USD 63.45 billion
Metaverse Market Size, Share, Growth Analysis, By Component(AR Devices, VR Devices, MR Devices, Displays, Software, Services), Technology(Blockchain, VR, AR, MR, Others), Application(Gaming, Shopping, Social Media, Events, Others), End-Use Industry, and Region - Industry Forecast 2024-2031
Report ID:
SQMIG45D2039 |
Region:
Global |
Published Date: June, 2024
Pages:
157
|Tables:
153
|Figures:
77
Metaverse Market Insights
Metaverse Market size was valued at around USD 63.45 Billion in 2022 and is expected to rise from USD 86.31 Billion in 2023 to reach a value of USD 803.29 Billion by 2031, at a CAGR of 39.68% over the forecast period (2024-2031).
The metaverse is a virtual interactive self-sufficient ecosystem comprising mobile networks, augmented reality, social media, gaming, virtual reality, e-commerce, cryptocurrency, and workplace. This universe is envisioned as the internet's future, bringing together augmented reality (AR), virtual reality (VR), and physical worlds in a common digital arena. NFTs and online events are exploding, opening a world of possibilities for it and associated technologies. The metaverse market is being promoted and accelerated because the world of entertainment and gaming are both industries whose demand is increasingly high. It is the technology with the fastest growth rate because of the steady and rapid advancement in the AR, VR, and MR technologies. Adoption of these technologies is mainly on the fact that gadgets such as VR headsets, MR headsets, HUD, HMD, smart glasses, and smart helmets can simulate first-person view, act as natural user extension and acquisition capabilities and provide 6 degrees of freedom to mimic the virtual world and put the experience of game users to a higher level – the real world.
Prominent gaming players and digital technology businesses have focused on providing specific metaverses for their consumers alongside huge investments. As a prominent reason lying behind this rise in the budget of metaverse technology has the great chance of marketing various goods in the metaverses. The metaverse features the immersive environments where gamers can play video games in their full forms. Many businesses try to compete by creating gaming experiences that offer the gamers an incredible gaming through the internet. Specialized factors associated with the growth of the market revenue are the gentle increase in the number of participants, the great attraction of play-to-earn games, and the progress in AR, VR, and metaverse (XR) technologies.
The market is being shaped by cryptocurrencies and the Non-Fungible Token (NFTs) in an artistic manner. Cryptocurrencies transform the technology of traditional transactions and eventually provide a decentralized and borderless digital economy as a surrogate community to certain virtual spaces. Users can seamlessly engage in purchases that overpass the level of the traditional payment systems and stipulate the prompt processing of transactions in the metaverse. Alongside, NFTs are bringing revolution in the way ownership is perceived and digital assets like artwork and virtual real estate are being demonstrated as one-of-a-kind and having genuine history. This opens a new range of values and scarcities which makes the first ever direction in digital creativity and collectables. All these traits collectively result in the formation of a metaverse where ownership, trade, and innovation intersect in groundbreaking and motif-inducing way, thus paving way for a new-age virtual ecosystem.
US Metaverse Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Gaming
Fastest Growth
Online Shopping
Growth Rate
39.68% CAGR
Mataverse Market ($ Bn)
Country Share for North America Region (%)
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Metaverse Market Segmental Analysis
The Metaverse Market is segmented based on Component, Technology, Application, End-Use Industry, and region. Based on Component it is categorized into: Hardware [AR Devices {AR Head-Mounted Display (HMD), AR smart Glasses, Smart Helmets, AR Head-Up Display (HUD)}, VR Devices {VR Head-Mounted displays (HMD), gesture-Tracking Devices & Haptics}, MR Devices, Displays {3D Displays, Holographic Displays, Virtual Mirrors}] Software [Extended Reality Software, Gaming Engines, 3D Mapping Modelling & Reconstruction, Metaverse Platforms, Finacial Platform, Others], Services [Application development & System Integration, Strategy & Business Consulting Services]. Based on Technology it is categorized into: blockchain, Virtual Reality (VR) & Augmented Reality (AR), Mixed Reality (MR), Others. Based on Application it is categorized into: Gaming, Online Shopping, Content Creation & Social Media, Event & Conference, Digital Marketing (Advertisement), Testing & Inspection, and Others. Based on End-Use it is categorized into Aerospace & Defense, Education, Healthcare, Tourism & Hospitality, BFSI, Retail, Media & Entertainment, Automotive, Others. Based on region it is categorized into: North America, Europe, Asia-Pacific, South America, and MEA.
Analysis by Application
Based on our in-depth study, we found that the gaming sector was predominantly the one of the highest contributors in the global revenue share of 28.42% in 2023 due to the ongoing investments by game developers, as well as a decent focus on the issuance of more immersive and realistic games. Moreover, the game providers will seek to use the latest games in the company's image will also contribute to the revenue surge. According to the market, the application is classified as gaming, online shopping, user content (video) as well as social media, ongoing events & conferences, content creation, digital marketing, testing & inspection, and other things.
