Global Metaverse Market By Component (Hardware, Software, and Services), By Platform (Desktop, Mobile, and Other Platforms), By Technology, By Application, By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: May 2023
- Report ID: 101905
- Number of Pages: 350
- Format:
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Report Overview
In 2022, the global metaverse market was valued at US$ 65.2 Billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 44.4%. Metaverse refers to a term that describes an experience of a highly immersive 3D virtual world that is attained through a mixture of technologies such as MR, AR, and VR.
The metaverse platform improves the internet experience by establishing a virtual world where users can enjoy immersive entertainment, immersive gaming, buy and sell virtual real estate, conduct business, socialize, and other things. The key factors expected to boost the revenue growth of the metaverse market are increasing focus on physical and integrating digital worlds by using the internet, increase in momentum and popularity of (MR) Mixed Reality, (AR) Augmented Reality, and (VR) Virtual Reality.
Global Metaverse Market Scope
Component Analysis
The hardware segment accounted for the largest revenue share in 2022
Based on components, the market for metaverse is segmented into hardware, software, and services. Among these components, the hardware segment held the most significant revenue at 39% in 2022. During the forecast period, it is projected to grow at the highest CAGR of over 38% due to the increasing focus among the firms on manufacturing products that deliver a better user experience and enables more extended user immersion.
Furthermore, to improve the realism of virtual worlds, the major companies are concentrating on developing more advanced hardware, such as haptic devices, VR/AR headsets, and sensors. In addition, the designing interfaces allowing people to access 3D content on various devices, such as smartphones, next-generation TVs, and mixed-reality smart glasses known as HoloLens, are also anticipated to surge the revenue growth of this segment.
The software segment is predicted to grow significantly during the forecast period. The management and design of integrated virtual and typically 3D simulations, settings, and surroundings in which the individuals and businesses can create, socialize, discover, and get involved in a wide range of activities, while also managing a business are known to be virtual platforms. Virtual platforms such as The Sandbox, Minecraft, HyperVerse, Roblox, and Fortnite Creative Mode are popular.
Additionally, the rising penetration of smartphones and the increase in the growth rate of app developers are expected to drive the revenue growth of this segment in the coming years.
Platform Analysis
The desktop segment held the market share in 2022
By platform, the market is further divided into desktop, mobile, and other platforms. Out of these platforms, the desktop segment dominated the global market, with the largest revenue share of 42% in 2022. Computers were the primary portal into the metaverse, but it has changed due to the introduction of wireless networks and smartphones. Virtual desktop is a well-known program allowing users to use the computer in virtual reality using the Oculus Rift / Rift S, HTC Vive, WMR headsets, and Valve Index.
Users can surf the web, watch movies on Netflix, and play games on a massive virtual screen. Virtual desktops are becoming popular for the utilization of VR devices. Mobile networks and smartphones ensure access to the metaverse near-constant and unrivaled. Sharing, uploading, and downloading a huge amount of data in networked cyberspace is becoming common.
Mobile phone users may publish photographs and movies to the metaverse as well as communicate with others through messaging apps and video conferencing. Users can also have conversations with each other while playing the online multiplayer games. The popularity of smartphones is growing, and it is promptly becoming the most popular way of connecting to the metaverse.
Technology Analysis
The augmented reality (AR) &virtual reality (VR) segment dominated the market in 2022.
Based on technology, the market is segmented into virtual reality (VR) & augmented reality (AR), mixed reality (MR), blockchain, and other technologies. Among these technologies, augmented reality (AR) & virtual reality (VR) technology accounted for the dominant segment with the highest revenue share of 36% in 2022. AR & VR technology is used mainly in the gaming industry to provide a better gaming experience and make the game more realistic.
However, due to the rising demand for VR & AR devices, this segment will likely experience substantial growth during the forecast period. As a result, this segment is expected to contribute significantly to the metaverse industry’s expansion. Furthermore, the Mixed Reality (MR) segment is anticipated to expand at the fastest CAGR during the forecast period owing to the growing utilization of MR to engage more proficiently in the metaverse.
Application Analysis
The gaming segment leads the global metaverse market in 2022 with the largest market share.
Based on application, the global metaverse market is classified into gaming, content creation & social media, digital marketing (advertising), events & conference, online shopping, testing and inspection, and other applications. In 2022, the gaming segment dominated the market with a leading revenue share of 27.0% due to significant ongoing developments and innovations by developers and an increasing focus on making games more realistic and boosting immersion.
