Growing Use of Virtual Reality Coupled With Preferred Use of Cryptocurrency in Metaverse Will Drive Market Growth
The explosion of big data, ultra-fast networks, and Artificial Intelligence (AI) that we are experiencing, where everything is being connected, stored, and analysed are helping the industry. Rising demand in the media and entertainment as well as the gaming industries, evolving opportunities from adjacent markets like Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR), and digitalisation in the art, fashion, and retail industries are some of the key factors anticipated to propel the growth of the metaverse market. The increase in investments in blockchain-integrated virtual world services is expected to support the global market expansion. To gather real-world experience, several e-commerce players utilise digital world services to promote their items. Leading competitors are also investing in these services.
Coined 30 years ago by American science fiction writer Neal Town Stephenson in his 1992 novel, “Snow Crash”, metaverse until recently, has been part science fiction, and part speculation. Nevertheless, metaverse will be the next iteration of the Internet. Some reasons the metaverse matters are big tech giants racing to be the next metaverse company, adoption of web3, popularity of play-to-earn or NFT games, digital younger generation, growth of Gamefi, P2e Games and Metaverse Games, race to build metaverse-related hardware, Facebook re-brand themself as Meta. and many more. The concept of a virtual world available to everyone has become a reality by combining several technologies, such as AI, blockchain, VR, and AR. Microsoft, Bentley, Imagine 4D, Lockheed Martin, Ricardo, Willow, and over a hundred more are now members of the Digital Twin Consortium, an industry group working on developing AR and XR technologies for industrial applications.
Globally, small, medium-sized, and large-scale businesses, and individual customers are showing an increasing need for cutting-edge VR gadgets, promoting market expansion. One of the main components of the metaverse, which is a more general word, is VR. Real telepresence is ensured by VR, making it easier for users to communicate in the virtual world. The market is expanding due to the increasing use of this technology in instructional training, particularly for instructing engineers, mechanics, pilots, field workers, military soldiers, and technicians in the manufacturing and oil and gas industries. Shipments of AR/VR headsets are anticipated to increase by nearly a factor of 10, from 11 million units in 2021 to 105 million units in 2025. The continual increase in the sales of VR headsets is likely to drive the metaverse market in future.
Cryptocurrencies are the preferred method of payment in the metaverse. On the metaverse, cryptocurrency purchases everything from avatar shoes to non-fungible tokens (NFT). Investors can use this money to directly sell to customers in the metaverse thanks to the availability of cryptocurrency exchanges on a global scale, which has a beneficial impact on market developments there. As of 2021, there are 300 million cryptocurrency users worldwide. Over the past two years, bitcoin use has multiplied astronomically. The number of bitcoin users increased internationally between 2018 and 2020 by 190%. The rapid increase in the number of cryptocurrency users will increase the sales in the metaverse, which will propel the growth of metaverse market.
Blockchain Technology Dominant in Metaverse Market owing to its Highly Safe Working Environment
Blockchain technology is essential to the metaverse because it allows users to safeguard their digital assets in virtual reality. With the use of blockchain, users can use the metaverse cryptocurrency to build and trade NFTs and profit from the local economy. Blockchain guarantees the economic efficiency and transparency of this metaverse market. The metaverse blockchain is almost the only technical option that could currently guarantee the appropriate level of confidence in financial transactions within the metaverse. Blockchain's ability to combine many ecosystems emphasizes how crucial this technology is for presenting the idea of the metaverse. Other factors driving the sector's rapid growth include rising venture capital funding and investment in blockchain technology, extensive use of blockchain solutions in banking and cybersecurity, high adoption of blockchain solutions for payment, smart contracts, and digital identities, and expanding government initiatives.
Dominance of North America Intact on Account of an Influx of Start-ups Emphasizing Commercialisation of Metaverse Platforms
North America is projected to have the most significant revenue share in the forecast period due to the consumers and users in the region. They are adopting new and more complex technologies. Another factor anticipated to boost the metaverse market here, is the rising number of start-ups concentrating on creating metaverse platforms for commercialisation. The region's significant concentration of gaming and metaverse companies like The Sandbox, Nvidia Corporation, and Epic Games, Inc., which focus on merging metaverse into games, is generating market development potential. The region's AR market is expanding due to the application of AR technology in consumer devices. In 2020, in the US, there will be 57.4 million users of VR and 90.9 million users of AR. The region has adapted in sectors like healthcare, consumer products, aerospace and defense, and business applications for education and training. PTC, Magic Leap, Microsoft, and Google are just a few of the international firms in the US that offer AR devices and solutions. The main reason propelling the expansion of the metaverse market in North America has been the rising acceptance of metaverse technologies by businesses to sell their products in a contemporary manner. Nike having a headquarter in Oregon, US, has already submitted four patent and trademark applications for downloadable virtual items used in the metaverse.
The metaverse market in Asia Pacific is predicted to increase, which may be attributed to the region's stable economic growth and rising adoption of digitalisation across numerous nations, including China, India, and Japan. Technology companies, entrepreneurs, and government agencies in the Asia Pacific have embraced technology innovations much more quickly and enthusiastically than in other regions. The robust industrial environment, high commercial value, and technology advancements like gaming, social networking, entertainment, education, and the digitalisation trend all boost the growth of the Asia Pacific market. Tech Mahindra has introduced TechMVerse, a metaverse technique that enables users to create immersive experiences and conduct transactions in the metaverse. Such initiative by private players will drive the regional market.
Global Metaverse Market: Competitive Landscape
Market players introduce new products and form alliances, partnerships, and collaborations. In February 2022, Electronic Arts released GRID Legends, a multiplayer game that allows for smooth action, the perfect multiplayer session, and the creation of stories with other racers. It enables users to browse for live events that meet their tastes, enter events in real-time, open design races using the Race Creator, or create a private lobby for users' parties. According to players, enemies and friends can enteral-timer events in real time. In October 2021, Meta, previously Facebook, announced new enhancements to its Spark AR augmented reality (AR) platform, which developers and creators will utilise to create metaverse applications. The business disclosed its aspirations to create a virtual "metaverse," Spark AR's new features will assist give apps built on the platform cutting-edge AR capabilities.
A few of the players in the metaverse market include Alibaba Group Holding Limited, ByteDance Ltd, Facebook, Inc., Huawei Technologies Co. Ltd., Nextech AR Solutions Inc., NVIDIA Corporation, Roblox Corporation, and Shenzhen Zqgame Co., Ltd, Tencent, and Unity Technologies.
Global Metaverse Market is Segmented as below:
By Industry Vertical
Key Elements Included In The Study: Global Metaverse Market
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