Metaverse Market Size and Share Analysis by Component (Hardware, Software), Platform (Desktop, Mobile, Console), Offering (Virtual Platforms, Asset Marketplaces, Avatars, Financial Services), Technology (VR, AR, MR), Vertical (Gaming, Manufacturing, Entertainment and Media, Healthcare, Education, Retail, Fashion, Aerospace and Defense) - Global Industry Growth Forecast to 2030

Market Overview

The global metaverse market revenue crossed $58.5 billion in 2021, and it is expected to advance at a CAGR of 43.7% during 2021–2030, to reach $1,525.7 billion by 2030. This is ascribed to the surging demand for metaverse to purchase digital assets using cryptocurrencies.

Moreover, the emergence of metaverse-focused companies around the world, the increasing collaborations to develop advanced AR and VR solutions to improve patient output and the overall surgical environment, and the rising investments in research and development activities are expected to fuel the market growth in the future.

During the COVID-19 pandemic, the market witnessed increased investments and a surge in reliance on digital platforms. The pandemic provided a massive opportunity for new market entrants, as people got more leisure time at home, which positively propelled the immersive gaming sector. For instance, the total users of Fortnite rose from 250 million to 350 million from 2019 to 2020.

Metaverse Is a Digital Extension, Not a Replacement

The metaverse, an internet-based alternate reality, is unfolding into its own world, complete with property, art, and communities. Non-fungible token (NFT) used in metaverse will progress from novelty to utility. With traceability and authentication built on interoperable frameworks, developing ecosystems powered by blockchain technology will enable totally new lines of monetization and revenue.

Property developers are increasingly investing in the development of NFT and blockchain technologies to increase the trust of ownership, and negotiate these new aspects in order to increase brand recognition among younger consumers.

For example, in December 2021, New World Development entered the metaverse market with the construction of virtual land on the blockchain game platform of Sandbox. The game enables companies to develop a virtual world and monetize in-game products including wearables created for their avatars or digital plots of land purchased. The products can be marketed on the Sandbox's marketplace as NFTs, digital assets that employ blockchain technology to authenticate ownership.

Expanded Opportunities in the Retail Industry

The metaverse combines the experience of virtual purchasing with the variety of options provided by e-commerce. People can use avatars to create a second identity. Many Zoomers witnesses their avatar as the purest form of self-expression, while fashion players see an opportunity to assist them in shaping these identities, thereby strengthening brand loyalty. Customers can virtually browse designer handbags using 3D technology. Virtually, consumers can try on watches, and AI ensures that they fit snugly on their wrists. For example, Alibaba's Taobao unveiled the 'Metaverse Mall' in June 2022, just in time for China's 618 shopping holiday.

Software Will Show Prominent Growth in Coming Years

The software category is expected to grow at the highest CAGR over the forecast period. This can be due to the increasing demand for AR/VR mobile app and web app development tools, software development kits (SDK), AR/VR studios, and cloud-based tools. Because of the introduction of avatar identity producers, centralized and decentralized gateways, and play-to-earn games, the demand for software for metaverse platforms is surging at the highest rate.

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Regional Insights of the Market

The APAC metaverse market is projected to record the highest CAGR, of more than 50%, during 2021–2030, owing to the increasing use of AR/VR and the growing digitization in China, India, Japan, and South Korea.

Whereas, North America led the market in 2021. This is attributed to the rising usage of smartphones, surging demand for AR/VR in various applications, and increasing adoption of smart devices. Furthermore, increased corporate and individual spending on digital solutions and new technologies drives the market growth. Further, the increasing application areas of AR technology in consumer electronics accelerate the growth of the regional AR sector. It has been used for educational and training purposes in industries such as healthcare, entertainment and media, gaming, and retail.

Moreover, the European market is projected to observe significant growth in the coming years. This can be mostly due to the rising number of audiences on social media platforms and in the gaming industry. Also, the rising online gaming business in key European countries, such as France, Italy, the U.K., and Germany, drives the regional market.

Further, the MEA and LATAM markets are growing at a moderate pace during the forecast period. This is mostly due to the increasing development of platforms in Brazil, Mexico, Saudi Arabia, South Africa, and others.

Industry Verticals Are Using Metaverse

The gaming category held the largest share of around 35% in the market in 2021. The growing trend of virtual reality games in the gaming industry is helping to increase the acceptability of 3D and smart glasses. Education category is further expected to be the fastest-growing category, registering a CAGR of 50%, during the forecast period. Users and programmers alike can customize it by building anything from a metaverse institution to virtual sporting grounds. A teacher can explain scientific discoveries to students while also presenting them to them in an engaging 3D environment. Education professionals can construct virtual landscapes using their lesson plans.

The entertainment and media industry held the third-largest revenue share, of more than 13%, in 2021, after the gaming industry. The metaverse is assisting in the creation of long-term digital venues where numerous artists and content providers cooperate, communicate, and perform in a manner comparable to that which occurs in real life. It gives users a lot of exposure and flexibility while also offering artists consistent audiences and engagements.

BTS, Imagine Dragons, Travis Scott, Muse, and a slew of other contemporary artists have already begun dabbling in the limitless options that metaverse implementations bring to the media and entertainment industry. NFTs can be used by content creators such as musicians and video streaming corporations to extend VIP services or offer fans special collectibles with usage rights.

The healthcare industry is expected to grow with more than 35% CAGR, between 2021 and 2030. Factors such as the rising patient pool around the world, the growing need to enhance patient outcomes, and technological developments in the healthcare sector are expected to propel the metaverse market growth in this category over the forecast period.

For instance, in December 2021, DeHealth launched a decentralized metaverse that takes millions of doctors and patients to a new world where they can collaborate, communicate in full 3D, and earn virtual assets by selling their anonymized medical data.

Major Strategies Adopted by Key Players

The market is rapidly growing, with the presence of large and medium-sized players in the industry. The players have been involved in major strategic developments, such as product launches, investments, and research and development, to stay ahead of their competitors. For instance:

• In February 2022, Electronic Arts Company launched GRID Legends, a multiplayer game that enables users to enter events in real-time, open design races from the Race Creator, search for live events that match users' preferences, and create a private lobby for users' parties.
• In February 2022, Tech Mahindra announced the launch of TechMVerse, a metaverse practice, which allows customers to build immersive experiences and transact in the metaverse.
• In January 2022, Emerge, a social virtual connection company, launched Emerge Home system that provides immersive 'bare-hands' tactile encounters in the metaverse field.

Top Players in the Market Are:

• Meta Platforms Inc.
• Unity Software Inc.
• Epic Games Inc.
• Logitech International S.A.
• Razer Inc.
• Valve Corporation
• Take-Two Interactive Software Inc.
• NetEase Inc.
• Tencent Holdings Limited
• HTC Corporation
• Adobe Inc.
• Autodesk Inc.
• NVIDIA Corp.
• Alphabet Inc.

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Component

• Hardware
• Software

Based on Platform

• Desktop
• Mobile
• Console

Based on Offerings

• Virtual Platforms
• Asset Marketplace
• Avatars
• Financial Services

Based on Technology

• VR
• AR
• MR

Based on Vertical

• Gaming
• Manufacturing
• Entertainment and Media
• Healthcare
• Education
• Retail
• Fashion
• Aerospace and Defense

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan
  • China
  • India
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • U.A.E.