Moreover, increasing emphasis on utilizing games by organizations to promote their corporate image is expected to surge segment growth. The content creation & social media segment is also anticipated to expand significantly over the forecast period. The internet and social media gained more importance during the COVID-19 pandemic than ever. Companies had to adapt these platforms for their businesses as there were no signs of the pandemic slowing down.
End-User Analysis
The BFSI segment is expected to account for the largest revenue share during the forecast period.
Based on end-user, the market for metaverse is divided into BFSI, aerospace & defense, education, healthcare, retail, automotive, media & entertainment, and other end-users. Among these end-users, the BFSI segment is anticipated to expand more over the forecast period. The rising gaming industry worldwide is one of the significant factors contributing to this segment’s expansion.
Furthermore, businesses are primarily focused on organizing music concerts. In addition, several businesses’ adoption of this concept is expected to drive the segment’s growth.
Key Market Segments
Based on Component
- Hardware
- Software
- Services
Based on Platform
- Desktop
- Mobile
- Other Platforms
Based on Technology
- Virtual Reality (VR) & Augmented Reality (AR)
- Mixed Reality (MR)
- Blockchain
- Other Technologies
Based on Application
- Gaming
- Content Creation & Social Media
- Digital Marketing (Advertising)
- Events & Conference
- Online Shopping
- Testing and Inspection
- Other Applications
Based on End-User
- BFSI
- Aerospace & Defense
- Education
- Healthcare
- Retail
- Automotive
- Media & Entertainment
- Other End-Users
Market Dynamics
Drivers
Rising demand for metaverse to purchase digital assets using cryptocurrencies to drive the market growth
Cryptocurrency pays for everything from NFTs to virtual real estate. They also aid in connecting the virtual and physical worlds. They allow the users to calculate the worth of digital assets in government-issued currency and the returns on those assets over a long time. The metaverse is primarily used to buy the digital assets by using cryptocurrency that, is gaining global attention. Individuals can communicate digitally with each other via websites, social media platforms such as Facebook, and other messaging apps.
Moreover, the metaverse is the rise of new online settings in which individual interactions are highly multidimensional, and they can participate more profoundly with digital content rather than reading the information simply. Due to the accessibility of crypto on exchanges worldwide, investors can make more money by selling metaverse coins and NFTs directly to the purchasers.
Restraints
The threat of cyber-based attacks to hamper the market growth
Although the final implementation of the metaverse varies from today’s vision, the technologies such as the Internet of Things (IoT), Augmented Reality (AR), Virtual Reality (VR), and cryptocurrencies will be used indeed. These technologies, potentially synchronizing and merging the digital and physical worlds, will likely provide new opportunities for cybercriminals to attack individuals and businesses.
However, the concerns regarding privacy and data security in the metaverse environments, challenges of persuading users to use payment services, and issues about user identity in these settings are major factors expected to restrict the global metaverse market growth during the forecast period.
Opportunity
Increased opportunities for Business-to-Business (B2B) and Business-to-Consumer (B2C) enterprises
One of the promising prospects of the metaverse is that it is hugely increasing access to the marketplace for consumers in developing and frontier countries. The Internet has readily opened up access to earlier unavailable goods and services. Workers from less-income countries can now work in Western corporations without getting migrated. Virtual reality environments are likely to enhance educational options, as they are an effective and low-cost learning method.
Due to these developments, there will be a need to clear governance. Business-to-business (B2B) marketing includes exhibitions, customer service, client meetings, and commercials. Currently, the metaverse can drastically modify each of these things. As several B2B products are commodities, excellent service to the customer can make a difference. I
n addition, the metaverse has a fascinating side effect of blurring the distinctions between B2C and B2B. Companies can utilize this to develop their traditional consumer bases whereas avoiding corporate traditions.
Trends
Increasing use of metaverse in gaming and recreation to surge the market expansion
The internet has seen consumers use online games for recreational activities. This has aided in expanding the metaverse as it offers a better interface over traditional online gaming platforms. In addition, using equipment and platforms like smart helmets, VR headsets, and MR displays has helped improve the gaming experience, leading to gaming developers’ rising use of the metaverse. Hence, this has resulted in the expansion of the market.
Regional Analysis
North America held the highest revenue share of the global metaverse market in 2022
Based on region, the market for metaverse is divided into North America, Europe, Asia Pacific, Latin America, And Middle East & Africa. Among these regions, North America accounted for the highest revenue share of 43% in 2022 due to the high adoption of the new and more complex technology by users and customers in this region.
Moreover, the increasing number of start-ups focused on establishing metaverse platforms for commercialization is a significant factor expected to support the market growth of this region. Additionally, this region’s higher presence of gaming and metaverse businesses such as Nvidia Corporation, Epic Games, Inc., and The Sandbox concentrates mainly on incorporating metaverse into games, which is expected to drive market growth potential.
