The global metaverse market is forecast to record a compound annual growth rate (CAGR) of 39.8%, to reach $996 billion in 2030.
This, as companies across the globe, including those in non-tech sectors, increasingly invest in the immersive technology for better engagement with customers, brand awareness expansion and identification of new revenue streams.
This is according to research firm GlobalData’s latest metaverse market report. The metaverse, according to the report, encompasses nine critical technologies: networking equipment and cloud infrastructure; data governance and security; blockchain and crypto-currencies/non-fungible tokens; artificial intelligence/machine learning; augmented reality and virtual reality; adtech (internet advertising); gaming; enterprise applications; and payments platforms.
The report reveals that various market participants from the technology sector − including those in manufacturing semi-conductors, components and application software − are also leveraging this mega-theme of the metaverse. This led the metaverse market to reach $22.79 billion in 2021.
These developments and initiatives around the deployment of the metaverse are likely to fuel the market in the coming months, notes the report. Furthermore, big tech firms are championing the metaverse, with Microsoft and Meta promoting it as the ideal environment to support hybrid working.
“As of 2021, the media and entertainment market captured a sizeable revenue share of the metaverse market,” comments Deepak Agarwal, project manager at GlobalData. “The entertainment experience we have seen through the metaverse has been through music and concerts.”
There’s also a land grab for strong metaverse ecosystem partners and learnings in other sectors beyond entertainment, including retail, banking, telecoms and the insurance market, according to the report.
“Telcos are, by and large, keen to understand the lay of the land and invest in exploration with start-ups as potential partners. Mergers and acquisitions activity is picking up, with access to technology being the key rationale for most deals. Providers of AR, VR, AI and blockchain solutions are becoming prime targets as acquirers aim to develop novel experiences.”
The strong presence of big technology giants in the advanced economies of North America and the emerging economies in the Asia-Pacific region are fuelling the metaverse market growth. Together, the two regions held 50% of the metaverse market share in 2021, according to GlobalData’s estimates.
South Africa is dominating the African continent’s metaverse market, with local firms such as big-four bank Nedbank, MTN, World Data Lab and M&C Saatchi Abel all buying virtual land on Ubuntuland, a village on Africarare – Africa’s first metaverse marketplace.
The organisations say they are looking to develop and offer immersive services to their African customers via the platform.
In addition, an increase in the number of start-ups leveraging these technologies in both developed and emerging economies will eventually boost the metaverse, according to the report.
Agarwal concludes: “The metaverse is still largely conceptual but could transform how people work, shop, communicate and consume content.
“Although it is in the early stages of development, it has the potential to be the next mega-theme in digital media. Furthermore, the large-scale adoption of next-gen technologies, including AR and VR, will accentuate the adoption of the metaverse by most of the stakeholders involved.”
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