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The metaverse market in travel and tourism market size is forecast to increase by USD 155.17 billion, at a CAGR of 26.76% between 2023 and 2028. The demand for augmented reality (AR) and virtual reality (VR) technology is on the rise, fueled by advancements in immersive experiences and applications across various industries. This surge is further propelled by the expanding internet penetration and the widespread implementation of 5G technology, enabling seamless connectivity and enhancing the capabilities of AR and VR platforms. Additionally, the introduction of digital assets within the metaverse, a virtual shared space, adds a new dimension to the digital landscape. These assets offer opportunities for virtual transactions, social interactions, and immersive experiences within the metaverse environment. As technology continues to evolve and intertwine with everyday life, the convergence of AR, VR, and digital assets within the metaverse presents new avenues for innovation, entertainment, and commerce, shaping the future of digital experiences and interactions. The market forecast report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The market is experiencing significant advancements with the integration of Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) technologies. Metaverse devices such as VR headsets, MR headsets, smart glasses, and smart helmets are transforming the gaming experience for tourists, offering tailored metaverses and digital twins for immersive exploration. Investments in the Metaverse sector are on the rise, driven by the potential for additional revenue and deployable use cases in the travel industry. The medical sector is also exploring the benefits of Metaverse technology for training and simulation purposes. Advancements in 3D modeling and the use of Unreal Engine are enhancing the realism and interactivity of Metaverse experiences. However, challenges such as eye strain, dizziness, nausea, myopia, low resolution, and virtual sickness remain concerns for users. Electromagnetic frequency emissions from Metaverse devices are another issue that requires attention. As the market continues to evolve, timelines for human resource development and business performance optimization will be crucial for success. Blockchain technology is expected to play a role in securing transactions and ensuring data privacy in the Metaverse travel and tourism market. Overall, the Metaverse market holds immense potential for innovation and growth in the travel industry.
One of the key factors driving growth in the metaverse market in travel and tourism industry is the increasing demand for AR and VR technology. Customers are increasingly adopting VR and AR technology, either for professional or private use. Metaverse is a mixed reality (mixture of AR/VR) that has unlimited access, unlike usual VR programs. Likewise, technological innovations will further drive the demand for AR and VR applications during the forecast period, as these applications will enable users to use the technology in a more user-friendly manner.
Further, wearable technology platforms will likely enhance the utility of AR in the global metaverse market in the travel and tourism industry. For instance, Google is actively working on AR Smart Glasses for the global metaverse market in travel and tourism industry. Therefore, the growing application area of AR and VR technology will boost the growth of the global metaverse market in travel and tourism industry.
The increasing focus on increasing booking volume by enhancing the booking experience is one of the primary market trends in the travel and tourism industry that is expected to have a positive impact in the coming years. Metaverse travel and tourism solutions have the power to greatly enhance booking processes by providing valuable information which cannot be accurately delivered in any other way. This increases the probability of a customer completing their booking journey rather than backing out.
Further, travel agencies can use VR tours to provide their customers with life-like experiences of a location they wish to travel to. The real value of metaverse offering in the tourism and travel industry during a booking process is their ability to increase overall booking volumes. This occurs due to the enhanced customer experience due to the usage of metaverse wherein customers can gain inspiration from virtual and augmented reality travel technology, and the actual experience of booking hotels, travel, restaurant tables, and other services becomes more enjoyable, informative, and a tool for influencing buyers purchasing decisions.
The privacy and security concerns over metaverse will be a major challenge for the metaverse market in travel and tourism industry during the forecast period. 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.
Therefore, privacy concerns are a significant challenge in the global metaverse market in travel and tourism industry. User privacy can also be threatened if hackers gain access to the user's device. Moreover, there are privacy-related concerns associated with smart gears used in the metaverse, such as smart glass, VR headsets, etc. These glasses automatically screen and process the user's environment, violating the user's privacy and those around them. The development of such products may hamper the growth of the market during the forecast period.
