An evolution of the internet and the fad of virtual reality is showing a huge craze towards metaverse platforms. Increasing focus on conveying digital & physical worlds through the internet, growing Covid-19 cases, and rising traction & popularity of mixed reality (MR) are some of the major factors, This will result in auspicious growth for the metaverse market.
Over the past few months, the term “Metaverse” has been rising in popularity. It is referred to as a decentralized computing platform and virtual reality experience contained various diverse digital realms. Yet, the conception of the metaverse is still being established and enhanced. Currently, Meta Platforms Inc. (previously recognized as Facebook) is a massive supporter of the metaverse, and it aids to encourage the use of the metaverse through products of the company generates such as virtual reality headsets and smart glasses. However, it is the future iteration of the internet and enormously opens up progressive opportunities for several developers, entrepreneurs, and innovators.
The idea follows Neal Stephenson from the 1992 sci-fi novel Snow Crash, where the phrase Metaverse was first used. Where, human-controlled avatars have interacted online for each conceivable purpose such as play, work, entertainment, friendship, commerce, and others. Now, the big brands are directed on creating a mark in the virtual world. The convergence of NFTs and virtual reality is gradually changing the fashion game. Brands like Gucci, Oscar de la Renta, Dolce & Gabbana, Casablanca, and Balenciaga have previously started testing the new waters. Also, currently in 2021, Microsoft Teams is getting 3D virtual avatars and environments on the platform as a portion of the tech giant's push towards entering the metaverse. These digital outfits, or NFTs, are JPEG files that are secured via blockchain technology to defend the brand value. Going ahead, with the increase in the popularity of metaverse, there is giant potential for the demand of metaverse fashion stylists to generate avatars and dress them up to match one’s personality. In fact, in 2021, online metaverse and social networking sites IMVU introduced its first fashion show. Its virtual store features almost 50 million pieces of cloth. IMVU recorded a 44% growth during the Covid-19, appealing to about 7 million active users a month. Avatar offerings of metaverse platform are booming in recent years and will definitely create a rewarding pocket for the market.
Further, the metaverse is rife with lucrative opportunities for virtual reality (VR), augmented reality (AR) as well as NFT-savvy brands. Many such virtual worlds are powered by similar blockchain technology that underpins cryptocurrencies and NFTs, and consequently permits users to trade virtual assets. Metaverse has also garnered dominant courtesy in current months owing to the NFT boom and the latest endorsement from Mark Zuckerberg, Facebook CEO. According to Nonfungible.com, NFTs worth USD 2.1 billion have been traded globally. As well, other prominent brands are beholding to make waves in the metaverse, comprising Adidas, which seems to be operating on its own NFTs. An avatar maintained by NFT technology will not just be a generic collation of face and clothes models which can be copied by any other user choosing those templates. The intersection of NFTs and VR is slowly shifting the fashion games towards the metaverse by using NFTs. Owing to a looming merging of technologies; the Metaverse trend is going to hasten over the subsequent decade.
Covid-19 has positively impacted the growth of the global metaverse market as the quarantine and social distancing during the pandemic forced entire lives online, the limitations of current platforms are starting to become apparent. Also, this pandemic has driven the internet to the next stage of its evolution such as the ‘Metaverse’ where cyberspace becomes more of an interactive 3D space with business& networking together with content corresponding to the worlds in popular games such as Roblox and Fortnite. The current global crisis has accelerated virtual platforms such as metaverse &some of the cultural trends & behaviors that need to be in place for a metaverse to be created. Also pandemic has enhanced the rise of virtual communities such as interactive gaming worlds and mixed reality activations as an important lifestyle space for locked-down consumers. In addition, due to the Covid-19, there are various new developments in digital social experiences such as the dawning of the metaverse which is an always-on, real-time virtual environment that will propose massive opportunities for brand commitment.
