New York, United States – The factors driving the market are the widespread use of new technologies and the increasing demand of Metaverse users to purchase digital assets using cryptocurrencies.
Key Insights of the Metaverse Market:
- North America held the largest share of the revenue of the metaverse market, which stood at 70% of the total market.
- By Component, the hardware component held the largest part of the market share bringing in approximately USD 16.5 billion of the revenue.
- By technology, virtual and augmented reality brought in 35% of the revenue.
- By Platform, the desktop segment accounted for the majority of the revenue at USD 16.3 billion.
- By Offering, the metaverse in the assets marketplace is expected to have an extremely high CAGR of 40%.
- By Application, gaming had the highest market share of 27%.
- By End Users, the media and entertainment segment held the highest market share.
Key Factors Driving the Metaverse Market:
- The advancement of technologies is causing immense market growth for the Metaverse Market. Technologies such as blockchain, artificial intelligence, mixed reality, and machine learning are new technologies being developed that would aid in using newer functions in the metaverse. Several companies have adopted the use of extended reality (XR) systems.
- The increased use of cryptocurrency and digital assets trading is further causing a boom in the market. Approximately USD 41 billion was spent on the NFTs (Non-Fungible Token) marketplace in 2021. Further, between October and November 2021, over 1.5 million NFT art sales were transacted, mostly in cryptocurrency.
Detailed Segmentation Analysis of the Metaverse Market as conducted by Strategic Market Research:
By Components
- Software
- Hardware
- Services
By Platform
- Headsets
- Desktops
- Mobile
By Offering
- Metaverse offering in Asset Marketplaces
- Metaverse offering in Virtual Platforms
- Metaverse offering in Financial Services
- Metaverse offering in Avatars
By Technology
- Blockchain
- Virtual and Augmented Reality
- Internet of Things (IoT)
- Mixed Reality
- Others
Based on Application
- Metaverse in Online Education
- Metaverse in Gaming
- Metaverse in social media
- etaverse in edge computing
- Metaverse in Online Shopping
- Metaverse in NFT
- Metaverse in Advertising
- Metaverse in Virtualisation Tools
- Metaverse in Conferences
- Metaverse in Digital Twin Operations
- Metaverse in Blockchain Applications
- Metaverse in Virtual Goods
- Metaverse in Payments
- Metaverse in Content Creation
Based on End-Use
- Metaverse in Military
- Metaverse in Healthcare
- Metaverse in Customer Experience
- Metaverse in Real Estate
- Metaverse in Education
- Metaverse in Fashion
- Metaverse in Manufacturing
- Metaverse in Media and Entertainment
- Metaverse in Technology
By Region
North America
- Canada
- USA
Europe
- Germany
- France
- Italy
- United Kingdom
- Spain
- Rest of Europe
Asia Pacific
- Japan
- India
- China
- South Korea
- Rest of Asia Pacific
Latin America, Middle East and Africa (LAMEA)
- Brazil
- Argentina
- UAE
- Qatar
- Saudi Arabia
- South Africa
- Morocco
- Rest of LAMEA
By the component segment, the hardware segment led the market share with a revenue generation of USD 16.5 billion in 2021. As of 2020, there are over 26 million users of VR headsets. With increasing sales of hardware components of mobiles, desktops and headsets, there will be enhanced integration of users with the metaverse market.
By platform, the desktop accounted for the highest share of the revenue. In 2021, there were over 340 million units of PCs that were shipped globally. Further, Desktop shipments increased by 7% between 2020 and 2021. Thus, with increasing desktop sales, more users would get involved in the Metaverse.
By Offering, the asset marketplace dominated the market. The metaverse is frequently used as a safe platform for exchanging assets such as NFTs and cryptocurrencies. The market capitalization of cryptocurrencies is USD 2.79 trillion, which makes it the 8th largest ‘economy’ globally. Etherium, a popular cryptocurrency, is expected to transact 10 million coins per day by 2025.
By Technology, the mixed reality segment dominated the market, and due to the increasing engagement of customers in the metaverse using mixed reality, the market is expected to grow at a CAGR of 40%. As per strategic market research, nearly 90% of brand advertisers intend to use mixed realities as a part of their marketing campaigns. Thus, with companies engaging heavily with consumers in the mixed reality segment, we would see a rise in the number of users of the metaverse.
Based on application, the gaming market segment is expected to see the fastest growth in the market. As of 2020, there are nearly 2.7 billion gamers worldwide, and by 2023, the number is expected to rise to over 3 billion. In the US, three out of four households have at least one member who regularly engages in video games. Thus, with the rising number of gamers on multiple platforms, there would also be an increase in the number of gamers involved in the metaverse, which would further solidify the market.
Based on End Use, the media and entertainment component of the market dominates the segment due to companies getting involved in the platform to further interact with their customers in the virtual world in a more holistic manner. The media and entertainment industry is worth USD 2.2 trillion and is growing at a CAGR of 8.9%. With a high growth rate and market value, more media companies will soon involve themselves in the metaverse to increase their respective market share in the segment.
By Region, North America held the highest market share at nearly 70% of the market. This is because there is sufficient infrastructure with all the latest technologies readily available to the populous. Additionally, the US market is one of the world’s largest spenders of consumer goods. In Q4 2021, consumer spending stood at USD 13.8 trillion. Thus, with increasing consumer spending, the market for metaverse and related goods would see tremendous growth in the future.
Key Players in the Metaverse Market:
- Alibaba Cloud,
- Alphabet, Inc.,
- Globant,
- Magic Leap, Inc.
- Meta, Inc.
- Microsoft Corporation,
- Netease, Inc.,
- Nvidia Corporation,
- Queppelin,
- Roblox Corporation,
- Tencent Holdings Ltd.,
Recent Developments in the market:
- In June 2022, KPMG announced that it was entering the metaverse platform with a virtual hub meant for the collaboration of various company stakeholders.
- In June 2022, large technology companies such as Huawei, Meta, Microsoft, Qualcomm, Nvidia, Sony Interactive Entertainment and Adobe created a forum so as to enable set standards through which they and their clients can interact without any glitches on the metaverse platform.
- In June 2022, Translucia Global and Two Bulls announced a USD 100 million R&D centre that would be developed in Melbourne. The centre would work on developing the economics and further gamification of the platform along with improving the energy efficiency of the platform.
- In June 2022, Meta announced the payment platform Meta Pay. The system will enable users to pay for the goods that they purchase on the platform.
- In June 2022, ViewSonic Corp. announced that it was entering the metaverse with its platform UNIVERSE, which would help create a virtual classroom and interactive platforms, aiming to create the classroom experience on the metaverse.
Source: STRATEGIC MARKET RESEARCH LLP
