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

Industry Insights

[225+ Pages Report] According to Facts and Factors, the market for the global metaverse technology market was valued at USD 33 billion in 2021 and is expected to reach USD 225 billion by 2028, growing at 37.8% CAGR during the forecast period. The global metaverse technology market report provides a thorough overview of the market. The report offers a comprehensive examination of major segments, developments, drivers, limitations, competitive landscape, and characteristics that are significant in the market.

Market Overview

The metaverse is thought to be an open digital environment that exists alongside the physical world. It is currently regarded as the future of computing, entertainment, and e-commerce, among other things, despite not yet reaching its full potential. However, it is most likely to be used for educational purposes. The metaverse platforms, which are outfitted with cutting-edge technologies such as Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR), and others, aim to bridge all gaps between the virtual & physical worlds and provide immersive user experiences. Many individuals and businesses involved in the metaverse are already developing digital avatars and content in order to broaden their reach and stay ahead of the competition, implying that the metaverse technology market will have a large pool of opportunities in the future.

COVID-19 Impact:

The COVID-19 pandemic was a major driver of involvement in the metaverse technology concept. Individuals started working from home, and students began taking online classes, necessitating the development of practical channels or techniques to make online communication more realistic. The pandemic increased its importance among both consumers and businesses. Tech companies started building this technology and revealed their investments in 2020. The year 2021 was a great one for metaverse technology investment opportunities because of the billion dollars being spent by metaverse (Facebook). The COVID-19 pandemic accelerated the development of metaverse technology, and the post-pandemic environment is expected to intrigue customer interest.

The pandemic has stimulated the growth of virtual internet communities as key lifestyle areas for customers who have been confined due to lockdowns and closures, such as interactive game landscapes and the growing use of mixed reality. The COVID-19 outbreak has had a positive impact on the global metaverse technology market, potentially improving many industries. The advent of digital investments, blockchain, and nonfungible tokens (NFTs) is increasing the popularity of the metaverse.

Growth Drivers

• AR & VR are becoming more widely used in a variety of industries around the world stimulating the market growth

The rapid adoption of advanced AR & VR devices, AI, MR, and Blockchain technologies, among others, by organizations and individuals is propelling the global metaverse technologies market. Integrating augmented reality technology into metaverse systems offers benefits and an entirely new experience. For example, the emergence of virtual trial rooms by leading online clothing shops allows users to select the correct size, reducing the likelihood of order returns.

Furthermore, major automakers are trying to leverage these techniques by launching virtual showrooms to allow customers to explore their favorite cars in 360 degrees from anywhere in the world. As a result, the increasing use of AR and VR technologies in industries such as healthcare, retail, automotive, and education, among others, represents a significant growth opportunity for the global market between 2022 and 2028.

Restraints

• Increased cyberattacks have raised concerns about privacy and security

The growing use of technologies such as IoT (Internet of Things), VR, AR, MR, and others in metaverse platforms have opened up new avenues for cybercriminals to target individuals and businesses. As a result, consumer concerns about data security and privacy, as well as their identity, are growing, potentially impeding the growth of the market.

Segmentation Analysis

The global metaverse technology market is segmented on the basis of application, end-user, and region.

By application, the market is divided into social media & content creation, digital marketing, online shopping, testing & inspection, conferences & events, and gaming. The most important contributions to the expansion of the global metaverse technology market are social media, gaming, and content creation. Online gaming is the most popular application in the world. VR, AR, Mixed Reality, Blockchain, and other technologies are increasingly being used in the gaming industry to provide users with 3D and 360-degree experiences.

Metaverse-powered online games promise players immersive experiences that include immersive conversations, virtual meetings, attending concerts, and earning money. As a result, an increasing number of tech leaders have announced the launch of new online gaming platforms, which will increase the use of metaverse technologies in the gaming industry in the coming years. The growing popularity of 'play & earn' games, which have shown significant expenditure by people to win prize money, is a critical factor contributing to the gaming sector's growing share of the global market. Furthermore, the growing emphasis of various organizations on effectively utilizing games to advertise their corresponding brands is another critical factor expected to drive online gaming market growth.

On the other hand, the demand for metaverse platforms for social media and content creation applications is expected to grow significantly between 2022 and 2028, owing to the increasing use of 3D and VR technologies by multiple social media companies to develop social connections and improve user experience. Furthermore, the rapid development of artificial intelligence (AI) technology, 5G networks, and edge cloud processing is accelerating.

By end-user, the market is divided into education, media & entertainment, banking, financial services, & insurance (BFSI), aerospace & defense, automotive, and others. The media & entertainment segment has the largest market share, owing to companies' increasing focus on improving social interactions through metaverse platforms, providing advanced immersive experiences, and driving media consumption. Furthermore, increasing global access to the highest internet services, the introduction of innovative AR & VR devices, and the COVID-19 pandemic in 2020, which inspired the concept of virtual concerts, are all important factors driving market growth in the media & entertainment sector.

The Metaverse has enormous potential to improve the user experience of content created by the media & entertainment industries. It provides a safe and user-friendly platform for creating and managing digital assets. Furthermore, its compatibility with various NFTs such as Cryptogoods, Cryptokitty, and others contributes to its significance in this industry.

As a result, the leading media & entertainment companies are actively focusing on making this a reality by enormously investing in the launch of different variants of the metaverse. Furthermore, the potential of metaverse systems to help users connect with society and share experiences is a significant factor driving the global market in the media & entertainment sector. 

Report Scope

Regional Landscape

• North America dominates the market

The growth of North America's metaverse technology industry is being fueled by the presence of technology behemoths and their massive investment in the development of cutting-edge technologies such as metaverse technology. Furthermore, increased end-user adoption and willingness to adopt new technology are important factors in the fast expansion of Metaverse Technology in the United States. Amazon, Facebook, Apple, Alphabet, and others are investing heavily in the invention and establishment of innovative tools that can redefine the way businesses operate today, and North America will be at the forefront of metaverse technology adoption, making room for its dominance in the global metaverse technology market in the future to come.

Europe is metaverse technology's second-largest market. While Asia-Pacific is expected to grow rapidly during the forecast period; metaverse technology is advancing at a rapid pace in South Korea, Japan, and China.

Recent Development

• April 2021: Meta (formerly Facebook) has released a new VR remote work app called 'Horizon Workrooms,' which enables users to make a VR office space that is far more immersive than a typical video conference.
• August 2020: Microsoft launched Together Mode in its Teams app. It allows meeting participants to be in a solitary virtual space.

Competitive Landscape

Some of the key global metaverse technology market players are :

• Epic Games 
• NetEase 
• Microsoft 
• Unity 
• Netmarble 
• RRoblox 
• MiHoYo 
• Lilith 
• Tencent 
• ByteDance 
• Baidu 
• Nexon 
• Meta (formerly Facebook) 
• ZQGame

The global metaverse technology market is segmented as follows;

By Application Segment Analysis

• Social Media & Content Creation
• Digital Marketing
• Online Shopping
• Testing & Inspection
• Conferences & Events
• Gaming

By End-User Segment Analysis

• Education
• Media & Entertainment
• Banking, Financial Services, & Insurance
• Aerospace & Defense
• Automotive
• Others

By Regional Segment Analysis

• 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