The global metaverse market size was estimated at USD 38.85 billion in 2021. It is expected to expand at a compound annual growth rate (CAGR) of 39.4% from 2022 to 2030. Major factors expected to drive the revenue growth include a growing focus on integrating digital and physical worlds using the Internet, increasing momentum and popularity of Mixed Reality (MR), Augmented Reality (AR), and Virtual Reality (VR), and the outbreak of COVID-19, as well as the situation’s subsequent developments and outcomes.
The metaverse is a term used to describe a highly immersive 3D virtual world experience obtained through the use of a mixture of technologies such as AR, VR, and MR. The metaverse platform elevates the internet experience by establishing a virtual world in which users can engage in immersive gaming, conduct business, socialize, buy and sell virtual real estate, and enjoy immersive entertainment, among other things.
Metaverse is one of the trending technology platforms attracting various social networks and technology leaders, and online game makers to enter and establish its presence within the market. The metaverse is a fast-growing trend with a considerate penetration rate of users for various applications such as gaming, content creation, social interaction, learning and training, and online virtual shopping.
According to industry experts, the metaverse is expected to infiltrate a multitude of industries in numerous ways in the coming years, with the potential market opportunity or the total addressable market estimated at more than USD 1 trillion in yearly revenues.
In addition, according to the United Nations, the global digital economy represented 15.5% of total GDP in 2018, which led to a forecast of 15% to 16.8% by 2021. According to C-level executives of the leading metaverse solution providers, depending on the percentage share of the digital economy shifting to the metaverse and the percentage of total addressable market expansion, the potential market opportunity for the metaverse is estimated to be between USD 3.75 trillion and USD 12.46 trillion. As a result, various end-user players such as Walmart; Nike, Inc; Gap Inc; Verizon, Hulu, LLC; Adidas; and Atari, Inc., are entering the metaverse in different ways to witness the immersive experience of the digital world.
The concept or idea of metaverse gained momentum after Facebook, Inc. announced that the firm would be renamed Meta Platforms Inc., or 'Meta' for short, effective immediately. The company would be dedicated to the creation of the metaverse, an immersive digital environment. The metaverse is being used extensively as a real-time virtual world to develop and leverage huge possibilities for brand interaction.
The metaverse’s currency is a cryptocurrency and every metaverse has its collection of coins. They’re used to paying for everything from NFTs to virtual real estate to avatar shoes. Cryptocurrencies are used to connect the physical and virtual worlds. They allow us to calculate the worth of digital assets in the government-issued currency as well as the returns on those assets over time. The use of the metaverse to buy digital assets using cryptocurrency is gaining traction around the world.
Individuals now communicate with one another digitally via websites, messaging apps, and social media platforms such as Facebook. The metaverse is the emergence of fresh online settings in which people’s interactions are highly multidimensional, and they can participate more meaningfully with digital content rather than simply reading information. Because of the accessibility of crypto on exchanges all around the world, investors can make money by selling metaverse coins and NFTs directly to purchasers.
One of the metaverse’s promising prospects is that it is vastly increasing access to the marketplace for consumers in emerging and frontier economies. The Internet has already opened up access to previously unavailable goods and services. Workers from low-income countries, for example, may now be able to find work in western corporations without emigrating. Virtual reality environments will help enhance educational options, as they are a low-cost and effective way to learn.
There will need to be clear governance as a result of these developments. Business-to-business (B2B) marketing includes trade exhibitions, product demos, client meetings, customer service, and commercials. The metaverse now has the power to drastically modify each of these things. Because many B2B products are commodities, excellent customer service can make all the difference. The Metaverse has an interesting side effect of blurring the distinctions between B2B and B2C. Companies can use this to grow their traditional consumer bases while avoiding corporate traditions.
Even if the final implementation of the metaverse differs from today’s vision, technologies such as Virtual Reality (VR), Augmented Reality (AR), the Internet of Things (IoT), and cryptocurrencies will certainly be used. These technologies have the potential to merge and synchronize the physical and digital worlds. They will, however, provide new opportunities for cybercriminals to attack businesses and individuals. Concerns about data security and privacy in metaverse environments, issues about user identity, and challenges of persuading users to use payment services in these settings are some key factors that are expected to stifle global metaverse market revenue growth to some extent during the forecast period.
Due to the rising gaming industry globally, the media and entertainment category is predicted to account for the largest revenue share of 31.08% over the forecast period. Businesses are increasingly focusing on organizing virtual music concerts, and the adoption of this concept by a growing number of businesses is likely to boost this segment's revenue growth. For instance, Meta Platform, Inc Meta Platform, Inc unveiled a lineup of major virtual reality concerts that took place completely on its Horizon Venues metaverse. The celebrity singers and performers included Young Thug, DJ David Guetta, and The Chainsmokers at the New Year's Eve event. Warner Music Group has announced the launch of the virtual music theme park through The Sandbox platform.