The Asia Pacific region is projected to register the highest CAGR during the forecast period. This significant growth is expected to be influenced by rapid digitization adoption in nations like China, India, and Japan and due to the constant economic growth. Moreover, an increasing number of start-ups and organizations, such as Axie Infinity (Singapore), Bolly Heroes (India), The Sandbox (Hong Kong), GuildFi (Thailand) NextMeet (India), and Shenzhen Zhongqingbaowang Interaction Network Co. Ltd. (ZQGame Global) are anticipated to boost the regional market growth.
Key Regions and Countries Covered in this Report
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Major players are focused on various strategic policies to develop their respective businesses in foreign markets. As a result, several metaverse market companies are concentrated on expanding their existing operations and R&D facilities.
Moreover, companies in the metaverse market are developing new products and implementing portfolio expansion strategies through investments, partnerships, collaborations, mergers & acquisitions. These factors together form the competitive landscape in the global metaverse market and significantly contribute to market growth.
Recent Developments
- In January 2023, World Economic Forum (WEF) in Geneva publicized a collaboration with Accenture and Microsoft in order to create a Global Collaboration Village as the virtual future of public-private cooperation. This aims to promote virtual multistakeholder collaboration.
- In January 2022, The Sandbox partnered with Warner Music Group to launch the first music-themed world in The Sandbox metaverse. Warner Music Group (WMG) would be taking its initial steps into the metaverse as well as the NFT sector with this alliance.
- In September 2022, Meta Platforms announced a collaboration with the Indian IT Ministry to launch the XR Startup Program in the country to expand innovation in advancing technologies such as augmented and virtual reality. This initiative aims to promote technological innovation in smaller towns and cities.
- In January 2022, Tencent acquired Black Shark, one of largest China’s gaming smartphone manufacturers. This deal will aid black shark in manufacturing the VR headsets for Tencent.
Listed below are some of the most prominent metaverse industry players.
Market Key Players
- Nvidia Corporation
- Meta Platforms, Inc.
- Tencent Holdings Ltd.
- ByteDance Ltd.
- Epic Games, Inc.
- NetEase, Inc.
- Roblox Corporation
- Unity Software Inc.
- Nextech AR Solutions Corp.
- Antier Solutions Pvt. Ltd.
- Microsoft Corporation
- Other Key Players
Report Scope:
Report Features Description Market Value (2022) US$ XX Mn Forecast Revenue (2032) US$ XX Mn CAGR (2023-2032) XX% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component – Hardware, Software, and Services; By Platform – Desktop, Mobile, and Other Platforms; By Technology; By Application; By End-User Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Nvidia Corporation, Meta Platforms, Inc., Tencent Holdings Ltd., ByteDance Ltd., Epic Games, Inc., NetEase, Inc., Roblox Corporation Unity Software Inc., Nextech AR Solutions Corp., Antier Solutions Pvt. Ltd., Microsoft Corporation, and Other Key Players
Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the Metaverse Market?The Metaverse Market refers to a digital marketplace that exists within a virtual or augmented reality environment. It allows users to buy, sell, and trade virtual assets, including virtual goods, land, avatars, and more.
How does the Metaverse Market work?The Metaverse Market operates through blockchain technology, enabling secure transactions and verifiable ownership of digital assets. Users can access the market through compatible platforms or virtual reality devices, browse listings, make purchases, and manage their virtual assets.
What can I buy or sell on the Metaverse Market?The Metaverse Market offers a wide range of digital assets, including virtual goods like clothing, accessories, weapons, and vehicles. It also facilitates the trading of virtual land or property, avatars, artwork, and other unique items created within the virtual world.
How do I pay for purchases on the Metaverse Market?Transactions on the Metaverse Market are typically conducted using cryptocurrencies or digital tokens, such as Ethereum or specialized tokens issued within the virtual environment. Payment methods may vary depending on the platform or marketplace being used.
Can I convert virtual assets purchased in the Metaverse Market back to real-world currency?Yes, in many cases, virtual assets purchased in the Metaverse Market can be converted back to real-world currency. This can be done through cryptocurrency exchanges or specialized marketplaces that facilitate the conversion and withdrawal of digital assets.
- Nvidia Corporation
- Meta Platforms, Inc.
- Tencent Holdings Ltd. Company Profile
- ByteDance Ltd.
- Epic Games, Inc.
- NetEase, Inc.
- Roblox Corporation
- Unity Software Inc.
- Nextech AR Solutions Corp.
- Antier Solutions Pvt. Ltd.
- Microsoft Corporation Company Profile
- Other Key Players
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