NEW YORK – The “Metaverse Real Estate Market by End-user (Enterprises and Individuals) and Geographic (North America, Europe, APAC, South America, and the Middle East and Africa) – Forecast and Analysis 2022-2026” report has been added to Technavio’s offering. With ISO 9001:2015 certification, Technavio is proudly partnering with more than 100 Fortune 500 companies for over 16 years. The metaverse real estate industry share is expected to increase by USD 5.37 billion from 2021 to 2026. However, the growth momentum is likely to decelerate at a CAGR of 61.74%. Technavio categorizes the metaverse real estate 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 real estate market during the forecast period.
- Market Driver – The key factor driving the global metaverse in real estate market growth is the growing popularity of mixed reality and cryptocurrency. The evolution of VR into a more mixed reality creates readability in virtual spaces by decoding tags and annotations. People accessing metaverse platforms can buy the real estate land, and they can either sell or lease it to others. In addition, the growing application of cryptocurrencies such as NFT, bitcoin, and Litecoin in purchasing digital assets is creating interest in end-users, especially enterprises. For instance, such cryptocurrencies offer greater accessibility to the virtual real estate sector.
- Market Challenges – The key challenge to the metaverse industry growth in real estate is the uncertainty of real estate market price on metaverse. The valuation of virtual lands depends on the scarcity and location of the land. However, the relation between virtual land price and these factors is still in doubt, as virtual land price does not follow the pricing pattern of the physical world. Therefore, the value of digital assets, including metaverse real estate, would basically depend on how the buyers perceive their price, thereby leading to fluctuations. Until now, the market has been witnessing participation from enterprise end-users. However, a fluctuation in metaverse land price may restrict the investment scope from price-sensitive consumers, thus negatively impacting the market growth during the forecast period.
The metaverse real estate industry report is segmented by End-user (Enterprises and Individuals) and Geographic (North America, Europe, APAC, South America, the Middle East, and Africa).
- Revenue Generating Segment –The metaverse real estate industry share growth by the enterprise segment will be significant for revenue generation. With an increase in the number of big giants such as Nike, Facebook, and Microsoft entering the virtual world, the metaverse real estate industry has started to flourish. The advent of Web 3.0 is another major factor driving the growth of the enterprise end-user segment.
- Regional Analysis – 41% of the market’s growth will originate from North America during the forecast period. US and Canada are the key markets for the metaverse market in real estate in North America. Market growth in this region will be faster than the growth of the market in South America and MEA. The rising adoption of technologically advanced applications among consumers and a growing number of big brands purchasing virtual lands will facilitate the metaverse real estate industry growth in North America over the forecast period.
The metaverse real estate market is concentrated and the vendors are deploying growth strategies such as technological innovation to compete in the market.
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- Axie Infinity
- Cryptovoxels
- Decentraland Foundation
- Linden Lab
- ShibaLand LLC
- Somnium Space LTD.
- SuperWorld Inc.
- TandB Media Global Thailand Co. LTD.
- The Sandbox
- The Voxel Agents
- Tokens.com
- Uplandme Inc.
Source: Technavio