Musical experiences and concerts from the music company's star-studded roster of musicians, including Bruno Mars, Ed Sheeran, Dua Lipa, and Cardi B, will be featured in the virtual theme park. Metaverse offers musicians enhanced flexibility to experiment and engage with audiences electronically. Other musicians and media content firms collaborating with musicians are more likely to experiment with virtual reality and broadcast content online instead of attending live concerts because of the endless possibilities. For instance, games such as Fortnite hosted a metaverse event where musicians and music bands performed live in April 2020. It was the platform's largest in-game concert. Based on end-use, the global market for metaverse is divided into Banking, Financial Services, and Insurance (BFSI), retail, media and entertainment, education, aerospace and defense, automotive, and others.
The COVID-19 pandemic played a significant role in stimulating interest in the metaverse concept. People started working from home and students began taking classes online, creating a need for practical techniques or channels to make online contact more realistic. The pandemic heightened its importance among consumers and businesses alike. In the year 2020, tech corporations began developing this technology and announced their investments. Because of the billion dollars spent by Metaverse, the year 2021 was a good one for Metaverse technology investments (Facebook).
According to industry experts, the COVID-19 pandemic catalyzed metaverse technology, and the post-pandemic environment is predicted to pique customer interest. The pandemic has accelerated the creation of virtual online communities as key lifestyle areas for users who were confined due to the lock-downs and closures, including interactive game landscapes and the expanding use of mixed reality. The COVID-19 pandemic has positively impacted the metaverse market, which has potentially improved many industries. The rise of digital assets, blockchain, and Nonfungible Tokens (NFTs) is adding to the metaverse’s popularity.
The automotive and manufacturing industries will be firmly embedded in the metaverse owing to a shared online area that crosses dimensions and is powered by a mixture of VR, AR, and MR. While campus digital twins have substantially improved the remote education experience, it is projected that the metaverse will organically promote spatial patterns throughout the education business in the years to come. Pursuing knowledge will be redesigned to include an interactive experience complemented by digital records in the metaverse, rather than just words, images, and lectures available on demand.
It would also provide the framework for the next chapter of post-COVID digital activity, the emergence of digital social experiences. Certain users only see the metaverse as a virtual world where they can create and operate an avatar that can travel about and interact with other players. Users can build, own, and exchange independent digital assets and virtual territories using cryptocurrencies such as Bitcoin Ethereum, among others as well as NFTs on metaverse platforms supported by blockchain end-use. Increasing demand for the deployment of blockchain-based metaverse platforms for digital trading assets is expected to drive significant market revenue growth in the coming years.
The hardware segment accounted for USD 16.58 billion in 2021 and is expected to expand at a CAGR of over 38.0%. Due to a growing focus among firms on producing products that provide a better user experience and enable more extended user immersion, the hardware segment is expected to account for the largest revenue share during the projected period. 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. Designing interfaces that allow people to access 3D content on a variety of devices, such as next-generation TVs, smartphones, and mixed reality smart glasses called HoloLens, is also predicted to drive revenue growth in this segment.
For instance, Facebook Reality Labs is estimated to spend at least USD 10 billion on the development of Augmented Reality (AR) and Virtual Reality (VR) hardware. The global metaverse market is divided into hardware, software, and services segments based on product. The hardware segment is sub-segmented into displays, eXtended Reality (XR) components, and AR/VR headsets. Extended Reality (XR) components sub-segment is further divided into haptic sensors & devices, smart glasses, and omni treadmills. The software segment is sub-segmented as asset creation tools and programming engines.
Between 2022 and 2030, the desktop segment accounted for the largest revenue share, followed by the headset. The segment was estimated at USD 16.38 billion in 2021. Computers used to be the primary portal into the metaverse, but with the introduction of smartphones and wireless networks, that has changed. Virtual desktop is a program that allows users to utilize the computer in virtual reality using the HTC Vive, Oculus Rift / Rift S, WMR headsets, and Valve Index. On a massive virtual screen, users may surf the web, view movies on Netflix, and even play games.
Virtual desktops are gaining traction for the use of VR devices. Smartphones and mobile networks have made access to the metaverse unrivaled and near-constant. Downloading, uploading, and sharing large amounts of data in networked cyberspace is becoming increasingly common. Users of mobile phones can publish photographs and movies to the metaverse and communicate with others using video conferencing and messaging apps. While playing online multiplayer games, users can also converse with one another. Smartphone popularity is increasing, and it is rapidly becoming the most prominent way to connect to the metaverse.
