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The metaverse market size is forecast to increase by USD 3920.2 billion at a CAGR of 63.64% between 2023 and 2028. The market is experiencing significant growth due to several key trends. First, the increasing demand for augmented reality (AR) and virtual reality (VR) technology is driving innovation and investment in this space. Second, the growing penetration and use of smartphones, coupled with the rollout of 5G networks, are making immersive experiences more accessible than ever before. Lastly, the rise of blockchain as a service is providing new opportunities for secure and decentralized transactions within virtual environments. These factors are fueling the growth of the market and positioning it as a major disruptor in the technology industry.
It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market intersects diverse sectors like the entertainment sector, medical sector, and aerospace, catering to ground crew and airlines through immersive simulation experiences. Addressing issues like myopia, it harnesses electromagnetic frequency to enhance consulting services and 3D modeling software, facilitating innovations such as XR Immersive Stream for gaming and online shopping. As a platform for content creation and social media, the Metaverse engages consumers and enterprises alike, supported by technologies like VYUG and mobile networks. Its integration with e-commerce and cryptocurrency fosters economic transactions within virtual realms, accessed through VR headsets, MR headsets, and smart glasses. With boundless potential, the Metaverse shapes the future of digital interaction and immersive experiences across various industries. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise of blockchain as a service is a key factor driving the market share growth. BaaS, short for Blockchain-as-a-Service, is a cloud computing solution designed to facilitate the management of distributed ledger systems. Developed collaboratively by Microsoft and ConsenSys, Ethereum BaaS (EBaaS) serves as a cloud-based blockchain developer environment. This innovative solution allows developers to utilize the Microsoft Azure cloud computing platform to efficiently manage and create blockchain applications. For added functionality, EBaaS supports the integration of features like Cortana Analytics and CRM Online for Government (CRMOL).
Microsoft is making BaaS available to corporate entities and application software developers seeking to engage in blockchain development. As a scalable and flexible platform, BaaS offers an efficient and cost-effective way for enterprises to manage their distributed ledger technologies. This factor is expected to fuel the adoption of blockchain technology and subsequently contribute to the growth of the global market throughout the forecast period.
Rising consumer spending across virtual concerts is a significant market trend. Virtual concerts and entertainment for broadcasting events are experiencing an increase in consumer spending, which is driving market growth. According to the India Brand Equity Foundation Organization (IBEF), the media and entertainment business in India reached USD 19 billion in 2020 and is predicted to reach USD 25.9 billion by 2023. Digital venues incorporating VR headgear and AR technology host media and entertainment events and concerts.
The industry is moving forward due to the growing demand for virtual events, as well as a rise in the number of people attending concerts and events. The Department for Culture, Digital, Media, and Sport in the UK reported that immersive technologies like AR and VR, which reached around USD 128.36 billion in 2020, are evolving rapidly. These factors will contribute to the growth of the global market during the forecast period.
Limitations of AR and VR technology are major challenges restraining the growth of the market. AR and VR face various limitations impacting their mainstream adoption. Hardware issues include bulky and expensive AR headsets, often tethered to computers, limiting convenience. Mobile AR on smartphones and tablets struggles with displaying visuals accurately. Lack of regulations poses risks of malicious use, like data cryptocurrency mining and content manipulation. Consumer awareness of AR and VR benefits remains low despite popularity among tech experts. Additionally, AR applications can be dangerously distracting, leading to physical injuries, as seen with Pokemon Go. These limitations could impede the market's growth 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 and forecasting strategies.
Market 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.
Tencent- The company offers metaverse such as roblox metaverse with third party companies.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 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.
The market share growth by the VR or AR devices segment will be significant during the forecast period. VR or AR devices segment accounted for the highest market share in 2022. This includes various headsets, smart glasses, and lenses used for interacting on the metaverse platform. Factors such as new product launches and growing adoption of VR/AR in different application areas, including metaverse, are expected to drive the segment growth.
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The VR or AR devices segment was valued at USD 65 billion in 2018. VR or AR is an experience that utilizes a camera to change or enhance the user's view of the virtual world like a metaverse. This experience can be app-based or web-based. With the increased popularity of 360-degree videos and VR/AR gaming on the metaverse, the demand for VR/AR technology is growing. Furthermore, the addition of new features to the VR metaverse is expected to fuel the segment's growth. For instance, SAIBA CITY, a decentralized VR Metaverse platform, will offer options to create and monetize digital assets. People using this VR platform can own virtual land or any other virtual assets. VR/AR device manufacturers are focusing on new product launches and acquisitions to expand their market presence. For instance, in October 2021, Facebook announced that it would launch a new high-end VR/AR headset for the metaverse during the forecast period. Apart from that, the market is also witnessing the entry of big brands like Google. Recently, in 2022, Google acquired Raxium, a micro-LED solution provider for AR devices. This acquisition will help Google to develop its new AR headset for the global market. Hence, such factors are expected to propel the segment growth during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market growth and trends that shape the market during the forecast period.
Factors such as the presence of key companies like Meta Platforms, Inc., NVIDIA Corp., and Microsoft Corp., growing investments in AR technology from key companies, rising adoption of technologically advanced applications among consumers, and strong research activities to increase the application of metaverse are driving the growth of the market in the region. The US and Canada are the leading contributors to the market in the region.
Strong research activities conducted in the region by companies and universities to identify potential application areas of AR and VR technology are likely to boost the growth of AR/VR, thus positively impacting the growth of the market in this region. Apart from that, there is a growing interest in virtual healthcare in the metaverse. For instance, XRHealth, a virtual healthcare provider in the metaverse, raised USD 10 million to expand its services on the metaverse. It was funded by AARP, HTC, and Bridges Israel impact investment fund. Therefore, such developments will create new growth opportunities for the companies in the regional market.
Metaverse in Fashion Market: Metaverse in Fashion Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, China, Japan, Germany - Size and Forecast
Metaverse in Entertainment Market: Metaverse in Entertainment Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, UK, Germany - Size and Forecast
Metaverse in E-commerce Market: Metaverse in E-commerce Market by Platform, Technology and Geography - Forecast and Analysis
The market thrives on the convergence of Mixed Reality experiences, attracting attention from media giants like CNBC and celebrities such as Ariana Grande and Imagine Dragons, who explore the potential of NFTs in collaboration with brands like Gucci. Tech titans like Facebook Reality Labs drive innovation with products like Oculus Quest and Valve Index, reshaping workplace dynamics and hosting online events for the entertainment industry. Adoption of XR technologies extends to tourism and hospitality, fostering engagement with smart helmets and gaming players in immersive environments like The Sandbox. Powered by AI and ML, the Metaverse facilitates data sharing and establishes digital ownership of artwork and virtual real estate, while supporting trade and enhancing traffic safety through platforms like ABIRAW. The market's growth is propelled by evolving network demand and the emergence of innovative startups.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 63.64% |
Market growth 2024-2028 |
USD 3920.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
44.47 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, Germany, UK, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Active Theory LLC, Animoca Brands Corp. Ltd., ByteDance Ltd., CL Educate Ltd., Decentraland Foundation, Devden Creative Solutions Pvt. Ltd., Epic Games Inc., GoMeta Inc., Infosys Ltd., Magic Leap Inc., Meta Platforms Inc., Microsoft Corp., Mobiloitte Technologies, NexTech AR Solutions Corp., NVIDIA Corp., Queppelin, Roblox Corp., Tencent Holdings Ltd., Unity Technologies Inc., and Wilkins Avenue AR |
Market dynamics |
Parent market analysis, Market forecast, 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 market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Device
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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