Based on our analysis, it is also expected that the social media & Content Creation segment will have the highest Compound Annual Growth Rate, in the forecast period. This includes platforms that are social in nature, user-generated content, virtual events, and digital communities. In 2023, global social media users reached 4.95 billion after increasing 7.07% from 4.62 billion in 2022. Companies like Meta (formerly Facebook), Decentraland, VR Chat platforms, others, are rapidly expanding in this space. Such platforms have increased interest due to the possibility they offer for connections in virtual realities, content creation and sharing, and hosting virtual events emulating physical-world interactions.
Analysis By Technology
In 2023, AR and VR made the most money, with 35.2% of the revenue. Our study shows that Mixed Reality (MR) is expected to grow the most in the tech industry, with a rate of 42.6%, mainly because it's used a lot in the metaverse. The worldwide market is split into three main tech parts: blockchain, VR and AR, and MR. There's also a mixed part with AI, IoT, 3D making, brain-computer links, machine learning, and 5G.
MR lets people connect with the metaverse in the real world without needing a VR headset. This means they can use things like keyboards to interact, no matter how involved they are. VR and AR are big in gaming, making things more real and fun. The need for VR and AR stuff is set to go up a lot in the next few years, which will really help the metaverse cause of the rise in gaming.
Metaverse Market By Application
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Metaverse Market Regional Insights
North America is forecasted to dominate the market with the highest share of 39.6% in 2023 simply because the users and customers of the region are embracing the computerization of their hard-to-believe technology. For instance, the fact that the number of startups that specialize in metaverse platform development for commercialisation is expected to increase shows the region is also one of the factors behind the growth in the revenue of the market. In other words, the remarkable footprint of gaming and metaverse companies like The Sandbox, Nvidia Corporation and Epic Games, Inc operating in the area that is keen on integrating metaverse into games provides a fertile ground for potential market growth. For instance, NVIDIA Corporation with Blender and Adobe decided to expand the usage of NVIDIA Omniverse, the first collaboration and simulation platform in the world, on millions of more users.
Asia Pacific is on both production and consumption end and is expected to show tremendous CAGR over the forecast period. More and more new players in the field including start-ups and organizations such as The Sandbox (Hong Kong), Bolly Heroes (India), Axie Infinity (Singapore), NextMeet (India), GuildFi (Thailand) and also Shenzhen Zhongqingbaowang Interaction Network Co., Ltd. (ZQGame Global) and miHoYo Co., Ltd These metaverse platform and gaming applications offer real-time experiences where one can interact and use hybrid operations via live and concurrent third-party apps.
Metaverse Market By Region
- Largest
- Fastest
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Metaverse Market Dynamics
Metaverse Market Drivers
Rising Adoption of Metaverse within Healthcare
- Based on the research conducted by SkyQuest, it has been discovered that the medical industry is exploring innovative avenues through the metaverse within the healthcare sector. This development opens novel prospects for healthcare professionals and instils optimism, especially among contemporary healthcare establishments. It helps the doctors and patients to interact virtually through sessions and eliminates geographical limitations. The growth of AI technology and machine learning in the XR area will create applications that can change according to the requirements of every user; this will deliver individualized experiences in healthcare tasks including training, patient education, and therapy, which are likely outcomes in improving engagement, comprehension, and overall achievements. These experiences can be tailored to every user of the provider which allows the delivery of the information that is most expected leading to better results. With the arrival of a new open, decentralized internet, comes an increased focus on blockchain, for the management of transparent data. Many experts believe the blockchain will play an important role in the creation of a safe and fair metaverse.
Rising Demand in Global Entertainment and Gaming Industries
- The rising demand of online games drives the Metaverse market. The gaming experience is getting better driven by widespread adoption and increasing usage of AR, VR, and MR technologies that develop more realistically and interactively immersive virtual worlds, the metaverse enables a unique new immersive experience for entertainment and gaming. Companies like Meta Platforms are investing heavily in VR technology to develop innovative gaming and social experiences within the metaverse. In fact, our research anticipates the gaming market to be valued at $321 billion by 2026, which will tremendously propel the usage of the metaverse and, in turn, expand the metaverse market.
Restraint
Implementing Regulations for Metaverse Pertaining to Cybersecurity, Privacy, and Usage Norms
- The primary challenges facing the VR, AR, and MR sectors revolve around security and privacy concerns. These issues stem from the programming of applications and devices, coupled with a lack of oversight from both creators and users. Many consumer AR applications available on platforms like Android's Play Store and Apple's App Store are deficient in adequate privacy safeguards, raising apprehension among cybersecurity enthusiasts. Additionally, there is lack of standards that can currently applicable and defining the dos and don’ts of the metaverse, this makes potentially dangerous behaviour in the metaverse environment occur more likely. Furthermore, levying taxes in virtual land and situation of relevant regulation also raise the barriers to the appearance of a metaverse in the entertainment industry. These elements would cause difficulties in the market’s healthy expansion.
