NEW YORK – According to Technavio, the size of the global metaverse market in travel and tourism industry is estimated to grow by USD 188.24 billion from 2021 to 2026. The market is estimated to grow at a CAGR of 26.01% during the forecast period. North America will account for a 37% share of the global market’s growth during the forecast period.
Global metaverse market in travel and tourism industry – Parent market analysis
Technavio categorizes the global metaverse market in travel and tourism industry as a part of the global information technology (IT) spending market, which covers revenue generated from the sales and subscription of IT services, communications services, cloud services, IT hardware, and IT software.
Global metaverse market in travel and tourism industry – Parent market analysis
Technavio categorizes the global metaverse market in travel and tourism industry as a part of the global information technology (IT) spending market, which covers revenue generated from the sales and subscription of IT services, communications services, cloud services, IT hardware, and IT software.
Global metaverse market in travel and tourism industry – Five forces
The global metaverse market in travel and tourism industry is fragmented, and the five forces analysis covers–
- Bargaining power of buyers
- The threat of new entrants
- Threat of rivalry
- Bargaining power of suppliers
- Threat of substitutes
Global metaverse market in travel and tourism industry – Customer landscape
The report includes the market’s adoption lifecycle, 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 travel and tourism industry – Segmentation assessment
Segment overview
Technavio has segmented the market based on application (AR, Blockchain, VR, MR, and XR) and geography (North America, Europe, APAC, South America, and Middle East and Africa).
- AR segment will account for the highest market share growth during the forecast period. 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 also drive the growth of the segment during the forecast period.
Geography overview
Based on geography, the global metaverse market in travel and tourism industry is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global metaverse in travel and tourism industry.
- North america will account for 37% of the market’s growth during the forecast period. This region will grow at a faster rate when compared to other regions. Growing investments in AR technology from key vendors, rising adoption of technologically advanced applications among consumers, and robust research activities to increase metaverse applications are driving the growth of the market in the region.
Global metaverse industry in travel and tourism industry – Market dynamics Key factor driving market growth
- 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.
- Therefore, the growing application area of AR and VR technology will boost the growth of the global metaverse market in travel and tourism.
Leading trends influencing the market
- 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.
- 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 metmetaverse’s offering in the tourism and travel industry during a booking process is its ability to increase overall booking volumes.
- These factors are expected to support the growth of the market during the forecast period.
Major challenges hindering market growth
- The privacy and security concerns over metaverse will be a major challenge for the metaverse in travel and tourism market 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.
- The development of such products may hamper the growth of the market during the forecast period.
What are the key data covered in this metaverse industry in travel and tourism report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the metaverse market in travel and tourism industry between 2022 and 2026
- Precise estimation of the size of the metaverse market in travel and tourism size and its contribution to the market in focus on the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the metaverse industry in travel and tourism across North America, Europe, APAC, South America, and Middle East and Africa
- A thorough analysis of the market’s competitive landscape and detailed information about vendors
- Comprehensive analysis of factors that will challenge the growth of metaverse market in travel and tourism industry vendors
Source: Technavio
