Metaverse Market in Travel and Tourism Industry to Record 25.34% Y-O-Y Growth Rate in 2022

Metaverse Market In Travel & Tourism Industry – Key Market Dynamics

Major Driver

• The key factor driving growth in the metaverse market in the 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 the travel and tourism industry. For instance, Google is actively working on AR Smart Glasses for the global metaverse market in the travel and tourism industry. Therefore, the growing application area of AR and VR technology will boost the growth of the global metaverse market in the travel and tourism industry.

Major Challenges

• The privacy and security concerns over metaverse will be a major challenge for the metaverse market in the travel and tourism industry 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 the 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. These glasses automatically screen and process the user’s environment, violating the user’s privacy and those around them. The development of such products may hamper the growth of the market during the forecast period.

Metaverse Market in Travel and Tourism Industry – Vendor Landscape

•  The metaverse market in the travel and tourism industry is fragmented and the vendors are deploying growth strategies such as focusing on acquiring smaller brands to increase their market presence to compete in the market.
• The metaverse market vendors in the travel and tourism industry are – Accenture Plc, ALTERATION INDORUSSIA.COM, Ariva Digital, Infosys Ltd., LynKey International Ltd., Marriott International Inc., Mytaverse Inc., Powerbridge Technologies Co. Ltd., Qatar Airways Group, Queppelin, and Wilkins Avenue AR among others
• The global metaverse market in the travel and tourism industry is subject to rapidly changing consumer demands and preferences. The changing consumer buying pattern may affect vendor performance in the market. It may also be affected by consumer preference, global and regional economic conditions, and various other demographic trends. Changing economic conditions are affecting end-user living standards, which can also affect vendors’ businesses.

Metaverse Market in Travel and Tourism Industry – Segmentation Analysis

The metaverse market in the travel and tourism industry report is segmented by Application (AR, Blockchain, VR, MR, and XR) and Geography (North America, Europe, APAC, South America, and the Middle East and Africa).

• 37% of the market’s growth will originate from North America during the forecast period. US and Canada are the key markets for metaverse in the travel and tourism industry in North America.
• The metaverse market share growth in the travel and tourism industry by the AR segment will be significant for revenue generation.

Source: Technavio