Metaverse Market Set to Explode with 40.06% CAGR between 2022 and 2027
The metaverse market is projected to experience an incremental growth of $1,152.35 billion between 2022 and 2027, at a CAGR of 40.06%, according to a recent report. The growth is fueled by the increasing use of smartphones and the demand for 5G services, leading to an uptick in online shopping and social media usage. The adoption of advanced technologies, including metaverse, by businesses such as e-commerce and finance companies to enhance user experiences, is also expected to drive the market.
Vendor Analysis: Fragmented Market with Rapidly Changing Consumer Demands
The global metaverse market is highly fragmented with numerous vendors. To compete, vendors must differentiate their products with unique value propositions and stay up to date with the ever-changing consumer demands and preferences. In this rapidly evolving market, changing consumer buying patterns, economic conditions, and demographic trends will impact vendor performance. Vendors must also balance growth prospects in fast-growing segments while maintaining their positions in slow-growing segments. Some of the key players in the market include Microsoft Corp., Epic Games Inc., and Infosys Ltd.
Key Trend: Rising Consumer Adoption of Online Gaming
The metaverse market is expected to experience significant growth from the rising consumer adoption of online gaming. The immersive visual experience created by metaverse backed by emerging technologies such as blockchain, IoT, and 3D visualization, is driving gamers to the metaverse. The virtual environment created by metaverse is a digital replication of the real world, which engages gamers. The growing use of advanced gaming technologies, changing consumer entertainment choices, and rising income levels are expected to drive market expansion in the gaming sector.
Segmentation: VR/AR Devices and Hardware to Drive Growth
The growth in the VR/AR devices segment is expected to be significant during the forecast period, driven by new product launches and the rising adoption of AR/VR in various applications. The hardware segment, which includes AR/VR headsets, smart glasses, and lenses, accounted for the maximum growth in 2022, driven by the increased adoption of these devices for financial transactions. North America is anticipated to account for 39% of the market growth during the forecast period, with Meta Platforms Inc., NVIDIA Corp., and Microsoft Corp. leading the way.
Source: Technavio