The asset marketplace segment is expected to grow at the highest CAGR of 40.0% during the forecast period, owing to the increased investments made in bitcoins, NFTs, Ethereum, and other cryptocurrencies. Because of the expansions in virtual metaverse platforms, the virtual platforms segment is expected to account for a significant revenue share during the forecast period. The design and management of integrated virtual and typically three-dimensional simulations, settings, and surroundings in which people and businesses can discover, create, socialize, and engage in a wide variety of activities while also running a business are referred to as virtual platforms.
Virtual platforms such as Minecraft, Roblox, the Sandbox, HyperVerse, and Fortnite Creative Mode are currently popular. Furthermore, rising smartphone penetration and growth in the rate of app developers are likely to boost revenue growth in this segment in the future. Based on offering, the global market is segmented into asset marketplaces, virtual platforms, avatars, and financial services.
The augmented reality (AR) and virtual reality (VR) technology contributed to the largest revenue share of over 35.0% in 2021. Due to the increased use of MR to engage more proficiently in the metaverse, the Mixed Reality (MR) segment is predicted to contribute the highest CAGR of 40.4% in the technology segment in the global market during the forecast period. The global market is divided into three categories based on technology: blockchain, virtual reality (VR) and augmented reality (AR), mixed reality (MR), and others. The other segment includes artificial intelligence (AI), IoT, 3D reconstruction, brain-computer interface, machine learning, 5G, etc.
Mixed reality is when people can interact directly with metaverse surroundings in a physical area. Users do not require a virtual reality headset to interact with the metaverse. Regardless of their level of immersion, users could simply interact with the metaverse using a keyboard. AR and VR technology is being utilized in the gaming industry to make the game more realistic and to provide a better gaming experience. However, the demand for VR and AR devices is expected to exhibit substantial growth in the coming years. Thus, the segment is predicted to contribute significantly to the overall Metaverse industry. The demand for VR and AR devices is expected to rise owing to the rising gaming industry.
The gaming segment held the leading revenue share of 27.17% in 2021, due to significant ongoing innovations and developments by developers, as well as a growing focus on boosting immersion and making games more realistic. Furthermore, organizations' increasing emphasis on utilizing games to promote their corporate image is likely to boost revenue growth. Based on application, the market is divided into gaming, online shopping, content creation & social media, events & conferences, content creation, digital marketing (advertising), testing and inspection, and others.
The content creation & social media segment is also expected to grow significantly during the forecast period. During the COVID-19 pandemic, the internet and social media became more important than ever before in daily life. With no signs of slowing down to the pandemic, businesses had no choice but to adapt, basing their entire company on these platforms. As a result of this occurrence, a new type of entrepreneur emerged: the content creator. To obtain a competitive advantage, many organizations are now employing content creation to market their brand and product portfolio.
Virtual reality training can help airlines and ground handlers learn and improve their aircraft inspection skills in a safe setting. Virtual Reality (VR) for Aircraft Inspection allows for training in various situations of aircraft inspection on all types of aircraft to minimize any potential failures during operation. The cabin crew can learn how to handle severe real-life circumstances like medical problems, an impending disaster, or a hijacking by substituting virtual reality training for classroom training. Aircraft mechanics and MRO technicians can learn to inspect different elements of the aircraft using virtual reality and augmented reality without ever leaving their desks.
North America is likely to account for the largest revenue share of over 45.0% in 2021 owing to the customers and users in the region that are adopting the new and more complex technology. Furthermore, the growing number of start-ups focusing on the establishment of metaverse platforms for commercialization is another factor projected to support the revenue growth of the regional market. Furthermore, the strong presence of gaming and metaverse businesses such as The Sandbox, Nvidia Corporation, and Epic Games, Inc. in the region, which is concentrating on incorporating metaverse into games, is creating market growth potential. For Instance, Nvidia Corporation announced partnerships with Blender and Adobe that will enable NVIDIA Omniverse, the world's first collaboration, and simulation platform, to reach millions more users.
The Asia Pacific region is expected to register a very strong CAGR over the forecast period. A growing number of start-ups and organizations such as The Sandbox (Hong Kong), Bolly Heroes (India), Axie Infinity (Singapore), NextMeet (India), GuildFi (Thailand) as well as Shenzhen Zhongqingbaowang Interaction Network Co., Ltd. (ZQGame Global), and miHoYo Co., Ltd. in China, are projected to drive market expansion in the Asia Pacific region. These virtual metaverse marketplaces and gaming platforms offer an immersive experience where users can participate in live and concurrent activities powered by their chosen third-party apps.
Key industry participants include Meta Platforms, Inc.; Epic Games, Inc.; Nvidia Corporation; Tencent Holdings Ltd; ByteDance Ltd.; Lilith Games; Unity Technologies, Inc.; Roblox Corporations; NetEase, Inc.; Nextech AR Solutions Corp. The introduction of innovative hardware solutions supporting the virtual world metaverse is anticipated to propel the business in the future.
