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The global metaverse market size was valued at USD 63.83 billion in 2021. The market is projected to grow from USD 100.27 billion in 2022 to USD 1,527.55 billion by 2029, exhibiting a CAGR of 47.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with metaverse experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global metaverse market exhibited a rise of 0.7% in 2020 as compared to 2019.
Metaverse is a simulated digital environment that is enabled with augmented reality (AR), virtual reality (VR), mixed reality, Blockchain, and others. These technologies are used to create areas for a rich user experience of the virtual space.
In the scope of work, we have included market services offered by companies, such as Tencent Holdings Ltd., NVIDIA Corporation, Meta (Facebook Inc.), Roblox Corporation and others. NVIDIA Corporation offers NVIDIA Omniverse software and virtual reality-based RTX GeForce 30 Series GPUs hardware. Also, these leading players are offering virtual reality (VR)-based services and 3D immersive experience platforms. Besides, Microsoft Corporation offers Microsoft Mesh Meta platforms.
The concept also uses blockchain technology to provide several services, such as digital governance & accessibility, secured transactions, easy accessibility, and others. The increase in the investments for virtual digital world services integrated with Blockchain is expected to strengthen the global market growth. For instance,
Further, several e-commerce players are adopting digital world services to showcase the products in the virtual world to gain real-world experience. Also, leading players in the market are investing in these services. For instance,
Rising Consumer’s Adoption of Online Gaming to Boost Demand for Services
The impact of COVID-19 has resulted in staggering demand for services during the forecast period. The more than average growth is primarily attributed to the significant acceleration of online video game services and video conferencing services. The global market witnessed a growth rate of 3.3% in 2020 as compared to 2.6% in 2019. This growth is attributed to a surge in online video gaming adoption and rising consumers’ preference for online shopping of retail products. According to Newzoo Report, the global gaming audience for e-sports reached around 495 million in 2020, an increase by 11.7% and is projected to reach 646 million by 2023. Such an increase in the gaming audiences has created a massive demand for the services market.
Additionally, the pandemic has shifted the demand for online shopping and the digital virtual world for shopping for customers. The prevailing trend has driven several organizations to enter the online market. Several leading players have completed investment during the pandemic by adopting various business strategies, product launches, and partnerships. For instance,
Moreover, the revenue of the leading players has increased post-pandemic, which has resulted in the increasing demand for services.
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Rising Consumer Spending across Virtual Concerts, Events, and Others Drives Market Growth
Rising consumer spending on virtual concerts across the media and entertainment to broadcast events aids the market growth. According to India Brand Equity Foundation Organization (IBEF), the media and entertainment sector reached around USD 19.00 billion in 2020 and is expected to reach USD 25.9 billion by 2023. Media & entertainment events and concerts are being carried out in the digital spaces that also use VR headsets and AR technologies gadgets.
Further, rising demand for virtual events and surge in the number of visitors for concerts and events could boost the market growth. For instance, according to the Digital report by the Department for Culture, Digital, Media and Sport in the U.K., immersive technologies, such as AR and VR, are growing at a rapid pace and reached around USD 128.36 billion in 2020.
Rising Adoption of Advanced VR Devices and Blockchain to Accelerate Growth
The rising demand for advanced VR devices globally from small medium-scale and large-scale organizations and individual consumers fosters the market growth. Further, the increasing adoption of emerging technologies, such as Artificial Intelligence (AI), blockchain, and Mixed Reality (MR), in various applications is driving the market growth. For instance,
Additionally, rising investment across retail and e-commerce and surge in the adoption of the platforms to showcase products in the virtual environment bolster the market growth. According to the United Nations Conference on Trade and Development (UNCTAD) report, the global e-commerce sale reached USD 26.7 trillion, increased from 16% to 19% in 2020. Such an increase in e-commerce sales around the globe has created a huge opportunity for the market’s growth during the forecast period.
