Metaverse market insights on drivers, and opportunity.

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A metaverse is a virtual reality space in which users can interact with one another in a computer-generated environment. The metaverse has numerous applications, such as healthcare, real estate, education, military, gaming, etc. 

According to a PC Magazine study, 52% of global Internet users join the metaverse for job opportunities, 48% for art and live entertainment, 44% for financial investment, 40% for education, 32% for online dating and socializing, and 29% for gaming.

The metaverse market size in 2022 was USD 47.48 billion in 2022, and by 2030 it is predicted to reach USD 678.80 billion at a CAGR of 39.44%. 

Metaverse market drivers and opportunity

  • Increasing adoption of new technologies, and growing demand for metaverse to purchase digital assets using cryptocurrency
  • The increasing use of emerging technologies in the metaverse industry, such as artificial intelligence (AI), mixed reality (MR), and blockchain, significantly contributes to market growth. Companies such as Facebook, Fortnite, NVidia, Microsoft, epic, USM, Google, and Oculus have incorporated metaverse extended reality (XR) systems and other new technologies.
  • On the metaverse, cryptocurrency pays for everything from non-fungible tokens (NFT) to avatar shoes. According to one study, 53% of companies invest in cryptocurrencies, while 44% invest in non-financial instruments (NFTs). According to a CNBC survey, one out of every ten people invests in cryptocurrencies, mostly used for trading commodities such as NFTs.
  • Expanded opportunities for business-to-consumer and business-to-business enterprises
  • Consumer exposure to the metaverse’s marketplace is growing rapidly in frontier and emerging economies. The distinctions between B2C and B2B marketing that businesses can use to expand their customer bases while avoiding corporate trends are unclear in the metaverse. For instance, a Gucci bag sold for 350,000 Robux, or USD 4115, in the Roblox metaverse was more costly than it was in the real world. In the actual world, the cost of a similar bag is roughly USD 3400. The number of available options may increase the size of the metaverse market.

Metaverse market restraints

The industry may face growth limitations due to its users’ lack of awareness of service and security options. Cyber-attacks have occurred against market participants, raising high sensitivity and security concerns. According to SonicWall, nearly 500 million cyber-attacks are expected to be reported through September 2021, with over 1700 attacks reported per organization.

Metaverse market analysis of different segment

The metaverse market is segmented based on components, platform, technology, offering, application, end-user, and region.

Component insights

The hardware sector accounted for the greatest share of the metaverse market in 2021, with USD 16.58 billion, and is estimated to grow at a CAGR of more than 38%. The hardware segment will be responsible for the largest revenue during the projected period due to firms’ increasing focus on producing products that provide a better user experience and enable greater user immersion in the metaverse. Many organizations are designing hardware to improve the user experience in the metaverse. JP Morgan analysts predicted in June 2021 that Meta, Inc. would construct its metaverse hardware using application-specific integrated circuit (ASIC) chips from Broadcom, Inc.

Platform insights

With USD 16.38 billion, the desktop segment accounted for the largest metaverse market size in 2021. Currently, the desktop is the primary entry point into the metaverse. The desktop has more storage capacity than a mobile device, allowing faster access to the metaverse. According to one study, the desktop fixed internet connection speed is 29.2 Mbps faster than mobile internet connection speed. According to another study, desktop users account for 48.88% of internet traffic for various purposes, such as metaverse entry, while mobile users account for 47.59% of internet traffic.

Technology insights

The metaverse segment in virtual reality (VR) and augmented reality (AR) had the highest market share in 2021, with revenue exceeding 35%. Metaverse VR and AR are currently used in the gaming industry, propelling market growth. The usage of virtual and augmented reality devices improves the user experience while lowering costs when organizations use VR for education and training. These elements expanded the virtual and augmented reality devices market, resulting in market growth. A survey found that in the United States, about 50 million individuals used virtual reality, and 83.7 million people used augmented reality in 2020. By 2023, it is anticipated that these numbers will increase to 65.9 million and 110.1 million users, respectively.

Offering insights

With a CAGR of 40%, the metaverse in the asset marketplace is expected to expand rapidly. Increased investments in bitcoins, Ethereum, NFTs, and other cryptocurrencies have resulted in rapid growth in the asset marketplace segment of the metaverse. According to one study, in 2021, approximately 300 million people, or 3.9% of the total population, will use cryptocurrencies for various transactions. Approximately 18,000 businesses have begun to accept cryptocurrency payments for transactions like those in the metaverse.

Application Insights

In 2021, the metaverse in gaming had the highest revenue share of 27.17%. It is due to significant developments and innovations and a growing focus on increasing immersion and realism in games. VR, AR, and MR devices are increasingly used to access and provide a realistic gaming experience. 

End-use insights

Because of the rising global gaming industry, the media and entertainment category is expected to account for the highest revenue share of 31.08% during the forecast period. Businesses are focusing more on organizing virtual music concerts, and the adoption of this concept by a growing number of businesses is expected to boost revenue growth in this segment.

Regional Insights

North America has the largest share, accounting for more than 70% of total revenue in 2021. Because North American customers and users adopt new and complex technology, the North American region has a large market share. Americans are increasingly using virtual reality, augmented reality, and other new technologies to access and experience the metaverse as realistically as possible. Americans also enjoy their metaverse experience, which encourages them to invest in devices that enhance their metaverse experience.

Because of several new businesses and organizations, the Asia-Pacific region may be the fastest-growing metaverse market. The industry in India, for example, is experiencing massive growth due to numerous start-ups and organizations operating in the metaverse. The Asia-Pacific metaverse consumer base is also growing due to increased adoption of technology that improves their metaverse experience, which increases demand for these devices and market growth.

Key Companies

Major companies such as Meta, Microsoft, Bytedance, Sony (Epic Games), Roblox, Niantic, Nvidia, Binance, Magic Leap, and others are engaged in developing and launching new products. They offer various metaverse solutions to serve the demand and needs of the market.  

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