growing user concerns over data security & privacy due to the rising instances of cyberattacks might hinder the growth of the global market in the coming years.
A. NFTs & DAOs are the key trends emerging in the Global Metaverse Technologies Market and projecting remunerative opportunities for the leading players operating in the industry during 2022-27.
A. Social Media & Content Creation applications are anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Metaverse Technologies Market over the forecast years.