Complex Security and Privacy Challenges
- This leads to major security and privacy issues in the metaverse market. With the increasing involvement of users in their virtual environments, there is the imminent danger of data breaches, identity theft, and cyberbullying. This calls for an elaboration of serious security mechanisms and a definite regulation on data privacy. User trust for and the mainstream adoption of the metaverse must deal with the risks properly and protect the users' information. The industry must focus on cybersecurity and privacy to provide a safe and trustworthy metaverse experience.
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Metaverse Market Competitive Landscape
Global market is concentrated, with a few big and medium-sized market participants accounting for a large portion of market revenue. Major players are implementing numerous tactics, including mergers and acquisitions, strategic agreements and contracts, and the development and testing of metaverse platforms. Additionally, the market is being fueled by government support and the government aiming to use the potentials of metaverse to enhance the capacity and steps of government service delivery and cooperation between market players and government/agency agencies. Companies and governments everywhere have their hands on the evolving industry of the metaverse with the government augmenting job numbers and a training academy for it. From tech giants, consultancies, entrepreneurs, investors, university or government representatives to the individual users, each stakeholder having interest in the metaverse and satisfying the demand for some "fresh idea" in the existing industry through such metaverse will result in industry growth, user adoption, and more possibilities than ever.
Top Players in the Global Metaverse Market
- Epic Games, Inc.
- 3i Inc. (South Korea)
- Apple Inc. (US)
- Atari, Inc. (France)
- Autodesk Inc. (US)
- Dapper Labs (Canada)
- Decentraland (China)
- Fastly (US)
- Google LLC (US)
- IBM Corporation (US)
- Infosys (India)
- Magic Leap, Inc. (US)
- Meta Platforms, Inc. (US)
- Microsoft Corporation (US)
- Nextech AR Solutions Inc. (Canada)
- NVIDIA Corporation (US)
- Oracle Corporation (US)
- Tencent Holdings Ltd. (China)
- Unity Technologies, Inc. (US)
- The Sandbox (US)
Metaverse Market Recent Developments
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In March 2024, Siemens and NVIDIA have forged a strategic alliance to advance the development of an industrial metaverse. This collaboration integrates Siemens’ Xcelerator platform with NVIDIA Omniverse Cloud APIs to enable immersive visualization. The primary objective is to enhance the utilization of AI-driven digital twin technologies and drive innovation across manufacturing, service, and industrial design domains. The partnership was unveiled at NVIDIA’s GTC event, where both entities showcased how generative AI can revolutionize complex data visualization processes.
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In March 2024, Nokia anticipates a surge in network demand by 2030 driven by the anticipated advancements in the metaverse, Web3, and artificial intelligence (AI). The company's Technology Strategy 2030 report outlines strategies to address this increased demand through investments in network infrastructure and services. Nokia forecasts a significant 22%–25% increase in network demand from 2022 to 2030, propelled by the widespread adoption of generative AI and virtual reality devices. Federico Guillén, president of network infrastructure at Nokia, attributes this projected rise to the mainstream emergence of these transformative technologies.
Metaverse Key Market Trends
- Leveraging Metaverse and Related Technologies in Aerospace and Defence Sector: Technologies such as Metaverse, or XR, and AI and analytics will be most useful in the aerospace and defence industry for training and simulation. Since these technologies are converging with the metaverse, otron experiential, using data-driven applications in real-time; the metaverse, therefore, can make possible, the effectiveness and efficiency of skill transfer and knowledge retention by the trainees in this industry. An instance of using metaverse is seen during the training ground crew members responsible for pre-flight inspections in the aviation sector. These technologies can empower ground crew personnel to execute essential protocols before aircraft take-off. For instance, in November 2022, SimX, a medical device manufacturing company, received a research and development contract from the US Air Force to create an improved virtual reality (VR) medical simulation training program. The goal was to adapt their current VR medical simulation system to produce a platform that guarantees increased flexibility and consistency for tactical combat casualty care training.
Metaverse Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, current attempts to construct a metaverse are centred on the peaceful coexistence of stakeholders of all sizes, promote decentralised division of power, and hasten the transition to web 3.0. The promise of the metaverse is based on the disruption of existing technologies and the integration of multiple platforms for value creation in a virtual universe of possible applications spanning work, entertainment, financing, trade and exchange of services, virtual travel, gaming, and digital engagements in an immersive self-sustaining ecosystem powered by digital currencies and enabling edge computing.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 63.45 Billion |
| Market size value in 2031 | USD 803.29 Billion |
| Growth Rate | 39.68% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Metaverse Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Metaverse Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Metaverse Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Metaverse Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Metaverse Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Metaverse Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Metaverse Market Report Snapshots
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