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The metaverse market size in finance is estimated to grow at a CAGR of 21.33% between 2022 and 2027. The size of the market is forecast to increase by USD 107.06 billion. The growth of the market depends on several factors, including the integration with VR and AR platforms, the emergence of artificial intelligence (AI), and the increasing popularity and adoption of cryptocurrencies.
This report extensively covers components (hardware and software), end-user (brokerage firms, investment banks, commercial banks, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). 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 integration with VR and AR platforms is notably driving the metaverse market in finance growth, although factors such as privacy and security concerns over the metaverse may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
Key Metaverse Market in Finance Driver
The integration with VR and AR platforms is notably driving the metaverse market in finance growth. Banks are considering strategies to expand their presence in the metaverse and offer better services to consumers who will be spending more time there, in addition to offering payment platforms. For example, using VR glasses, customers will be able to handle all their banking and financial activities from anywhere and in a far more immersive way than that possible on a phone app. Participants can now track and visualize financial markets in more depth, owing to enhanced AR or mixed reality (MR)-based stock trading and investment. In terms of market data analysis, there has been a massive change from flat graphics and charts to holographic representations, 3D figures, and smart heat maps. This technology has also expanded the definition of "workplace anytime, anywhere," thereby allowing users to work on laptops and mobile devices while also switching to virtual rooms to seek help from virtual agents. The use of these elements to meet the needs of clients, including their desire to participate in the crypto and metaverse economies, will allow banks to manage the digital transition successfully, regardless of how this new world appears. Such factors will contribute to market expansion during the forecast period.
Key Metaverse Market in Finance Trend
Increasing focus on VR and AR is the primary trend driving the metaverse market in finance growth. Technological innovations will further increase the demand for AR and VR applications during the forecast period. These applications enable users to use technology in a more user-friendly way and could improve the applicability of AR in our daily lives. For example, Google's Project Glass provides access to various AR applications. Developing AR Android applications can give users a new experience in both offline and online shopping. A virtual fitting room helps users choose the right size and reduce the chances of returns. A similar advantage is associated with choosing a new car color or new furniture for an apartment or house. The expanding application areas of AR and VR technologies in various fields, including finance, will further accelerate the growth of the global metaverse market in finance during the forecast period.
Key Metaverse Market in Finance Challenge
Privacy and security concerns over the metaverse may impede the metaverse market in finance growth. Even though companies and financial organizations keep upgrading 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, are a major challenge for the market. Metaverse can access the personal data of users and may pose a threat to their privacy. It can collect a lot of information from the user's social networking accounts. User privacy can also be threatened if hackers gain access to the user's device. Moreover, there are privacy-related concerns associated with smart devices used in the metaverse, such as smart glasses, VR headsets, and others. These glasses automatically screen and process the user's environment, violating the privacy of the user and those around them. Any security or privacy violation might lead to trouble and ruin the organization's reputation. Furthermore, because the metaverse is constantly evolving, organizations are concerned about the security of these platforms. Due to the fact that it is entirely online, security-related and privacy-related vulnerabilities may arise in the near future. Such factors may hamper the growth of the market in focus during the forecast period.
Key Metaverse Market in Finance Customer Landscape
Our analysis of the lifecycle of the global metaverse market in finance from the innovator’s stage to the laggard’s stage. Our researchers have included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies for 2022-2027.
Global Metaverse Market in Finance 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
Shinhan Financial Group Co. Ltd. - The company operates under multiple segments including banking, credit cards, securities, etc. with a high focus on the banking segment. Under this segment, the company offers commercial banking and related services and includes retail banking, corporate banking, international banking, and other banking. The company offers metaverse in finance for digital banking services.
We also have detailed analyses of the market’s competitive landscape and offer information on major market vendors, such as
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 hardware segment will be significant during the forecast period. The hardware segment is expected to register a robust CAGR in terms of revenue during the forecast period. Various types of headsets, smart glasses, and lenses are utilized to interface with the metaverse platform. This can be a mobile or web-based experience. There are numerous ways that VR and AR can change the finance industry, including in terms of data visualization, virtual trading, VR payments, and virtual branches.
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The hardware segment showed a gradual increase in market share, from USD 16.25 billion in 2017, and continued to grow by 2021. Furthermore, our report provides a brief analysis of historical and forecast market share and their segments along with their reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of the metaverse market in finance by residential consumers, which is driven by changing lifestyles and a growing preference for comfort.
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APAC is projected to contribute 32% by 2023. Another region offering significant growth opportunities to vendors in North America. Our 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 market in finance. Factors such as the increasing adoption of VR and AR technologies by financial institutions and banks, the rising popularity and acceptance of cryptocurrencies and blockchain technology, the increased focus on improving customer experience and exploring the potential of immersive technologies, and the rapid adoption of metaverse platforms to align financial services and businesses with metaverse goals are propelling the market forward in the region. The US and Canada are the largest contributors to the market in the region. Several suppliers have established a large presence in the US, including Meta Platforms, Inc. and Microsoft Corp. As a result, during the forecast period, all of these factors are expected to support regional market expansion.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The rapid spread of COVID-19 impacted the overall economy of North America, especially the US, in 2020. Several commercial enterprises, industries, and institutions partially shut down their operations due to the imposition of stringent lockdowns. The lockdowns in the region compelled people to work from home to mitigate the threat of COVID-19. Therefore, the time spent by people in the US in 2020 on digital media increased by 15% when compared to that in 2019. Thus, this further increased the demand for VR/AR platforms, which accelerated the demand in the metaverse market in finance in the region. During the forecast period, increasing Internet penetration and a growing interest in digital asset creation and purchase are expected to escalate the growth of the regional market.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2028. We have segmented the market based on type, product, distribution channel, and region.
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Metaverse Market in Finance Scope |
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Report Coverage |
Details |
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Page number |
153 |
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Base year |
2022 |
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Historical year |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 21.33% |
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Market growth 2023-2027 |
USD 107.06 billion |
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Market structure |
Concentrated |
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YoY growth (%) |
20.59 |
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Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
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Performing market contribution |
APAC at 32% |
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Key consumer countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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Key companies profiled |
Bank of America Corp., BNP Paribas SA, HSBC Holdings Plc, IBK Industrial Bank of Korea, JPMorgan Chase & Co., KB Financial Group Inc., Mogo Inc., National Bank of Kuwait S.A.K.P, NH Investment & Securities Co. Ltd., and Shinhan Financial Group Co. Ltd. |
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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, and 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 Component
7 Market Segmentation by End-user
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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