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According to Technavio's analyst, the metaverse market size in travel and tourism industry is expected to be valued at USD 188.24 billion in 2026 with a progressing CAGR of 26.01%.
This metaverse market in travel and tourism industry research report extensively covers metaverse market segmentation in travel and tourism industry by:
The metaverse market vendors in travel and tourism industry are - Accenture Plc, ALTERATION INDORUSSIA.COM, Ariva Digital, Infosys Ltd., LynKey International Ltd., Marriott International Inc., Mytaverse Inc., Powerbridge Technologies Co. Ltd., Qatar Airways Group, Queppelin, and Wilkins Avenue AR among others.
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The increasing demand for AR and VR technology is notably driving the metaverse market growth in travel and tourism industry, although factors such as privacy and security concerns over metaverse may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the metaverse industry in travel and tourism industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Metaverse Market Driver in Travel and Tourism 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. 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. Wearable technology platforms will likely enhance the utility of AR in the global metaverse market in 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.
Key Metaverse Market Trend in Travel and Tourism Industry
The increasing focus on increasing booking volume by enhancing the booking experience is a metaverse market trend in 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. 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.
Key Metaverse Market Challenge in Travel and Tourism Industry
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.
This metaverse market in travel and tourism industry analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global metaverse market in travel and tourism industry as a part of the global information technology (IT) spending market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the metaverse market in travel and tourism industry during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the metaverse market in travel and tourism industry encompasses successful business strategies deployed by the key vendors. The metaverse market in travel and tourism industry is fragmented and the vendors are deploying growth strategies such as focusing on acquiring smaller brands to increase their market presence to compete in the market.
accenture.com - The company offers metaverse in travel and tourism such as XR for unique traveler experiences.
accenture.com - Through the North America segment, the company sells and delivers full range of its services and capabilities to clients across North America.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The metaverse market in travel and tourism industry forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the metaverse market in travel and tourism industry, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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37% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for metaverse in travel and tourism industry in North America. Market growth in this region will be faster than the growth of the market in the South American and MEA regions.
The growing investments in AR technology from key vendors, rising adoption of technologically advanced applications among consumers, and robust research activities to increase metaverse applications will facilitate the metaverse market growth in travel and tourism industry in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The rapid spread of COVID-19 impacted the 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 lockdowns.In 2021, widespread vaccination drives led to a decrease in the number of COVID-19 cases in the region. Additionally, 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, rapid adoption of metaverse by the travel and tourism industry is expected to foster growth in the regional market.
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The metaverse market share growth in travel and tourism industry by the AR segment will be significant during the forecast period. AR segment accounted for the highest market share in 2021. Factors such as new product launches and growing adoption of AR in different application areas, including metaverse, are expected to drive the growth of the segment. The increasing use of AR-infused navigation for technological destination tours and the growing application of AR to improve local transit will drive the growth of the segment during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the metaverse market size in travel and tourism industry and actionable market insights on the post-COVID-19 impact on each segment.
Metaverse Market Scope in Travel and Tourism Industry |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 26.01% |
Market growth 2022-2026 |
$ 188.24 billion |
Market structure |
Fragmented |
YoY growth (%) |
25.34 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key consumer countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Accenture Plc, ALTERATION INDORUSSIA.COM, Ariva Digital, Infosys Ltd., LynKey International Ltd., Marriott International Inc., Mytaverse Inc., Powerbridge Technologies Co. Ltd., Qatar Airways Group, Queppelin, and Wilkins Avenue AR |
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. |
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