The metaverse is a collection of interconnected online spaces that interact with augmented, virtual, and physical reality. Users can communicate with friends, travel, make purchases, hire people to do their jobs, and participate in events. Artificial intelligence, virtual technology, and gaming all look different thanks to metaverse technology. The phrase "metaverse" refers to the online world. The platform supports an online 3D virtual environment through augmented reality and conventional personal computing. The size of the global metaverse market in 2022 was USD 47.48 billion and will reach USD 678.80 billion by 2030 at a 39.44% CAGR.
Market Dynamics
Drivers
Due to the increasing use of VR, MR, and AR technologies, the global gaming, media & entertainment industries have seen the fastest growth. These technologies are incorporated into products like VR headsets, HUDs, HMDs, MR headsets, smart glasses, and smart helmets, which provide realistic-looking virtual environments to enhance the gaming experience for end users. The emergence of these devices has improved the customer experience. The best application of technology is seeing a realistic view, which creates a virtual experience.
Restraints
In the global economy, cyber-based attacks on the metaverse are a huge concern. Cyber-attacks are a great concern for the efficient operation of the metaverse. For instance, cyberattacks include illegal commands and data breaches. System failure brought on by cyberattacks causes the metaverse to crash. As a result, cybercrime must be made easier to avoid using the metaverse. In order for a metaverse to operate properly, a secure and reliable network must be established.
Opportunities
In the defense and aerospace sector, techniques like artificial intelligence, XR, and analytics are helpful for training. It is anticipated that these metaverse-related technologies will be helpful for experience-based training with real-time data-driven applications. As a result, the metaverse market enables learners to improve knowledge retention and transfer of skills across the vertical. The ground crew member receives training in extended reality (XR) in preparation for airline pre-flight inspections. It is also used to assist the maintenance team in performing necessary tasks prior to the takeoff of the aircraft. The metaverse can support flight instruction, weapon training, and simulations that drive market development when combined with Extended Reality (XR).
Market Segmentation
The technology, component, end-user, and geographic segments have been used to divide the global metaverse market.
- Virtual reality (VR), mixed reality (MR), blockchain, and augmented reality are the subcategories of the technology sector (AR). With a market share of roughly 28% in 2021, the augmented reality (AR) segment dominated the industry. The ability of augmented reality (AR) devices to connect the real world with virtual objects has increased demand for them across a variety of applications. The most important AR smart glasses are used in the industry, promoting the AR devices market growth.
- The software, hardware, and professional services categories comprise the component segment. The software segment dominated the industry with a market share of approximately 34% in 2021. The segment's expansion is the result of a rise in demand for software development kits (SDKs), augmented reality and virtual reality studios, cloud-based tools, and VR and AR mobile app development tools. Tools for modeling and reconstruction, 3-Dimensional mapping, and volumetric video are essential for building virtual worlds and video games on metaverse platforms.
- Retail, BFSI, media & entertainment, education, aerospace & defense, automotive, and others make up the end-user segment. The media and entertainment segment ruled the market with an estimated 16% market share in 2021. The industry is working to enhance participants' social interactions. Additionally, businesses use the idea of the metaverse to benefit the entertainment sector, such as by hosting virtual singing competitions during pandemics.
Regional Analysis
North America became the largest regional market, with a 34.5% revenue share in the global metaverse market in 2021.
North America is expected to experience the greatest growth of the metaverse solution. North America is the top market by region for developing cutting-edge technologies used in display devices because of its strong technological foundation and development. Additionally, the growing investments made by businesses and individuals in cutting-edge technologies and digital solutions fuel market expansion.
Key players analysis
Active Theory, Apple Inc., Alibaba Group, Meta Platform Inc. (Facebook), Microsoft Corp., Matterport Inc., NetEase, Inc., Amazon.com Inc., Decentraland, Epic Games, Inc. Immersion Corporation, Lilith Games, Nextech AR Solutions Corp., Nvidia Corporation, Roblox Corporation, Snap Inc., The Sandbox, Tencent Holdings Ltd., Unity Software, Inc., and Vuzix Corporation are a few of the top companies operating in the market.
