Global Metaverse Market by Technology (Mixed Reality, Virtual Reality & Augmented Reality, and Blockchain), Platforms (Mobiles, Desktop/ Laptops, and Wearables), Components (Software and Hardware), Applications (Online Shopping, Content Creation, Gaming, Social Media, and Others), End-users (Education, Aerospace & Defense, Media & Entertainment, Real Estate, Healthcare, Engineering, and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

The global metaverse market size was valued at USD 39.45 billion in 2020 and is expected to expand at a CAGR of 40.2% during the forecast period, 2021–2028. The growth of the market is attributed to rising focus on integrating physical and digital worlds using internet.

The word, metaverse, refers to an extremely immersive 3D virtual world created by the employment of a combination of technologies, including augmented reality, mixed reality, and virtual reality. It helps create a virtual environment in which users engage in immersive games, socialize, and sell and buy virtual real estate. Metaverse is a popular technological platform that is drawing many social networks, technology leaders, and online game developers to enter and build a presence in the market. According to industry analysts, metaverse is expected to permeate a wide range of businesses in the future years, with the potential market opportunity or total addressable market valued at more than USD 1 trillion in annual sales. NVIDIA corporation released cutting-edge software for artists. The business intends to give a free advanced version of Omniverse software to individual artists in order to develop virtual worlds. For corporate and individual consumers, the business plans to charge USD 9,000 per year.

The COVID-19 pandemic was a major factor in generating interest in metaverse. People began working from home, and students began attending classes online, necessitating the development of practical procedures or channels to make online communication realistic. The pandemic increased its relevance among both consumers and corporations. In 2020, tech companies began developing and investing in this technology. 2021 was a good year for technological investments in metaverse, due to high investments made in metaverse. According to industry analysts, the post-pandemic environment is expected to boost customer interest in metaverse.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing use of cryptocurrency to acquire digital assets is anticipated to drive the market.
• Rising demand for sophisticated VR devices from small, medium, and large-scale companies, and individual customers is expected to boost the market.
• Threat of cyber-based attacks is expected to hinder the market growth during the forecast period.
• Inadequate knowledge of service and security options is anticipated to hamper the market expansion.
• Technological advancements, and business-to-consumer and business-to-business firms are creating lucrative opportunities for market growth.

Scope of the Report

The report on the global metaverse market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Virtual Reality & Augmented Reality segment to expand at a considerable CAGR

On the basis of technology, the metaverse market is segmented into mixed reality, virtual reality & augmented reality, and blockchain. The virtual reality & augmented reality segment is projected to expand at a considerable CAGR during the forecast period, due to increasing use of metaverse in the gaming industry. In the gaming industry, AR and VR technology are used to make games realistic and deliver an optimal gaming experience. The mixed reality segment is anticipated to account for a major market share during the forecast period.

Desktop/ Laptops segment to hold a significant share of the market

In terms of platforms, the market is divided into mobiles, desktop/ laptops, and wearables. The desktop/ laptops segment is expected to hold a significant share of the market in the coming years, due to rising demand for massive virtual screens where users can watch movies, play games, and surf the web. The mobiles segment accounts for a significant market share, as mobiles are quickly becoming common means to connect to the metaverse.

Software segment to expand at a high rate during the forecast period

Based on components, the metaverse market is bifurcated into software and hardware. The software segment is expected to expand at a high rate during the forecast period, owing to use of progressive software and presence of key players in the market. The hardware segment is expected to be the fast-growing segment during the forecast period, due to increasing adoption of advanced AR/VR devices. 

Gaming segment to dominate the market

On the basis of applications, the market is fragmented into online shopping, content creation, gaming, social media, and others. The gaming segment is expected to dominate the market in the forecast period, due to substantial advances and rising emphasis on immersion to make games realistic. The social media segment is expected to grow rapidly. During the COVID-19 pandemic, internet and social media were crucial in daily life, creating high demand for content development. Many firms are increasingly using content production to sell their brands and product portfolio in order to gain a competitive edge.

Media & Entertainment segment expected to grow significantly

In terms of end-users, the metaverse market is categorized into education, aerospace & defense, media & entertainment, real estate, healthcare, engineering, and others. The media & entertainment segment is expected to grow significantly during the forecast period, owing to growing gaming industry globally. Organizations are increasingly focused on hosting virtual music and gaming performances, which is expected to promote revenue growth. The real estate segment is anticipated to hold a considerable share of the market during the forecast period, due to large number of emerging companies that acquire, resell, create, and rent virtual properties.

North America is anticipated to constitute a key market share

In terms of regions, the metaverse market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the forecast period, as clients and users in the region are embracing new and complicated technologies. The market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, due to the growing number of start-ups and organizations in the region, including The Sandbox in Hong Kong, NextMeet in India, Axie Infinity in Singapore, Shenzhen Zhongqingbaowang Interaction Network Co., Ltd. (ZQGame Global), and miHo.

Segments

The global metaverse market has been segmented on the basis of
Technology

• Mixed Reality
• Virtual Reality & Augmented Reality
• Blockchain

Platforms

• Mobiles
• Desktop/ Laptops
• Wearables

Components

• Software
• Hardware

Applications

• Online Shopping
• Content Creation
• Gaming
• Social Media
• Others

End-users

• Education
• Aerospace & Defense
• Media & Entertainment
• Real Estate
• Healthcare
• Engineering
• Others

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Tencent Holdings Ltd
• Epic Games, Inc.
• Nvidia Corporation
• Unity Technologies, Inc
• Meta Platforms, Inc.

Competitive Landscape

Key players competing in the global metaverse market are Tencent Holdings Ltd; Epic Games, Inc.; Nvidia Corporation; Unity Technologies, Inc; and Meta Platforms, Inc.

The launch of breakthrough hardware solutions that enable the metaverse is expected to boost the market. Key players in the market are pursuing different tactics to enhance their market presence, such as partnerships, acquisitions, collaborations, and mergers. For instance, The Sandbox announced a partnership with Warner Music Group in January 2022 to establish the first music-themed planet in The Sandbox metaverse. With this cooperation, Warner Music Group (WMG) takes its first step into the metaverse and NFT.