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The metaverse in e-commerce market is estimated to grow at a CAGR of 39.65% between 2022 and 2027. The size of the market is forecast to increase by USD 85,885.22 million. The growth of the market depends on several factors, including the growing popularity of AR technology, the growing e-commerce industry, and product discovery and personalization.
This report extensively covers market segmentation by platform (computer, mobile, and headset), technology (AR and VR, blockchain, mixed reality, and others), and geography (APAC, North America, Europe, South America, and Middle east and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing popularity of AR technology is notably driving the market growth, although factors such as privacy and security concerns over the metaverse may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Metaverse In E-commerce Market Driver
The growing popularity of AR technology is notably driving the metaverse in e-commerce market growth. The rising popularity of AR technology allows consumers to be completely confident in a product's quality before purchasing it. This benefits customers in terms of convenience, but it also benefits merchants by reducing returns and expanding their customer base. Virtual purchasing experiences are becoming increasingly popular among customers. Hence, all types of e-commerce businesses should follow the trend.
For instance, Amazon.com Inc., one of the most well-known firms in the e-commerce business, is already incorporating VR and AR into its shopping experience. Sellers give consumers a haven to feel confident about purchasing since they can use near-reality tryouts first. This allows sellers to make high-value sales as well. The addition of metaverse to an already inventive arena will provide the e-commerce business with something unparalleled. Customers will be able to make purchases in real-time in more life-like virtual stores created by sellers. As a result, they will have the most convenience. In addition, products ranging from cookware to gadgets, fashion to camping will be available in the metaverse stores. Such factors will contribute to market growth during the forecast period.
Key Metaverse In E-commerce Market Trend
Growing smartphone penetration and use of 5G is the primary trend in the metaverse in the e-commerce market. 5G, the latest technology that offers great speed, is becoming popular among consumers. With the high adoption of smart devices such as smartphones, the demand for 5G is growing. These devices are being widely used by consumers at home and workplaces. Hence, the need to expand 5G coverage is rising, which, in turn, will increase demand for 5G equipment. Smartphones are evidently becoming common gadgets. With the growth in smartphone penetration, there has been a rise in online shopping, as well as the use of social media platforms. Therefore, with the availability of 5G networks and smartphones, the use of different apps and online platforms for online shopping is expected to increase, which will drive the growth of the e-commerce industry during the forecast period.
Furthermore, the availability of such high-speed internet will evoke e-commerce businesses to adopt advanced technologies such as metaverse to enhance the virtual experiences of the customers while online shopping. Thus, growing smartphone penetration and use of 5G is one of the growing trends, which is expected to drive the growth of the global metaverse in the e-commerce market during the forecast period.
Key Metaverse In E-commerce Market Challenge
Privacy and security concerns over the metaverse are the major challenge impeding the metaverse in e-commerce market growth. Even though companies and organizations keep revolutionizing their IT security systems, data privacy, and security has been a long-running concern for users of the metaverse. The metaverse collects and processes vast amounts of information about users and their environment. Privacy concerns, therefore, constitute a significant challenge in the market.
Metaverse has access to users' personal information, which could compromise their privacy. It can gather a lot of data from the user's social networking accounts. If hackers obtain access to a user's device, their privacy may be threatened. A security or privacy violation might lead to trouble and ruin the organizer's reputation. Furthermore, because the metaverse is constantly evolving, organizers are concerned about the security of these platforms. Because it is entirely online, security vulnerabilities may arise soon. Such factors may hamper the growth of the market during the forecast period.
Key Metaverse In E-commerce Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Metaverse in E-commerce Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adobe - The company operates under multiple segments including digital media, publishing, and advertising among others, with a high focus on digital media. The company under this segment offers products, services, and solutions that enable customers to create, publish, and promote content from anywhere. The company's key offerings include metaverse solutions in e-commerce where the augmented reality shopping experience is delivered with virtual travel in 3D.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on the platform, the market is segmented into computer, mobile, and headset. The market share growth by the computer segment will be significant during the forecast period. Personal computers (PCs) are small, multi-purpose devices intended for use by individuals. In 2022, by segment, computers had the largest share in the global metaverse in the e-commerce market due to the growing internet penetration.
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The computer segment shows a gradual increase in global market share of USD 3,260.67 million in 2017 and continued to grow until 2021. It has been observed that most shoppers used either their desktop computer or laptop for shopping on Amazon.com Inc. via the desktop site in 2020. Furthermore, many websites are built with desktops in mind, and most of their functionality may be accessed that way. People with a better internet connection and faster speeds will still want to use their desktops, as a fixed connection is faster than a mobile one by quite a margin.
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North America is projected to hold a 39% share of the market in 2023. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In 2022, North America held the highest share of the global metaverse in the e-commerce market. Factors such as rising investments in AR technology, expanding consumer adoption of technologically advanced applications, and strong research activities to expand the use of metaverse are propelling the market in the region forward. The US and Canada have extensive internet infrastructure and an increasing number of smartphone users and online stores, and other online shopping sites, which contribute to e-commerce growth.
The lockdowns in the region compelled people to work from home to mitigate the threat of COVID-19. In 2020, time spent on digital media increased by 15% in the US when compared to 2019. Therefore, this further increased the demand for e-commerce platforms due to the stay-at-home regulations. In addition, in 2021, widespread vaccination drives led to a decrease in the number of COVID-19 cases in the region. The economic condition showed a sign of stability, which, in turn, enhanced the growth of the IT sector in the region. During the forecast period, the rapid adoption of the metaverse from the e-commerce industry is expected to foster growth in the regional market.
The reports categorize the global metaverse in the e-commerce market as a part of the Technology Hardware, Storage & Peripherals. The parent global IT spending market covers revenue generated from the sales and subscription of IT services, communications services, cloud services, IT hardware, and IT software. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by platform, technology, and region.
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Metaverse In E-commerce Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 39.65% |
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Market growth 2023-2027 |
USD 85,885.22 million |
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Market structure |
Fragmented |
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YoY growth (%) |
33.26 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 39% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adobe Inc., Alibaba Group Holding Ltd., Amazon.com Inc., Autodesk Inc., Block Inc., Dealskart Online Services Pvt. Ltd., Epic Games Inc., Globant SA, Kestone CL US Ltd., Magic Leap Inc., Matterport Inc., Meta Platforms Inc., Microsoft Corp., NVIDIA Corp., Queppelin, Roblox Corp., Salesforce.com Inc., Shopify Inc., Unity Software Inc., and SAP SE |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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