Metaverse Market Size, Share & Trends Analysis Report By Product, By Platform, By Technology (Blockchain, Virtual Reality (VR) & Augmented Reality (AR), Mixed Reality (MR)), By Application, By End-use, By Region, And Segment- Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The metaverse market size was estimated at USD 66.9 billion in 2022 and is expected to hit around USD 2,183.36 billion by 2032, poised to reach at a notable CAGR of 41.7% during the forecast period 2023 to 2032.

Key Takeaways:

• North America is likely to account for the largest revenue share of 44.9% in 2022
• The Asia Pacific region is expected to register a very strong CAGR over the forecast period.
• The hardware segment accounted for USD 14.98 billion in 2022 and is expected to expand at a CAGR of over 39.9%.
• Based on platform, the desktop segment accounted for the largest revenue share of 42.19% in 2022.
• The augmented reality (AR) and virtual reality (VR) technology contributed to the largest revenue share of 35.9% in 2022.
• The Mixed Reality (MR) segment is predicted to contribute the highest CAGR of 42.7% in the technology segment in the global market during the forecast period.
• The gaming segment held the leading revenue share of 27.9% in 2022
• Based on end use, BFSI industry is estimated to account for leading revenue of 24.6% in 2022. However, the media and entertainment industry is expected to expand with a CAGR of 43.6% over the forecast period

Metaverse Market Report Scope

The 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 market is also expected to witness growth 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 cryptocurrencies 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.

Total Addressable Market Insights

Metaverse is one of the trending technology platforms attracting various social networks and technology leaders, and online game makers to enter and establish its presence within the market. The metaverse is a fast-growing trend with a considerate penetration rate of users for various applications such as gaming, content creation, social interaction, learning and training, and online virtual shopping.

According to industry experts, the metaverse is expected to infiltrate a multitude of industries in numerous ways in the coming years, with the potential market opportunity or the total addressable market estimated at more than USD 1 trillion in yearly revenues.

In addition, according to the United Nations, the global digital economy represented 15.9% of total GDP in 2018, which led to a forecast of 15% to 16.9% by 2021. According to C-level executives of the leading metaverse solution providers, depending on the percentage share of the digital economy shifting to the metaverse and the percentage of total addressable market expansion, the potential market opportunity for the metaverse is estimated to be between USD 3.75 trillion and USD 12.46 trillion. As a result, various end-user players such as Walmart; Nike, Inc; Gap Inc; Verizon, Hulu, LLC; Adidas; and Atari, Inc., are entering the metaverse in different ways to witness the immersive experience of the digital world.

The concept or idea of metaverse gained momentum after Facebook, Inc. announced that the firm would be renamed Meta Platforms Inc., or 'Meta' for short, effective immediately. The company would be dedicated to the creation of the metaverse, an immersive digital environment.  The metaverse is being used extensively as a real-time virtual world to develop and leverage huge possibilities for brand interaction.

Metaverse Market Dynamics

Drivers & Opportunity

• Growing demand for metaverse to purchase digital assets using cryptocurrencies

The metaverse’s currency is a cryptocurrency and every metaverse has its collection of coins. They’re used to paying for everything from NFTs to virtual real estate to avatar shoes. Cryptocurrencies are used to connect the physical and virtual worlds. They allow us to calculate the worth of digital assets in the government-issued currency as well as the returns on those assets over time. The use of the metaverse to buy digital assets using cryptocurrency is gaining traction around the world. Individuals now communicate with one another digitally via websites, messaging apps, and social media platforms such as Facebook. The metaverse is the emergence of fresh online settings in which people’s interactions are highly multidimensional, and they can participate more meaningfully with digital content rather than simply reading information. Because of the accessibility of crypto on exchanges all around the world, investors can make money by selling metaverse coins and NFTs directly to purchasers.

