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The Metaverse Market In Finance size is estimated to grow at a CAGR of 21.99% between 2023 and 2028. The market size is forecast to increase by USD 136.42 billion. The growth of the market depends on several factors, including the integration with VR and AR platforms, the emergence of artificial intelligence, and the increasing popularity and adoption of cryptocurrencies. Metaverse is a convergence of physical, augmented, and virtual-shared spaces where users can buy and sell virtual land/real estate, buildings, and other assets using digital currency. As a significant number of financial companies are focusing on integrating the metaverse with their financial services, the metaverse is likely to develop and expand in commercial scope. Metaverse plays a significant role in financial data management and helps fintech firms improve their ways of managing financial transactions.
The report offers extensive research analysis on the Metaverse Market In Finance, with a categorization based on Component, including hardware and software. It further segments the market by End-user, encompassing brokerage firms, investment banks, commercial banks, and others. Additionally, the report provides Geographical segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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One of the key factors driving the metaverse market In finance growth is the increasing popularity and adoption of cryptocurrencies. Cryptocurrencies offer the prospect of quicker and less expensive bank transfers, the acceleration of electronic trade, an increase in the volume of financial exchanges in low-income nations, and an increase in remittances to other countries. In addition, the potential for digital currencies such as Bitcoin to alter the course of history is enormous.
Moreover, payments made in digital money lessen the possibility of financial system compromise. In addition, interbank settlements are not necessary because the system transfers digital currency rather than bank balances, much like it would with cash. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the metaverse market growth is the rise of blockchain as a service. Blockchain as a service (BaaS) is a cloud computing solution that offers a platform to manage a distributed ledger system. In addition, Ethereum BaaS (EBaaS), developed by Microsoft and ConsenSys, provides a cloud-based blockchain developer environment. Furthermore, the EBaaS solution can be implemented through the Microsoft Azure cloud computing platform to manage and develop blockchain applications.
Moreover, additional features such as Cortana Analytics and CRM Online for Government (CRMOL) can also be implemented with EBaaS. In addition, Microsoft is offering BaaS for corporate and application software developers for blockchain development. Furthermore, BaaS is a scalable and flexible platform that helps enterprises manage their distributed ledger technologies cost-effectively. Hence, such factors are driving the market growth during the forecast period.
The lack of skilled employees to operate the Metaverse platform is one of the key challenges hindering the market growth. Even though there is an increase in industrial IoT use, organizations still find it challenging to monitor, secure, and maximize their IoT expenditures. In addition, one of the main responsibilities that industries take on is the deployment of IoT in the financial sector.
Moreover, the next stage is to provide workers with training on using the IoT platform so they can become more proficient and quicker at adjusting to the IoT. In addition, one of the biggest issues faced by end-users such as banks and financial service providers is the shortage of qualified personnel to manage the complexity of IoT devices. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The hardware segment is estimated to witness significant growth during the forecast period. Several types of headsets, smart glasses, and lenses are used to interact with the metaverse platform. In addition, a virtual reality (VR) or augmented reality (AR) experience entails using a camera to alter or enhance the user's perception of a virtual world, such as a metaverse. Furthermore, this experience can be mobile or web-based.
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The hardware segment was the largest segment and was valued at USD 20.48 billion in 2018. Moreover, 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. In addition, financial transactions using smartphones and other mobile devices are on the rise, and AR can help customize and improve the client experience substantially. Therefore, it can find all possible banking channels, thereby offering the user with targeted, location-based promotions and simplifying account management in general. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The increasing investment by brokerage firms segment in the metaverse will increase the market growth. Metaverse is one of the main opportunities for brands to increase awareness of their companies and services. In addition, the metaverse is a collection of interconnected virtual environments, augmented reality technologies, and a global network. Moreover, investing in the metaverse means investing in stocks of big brands, buying NFTs, creating your own non-fungible tokens, and buying or renting land from virtual platforms. Furthermore, brokerage firms increasingly adopt metaverse to increase their customer reach. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Another region offering significant growth opportunities to companies is North America. Several factors including the growing adoption of VR and AR technologies by financial institutions and banks, as well as the growing 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 fuelling the market in the region. In addition, the US and Canada are the largest contributors to the market in the region. Hence, such factors drive the market growth in North America during the forecast period.
The metaverse market in finance 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 Market in Finance 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.
Avalanche BVI Inc: The company offers metaverse solution in finance such as Evergreen Subnet Spruce used for financial blockchain.
Bank of America Corp: The company offers metaverse solution in finance such as VR program with high tech and high touch training.
Binance Holdings Ltd: The company offers metaverse solution in finance through MetaFi BNB Chain which used for multi-chain access to customers.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The metaverse market in finance report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.
Metaverse Market In Finance Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.99% |
Market Growth 2024-2028 |
USD 136.42 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
20.99 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Avalanche BVI Inc., Bank of America Corp., Binance Holdings Ltd., BNP Paribas SA, CaixaBank Group, HSBC Holdings Plc, IBK Industrial Bank of Korea, JPMorgan Chase and Co., KB Financial Group Inc., Max Financial Services Ltd., Mogo Inc., National Bank of Kuwait S.A.K.P, NH Investment and Securities Co. Ltd., Shinhan Financial Group Co. Ltd., and Solana Foundation |
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. |
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 market research report to meet your requirements.
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
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