Metaverse Market Size, Share Global Analysis Report, 2022 – 2028

Industry Insights

[207+ Pages Report] According to Facts and Factors, the global metaverse market was worth USD 210 billion in 2021 and is expected to be worth USD 730.5 billion by 2028, growing at a CAGR of 23.2% over the forecast period. This market report offers an in-depth analysis of the market. The report provides a thorough examination of key sections, advancements, drivers, barriers, the competitive landscape, and market segments.

Market Overview

The term "metaverse" refers to a fully immersive 3D virtual experience of the world obtained through the use of a combination of technologies such as VR, AR, and MR. The metaverse platform improves the internet experience by creating a virtual world in which users can, among other things, engage in interactive gaming, conduct business, interact socially, buy & sell digital real estate, and enjoy immersive entertainment.

Metaverse is a popular technology platform that is attracting various social networks, technology leaders, and digital game developers to enter & create a presence in the market. The metaverse is a rapidly expanding trend with a high user penetration rate for a variety of applications including gaming, content creation, socializing, learning & training, and virtual online shopping.

COVID-19 Impact:

As lockdown and social distancing during the outbreak forced entire lives online, the problems with current platforms are beginning to emerge. Furthermore, the pandemic has pushed the internet to the next phase of its progression, such as the "Metaverse," in which cyberspace has become more of an immersive 3D space with business and networking, as well as content correlating to the worlds in popular online games. The world's current crisis has accelerated the development of virtual platforms such as the metaverse, along with some of the cultural trends and behaviors required for the creation of a metaverse.

In addition, the pandemic has accelerated the emergence of online communities such as new interactive worlds and mixed reality activations as significant lifestyle spaces for confined consumers. Furthermore, as a result of COVID-19, there are numerous new advancements in digital social experiences, such as the emergence of the metaverse, an always-on, real-time virtual world that will offer a huge opportunity for brand commitment.

Growth Drivers

• Rising demand in the gaming and entertainment industries will drive market expansion

Because of the increasing adoption of VR, AR, and MR technologies, the global entertainment & media and gaming industries have seen the fastest growth. The main reasons for adopting these technologies are that devices such as VR headsets, MR headsets, HMDs, HUDs, smart helmets, smart glasses, and so on, can provide a first-person perspective, serve as natural user interfaces, provide 6-degree freedom, and so on, to create realistic scenarios to enhance end users' overall gaming experience. Because of the advent of these products and systems, user experiences have improved dramatically.

The virtual experience provided by a user in real-world scenarios seems to be the best that technology has to offer to humanity. The growing market for prolonged reality devices has also drawn significant investments from the global metaverse market's key players. Increased development and investments from key market players are supposed to drive metaverse adoption in entertainment and gaming.

Restraints

• Higher maintenance costs of high-end metaverse components will stymie growth

Metaverse hardware includes XR devices, as well as semiconductor components, trackers, sensors, and other cutting-edge technology. Fast networking, storage capacity, and high-end hardware are required to encounter the metaverse in a believable and engaging manner. These metaverse devices use 3D and other sophisticated technology to create a realistic virtual environment, which raises their costs even further.

Engines, 3D modeling software, and rendering tools for enterprise-grade metaverse are costly. Furthermore, the installation of prolonged reality devices and solutions incurs additional costs. Their maintenance costs add to the overall investment required to implement this technology. As a result, such high installation and maintenance prices are projected to stifle the global growth of the metaverse market.

Opportunities

• Incorporating metaverse and related technologies in the aerospace and defense sectors to create opportunities

Technologies such as AI, XR, and analytics are expected to be very useful in the defense and aerospace sectors for training and simulating applications. These technologies, when combined with the metaverse, are anticipated to help in experience-based training by utilizing real-time data-driven applications. As a result, the metaverse is expected to improve and streamline the transfer of accurate knowledge and skills by trainees across this vertical. In airlines, the prolonged reality is used to train ground crew for pre-flight checks. It is also used to allow the ground crew to perform necessary procedures prior to aircraft takeoff.