• Expanded opportunities for Business-to-Consumer (B2C) and Business-to-Business (B2B) enterprises

One of the metaverse’s promising prospects is that it is vastly increasing access to the marketplace for consumers in emerging and frontier economies. The Internet has already opened up access to previously unavailable goods and services. Workers from low-income countries, for example, may now be able to find work in western corporations without emigrating. Virtual reality environments will help enhance educational options, as they are a low-cost and effective way to learn. There will need to be clear governance as a result of these developments. Business-to-business (B2B) marketing includes trade exhibitions, product demos, client meetings, customer service, and commercials. The metaverse now has the power to drastically modify each of these things. Because many B2B products are commodities, excellent customer service can make all the difference. The Metaverse has an interesting side effect of blurring the distinctions between B2B and B2C. Companies can use this to grow their traditional consumer bases while avoiding corporate traditions.

Challenge

• The threat of cyber-based attacks targeting the metaverse is a primary concern

Even if the final implementation of the metaverse differs from today’s vision, technologies such as Virtual Reality (VR), Augmented Reality (AR), the Internet of Things (IoT), and cryptocurrencies will certainly be used. These technologies have the potential to merge and synchronize the physical and digital worlds. They will, however, provide new opportunities for cybercriminals to attack businesses and individuals. Concerns about data security and privacy in metaverse environments, issues about user identity, and challenges of persuading users to use payment services in these settings are some key factors that are expected to stifle global metaverse market revenue growth to some extent during the forecast period.

Metaverse In Government And Public Sector

The metaverse market is being driven by the government's support and ambition to leverage the metaverse's potential to improve the effectiveness and standard of public services and strengthen cooperation between market players and federal government agencies. Companies and governments across the globe are getting in on the fledgling metaverse industry with government investment in job fairs to training academies. A wide variety of stakeholders, such as established tech giants, consultancies, entrepreneurs, investors, and even universities and governments, are starting to stake a claim in the metaverse as the development of the metaverse precisely satisfies the demand for previously unseen "newness" across the industries, creating more potential for corporate growth and consumer use.

Governments of various countries collaborate with different metaverse platforms to invest in the metaverse. Moreover, they are ready to legally declare real estate as their independent land in the digital world. For instance, in November 2021, Barbados, a Caribbean country, became the first nation to have an embassy in the metaverse. The country is preparing to establish an embassy in the metaverse and formally declare virtual property its sovereign territory. The Ministry of Foreign Affairs and Foreign Trade of Barbados and Decentraland, a metaverse platform, signed a contract to establish a virtual embassy. Moreover, the Barbadian government is also working to finalize partnerships with other metaverse platforms, including SuperWorld, Somnium Space, and others.

COVID-19 Impact on Metaverse Market

The COVID-19 pandemic played a significant role in stimulating interest in the metaverse concept. People started working from home and students began taking classes online, creating a need for practical techniques or channels to make online contact more realistic. The pandemic heightened its importance among consumers and businesses alike. In the year 2020, tech corporations began developing this technology and announced their investments. Because of the billion dollars spent by Metaverse, the year 2021 was a good one for Metaverse technology investments (Facebook).

According to industry experts, the COVID-19 pandemic catalyzed metaverse technology, and the post-pandemic environment is predicted to pique customer interest. The pandemic has accelerated the creation of virtual online communities as key lifestyle areas for users who were confined due to the lock-downs and closures, including interactive game landscapes and the expanding use of mixed reality. The COVID-19 pandemic has positively impacted the metaverse market, which has potentially improved many industries. The rise of digital assets, blockchain, and Nonfungible Tokens (NFTs) is adding to the metaverse’s popularity.

The automotive and manufacturing industries will be firmly embedded in the metaverse owing to a shared online area that crosses dimensions and is powered by a mixture of VR, AR, and MR. While campus digital twins have substantially improved the remote education experience, it is projected that the metaverse will organically promote spatial patterns throughout the education business in the years to come. Pursuing knowledge will be redesigned to include an interactive experience complemented by digital records in the metaverse, rather than just words, images, and lectures available on demand.

It would also provide the framework for the next chapter of post-COVID digital activity, the emergence of digital social experiences. Certain users only see the metaverse as a virtual world where they can create and operate an avatar that can travel about and interact with other players. Users can build, own, and exchange independent digital assets and virtual territories using cryptocurrencies such as Bitcoin and Ethereum, among others as well as NFTs on metaverse platforms supported by blockchain end-use. Increasing demand for the deployment of blockchain-based metaverse platforms for digital trading assets is expected to drive significant market revenue growth in the coming years.

