As per a recent industry report put forward by Global Market Insights, Inc. Metaverse Market is forecast to register its name in the billion-dollar fraternity down the line of seven years, by exceeding a revenue of USD 500 billion by 2028 with a projected CAGR of 35% over 2023-2032.
The market growth is owing to the increasing adoption of virtual technology. Additionally, the rising need to curb the infrastructural expenses along with adoption of virtual and automated workplace is likely to further expand the market deployment over the forecast timeline.
Recently, many brands, enterprises, and global organizations have entered the world of metaverse to deliver an enhanced and virtual experience to consumers. For instance, Nike teamed up with Video game platform, Roblox Corp., to launch a digital space called NIKELAND, allowing players to dress up their characters with special Nike products for free.
Overall, the market has been bifurcated in terms of component, platform, offerings, application, and regional landscape.
With reference to component, the market has been divided into software and hardware segments. Under software, the metaverse market is further bifurcated into asset creation tools, and programming engine. Out of these two, the asset creation tools segment accounted for a market share of more than 20% in 2021 owing to the growing need to improve customer experience.
The hardware segment is divided into displays, extended reality hardware, AR/VR headsets, and others. Out of these, the displays segment recorded a market share of around 20% in 2021 due to growing adoption of sensor and haptic devices. Meanwhile, the others segment is likely to exhibit substantial growth with a CAGR of 30% through the review timeline owing to the growing adoption of smartphones and the internet.
On the basis of offerings, the metaverse market has been bifurcated into virtual platform, avatars, financial services, and asset marketplace. Out of these, the financial services segment held a market share of more than 20% in 2021 owing to the increasing adoption of blockchain technology throughout fintech sector.
The application segment has been bifurcated into gaming, social media, online shopping, digital marketing, event and conference, and others. Between these, the event and conference segment is speculated to accrue considerable growth over the study timeframe, recording a CAGR of more than 35% because of the increasing adoption of augmented and virtual reality technology.
Meanwhile, the digital marketing segment is also earmarked to record notable growth. The segment recorded a market share of over 10% in 2021 due to early development of 5G technology.
The others segment is pegged to record a CAGR of nearly 30% due to the growing need to improve customer satisfaction.
From a regional standpoint, the Latin America metaverse market is expected to record a CAGR more than 40% through the forecast timeline. The market is projected to witness this sizable expansion owing to the increasing trend of online gaming in the region.
The Middle East and Africa market is primed to garner a notable CAGR of 35% through the projected timeline owing to the growing amount of collaboration among top industry players to enhance connected device quality and customer experience.