Metaverse Market by Offering (Hardware, Platforms), Medium (HoloLense, Headset, Others), Application (Virtual Learning, Virtual/Enhanced Gaming, Others), End-use Industry (Gaming, Marketing & Advertising, Others), Geography - Global Forecast to 2030

The Metaverse Market is projected to reach $815.8 billion by 2030, at a CAGR of 47.2% during the forecast period 2024–2030. Some of the major factors driving the growth of this market are increasing demand for metaverse in the entertainment & gaming industry, rising government initiatives and investment in metaverse, and growing adoption of metaverse to enhance customer experience. In addition, the rising adoption of virtual experiences in corporate and hospitality sectors and the growing need for metaverse in education and training are expected to provide opportunities for market growth. However, high installation and maintenance costs and health issues from excessive use can restrain the growth of the market.

Increasing Demand for Metaverse in the Entertainment & Gaming Industry is Expected to Drive Metaverse Market Growth

Gaming is one of the major sectors that uses metaverse to offer a next-generation gaming experience. Metaverse provides users with a three-dimensional environment instead of a two-dimensional experience, where the interaction among users and in-built gaming elements is more personal.

Metaverse is a good way to generate augmented reality while working with games, live game streaming, play-to-earn gaming with NFTs minting & trading, and value exchange with cryptocurrency, including an extensive connection with the overall world. Let us analyze a bit more about the characteristics of gaming in metaverse. Metaverse is still in its early stages, yet it has attracted considerable investments from different gaming companies and tech giants. With the increasing popularity of Metaverse in the gaming industry, it can be assumed that metaverse is the future of gaming.

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Key Findings in the Metaverse Market Study:

In 2024, the Hardware Segment is Expected to Dominate the Metaverse Market

Based on offering, the metaverse market is segmented into hardware and platforms. In 2024, the hardware segment is expected to account for the larger share of the global metaverse market. The large market share of this segment is mainly attributed to the growing focus among firms on creating products that provide a better user experience and enable more extended user immersion. To improve the realism of virtual worlds, companies are also working to develop more advanced hardware, such as VR/AR headsets, haptic devices, and sensors, which is expected to drive segment growth.

For instance, in June 2024, Meta Platforms, Inc. (U.S.) announced the company's next-generation mixed-reality headset. This new headset boasts several upgrades compared to its predecessor. Notably, it features a sleeker design, with its thickness reduced by 40%.

However, the platforms segment is expected to record the highest CAGR during the forecast period. The growth of this segment is mainly driven by factors such as the rising adoption of metaverse among various end-use industries, such as BFSI, retail, and media & entertainment, along with growing investment in immersive technologies.

In addition, the rising focus of players on product development and enhancement is expected to drive segment growth. For instance, in August 2021, NVIDIA  Corporation (U.S.) announced a major expansion of NVIDIA Omniverse™ — the world’s first simulation and collaboration platform that is delivering the foundation of the metaverse — through new integrations with Blender and Adobe that will open it to millions more users.

The Smartphones Segment is Expected to Record Highest CAGR during the Forecast Period

Based on medium, the metaverse market is segmented into hololense, desktops, smartphones, and headsets. The smartphones segment is expected to record the highest CAGR during the forecast period. Technological advancements and web3 emerging have increased the use of smartphones. Most of the Metaverse applications are made available on Android devices. Users can download Android Apps and access some of the metaverses using an Android device. For instance, in November 2021, Baidu, Inc. (China) released a metaverse app, allowing users to explore virtual environments through smartphones, personal computers, or VR goggles.

Thus, the growth of this segment is primarily attributed to the increasing popularity of smartphones, a strong increase in companies’ revenue generation capacity from mobile gamers, and the convenience and accessibility offered by these devices.

The Virtual Learning Segment is Expected to Record the Highest CAGR during the Forecast Period

Based on application, the metaverse market is segmented into virtual learning, entertainment in VR, virtual work settings, virtual/enhanced gaming, virtual socialization, digital health resources, and other applications. The virtual learning segment is expected to record the highest CAGR during the forecast period. The growth of this segment is mainly driven by the rising adoption of metaverse to make learning more interactive and engaging, facilitate greater learning speed, provide an immersive learning experience, and enhance students’ performance.

Furthermore, in December 2022, Edverse (India), an education metaverse company, launched Edverse Meta Classroom. The platform is the world’s first virtual classroom designed to be used inside the Metaverse. It provides educators and learners with 3D visualizing and storytelling that creates an immersive environment for an unparalleled learning experience. Such developments are driving segment growth.

In 2024, the Gaming Segment is Expected to Dominate the Metaverse Market

Based on end-use industry, the metaverse market is segmented into gaming, IT & telecommunications, education, finance, marketing & advertising, healthcare, travel & hospitality, construction, transportation, manufacturing, retail & e-commerce, and other end-use industries. In 2024, the gaming segment is expected to account for the largest share of the global metaverse market. The large share of this segment is mainly attributed to the rising adoption of metaverse in gaming to provide players with a socialistic environment where they can build relationships with the elements around them to gain a more flexible immersive gaming experience.

In addition, rising investment in immersive technologies to incorporate them into gaming is expected to drive segment growth. For instance, in February 2022, Sony (Japan) released the VR2 and VR2 Sense Controllers for the PlayStation 5 to provide customers with a high-quality virtual reality experience that enables users to lose themselves in the gaming world with a broad spectrum of experiences.

However, the marketing & advertising segment is expected to record the highest CAGR during the forecast period. The growth of this segment is driven by factors such as the rising need to create immersive and engaging experiences that can help increase brand awareness, enhance user engagement, generate new revenue streams, and gain valuable insights into user behavior and preferences.

Based on geography, the metaverse market is segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the metaverse market. The large market share of the region is attributed to the rising expenditure of companies on digital solutions & advanced technologies and the growing number of start-ups focusing on establishing metaverse platforms.

Being technologically advanced and developed, North America is the leading market in developing cutting-edge technologies used in display devices. The rising expenditure of companies and individuals on digital solutions and advanced technologies also boosts market growth. Furthermore, the strong presence of gaming and metaverse businesses concentrating on incorporating metaverse into games is creating market growth potential.

Some of the recent developments:

• In January 2022, Microsoft Corporation (U.S.) acquired Activision Blizzard, Inc. (U.S.) to foster the metaverse industry's development and accelerate Microsoft's gaming business growth across smartphones, PC, cloud, and console platforms.
• In January 2024, The International Organization for Public-Private Cooperation in Geneva, also known as the World Economic Forum (WEF), collaborated with Microsoft Corporation (U.S.) and Accenture to build a Global Collaboration Village. This metaverse platform focuses on promoting virtual multi-stakeholder cooperation.

However, Asia-Pacific is expected to register the highest CAGR during the forecast period. Factors such as rising demand of metaverse in the media and entertainment as well as the gaming industry, evolving opportunities from adjacent markets such as virtual reality (VR), augmented reality (AR), mixed reality (MR), rising investment on metaverse and digitalization in art, fashion, & retail industries are expected to drive metaverse market growth in the region.

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