Originally published on Technavio:Metaverse Market Analysis Across North America, Europe, APAC, South America, Middle East, and Africa - Covering the US, Canada, China, Germany, UK - Size and Forecast for 2023-2027
The estimated Metaverse Market size is poised to grow by USD 1,152.35 billion at a Compound Annual Growth Rate (CAGR) of 40.06% between 2022 and 2027. Key drivers propelling the market include Augmented Reality (AR) and Virtual Reality (VR) technology, the expanding penetration of smartphones and 5G usage, and the ascendancy of blockchain as a service.
The current market share is witnessing a remarkable surge in consumer adoption, primarily fueled by the increasing popularity of online gaming. The metaverse, denoting a virtual communal digital space where individuals can gather, engage in gaming activities, and socialize using cartoonish 3D avatars to navigate virtual environments, is rapidly expanding due to the growing demand for immersive experiences.
Metaverse Market Size
Our researchers analyzed data with 2022 as the base year, along with the key drivers, trends, and challenges. A comprehensive analysis of drivers will assist companies in refining marketing strategies to gain a competitive advantage.
Primary Driver
The rise of blockchain as a service is a crucial factor driving market share growth. Blockchain-as-a-Service (BaaS), a cloud computing solution designed for managing distributed ledger systems, is gaining prominence. Developed collaboratively by Microsoft and ConsenSys, Ethereum BaaS (EBaaS) serves as a cloud-based blockchain developer environment, enabling efficient management and creation of blockchain applications. EBaaS supports the integration of features like Cortana Analytics and CRM Online for Government (CRMOL) for enhanced functionality. Microsoft is making BaaS accessible to corporate entities and application software developers engaged in blockchain development, offering a scalable and flexible platform. This is anticipated to drive the adoption of blockchain technology and contribute to the market's growth throughout the forecast period.
Significant Trends
A noteworthy market trend is the increasing consumer spending on virtual concerts. Virtual concerts and entertainment events are witnessing a surge in consumer spending, propelling market growth. The media and entertainment business in India reached USD 19 billion in 2020, projected to reach USD 25.9 billion by 2023, driven by virtual venues incorporating VR headgear and AR technology for hosting media and entertainment events. Rapid evolution of immersive technologies like AR and VR, reaching around USD 128.36 billion in 2020, as reported by the Department for Culture, Digital, Media, and Sport in the UK, contributes to market growth. These factors are anticipated to foster global market growth during the forecast period.
Major Challenge
The limitations of AR and VR technology pose significant challenges restraining market growth. Various issues, including bulky and expensive AR headsets tethered to computers, limitations in displaying visuals accurately on mobile AR devices, and lack of regulations posing risks of malicious use, hinder mainstream adoption. Consumer awareness of AR and VR benefits remains low, despite popularity among tech experts. Additionally, AR applications can be dangerously distracting, leading to physical injuries. These challenges could impede market growth during the forecast period.
Key Customer Landscape
The market growth analysis report includes the adoption lifecycle of the market, spanning from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report includes key purchase criteria and drivers of price sensitivity, assisting companies in evaluating and developing their growth strategies.
Market Segmentation
The market share growth by the VR or AR devices segment will be significant during the forecast period. The VR or AR devices segment accounted for the highest market share in 2022, encompassing various headsets, smart glasses, and lenses used for interacting on the metaverse platform. Factors such as new product launches and growing adoption of VR/AR in different application areas, including metaverse, are expected to drive segment growth.
Metaverse Market Size
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Metaverse Market Share by Geography
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained.
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Jesse Maida
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