Metaverse Market Size, Share & Analysis Report, 2022-2030
The global Metaverse market gathered revenue around USD 40 billion in 2021 and market is set to grow USD 1,607.12 billion by the end of 2030 and is estimated to expand at a modest CAGR of 50.74% during the prediction period 2022 to 2030.
Growth Factors:
Increasing demand from end-use industries, which prominently include media and entertainment, education, and aerospace and defense is anticipated to propel the industry growth over the forecast period. The metaverse market is also growing due to the steady adoption of XR technologies to enhance user experience on various platforms. The growing demand for metaverse to purchase digital assets using crypto currencies is expected to drive the market significantly. The development and distribution of augmented reality (AR), Virtual Reality (VR), and Mixed Reality (MR) devices are anticipated to spur market growth in years to come.
The prefix "meta" is commonly used in Greek to denote "after" or "beyond." The metaverse is a three-dimensional interactive and immersive environment where several people can interact through avatars. The usage of the metaverse to purchase digital assets using bitcoin is becoming more popular around the world. Gaming websites, messaging applications, and social media platforms such as Facebook are being used to communicate with one another online. The metaverse is the advent of new online environments in which people's interactions are more multidimensional and they can engage more deeply with digital content rather than merely reading it.
The metaverse is widely used as a real-time virtual world to build and leverage vast opportunities for brand connection. It would also set the stage for the next phase of post-COVID-19 digital activity, namely the emergence of digital social experiences. On Metaverse platforms that allow blockchain technology to be utilized, users can create, own, and trade autonomous digital assets and virtual regions using cryptocurrencies like Bitcoin and Ethereum, as well as nonfungible tokens (NFTs). During the forecast period, rising demand for blockchain-based metaverse networks and platforms for trading digital assets is expected to drive considerable market revenue growth. One of the major factors driving the future expansion of the metaverse business is the rise of the gaming industry.
Report Scope of the Metaverse Market
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Report Coverage |
Details |
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Market Size by 2030 |
USD 1,607.12 Billion |
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Growth Rate from 2022 to 2030 |
CAGR of 50.74% |
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Largest Market |
North America |
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Fastest Growing Region |
Asia Pacific |
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Base Year |
2021 |
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Forecast Period |
2022 to 2030 |
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Segments Covered |
Components, Offering's, Platform, Technology, Application, End User, Geography |
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Companies Mentioned |
Meta (Facebook,Inc.), Tencent holdings Ltd, Roblox corporation, Nvidia corporation, NetEase, Inc. |
Components Insights
Based on the component, the hardware segment has accounted for the largest revenue share in 2021 and growing at a CAGR of 39% from 2022 to 2030. This segment is made up of providers of consumer hardware such as extended reality hardware, AR/VR headsets and displays. There are other hardware devices which are included in this segment which are tracking systems, projection, industrial cameras and scanning sensors. Advanced technological progress in the ER and VR are the key factors that are driving the growth of the hardware segment the software segment is also expected to register a significant growth during the forecast period. There are many companies that provide asset creation tools and programming engines. Unreal Engine and unity are the game engines which are used to create digital worlds in the gaming sector. The use of Unreal Engine and unity is used to create digital world in the game such as Fortnite. There's a creation of more realistic environment in games due to the rising interest in online gaming and this happens to be the major factor which is supporting the revenue growth of the software and the hardware segments.
Platform Insights
Between 2022 and 2030, the desktop segment accounted for the largest revenue share, followed by the headset. The segment was estimated at USD 16.38 billion in 2021. Computers used to be the primary portal into the metaverse, but with the introduction of smartphones and wireless networks, that has changed. Virtual desktop is a program that allows users to utilize the computer in virtual reality using the HTC Vive, Oculus Rift / Rift S, WMR headsets, and Valve Index. On a massive virtual screen, users may surf the web, view movies on Netflix, and even play games.
