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The metaverse in e-commerce market is forecast to increase by USD 193.44 billion and is estimated to grow at a CAGR of 52.65% between 2023 and 2028. The Metaverse in e-commerce is experiencing significant growth, driven by several key factors. Firstly, the increasing popularity of Augmented Reality (AR) technology is revolutionizing the way consumers interact with products online. Secondly, the e-commerce industry's continuous expansion and the shift towards digital commerce are creating new opportunities for businesses to reach customers in immersive virtual environments. Lastly, product discovery and personalization are becoming essential aspects of the shopping experience, with the Metaverse enabling users to explore and try virtual products tailored to their preferences. These factors are fueling the growth of the Metaverse in e-commerce, offering innovative solutions for businesses and consumers alike.
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Key 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.
Significant Market Trend
Growing smartphone penetration and the use of 5G is the primary trend in the 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 market during the forecast period.
Major Market Challenge
Privacy and security concerns over the metaverse is 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.
Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovatorâs stage to the laggardâs 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.
Customer Landscape
Companies 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 Inc.- The company operates under multiple segments including digital media, publishing, and advertising among others, with a high focus on digital media.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, 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.
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 showed a gradual increase in global market share of USD 3.89 billion in 2018. 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. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is projected to hold a 40% share of the market in 2023. Technavioâs analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Metaverse in E-commerce represents a new frontier for businesses, merging the digital and physical worlds through Blockchain technology, smart contracts, and non-fungible tokens. This innovative space leverages virtual and augmented reality technologies powered by 5G and edge computing to create immersive shopping experiences. Artificial intelligence and machine learning enable personalized recommendations and dynamic pricing based on historical data and regional opportunities. Brands like Forever 21 can showcase virtual try-ons of clothes, such as a virtual dress or design, using AR and VR headsets, desktops, mobile devices, and tablets. Blockchain ensures secure transactions and eliminates the risk of data breaches. Characteristics like interoperability, customization, and social interaction make the Metaverse a lucrative market for revenue estimation and growth. The integration of these advanced technologies is expected to revolutionize the e-commerce landscape.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the rapidly evolving landscape of e-commerce, the Metaverse stands poised as the next frontier, blending blockchain technology, artificial intelligence, and augmented reality into a seamless digital realm. At its core, the Metaverse leverages 5G technology and edge computing to deliver immersive experiences through virtual reality headsets and tablets, where users engage via non-fungible tokens (NFTs) to own unique digital assets like virtual real estate and bespoke Peridot colored avatars. Within this digital universe, smart contracts streamline transactions while ensuring transparency and security, guarding against data breaches, and complying with GDPR regulations. Online dashboard offer real-time insights from historical data, enabling businesses to capitalize on growth factors and regional opportunities.
In addition, the market is at the forefront of innovation, integrating virtual and augmented reality technologies with machine learning to revolutionize online shopping. Through immersive experiences like VR headset and online dashboards, consumers explore product characteristics and dress design, enhancing their buying options and engagement. E-commerce platforms like Forever 21 leverage these advancements for revenue estimation and source, offering a virtual environment akin to a physical store. This convergence of technologies not only transforms how consumers interact with products but also provides businesses with unprecedented insights into consumer behavior and preferences. As the metaverse expands, its impact on the e-commerce landscape promises to redefine customer experiences, bridging the gap between online and offline shopping through immersive virtual environments.
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Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 52.65% |
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Market growth 2024-2028 |
USD 193.44 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
37.36 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 40% |
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Key countries |
US, China, Germany, UK, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, 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., CoStar Group Inc., Meta Platforms Inc., Microsoft Corp., NVIDIA Corp., Queppelin, Roblox Corp., Salesforce Inc., SAP SE, Shopify Inc., and Unity Technologies Inc. |
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Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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