Global metaverse market is segmented on the basis of component, type, offerings, technology, application, end-user, and region & country level. Based upon components, the global metaverse market is divided into hardware and software. Hardware further sub-classified into the display, eXtended reality (XR) hardware, and AR/VR headsets. Software is sub-divided into asset creation tools and programming engines. Based upon the type, the market is classified into desktop and mobile. Based upon offerings, the metaverse market is divided into virtual platforms, avatars, asset marketplaces, and financial services. Based upon technology, the market is classified into Blockchain, virtual reality (AR) & augmented reality (AR), and mixed reality (MR). Based upon application, the metaverse market is classified into online shopping, gaming, social media, content creation, conferences, and others. Based upon end-user, the market is classified into education, fashion, media & entertainment, aerospace & defense, and others.
Some of the key players for the global metaverse market are
Metaverse is a virtual-real space in which users can interact with a computer-generated environment and with other users. Metaverse are made up of augmented reality, in which the physical and virtual worlds merge to form real-world metaphors. Metaverse has sparked excitement among technology and innovation enthusiasts like Mark Zuckerberg and the entire Silicon Valley. Since its launch in 2003, it has been booming as a result of many aspiring investors. Online games like Fortnite already include metaverse elements. With the outbreak of the pandemic and the implementation of lock-down, more people are embracing the Internet as their new social life, and the virtual world is evolving more rapidly. As it grows, the concepts that control it become more sophisticated.
One of the major factors driving the growth of global metaverse market is the increasing focus on conveying digital & physical worlds through the internet. Metaverse established different computer-mediated virtual conditions including social networks, video conferencing, and virtual 3D. Such virtual conditions, though non-perpetual and detached, have gotten us different levels of digital change. The term Metaverse has been coined to additionally work with the digital transformation in each part of our physical lives. At the center of the Metaverse stands the vision of an immersive internet as a tremendous, persistent, unified, and shared domain. While the Metaverse may appear to be advanced, catalyzed by arising advances like Extended Reality, 5G, and artificial intelligence, the computerized huge explosion of the internet isn't far away. For instance; as per the news published on October 28th, 2021, Facebook launched new AR tools to help creators assemble the Metaverse. The new tool will be utilized by designers and creators to build Metaverse applications.
In addition, increasing COVID-19 cases are also supplementing the demand for the metaverse. The COVID-19 outbreak was very instrumental in driving expanding interest in the Metaverse idea. People started working remotely and students moved to go to classes virtually, and request and need for helpful methodologies or channels for making online communication more practical arose. The COVID-19 cases have speeded up the rise of virtual networks as a significant way of life region for secured clients, including intuitive gaming scenes just as expanding reception of mixed reality. Most recent progressions in digital social experiences would set the context for the next stage of post-Covid advanced movement, the coming of Metaverse, which is being utilized viably as a real-time virtual world to open up and influence the significant potential for brand commitment. For example; according to the World Health Organization (WHO), on November 12th, 2021, there were about 251,788, 329 confirmed COVID-19 cases and 5, 077, 907 deaths, globally.
Furthermore, the rising traction & popularity of mixed reality (MR) also drives the global metaverse market. Blended Reality (MR) fragment is relied upon to enroll essentially huge offer because of expanding utilization of mixed reality (MR) to connect all the more effectively in the Metaverse. At the point when clients can connect directly with Metaverse environments at an actual area, this is known as mixed reality. Clients needn't bother with a VR headset for cooperating with the Metaverse. Clients could essentially engage with the Metaverse utilizing a keyboard, regardless of the level of immersion. However, concern regarding security issues and privacy in metaverse environments may hamper the growth of the global Metaverse market. In spite of that, technological advancement in terms of security in devices and better user security & high confidence among users can provide various opportunities for the further growth of the global metaverse market.
On a geographic basis, the United States is set to dominate the metaverse market. When it comes to technological advancement and digitalization, the U.S. has always been at the forefront of the world map. Even many companies which are not U.S.-based have a noteworthy presence in the U.S. The U.S. is followed by Europe due to the growing adoption of the internet as well as IoT among many people.
On November 11th, 2021; TaleCraft Majuro announced the launch of its medieval-themed NFT gaming metaverse. The medieval game settings and created NFTs for gaming can be used by gamers. The new grounds presented by TaleCraft, where users can craft cards of their choice rather than minting pre-produced cards and NFTs from gaming publishers. Around 150 Alchemist card are present in Tale Craft’s gaming which will be used to craft NFTs. Each card has different levels determined by the problem and rarity of the card's production. The gaming metaverse also incorporated cross-chain capabilities and where players can public sale their crafted NFTs.
North America is accounted for the largest revenue share contribution to the global metaverse market owing to various factors such as the major presence of companies, rising focus on converging digital and physical worlds through the internet, and increasing emphasis on developing metaverse platforms for the education industry, and many more. Along with the use of metaverse spaces for business, education, retail applications, and many more, several entertainment and social media businesses are investing in metaverse-related research and development. For instance; in 2021, chief executive of Facebook Mark Zuckerberg planned to build the metaverse and has lately announced the tech giant will shift from being a social media company to a metaverse company.
Also, Facebook Horizon, an online video game with an integrated game creation system established and published by Meta Platforms was announced as a social VR world by Facebook. Likewise, Solirax has invested in NeosVR Metaverse and launched it in 2018. The overwhelming investment in metaverse among the number of small and major players is aggressively increasing its demand all across this region.
The Asia Pacific is expected to witness the fastest growth in the global metaverse market due to the high use of metaverse platforms in the entertainment, gaming, and social sector in this region. The metaverse craze has hit Asia’s gaming and social network industries with hundreds of millions of investments. The interaction of many people is shifting towards the online world, the interest in digital entertainment services has enhanced massively. For instance; in October 2021, the Hangzhou-based video gaming giant, NetEase, and its subsidiaries filed dozens of trademark applications related to the metaverse.
Additionally, ByteDance, owner of Tiktok had invested CNY100 million in Rewolrd and also explored the business potential of the metaverse concept. The gaming ecosystem is recognized as integral to the expansion of the Metaverse. Along with the increasing gaming and entertainment sector, the evolution as well development of metaverse is speeding up exponentially. It is also predicted that augmenting internet and digital gaming will enhance demand for metaverse respectively in upcoming years. Thus, this factor is likely to flourish the market growth in the Asia Pacific.
Moving from an independent virtual world set to an integrated virtual world network or Metaverse depends on progress in four areas: immersive realism, the ubiquity of access and identity, interoperability, and scalability. Factors supporting the creation of viable Metaverse, such as organizational and popular interests and ongoing improvements in hardware performance, and limitations in computing methods, and unrealistic collaboration between virtual world stakeholders and developers are also considered obstacles to achieving this goal. When everyone is watching augmented reality (MR / VR / AR), they are referring to spatial information; this includes 3D models, audio, and other multimedia that can be localized. To make this happen, developing real 3D content is the first approach. Everyone knows what the iPad's LIDAR and HoloLens 3D Kinect sensors are capable of, and everyone can look to the metrology industry to see how 3D remodeling works. Companies like Zeiss, Nikon, and Faro have 3D recalculation sensors that are accurate for units less than a millimeter. Of course, these devices are not cheap. However, there are plenty of customer’s versions of this technology, such as Apple's LIDAR in its mobile devices and the Matterport 3D camera, which is not as accurate as Zeiss' or Faro's solutions but comes at an affordable price for customers. There is also Microsoft's Azhar Kinect, which focuses more on the IoT approach. Canon and other lens companies are also releasing specific lenses for VR content.
|Historical data||2018 - 2021|
|Forecast Period||2021 - 2027|
|Market Size in 2021:||USD 209.77 Billion|
|Base year considered||2020|
|Forecast Period CAGR %:||22.7%|
|Market Size Expected in 2028:||USD 716.5 Billion|
|Tables, Charts & Figures:||175|
|Metaverse Companies||Roblox Corporation, Facebook Inc, Nvidia Corporation, Nextech AR Solutions Corp., Unity Technologies Inc., Lilith Games, Tencent Holdings Ltd., ByteDance, NetEase, ZQGame, and others|
|Segments Covered||By Component, By Type, By Offerings, By Technology, By Application, By End-User|
|Regional Analysis||North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa|
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