Global Metaverse Market to Grow at a CAGR of 40.6% During 2021–2031

Introduction

The metaverse is a digital simulation of the physical world. It blends social media, blockchain, augmented reality, and virtual reality to build environments where individuals can interact similar to the real world. With the assistance of the metaverse, individuals can connect online in a greater variety of ways than is currently possible. As opposed to simply seeing digital information, Metaverse users can fully immerse themselves in an environment where the virtual and physical worlds intersect. Users can engage with friends, work, play, learn, shop, and create without leaving their homes.

Market Dynamics

Increasing Focus on Converging Digital and Physical Worlds Using Internet Drives the Global Market

The metaverse is a connected network of virtual worlds where augmented, virtual, and physical reality interact. Users can communicate with their peers, work, travel, purchase goods, and services, and attend events. Even though there are numerous virtual worlds on the internet, individuals cannot move between them while maintaining their identities and property. The metaverse applies to digital surroundings supplemented with virtual reality (VR) or augmented reality (AR). The COVID-19 epidemic also enhanced the metaverse's interest. As more people work and attend school remotely, there is an increasing need for more lifelike online communication tools. As a result, the growing emphasis on the convergence of digital and physical worlds via the internet is driving the market growth.

Technological Advancement Creates Tremendous Opportunities

The present iteration of the Internet can be found in the metaverse's four-dimensional space. The concept will eventually expand beyond online gaming and social networking sites. Potential characteristics of the metaverse include remote jobs, decentralized government, and digital identification. As networked virtual reality (VR) headsets and glasses become more common, users will be able to navigate and explore 3D spaces. In addition, the metaverse has the potential to disrupt multiple industries by providing wearables based on virtual reality (VR) that allow people to explore a virtual world from their homes. The metaverse will permeate daily life in ways that games do not, giving new ways to acquire goods and services, communicate with friends and family, and work together. Thus, the technological advancements in the metaverse present good growth potential for the market over the forecast period.

Regional Analysis

North America is the most significant shareholder in the global metaverse market and is anticipated to grow at a CAGR of 30.3% during the forecast period. The expansion of the market is primarily driven by the rising emphasis on leveraging the internet to merge the virtual and real worlds and the adoption of mixed reality (MR). Numerous North American organizations are adopting advanced virtual reality, 3D simulation, and augmented reality to better their corporate processes. Corporate intelligence may view the metaverse as futuristic as a result of technological advancements like Extended Reality, 5G, and AI.

Asia-Pacific is expected to grow at a CAGR of 62.2% over the forecast period. The Asia-Pacific market is expanding due to the increasing use of the internet and other technologies that merge the real and digital worlds. To make business decisions based on data insights, an expanding number of companies in China, Japan, and India are utilizing talents growing numerous trends and recognizing the attractiveness of mixed reality. In addition, the use of metaverse solutions in the region has been pushed by the need for regional enterprises to compete with their western counterparts more successfully.

Key Highlights

• The global metaverse market is expected to grow at a CAGR of 45.2% during the forecast period (2023–2031).
• By component, the global metaverse market is divided into hardware and software. The hardware segment is the highest contributor to the market and is expected to grow at a CAGR of 43.4% during the forecast period.
• By platform, the global metaverse market is divided into desktop/laptops, mobile, and wearables. The wearables segment owns the highest market share and is expected to grow at a CAGR of 39.9% over the forecast period.
• By technology, the global metaverse market is divided into blockchain, VR and AR, mixed reality, and others. The VR and AR segment is the highest contributor to the market and is expected to grow at a CAGR of 43.2% during the forecast period.
• By application, the global metaverse market is divided into gaming, online shopping, content creation, social media, and others. The gaming segment owns the market share and is estimated to grow at a CAGR of 43.6% during the forecast period.
• By end-user, the global metaverse market is divided into consumers and enterprises. The consumer segment is the highest contributor to the market and is anticipated to grow at a CAGR of 43.7% over the forecast period.
• North America is the most significant shareholder in the global metaverse market and is anticipated to grow at a CAGR of 30.3% during the forecast period.

Competitive Players

1. Meta Platforms Inc
2. NVIDIA
3. Microsoft Corporation
4. Tencent Holdings Ltd
5. ByteDance
6. Epic Games
7. Netease Inc.
8. Roblox Corporation
9. Lilith Games
10. Nextech AR Solutions Inc.
11. Unity Software Inc.

Recent Developments

Recent Developments

• December 2022- Microsoft Corporation and Viasat launched a new agreement to provide Internet connectivity to 10 million people globally, including 5 million in Africa. Together, they will enhance Airband's operations in the Democratic Republic of the Congo, Nigeria, Guatemala, Mexico, and the United States.
• December 2022-Microsoft Corporation and the London Stock Exchange Group agreed to use Microsoft Cloud to build LSEG's data infrastructure and work together to create new data and analytics products and services.

Segmentation

1. By Component
   1. Hardware
      1. Holographic Displays
      2. Extended Reality (XR) Hardware
         1. Haptic Sensors & Devices
         2. Smart Glasses
         3. Omni Treadmills
      3. AR/VR Devices
      4. Others
   2. Software
      1. Asset Creation Tools
      2. Programming Engines
      3. Virtual Platforms
      4. Avatar Development
   3. Services
      1. User Experiences (Events, Gaming, etc.)
      2. Asset Marketplaces
      3. Financial Services
   4. Infrastructure
      1. Chips & Processors
      2. Network Capabilities
      3. Cloud & Edge Infrastructure
      4. Cybersecurity
2. By Platform
   1. Desktop/Laptops
   2. Mobile
   3. Wearable
3. By Technology
   1. Blockchain
   2. Virtual Reality (VR) & Augmented Reality (AR)
   3. Mixed Reality
   4. Others
4. By Applications
   1. Gaming
   2. Online Shopping
   3. Content Creation & Social Media
   4. Events & Conference
   5. Digital Marketing (Advertising)
   6. Testing and Inspection
   7. Others
5. By End-User
   1. Aerospace & Defense
   2. Education
   3. Healthcare
   4. Tourism and Hospitality
   5. BFSI
   6. Retail
   7. Media & Entertainment
   8. Automotive
   9. Others (Manufacturing, etc.)