The Metaverse is a virtual surrounding that uses developing technology to imitate the actual world. People can use numerous avatars to socialize and form virtual communities here. The metaverse market in 2022 was worth USD 47.48 billion, and by 2030 it will be worth USD 678.80 billion, growing at a 39.44% CAGR during 2021-2030.
The introduction of metaverse-focused companies worldwide, increased collaborations to develop advanced AR and VR solutions to improve patient output and the overall surgical environment, and rising R&D investments will boost market expansion in the future. The market saw increased expenditures and a surge in reliance on digital platforms during the COVID-19 Pandemic. The Pandemic created a huge opportunity for new market entrants since people had more spare time at home, which boosted the immersive gaming business. For example, from 2019 to 2020, the total number of Fortnite users increased from 250 million to 350 million.
The arrival of NFTs in the Metaverse is also gradually affecting the fashion industry’s situation. Metaverse is already being used by brands such as Oscar de la Renta, Gucci, Dolce & Gabbana, Balenciaga, and Casablanca. With the increasing popularity of the Metaverse, there is a huge potential for the demand for Metaverse fashion stylists to create avatars and dress them up to reflect one’s personalities.
The top software developers and start-up businesses are increasingly interested in and focused on fusing and converging the digital and physical worlds.
Other factors driving the market growth include:
- The rising adoption of mixed reality.
- Rising smartphone and internet penetration in developing regions.
- The COVID-19 Pandemic.
In terms of components, in 2021, the hardware category generated $16.58 billion and is projected to expand at a CAGR of 39% from 2022 to 2030. The largest share of this segment is due to the segment’s increasing focus on producing goods that offer a better user experience and allows more user immersion in the Metaverse. Many businesses are creating hardware to improve the user experience in the Metaverse.
With USD 16.38 billion, the desktop segment accounted for the largest metaverse market share in 2021. The desktop has a larger storage capacity than a mobile device, allowing for speedier access to the Metaverse. The desktop processor includes a larger screen and a physical keyboard, making it easier to navigate the Metaverse. Because of the advantages of desktop over mobile, more people prefer it for multiverse entry, fueling market growth in this sector.
In 2021, the virtual and augmented reality segments contributed to about 36% of the market share. Using 3D virtual surroundings in the Metaverse generates a sensation of virtual presence. Virtual and augmented reality is the technologies utilized to generate this sense of virtual presence. In the next five years, virtual and augmented reality will be the most significant technology changes.
With a CAGR of 40%, the asset marketplace segment is predicted to rise rapidly. Increased investment in bitcoins, NFTs, Ethereum, and other cryptocurrencies has significantly expanded the asset marketplace portion of the Metaverse. The advantages of a cryptocurrency encourage more individuals and businesses to utilize it in the Metaverse, resulting in market expansion.
In 2021, the gaming segment ruled the overall market and had the biggest revenue share of 27.17%. The gaming industry had the biggest market share in 2021 due to creators’ considerable ongoing developments and inventions and a growing focus on increasing immersion and realism in games. VR, AR, and MR gadgets are increasingly being used to access and give a realistic gaming experience.
The media and entertainment segment ruled the market with a share of more than 39% in 2021 . The industry aims to promote social interactions among participants. Companies are also leveraging the metaverse concept to enhance entertainment brands’ services, such as immersive storytelling, unleashing fan innovation, and world-building.
North America contributed a revenue share of nearly 46% in 2021. The presence of a majority of industry participants in North America is expected to boost the market expansion of this region in the coming years. A study found that 37% of Americans think living in the Metaverse would be more enjoyable than living in the real world, 38% think that the Metaverse improves their lives, 47% use it effectively for socializing, and 48% do not feel overwhelmed by the multiverse. In addition, 40% of Americans believe the Metaverse has a purpose, and 57% think it will become as popular as conventional social media platforms.