The market forecasting 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 market growth analysis 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.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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 AR segment is estimated to witness significant growth during the forecast period. The market is experiencing significant advancements with the integration of Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) technologies. According to industry estimates, this sector is expected to witness substantial growth, driven by the adoption of HMDs (Head-Mounted Displays) such as VR headsets, MR headsets, smart glasses, and smart helmets. These technologies offer tailored metaverses for travelers, providing immersive gaming experiences and personalized explorations. Investments in the metaverse market are on the rise, with developments in the medical sector showcasing digital twins, blockchain, artificial intelligence (AI), and machine learning (ML) for healthcare providers.
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The AR segment accounted for USD 7.39 billion in 2018. Advancements in programming and cybersecurity concerns are being addressed to ensure negligence and oversight are minimized. AR and VR technologies are revolutionizing traveler experiences by enabling real-time navigation and information, simplifying exploration in unfamiliar locales. The convergence of these technologies with AI and ML offers personalized experiences, enhancing traveler engagement. However, concerns regarding health effects, cybersecurity, regulations, defined standards, taxation, and experiential training are being addressed to ensure a seamless and safe user experience. Addressing concerns regarding health effects, cybersecurity, regulations, and defined standards is crucial for the continued growth and success of this sector.
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North America is estimated to contribute 36% 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. The market is experiencing substantial expansion, fueled by technological innovations, escalating consumer preferences for immersive experiences, and a thriving tourism sector. Metaverse devices, such as virtual reality (VR) and augmented reality (AR), are revolutionizing the way travelers explore destinations, plan trips, and interact with tourism-related content. Injuries, headaches, eye strain, dizziness, and nausea are potential side effects of extended use of these devices, known as "virtual sickness." To mitigate these issues, myopia and low resolution are being addressed through advancements in metaverse technology. Electromagnetic frequency emitted by metaverse devices is a concern for some consumers.
However, major players in technology and entertainment industries are investing heavily in metaverse platforms and experiences, driving innovation and deploying use cases that offer additional revenue streams and improved business performance. Brands and advertisers are capitalizing on marketing campaigns and virtual events, while game developers are creating gaming applications and interactive 3D media with participation effects. AR technology is being integrated into gaming applications, creating playing fields that mimic real-world climates and feature animated objects. Mobile-based and tablet-based portable gaming are gaining popularity, offering travelers a convenient and immersive way to engage with metaverse content. Unreal Engine and other extended reality technologies are being used to create 3D modeling and realistic visuals, further enhancing the user experience. As the metaverse market continues to evolve, it is essential for human resources to adapt and stay informed about the latest trends and technologies to ensure optimal performance.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is an emerging trend, offering unique experiences to consumers. This virtual environment enables tourists to explore destinations in a more immersive and interactive way. Heads of travel and tourism companies are recognizing the potential of Metaverses in enhancing customer engagement and generating new revenue streams. Metaverses in travel and tourism provide a realistic and engaging experience, allowing users to visit various destinations, attend events, and even book accommodations. These virtual platforms offer a more personalized and convenient experience, as users can plan their trips, make reservations, and even interact with travel agents within the Metaverse.
Moreover, Metaverses provide an excellent opportunity for businesses to showcase their offerings in a more interactive and engaging manner. For instance, hotels and resorts can offer virtual tours, allowing potential customers to explore their properties before making a booking. Similarly, travel agencies can offer customized travel packages, providing users with a more personalized and tailored experience. In conclusion, the market is poised to revolutionize the industry, offering a more immersive and interactive experience to consumers. Heads of travel and tourism companies are recognizing the potential of Metaverses and are investing in this technology to enhance customer engagement and generate new revenue streams.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 26.76% |
Market growth 2024-2028 |
USD 155.17 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
26.24 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ariva Digital, Infosys Ltd., LynKey International Ltd., Marriott International Inc., Metaverse Seoul, Qatar Airways, and Rendezverse |
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 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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