Virtual desktops are gaining traction for the use of VR devices. Smartphones and mobile networks have made access to the metaverse unrivaled and near-constant. Downloading, uploading, and sharing large amounts of data in networked cyberspace is becoming increasingly common. Users of mobile phones can publish photographs and movies to the metaverse and communicate with others using video conferencing and messaging apps. While playing online multiplayer games, users can also converse with one another. Smartphone popularity is increasing, and it is rapidly becoming the most prominent way to connect to the metaverse.
Offering Insights
The asset marketplace segment is expected to grow at the highest CAGR of 40.0% during the forecast period, owing to the increased investments made in bitcoins, NFTs, Ethereum, and other cryptocurrencies. Because of the expansions in virtual metaverse platforms, the virtual platforms segment is expected to account for a significant revenue share during the forecast period. The design and management of integrated virtual and typically three-dimensional simulations, settings, and surroundings in which people and businesses can discover, create, socialize, and engage in a wide variety of activities while also running a business are referred to as virtual platforms.
Virtual platforms such as Minecraft, Roblox, the Sandbox, HyperVerse, and Fortnite Creative Mode are currently popular. Furthermore, rising smartphone penetration and growth in the rate of app developers are likely to boost revenue growth in this segment in the future. Based on offering, the global market is segmented into asset marketplaces, virtual platforms, avatars, and financial services.
Technology Insights
The augmented reality (AR) and virtual reality (VR) technology contributed to the largest revenue share of over 35.0% in 2021. Due to the increased use of MR to engage more proficiently in the metaverse, the Mixed Reality (MR) segment is predicted to contribute the highest CAGR of 40.4% in the technology segment in the global market during the forecast period. The global market is divided into three categories based on technology: blockchain, virtual reality (VR) and augmented reality (AR), mixed reality (MR), and others. The other segment includes artificial intelligence (AI), IoT, 3D reconstruction, brain-computer interface, machine learning, 5G, etc.
Mixed reality is when people can interact directly with metaverse surroundings in a physical area. Users do not require a virtual reality headset to interact with the metaverse. Regardless of their level of immersion, users could simply interact with the metaverse using a keyboard. AR and VR technology is being utilized in the gaming industry to make the game more realistic and to provide a better gaming experience. However, the demand for VR and AR devices is expected to exhibit substantial growth in the coming years. Thus, the segment is predicted to contribute significantly to the overall Metaverse industry. The demand for VR and AR devices is expected to rise owing to the rising gaming industry.
Application Insights
The gaming segment held the leading revenue share of 27.17% in 2021, due to significant ongoing innovations and developments by developers, as well as a growing focus on boosting immersion and making games more realistic. Furthermore, organizations' increasing emphasis on utilizing games to promote their corporate image is likely to boost revenue growth. Based on application, the market is divided into gaming, online shopping, content creation & social media, events & conferences, content creation, digital marketing (advertising), testing and inspection, and others.
The content creation & social media segment is also expected to grow significantly during the forecast period. During the COVID-19 pandemic, the internet and social media became more important than ever before in daily life. With no signs of slowing down to the pandemic, businesses had no choice but to adapt, basing their entire company on these platforms. As a result of this occurrence, a new type of entrepreneur emerged: the content creator. To obtain a competitive advantage, many organizations are now employing content creation to market their brand and product portfolio.
Virtual reality training can help airlines and ground handlers learn and improve their aircraft inspection skills in a safe setting. Virtual Reality (VR) for Aircraft Inspection allows for training in various situations of aircraft inspection on all types of aircraft to minimize any potential failures during operation. The cabin crew can learn how to handle severe real-life circumstances like medical problems, an impending disaster, or a hijacking by substituting virtual reality training for classroom training. Aircraft mechanics and MRO technicians can learn to inspect different elements of the aircraft using virtual reality and augmented reality without ever leaving their desks.