Product Insights

The hardware segment accounted for USD 14.98 billion in 2022 and is expected to expand at a CAGR of over 39.9%. Due to a growing focus among firms on producing products that provide a better user experience and enable more extended user immersion, the hardware segment is expected to account for the largest revenue share during the projected period. To improve the realism of virtual worlds, companies are also working to develop more advanced hardware, such as VR/AR headsets, haptic devices, and sensors. Designing interfaces that allow people to access 3D content on a variety of devices, such as next-generation TVs, smartphones, and mixed reality smart glasses called HoloLens, is also predicted to drive revenue growth in this segment.

For instance, Facebook Reality Labs is estimated to spend at least USD 10 billion on the development of Augmented Reality (AR) and Virtual Reality (VR) hardware. The global metaverse market is divided into hardware, software, and services segments based on product. The hardware segment is sub-segmented into displays, eXtended Reality (XR) components, and AR/ VR headsets. Extended Reality (XR) components sub-segment is further divided into haptic sensors & devices, smart glasses, and omni treadmills. The software segment is sub-segmented as asset creation tools and programming engines.

Software segment is also to witness prominent growth over 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.

Platform Insights

Based on platform, the desktop segment accounted for the largest revenue share of 42.19% in 2022. 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.

Technology Insights

The augmented reality (AR) and virtual reality (VR) technology contributed to the largest revenue share of 35.9% in 2022. 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 42.7% 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 27.9% in 2022, 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.

End-use Insights

Based on end use, BFSI industry is estimated to account for leading revenue of 24.6% in 2022. However, the media and entertainment industry is expected to expand with a CAGR of 43.6% over the forecast period owing to the rising gaming industry globally. Businesses are increasingly focusing on organizing virtual music concerts, and the adoption of this concept by a growing number of businesses is likely to boost this segment's revenue growth. For instance, Meta Platform, Inc Meta Platform, Inc unveiled a lineup of major virtual reality concerts that took place completely on its Horizon Venues metaverse. The celebrity singers and performers included Young Thug, DJ David Guetta, and The Chainsmokers at the New Year's Eve event. Warner Music Group has announced the launch of the virtual music theme park through The Sandbox platform. 

Musical experiences and concerts from the music company's star-studded roster of musicians, including Bruno Mars, Ed Sheeran, Dua Lipa, and Cardi B, will be featured in the virtual theme park. Metaverse offers musicians enhanced flexibility to experiment and engage with audiences electronically. Other musicians and media content firms collaborating with musicians are more likely to experiment with virtual reality and broadcast content online instead of attending live concerts because of the endless possibilities. For instance, games such as Fortnite hosted a metaverse event where musicians and music bands performed live in April 2020. It was the platform's largest in-game concert. Based on end-use, the global market for metaverse is divided into Banking, Financial Services, and Insurance (BFSI), retail, media and entertainment, education, aerospace and defense, automotive, and others.

Further, in automotive and manufacturing industries, the digital twin technology is creating disruptions in the complete product lifecycle management (PLM), from designing, to engineering to operations and service. Digital twins provide a significant business potential by future prediction instead of evaluating the past of the manufacturing procedure. Additionally, autonomy permits the production structure to efficiently respond to unpredicted events in an intelligent way. This may result in increased customer satisfaction and loyalty while products can understand an issue before actual break down. Moreover, as computing and storage costs are becoming cheaper, the customs in which digital twins are implemented are escalating.

Regional Insights

North America is likely to account for the largest revenue share of 44.9% in 2022 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.

