The global metaverse market size is anticipated to grow from USD 50 billion to USD 2054.23 billion in 10 years: The market will experience rapid growth due to the rapid advancements in VR, AR and MR during the forecast period.
Brainy Insights estimates that the USD 50 billion in 2022 global metaverse market will reach USD 2054.23 billion in 2032. During the COVID-19 epidemic, the remote work culture and distance learning experienced exponential growth. This contributed considerably to creating engaging, interactive, and productive virtual work and learning environments, which helped the metaverse market expand. Similar to how the gaming sector benefited from the pandemic, the metaverse also emerged. The metaverse was made widely available and thus allowed for its integration into the business, medical, automobile, and retail sectors. Adopting metaverses for improved customer management services has risen with the transition towards online platforms across industries. The numerous advantages metaverse provides in the automated, global world will fuel their business expansion.
Key Insight of the Global Metaverse Market
North America is expected to dominate the market during the forecast period.
Along with a substantial operational base, the region is home to key metaverse market participants and developers. They are responsible for driving innovation and R&D in the metaverse sector. They have access to the most cutting-edge, expensive, and complex technologies and the money needed to support industrial growth. The United States of America has access to the most cutting-edge technologies available, giving the area a competitive advantage. Favourable regulatory conditions further accelerate the market's expansion.
In 2022, the software segment dominated the market with the largest market share of 35% and market revenue of USD 17.50 billion.
The component segment is divided into hardware, software, and services. In 2022, the software segment dominated the market with the largest market share of 35% and market revenue of USD 17.50 billion.
In 2022, the augmented reality segment dominated the market with the largest market share of 31% and market revenue of USD 15.50 billion.
The technology segment is divided into virtual reality, augmented reality, mixed reality, blockchain and others. In 2022, the augmented reality segment dominated the market with the largest market share of 31% and market revenue of USD 15.50 billion.
In 2022, the media and entertainment segment dominated the market with the largest market share of 20% and market revenue of USD 10 billion.
The end-user segment is divided into retail, media and entertainment, automotive, healthcare, education, aerospace and defence, BFSI and others. In 2022, the media and entertainment segment dominated the market with the largest market share of 20% and market revenue of USD 10 billion.
Advancement in market
June 2023 - By the end of 2025, Shanghai plans to expand its culture and tourist metaverse initiatives into a sector with annual revenues of USD 6.9 billion. The project involves integrating metaverse technologies with the city's physical tourist attractions so guests can experience the locations through augmented reality, use avatars as tour guides, and take advantage of other metaverse-based services. Shanghai will also encourage the creation of digital works of art on blockchains, investigate their incorporation into platforms like video games, and assist metaverse entertainment companies, including so-called virtual idols. According to the city plan, blockchain, virtual reality, and artificial intelligence are among the leading technologies for metaverse development.
Driver: Demand for immersive gaming experiences is rising
The development of the worldwide metaverse market will be fuelled by the use of virtual, augmented, and mixed reality in the gaming sector to provide players with an immersive, realistic experience. Brands are investing significantly to create games that give players a first-hand experience. Similar developments are also being witnessed in other industries like sports, entertainment, beauty, and retail to improve client involvement and brand perception. The market will rise as more gaming booths are built worldwide to satisfy the young population's growing gaming needs. Establishing professional careers and competitive gaming arenas also fuel the sector's rise. Customers also want access to the metaverse to explore virtual worlds.
Restraints: The substantial development costs.
The metaverse results from integrating several cutting-edge technologies, such as artificial intelligence, augmented reality, virtual reality, big data, and the Internet of Things. These are all very complex products that have expensive development and maintenance costs. The high development and maintenance expenses will therefore constrain the market's expansion. In addition, because the metaverse is still in its early phases of development and is being used experimentally, it will need to be revised and improved in the future, adding to the expense of research and development.
Opportunities: The expanding uses of the metaverse.
The development of novel technologies such as artificial intelligence, augmented reality, and the Internet of Things has made it possible to apply the metaverse to fields outside of gaming and entertainment. Metaverse can be used to create interactive, immersive, and novel learning programmes to improve education. The expansion of universal health coverage might also be accomplished using it. Metaverse has been widely employed in the remote work culture that developed tremendously during the epidemic by providing virtual boardrooms and meeting places with improved collaboration and cooperation capabilities without compromising safety. Additionally, the metaverse has potential uses in military, aerospace, travel, and BFSI, which will broaden its application and aid in the development and expansion of the market throughout the projection period.
Challenges: The rising threat of cyber-attacks.
Technological innovations define the contemporary world, and economies are highly automated and digitized. Using metaverse in critical sectors like energy, defence, aerospace, healthcare and education, which are essential to national security interests, renders them vulnerable to cyber-attacks without robust cyber-security frameworks and services. Therefore, the rising threat of cyber-attacks will challenge the market’s growth.
Some of the major players operating in the global metaverse market are:
Key Segments cover in the market:
By End User
About the report:
The market is analyzed based on value (USD Billion). All the segments have been analyzed worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter's five forces model, attractiveness analysis, Product analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.
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