The global metaverse market size is expected to reach $1,542.9 billion by 2030, growing at a CAGR of 29.7% from 2021 to 2030. Metaverse combines features of virtual reality (VR), augmented reality (AR), and mixed reality (MR) to create a hybrid of real and virtual worlds, in which users can seamlessly transition from one technology to other. As a result, the metaverse serves as a mirror of reality as well as a new universe, enabling the creation of advanced realities with novel scenarios.
During the COVID-19 pandemic, governments introduced partial or complete lockdown, which replaced physical human interaction with interaction over digital platforms. This facilitated the growth of the market.
The market is expected to develop rapidly in the coming years, due to the rising adoption of blockchain technology and digital assets. With the advent of the new open, decentralized internet, there is a greater emphasis on blockchain for data management. This technology provides decentralized authority, as well as helps in convenient and secure data exchanges.
Moreover, the blockchain is also assisting in the formation of a new metaverse economy, one defined by artists' ability to sell their work and earn adequate recompense for their efforts. Non-fungible tokens, or NFTs, for example, are an intriguing component of the metaverse because they allow consumers to sell everything from data to services and experiences while benefiting the artist or creator of each asset.
The North American metaverse market is expected to hold the largest share, of more than 30%, in 2030. This can be attributed to the rising investment in platforms by leading market players, such as Met, Roblox Corporation, and NVIDIA Corporation. For instance, in October 2021, Magic Leap Inc. raised a $500 million fund with a valuation of $2 billion. The investment focused on developing advanced AR solutions.
However, the APAC market is expected to grow at the highest pace during 2021–2030. This can be ascribed to the economic developments, several government initiatives, and an increase in the adoption of digital solutions across the region. Moreover, technological revolution across various industries, such as gaming, healthcare, and manufacturing, will foster the market growth during the forecast period.
Players in the market have been involved in mergers and acquisitions to remain competitive. For instance, in February 2022, Metaverse Group purchased an additional 49 parcels in Decentraland’s Fashion District. With the rise in focus on fashion in the Metaverse, the company is strategically increasing ownership in the Fashion District of Decentral, by creating a portfolio of metaverse real estate.
Some of the major players operating and investing in the metaverse market are Unity Technologies Inc., Lilith Games, Roblox Corporation, Facebook, Tencent Holdings Ltd., ByteDance, NetEase, ZQGame, Nextech AR Solution Corp., and Nvidia Corporation.