Recent Developments

• In July 2022, The Spanish government declared that it would provide 3.8 million euros ($4.1 million) to independent contractors and small and medium-sized businesses (SMEs) with residences in European Union or Spain, engaged in research, development, and innovation initiatives involving Web3 and metaverse technologies. Additionally, the Spanish Ministry of Culture and Sports has opted to allocate 8 million euros ($8.6 million) for the creation of video games and story metaverse experiences.
• In November 2021, Roblox Corporation, an online gaming platform based in the U.S., created a $11 million fund to support the development of online education applications in its virtual world. Additionally, mobile service providers like AT&T Intellectual Property are working together to create instructional programs and platforms that take advantage of the metaverse.
• In November 2021, a virtual and augmented reality platform named Niantic, Inc., raised USD 300 million planning to build a real-time virtual world platform. The company raised this investment from the Pokémon GO gaming company, Coatue.
• In October 2021, Meta Platforms Inc. (Facebook), announced its plan to invest in the European Union by hiring 10,000 staff members to help with the creation of the metaverse. Moreover, to facilitate a metaverse competition to support new ideas and honors in the industry, Meta partnered with Colorintech, a non-profit organization with a U.K. base that works toward a more transparent and inclusive tech firm.
• In April 2021, Epic Games Inc. received funding of 1 billion USD for driving future growth prospects in the metaverse market. The company’s funding round is consisting of a 200 million USD planned investment from the Sony Group Corporations.In
• March 2021, The major mobile provider in Thailand, Advanced Info Services (AIS), created a metaverse retail mall to enable clients to continue their immersive shopping despite the pandemic. The metaverse retail center, known as V-Avenue, enables two million unique people to shop in more than 200 3D stores and engage in virtual reality interactions, replicating the mall experience online.

Key Companies & Market Share Insights

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 2023, World Economic Forum (WEF), the International Organization for Public-Private Cooperation in Geneva, announced a collaboration with Microsoft and Accenture to create a Global Collaboration Village as the virtual future of public-private cooperation. This metaverse platform aims to promote virtual multistakeholder collaboration.
• In December 2022, Meta stated that it would contribute $2.5 million to assist independent academic research in Europe that will explore problems and opportunities in the metaverse. With the help of this grant, scholars from seven different nations in Europe will research how metaverse technologies will affect privacy, safety, inclusiveness, and the nature of the future of employment.
• In September 2022, NEOM Tech & Digital, a part of Saudi Arabia’s $500 billion NEOM project, announced that it had invested $1.0 billion in AI, including a metaverse infrastructure. The business intends to provide its own metaverse, a 3D virtual environment where users can communicate with one another.
• In September 2022, Meta Platforms collaborated with the Indian IT Ministry to launch the XR Startup Program in the country to expand innovation in emerging technologies such as augmented reality and virtual reality. This initiative aimed to promote technological innovation in smaller cities and towns.
• 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 September 2021, Meta Platform Inc., and Ray-Ban partnered together, to launch Ray-Ban stories smart glasses. These Smart glasses provide a new and enhanced way to record and capture images and videos. The glasses are equipped with dual integrated a 5MP camera which allows the user to take pictures within 30 seconds time.

Some of the prominent players in the global metaverse market include:

• 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

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the Metaverse market.

By Product 

• Infrastructure
• Chips & Processors
• Network Capabilities
• Cloud & Edge Infrastructure
• Cybersecurity
• Hardware
• Holographic Displays
• eXtended Reality (XR) Hardware
• Haptic Sensors & Devices
• Smart Glasses
• Omni Treadmills
• AR/VR Devices
• Others
• Software
• Asset Creation Tools
• Programming Engines
• Virtual Platforms
• Avatar Development
• Services
• User Experiences (Events, Gaming, etc.)
• Asset Marketplaces
• Financial Services

By Platform 

• Desktop
• Mobile
• Headset

By Technology 

• Blockchain
• Virtual Reality (VR) & Augmented Reality (AR)
• Mixed Reality (MR)
• Others

By Application 

• Gaming
• Online Shopping
• Content Creation & Social Media
• Events & Conference
• Digital Marketing (Advertising)
• Testing and Inspection
• Others

By End-use 

• Aerospace & Defense
• Education
• Healthcare
• Tourism and Hospitality
• BFSI
• Retail
• Media & Entertainment
• Automotive
• Others (Manufacturing, etc.)

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)