Lack of Awareness of Service and Security Options to Impede Growth
The market is subjected to several challenges, such as security concerns, lack of awareness, government rules & regulations and others. Also, major leading players have faced a loss of billions of dollars owing to cyber-attacks in the environment. An increase in cyber-attacks and high sensitivity issues environment may hinder the market growth.
Rising Development of Advanced Software Aids Market Growth
The market is segmented into hardware, software/platform, and services based on component. The software/platform market is expected to grow with the highest CAGR, owing to the development of advanced software and platform by leading players. For instance,
Further, the services segment is also growing at a moderate pace owing to the rising adoption of the services by e-commerce brands. For instance,
Rising Online Gaming Globally to Fuel Desktop Segmental Growth
Based on device, the market is divided into desktop, mobile, console, and others. Among this, the desktop segment captured largest market share in 2021, owing to rising adoption by online gaming. Increasing video game revenue and surge in the number of video gaming audience around the globe are driving the market growth. According to the WePC Report, in 2021, globally, there were more than 2.5 billion video gaming audiences. Such an increase in the video gaming audiences has created a massive demand for desktop devices for experiencing virtual reality gaming.
Further, mobile is expected to grow with the highest CAGR during the metaverse market forecast period. This is primarily attributed to rising revenue generation from mobile gaming audiences.
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Rising Adoption of Gaming and Live Video Streaming to Fuel Growth
Based on application, the market is divided into online shopping, gaming, social media, content creation, conferences, and others. Among these, gaming application is expected to hold the largest share in the market owing to a surge in the adoption of gaming and live video streaming around the globe. According to the Newzoo Report in 2021, the global gaming market generated USD 175.8 billion revenue in 2021 and is expected to reach USD 200 billion by 2024. The gaming audiences are widely adopting advanced technologies, such as VR and AR gadgets and digital world services for experiencing a virtual world of gaming.
North America Metaverse Market Size, 2021 (USD Billion)
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The market is segmented into North America, Europe, and Rest of the World. The regions are further categorized into countries.
North America is expected to hold the largest share in the market owing to its rising investment in platforms by leading players such as Met, Roblox Corporation, NVIDIA Corporation, and others. For instance,
Europe is expected to grow with the highest CAGR during the forecast period. This is primarily attributed to the rising number of audiences across social media platforms and gaming segment. The Europe market is driven by the growing online gaming industry across major European countries such as France, Italy, the U.K., Germany, and others. According to MejoresApuestas.com, gaming audiences in Europe increased to 329.5 million in 2021 and are expected to reach 351.0 million by 2023. Also, the financial service providers are adopting meta platforms to collaborate efficiently.
Further, the Rest of the World, including Asia Pacific, the Middle East and Africa, and Latin America is growing at a moderate pace during the forecast period. This is primarily attributed to the rising development of the platforms and services in Asia Pacific countries, including China, Japan, and India. For instance,
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Key Players Are Developing and Expanding Their Services Offerings Worldwide
Key companies are investing in advanced technologies, such as A.I., cloud, and machine learning, to improve the capabilities of their services. Also, the major players in the market are involved in adopting various strategies, such as mergers, acquisitions, collaborations, and partnerships, in expanding their market presence. For instance,
An Infographic Representation of Metaverse Market
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The report highlights leading regions to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry, share, growth, trends, research, overview, and metaverse market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market. The report also includes overview and industry analysis.
Value (USD billion)
By Component, Device, Application, and Region
The market is projected to reach USD 1,527.55 billion by 2029.
In 2021, the market was valued at USD 63.83 billion.
The market is projected to grow at a CAGR of 47.6%.
The software/platform held the largest market share in 2021 and is growing at the highest CAGR during the forecast period.
North America is expected to hold the highest market share.
Europe is expected to grow with the highest CAGR.
North America is expected to hold a significant market share. The market in this region was valued at USD 45.97 billion in 2021.
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