In January 2022, The Sandbox announced a partnership 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 and NFT sector with this alliance
In November 2021, Tencent Holdings, Ltd announced that it has partnered with The Asian Institute of Digital Finance. The companies will collaborate in the areas of education, research, and entrepreneurship to support Asia's fintech industry
In November 2021, Epic Games, Inc acquired Harmonix Music Systems, Inc. While continuing to support existing products such as Rock Band 4; the Harmonix team will work closely with Epic Games, Inc to develop musical adventures and gameplay for Fortnite
In October 2021, Facebook Reality Labs was estimated to spend at least USD 10 billion on the development of Augmented Reality (AR) and Virtual Reality (VR) hardware, software, and content. Facebook Reality Labs is the division of Meta Platforms, Inc, which was formerly known as Facebook, Inc.
In August 2021, Nvidia Corporation announced partnerships with Blender and Adobe that will enable NVIDIA Omniverse, the world's first collaboration, and simulation platform, to reach millions more users
In July 2021, Epic Games, Inc acquired Sketchfab, Inc. Sketchfab is a 3D asset marketplace where users can publish, download, view, share, sell, and buy 3D models
In June 2021, Tencent's game division, TiMi Studios had announced a new agreement with SNK CORPORATION to produce a new, unnamed mobile game based on the famous arcade franchise Metal Slug
In March 2021, NetEase, Inc's NetEase Cloud Music, and Merlin Network expanded their strategic alliance in China to embrace a broader range of collaboration. The original partnership between Merlin Network and NetEase Cloud Music was signed in 2018
In December 2017, ByteDance Ltd. and EQUALS formed a partnership. EQUALS is a global network of CEOs, governments, non-profit organizations, communities, and individuals working to close the digital gender gap. The formal agreement was revealed at a ceremony hosted by Bytedance in Beijing during the Global Festival of AI, which included representatives from both organizations
Some of the prominent players operating in the global metaverse market are:
Meta Platforms, Inc.
Tencent Holdings Ltd.
Epic Games, Inc.
Unity Technologies, Inc.
Nextech AR Solutions Corp.
Antier Solutions Pvt. Ltd.
Market size value in 2022
USD 47.48 billion
Revenue forecast in 2030
USD 678.8 billion
CAGR of 39.4% from 2022 to 2030
Base year for estimation
2017 - 2021
2022 - 2030
Revenue in USD Million and CAGR from 2022 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Component, platform, offering, application, technology, end use, region
North America; Europe; Asia Pacific; South America; Middle East & Africa
US; Canada; Mexico; U.K.; Germany; France; China; India; Japan; South Korea; Brazil
Key companies profiled
Meta Platforms, Inc.; Tencent Holdings Ltd; Epic Games, Inc.; Nvidia Corporation; Unity Technologies, Inc.
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030 For this study, Grand View Research has segmented the global metaverse market report based on product, platform, technology, offering, application, end use, and region:
Metaverse Product Outlook (Revenue, USD Million, 2017 - 2030)
eXtended Reality (XR) Hardware
Haptic Sensors & Devices
Asset Creation Tools
Metaverse Platform Outlook (Revenue, USD Million, 2017 - 2030)
Metaverse Technology Outlook (Revenue, USD Million, 2017 - 2030)
Virtual Reality (VR) & Augmented Reality (AR)
Mixed Reality (MR)
Metaverse Offering Outlook (Revenue, USD Million, 2017 - 2030)
Metaverse Application Outlook (Revenue, USD Million, 2017 - 2030)
Content Creation & Social Media
Events & Conference
Digital Marketing (Advertising)
Testing and Inspection
Metaverse End-use Outlook (Revenue, USD Million, 2017 - 2030)
Media & Entertainment
Aerospace and Defense
Metaverse Regional Outlook (Revenue, USD Million, 2017 - 2030)
Middle East & Africa
b. The global Metaverse market is expected to grow at a compound annual growth rate of 39.4% from 2022 to 2030 to reach USD 678.81 billion by 2030.
b. North America dominated the Metaverse market with a share of 45.7% in 2021. This is attributable to the growth of non-fungible tokens (NFTs) and decentralized finance (DeFi) with increasing revenue from Ethereum mining.
b. Some key players operating in the Metaverse market include Facebook Inc., Tencent Holdings Inc., ByteDance Ltd., NetEase Inc., and Nvidia Corporation.
b. Key factors that are driving the Metaverse market growth include rising demand for virtual assets, increasing usage of Non-Fungible Tokens (NFTs) to trade digital assets, growing focus on developing metaverse platforms for diverse applications by tech giants, and rapid development of Decentralized Finance (DeFi) applications.
b. The global Metaverse market size was estimated at USD 38.85 billion in 2021 and is expected to reach USD 47.48 billion in 2022.
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