“The global Metaverse market size to grow at a CAGR of 47.2% during the forecast period”

“The need for virtualization of stores across verticals such as art, fashion, retail for real-time customer experiences across online channels which subsequently aims to enhance customer, partner, and employee-cum-user experiences and build a strong brand image to drive the growth of metaverse market”

The global metaverse market size is projected to grow from USD 61.8 billion in 2022 to USD 426.9 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 47.2% during the forecast period. Major factors that are expected to drive the growth of the metaverse market include a strong growth opportunities in the adjacent technology markets such as Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR), blockchain, cryptocurrency, virtualization, 5G, Internet of Things (IoT), and others. The retail companies have shifted their brand promotions strategies by usage of gamification and virtual world simulators Furthermore, extended reality technology has been a future-focused technology offered, by enhancing students’ learning experiences through the highly realistic presentation of the information, enhanced interaction with simulated environments which eventually has lead to the surge in metaverse deployment in education and industrial training industry vertical. The use of extended reality technology in the healthcare sector reduces costs and improves outcomes for individuals without risking the lives of patients, and above mentioned major factors are expected to create ample opportunities for metaverse vendors.

The COVID-19 pandemic adversely impacted the market in 2020, resulting in a decline in growth rate of the metaverse market by 1.0 to 1.5% during 2020-2021 compared to the pre-COVID-19 scenario. However, the companies in the market have adopted various strategies to improve the business. The nascent technology market coupled with numerous research and developments in the extended reality have been a forceful drivers for companies to improvise and enhance their metaverse platform even more. They are enhancing their existing products through partnerships, collaborations and product developments. Further, a continuous digital transformation, and a surge in demand for secure, user-friendly, interactive collaboration solutions during the COVID-19 pandemic have provided ample opportunities for vendors of this market.

Hardware segment to grow significantly over the forecast period

The hardware segment is projected to contribute majorly to the market. This growth of hardware segment is supported by several factors such asthe use of HUD in the media and entertainment sector which is expected to directly fuel the growth of the AR devices segment of the market. The ability of AR devices to combine the real world with virtual objects has increased their demand across various applications. Additionally surge in usage of mobile-based HMDs that have a high resolution and a 360° viewing angle, has resulted in the numerous offerings by vendors in AR and VR market, owing to growing demand for hassle-free and proper deployment and integration of the metaverse solutions along with need of organizations to understand changing business conditions, client insights, market trends, external factors, global disruptions or service inconveniences.

By vertical, Consumer segment to register the largest market size during the forecast period

The consumer vertical is expected to hold the largest market size in the metaverse market. The consumer vertical is backed by several entertainment applications, that include archeological museums, theme parks, amusement parks, science park, art galleries, various types of mega fair(s)and exhibitions. Metaverse, especially with the extended reality technology, offers remarkable results in terms of visual effects, 3D environment, user interaction and participation when used in gaming and sports broadcasts. The gaming sector has been an early adopter of critical, crucial and newer technologies such as 3D, AR, VR, and MR. These technologies aim to enhance the gaming experience of players by creating virtual objects and characters (Avatars), which are linked to defined locations in the real world. This industry also has significant contributions to masses pertaining to its content and delivery module and hence holds the largest market size.

Asia Pacific to register the highest growth rate during the forecast period

Asia Pacific is expected to be the fastest-growing region in the metaverse market, accomplishing highest growth rate at a CAGR of 49.6% during the forecast period. The increasing adoption of metaverse technologies in consumer, commercial, and healthcare applications drives the growth of the overall market. The growing adoption of emerging technologies, such as AR, VR, MR, AI, ML,  advanced analytics, and the transition of companies to cloud environments in Asia Pacific countries such as China, Japan, South Korea, fuels and drives the growth of the metaverse market in this high-growth region.

In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with the Chief Executive Officers (CEOs), Chief Marketing Officers (CMO), Vice Presidents (VPs), Managing Directors (MDs), technology and innovation directors, and related key executives from various key companies and organizations operating in the METAVERSE market.

• By Company Type: Tier 1 – 29%, Tier 2 – 45%, and Tier 3 – 26%
• By Designation: C-level executives– 30%, Director Level – 25%, and Others – 45%
• By Region: North America – 40%,Europe– 30%, Asia Pacific– 25%,Rest of World (RoW) – 5%

The report profiles the following key vendors:

Meta(US), Microsoft(US), NetEase(China), Electronic Arts(US), Take-Two(US), Tencent (China), Nexon (Japan), Epic games (US), Unity (US), Valve (US), Accenture (Ireland), Adobe (US), HPE (US), Deloitte (UK), Ansys (US), Autodesk (US), Intel (US), Tech Mahindra (India), ByteDance (China), Nvidia (US), Activision Blizzard (US), Samsung (South Korea), Google (US), Sony (Japan), HTC (Taiwan), Seiko Epson (Japan), Apple (US), Qualcomm (US), Panasonic (Japan), Eon Reality (US), Roblox (US), Lenovo (Hong Kong), Razer (US), Nextech AR Solutions (Canada), ZQGame (China), Talecraft (Marshall islands), VR Chat (US), Decentraland (Argentina), Somnium Space (UK), and Sandbox VR (US)

Research Coverage

The market study covers the metaverse market size across segments. It aims at estimating the market size and the growth potential of the market across segments by component, vertical, and region. The components are sub-segmented into hardware, software, and professional services. The hardware includes AR devices (AR smart glasses, smart helmets, AR HUD), VR devices (VR HMD, gesture tracking devices, and haptics), MR devices, and displays (3D, holographic, and virtual mirrors). The software includes extended reality software, gaming engines, 3D mapping, modeling, and reconstruction tools, volumetric video tools, metaverse platforms, financial platforms, and others. The metaverse platforms include centralized and decentralized gateways, avatar identity makers, play-to-earn games, virtual worlds, and metaverse-based social media. Based on vertical, the metaverse market has been segmented into consumer (gaming, social media, live entertainment, and events), commercial (retail and eCommerce, travel and tourism, real estate, education, corporate), industrial manufacturing, healthcare, and other verticals (automotive, aerospace and defense, energy and utilities, transportation and logistics).The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Key Benefits of Buying the Report

The report will help the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall metaverse market and its sub segments. The report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report will also help stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.