Furthermore, the combined technologies can be used to inspect planes, analyze data, and detect flaws before takeoff, ensuring increased safety. The integration of the metaverse with XR can also aid in flight and weapon training, and simulation models, thereby boosting the market growth.

Challenges

• The global economic slowdown caused by COVID-19 can be challenging

Due to unexpected lockdowns in key regions, the ongoing pandemic has increased demand for extended reality devices (Asia Pacific, Europe, and North America). Following the COVID-19, several organizations' employees are working from home, increasing the demand for online meetings, training, and conferences. The disease outbreak has also had an impact on the global production of augmented reality devices. According to a 2020 survey conducted by the National Association of Manufacturers (NAM) on the manufacturing industry in the United States, more than 34% of respondents believe COVID-19 has impacted their supply chain operations, and more than 54% expect a change in their operations in the coming months.

Some major industrial firms have closed their facilities and are weighing the extent of layoffs in order to slow the transmission of the infection and for economic reasons. The pandemic's severe impact on the manufacturing sector has halted the global supply of prolonged reality devices. It has decreased consumer spending on non-essential items. This, in turn, is considered to pose a short-term challenge to the expansion of the global metaverse market.

Segmentation Analysis

The global metaverse market is segmented on the basis of analysis of device, analysis of application, and region.

By analysis of devices, the market is divided into mobile phones, desktop, console, and others. Due to the rising adoption of online gaming, the desktop segment had the largest share in 2021. Increasing video game revenue and a rise in the number of video gaming audiences worldwide are driving the market growth. Mobile phones are also expected to grow at the fastest CAGR over the forecast period. This is primarily due to increased income generation from mobile gaming audiences.

By analysis of application, the market is divided into social media, gaming, online shopping, conferences, content creations, and others. As gaming and live streaming video become more popular around the world, gaming applications are expected to dominate the market.

Report Scope

Regional Landscape

• North America has the largest market size

When compared to other regions, North America is expected to have the highest adoption of the metaverse solution. Because of its technological advancement and development, North America was the largest region in the global metaverse market in terms of creating cutting-edge technologies used in display devices. Furthermore, rising corporate and individual spending on advanced technologies and digital solutions drives market growth.

In 2022, North America will account for a sizable portion of the global market. The use of augmented reality technology in consumer devices accelerates the growth of the region's augmented reality market. The region has also been adopted for educational and training purposes in industries such as defense & aerospace, consumer, healthcare, and commercial applications. Magic Leap, PTC, Google, and Microsoft are among the global companies that provide AR devices and solutions with a presence in the United States. Furthermore, the increased recognition of metaverse technologies by businesses to promote their products in a modern manner has been a major factor driving the market of the North American metaverse market.

Recent Development:

• January 2022: The Sandbox announced a collaboration with Warner Music Group to release The Sandbox metaverse's first music-themed world. With this alliance, Warner Music Group (WMG) will take its first-ever steps into the metaverse and NFT sectors.
• November 2021: Tencent Holdings, Ltd. has announced a collaboration with the Asian Institute of Digital Finance. The companies will work together to promote Asia's fintech industry through research, education, and entrepreneurship.

Competitive Landscape

Some of the key metaverse market players are;

• Nvidia Corporation
• Meta Platforms, Inc.
• Nextech AR Solutions Corp
• Roblox Corporation
• Active Theory
• Unity Technologies, Inc.
• Microsoft Corporation
• Epic Games, Inc.
• The Sandbox
• ByteDance Ltd.
• NetEase, Inc.
• Decentraland
• Tencent Holdings Ltd.
• Lilith Games

The global metaverse market is segmented as follows;

By Analysis of Devices

• Mobile phones
• Desktop
• Console
• Others

By Analysis of Application

• Social Media
• Gaming
• Online Shopping
• Conferences
• Content Creations
• Others

By Analysis of Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America