Regional Insights
North America is likely to account for the largest revenue share of over 45.0% in 2021 owing to the customers and users in the region that are adopting the new and more complex technology. Furthermore, the growing number of start-ups focusing on the establishment of metaverse platforms for commercialization is another factor projected to support the revenue growth of the regional market. Furthermore, the strong presence of gaming and metaverse businesses such as The Sandbox, Nvidia Corporation, and Epic Games, Inc. in the region, which is concentrating on incorporating metaverse into games, is creating market growth potential. For Instance, Nvidia Corporation announced partnerships with Blender and Adobe that will enable NVIDIA Omniverse, the world's first collaboration, and simulation platform, to reach millions more users.
The Asia Pacific region is expected to register a very strong CAGR over the forecast period. A growing number of start-ups and organizations such as The Sandbox (Hong Kong), Bolly Heroes (India), Axie Infinity (Singapore), NextMeet (India), GuildFi (Thailand) as well as Shenzhen Zhongqingbaowang Interaction Network Co., Ltd. (ZQGame Global), and miHoYo Co., Ltd. in China, are projected to drive market expansion in the Asia Pacific region. These virtual metaverse marketplaces and gaming platforms offer an immersive experience where users can participate in live and concurrent activities powered by their chosen third-party apps.
Key industry participants include Meta Platforms, Inc.; Epic Games, Inc.; Nvidia Corporation; Tencent Holdings Ltd; ByteDance Ltd.; Lilith Games; Unity Technologies, Inc.; Roblox Corporations; NetEase, Inc.; Nextech AR Solutions Corp. The introduction of innovative hardware solutions supporting the virtual world metaverse is anticipated to propel the business in the future.
In January 2022, The Sandbox announced a partnership with Warner Music Group to launch the first music-themed world in The Sandbox metaverse. Warner Music Group (WMG) would be taking its initial steps into the metaverse and NFT sector with this alliance
In November 2021, Tencent Holdings, Ltd announced that it has partnered with The Asian Institute of Digital Finance. The companies will collaborate in the areas of education, research, and entrepreneurship to support Asia's fintech industry
In November 2021, Epic Games, Inc acquired Harmonix Music Systems, Inc. While continuing to support existing products such as Rock Band 4; the Harmonix team will work closely with Epic Games, Inc to develop musical adventures and gameplay for Fortnite
In October 2021, Facebook Reality Labs was estimated to spend at least USD 10 billion on the development of Augmented Reality (AR) and Virtual Reality (VR) hardware, software, and content. Facebook Reality Labs is the division of Meta Platforms, Inc, which was formerly known as Facebook, Inc.
In August 2021, Nvidia Corporation announced partnerships with Blender and Adobe that will enable NVIDIA Omniverse, the world's first collaboration, and simulation platform, to reach millions more users
In July 2021, Epic Games, Inc acquired Sketchfab, Inc. Sketchfab is a 3D asset marketplace where users can publish, download, view, share, sell, and buy 3D models
In June 2021, Tencent's game division, TiMi Studios had announced a new agreement with SNK CORPORATION to produce a new, unnamed mobile game based on the famous arcade franchise Metal Slug
In March 2021, NetEase, Inc's NetEase Cloud Music, and Merlin Network expanded their strategic alliance in China to embrace a broader range of collaboration. The original partnership between Merlin Network and NetEase Cloud Music was signed in 2018
In December 2017, ByteDance Ltd. and EQUALS formed a partnership. EQUALS is a global network of CEOs, governments, non-profit organizations, communities, and individuals working to close the digital gender gap. The formal agreement was revealed at a ceremony hosted by Bytedance in Beijing during the Global Festival of AI, which included representatives from both organizations
Some of the prominent players operating in the global metaverse market are:
Meta Platforms, Inc.
Tencent Holdings Ltd.
ByteDance Ltd.
NetEase, Inc.
Nvidia Corporation
Epic Games, Inc.
Roblox Corporation
Unity Technologies, Inc.
Lilith Games
Nextech AR Solutions Corp.
The Sandbox
Active Theory
Decentraland
Microsoft Corporation
Antier Solutions Pvt. Ltd.
Segments covered in the report
By Components
By Platform
By Offering's
By Technology
By Application
By End User
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Key Points Covered in Metaverse Market Study:
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers