The size of the worldwide metaverse market was 48.12 billion dollars in 2020, and it is anticipated to grow at a rate of 44.1% over the forecast period. Some of the major factors anticipated to continue to propel market revenue growth during the forecast period include increasing demand for virtual assets, growing use of Non-Fungible Tokens (NFTs) to trade digital assets, growing focus on developing metaverse platforms for a variety of applications by tech giants, and rapid development of Decentralized Finance (Defi) applications.
A highly dynamic virtual environment known as the “metaverse” allows for the trading of real estate, structures, and even personalized avatars using digital money. In the virtual world of the metaverse, people can explore many well-known places and locales, form friendships, develop virtual assets, buy and sell goods and services, and take part in virtual activities. The COVID-19 pandemic and lockdowns caused a sharp rise in the remote working and Work From Home (WFH) trends, which encouraged many people to explore a variety of online virtual environments for amusement, commerce, and other purposes, sparking significant interest in the metaverse concept. Many of the biggest tech companies in the world regard the metaverse as their next major objective.
After Facebook, Inc. announced that the company would change its name to Meta Platforms Inc., or simply “Meta,” effective immediately, the concept or idea of the “metaverse” gained traction. The business would be devoted to building the virtual world known as the metaverse. It is widely employed as a real-time virtual environment to create and exploit vast opportunities for brand connection.
Some Key Highlights From the Report:
Some major companies included in the global market report are Facebook, Inc., Tencent Holdings Ltd., ByteDance Ltd., NetEase, Inc., Nvidia Corporation, Epic Games, Inc., Unity Technologies, Inc., Roblox Corporation, Lilith Games, and Nextech AR Solutions Corp.
COVID-19 impact analysis
The metaverse market size has expanded significantly over the past few years, but demand for the sector suddenly increased as a result of the COVID-19 epidemic. More than 92% of respondents to a study conducted by J. Clement in April 2022 acknowledged felt that the global COVID-19 epidemic sped up the development of metaverse and related technologies. The rise in work-from-home culture and social isolation norms brought about by the COVID-19 lockdowns also contributed to the period’s increased demand for metaverse platforms, which persisted even after the number of COVID-19 cases began to fall in late 2021. This led a lot of businesses to seize the chance to increase the availability of their goods and services on metaverse platforms.
Driver: Increasing Usage of NFTs to Trade Digital Assets
NFTs are a special type of virtual asset that stands for digital possessions held by blockchain users, such as images, movies, and in-game assets. This makes it possible to amass and trade NFTs as valuable digital assets. Many see these as having cultural significance, while others see them as speculative financial instruments. To connect with younger users and broaden their user base, businesses are resorting to NFTs and virtual goods. Numerous businesses are looking into the potential of NFTs, including well-known entertainment organizations like Warner Bros. Fox, Lionsgate, Dolphin, and ViacomCBS are among the pioneers in this field.
Additionally, organizations that specialize in professional wrestling and mixed martial arts, like WWE and UFC, are expanding into the NFT market. Additionally, as more businesses offer financial services tailored to virtual currencies, increased innovations in Defi applications will spur market revenue growth shortly. The majority of these businesses concentrate on blockchain-based Defi applications. The operations and transactions in the metaverse will be supported by these kinds of digital financial ecosystems.
Platform Outlook (Revenue, USD Billion; 2018-2028)
Component Outlook (Revenue, USD Billion; 2018-2028)
- Asset Creation Tools
- Programming Engines
- Virtual Reality (VR) Headsets & Augmented Reality (AR) Headsets
- Extended Reality (XR) Hardware
- Omni Treadmills
- Haptic Devices & Sensors
- Smart Glasses
Technology Outlook (Revenue, USD Billion; 2018-2028)
- Virtual Reality (VR) & Augmented Reality (AR)
- Mixed Reality (MR)
Offerings Outlook (Revenue, USD Billion; 2018-2028)
- Virtual Platforms
- Asset Marketplaces
- Financial Services
Application Outlook (Revenue, USD Billion; 2018-2028)
- Social Media
- Aircraft Maintenance
- Content Creation
- Online Shopping
- Virtual Runway Shows
End-use Outlook (Revenue, USD Billion; 2018-2028)
- Media & Entertainment
- Aerospace & Defense
Regional Outlook (Revenue, USD Billion; 2018-2028)
- North America
- the Asia Pacific
- Latin America
- Middle East & Africa
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