Metaverse Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Metaverse Market is segmented by Type (AR & VR Hardware, Social Media Engagement (Ads), Virtual Live Entertainment - Epic, Games and Roblox Gaming Services), by End-User Industry (Gaming, Media & Entertainment, Commercial, Retail), and Geography

Metaverse Industry Overview

Metaverse Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 41.6 %

Major Players

Metaverse Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Metaverse Market Analysis

The Metaverse Market is expected to register a CAGR of 41.6 % throughout the forecast period (2022 - 2027). The key reasons propelling the growth of the Metaverse Market globally are rising demand in the worldwide media, entertainment, and gaming industries, primarily due to the increased usage of Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) technologies. The crucial justifications for adopting these technologies are that the gadgets, such as VR headsets, MR headsets, HUD, HMD, smart glasses, and intelligent helmets, can provide a first-person perspective, that act as natural user interfaces, providing 6-degree freedom, etc., to create virtual scenarios that look realistic and improve the overall gaming experience of end users.

  • Small, medium-sized, and large-scale businesses and individual customers increasingly need advanced VR gadgets, promoting market expansion. Also, the rising investments in retail and e-commerce and increased use of platforms to display products in a virtual environment support industry expansion. For instance, Decentraland, a metaverse powered by the Ethereum Blockchain, raised USD 1.2 million in February 2022 through an auction and marketplace for fungible tokens. Price Waterhouse Cooper Hong Kong also paid USD 10,000 for LAND in Sandbox.
  • Additionally, the market is growing due to the increased use of advanced technologies in various applications, including blockchain, mixed reality, and artificial intelligence (AI). The metaverse industry greatly benefits from the growing usage of new technologies, including mixed reality (MR), extended reality, artificial intelligence (AI), and blockchain. Companies, including Roblox, Facebook, Oculus, Epic Games, Microsoft, Google, USM, NVidia, etc., have already implemented or are implementing Metaverse XR/extended reality systems and other new technologies.
  • Moreover, through metaverse portals, cryptocurrency is frequently used to pay for everything, from avatar shoes to NFT (Non-fungible tokens). According to a CNBC (Consumer News and Business Channel) survey, one in ten people invests in cryptocurrencies, which are commonly used in trading various commodities, including NFTs. The global accessibility of cryptocurrency exchange allows investors to use this asset to offer products directly to customers on the Metaverse, thus favorably altering the market patterns.
  • However, since many users are unaware of the service and security alternatives available, the expansion of the metaverse market may be constrained. Also, on the other hand, cyberattacks against key players like Tencent Holdings, Globant, and others have raised serious security and sensitivity issues. As per the 2022 SonicWall Cyber Threat Report data, the first half of 2022 saw 2.8 billion malware attacks, an 11% rise over 2021.
  • The COVID-19 pandemic significantly boosted interest in the concept of the Metaverse. There is a need for practical methods or channels to make online contact more realistic as more people started working from home and attending classes online. Its importance to both consumers and businesses increased because of the pandemic. Tech companies began working on this technology in 2020 and publicized their investments. The year 2021 was successful for investments in Metaverse technology due to the billion dollars spent on Metaverse.

Metaverse Industry Segments

The term "metaverse" refers to a highly immersive 3D virtual world experience obtained using a combination of AR, VR, and MR technologies. By creating a virtual world where users can play immersive games, conduct business, interact socially, buy and sell virtual properties, and enjoy immersive entertainment, the metaverse platform enhances the overall internet experience. 

The Metaverse Market is segmented by Type (AR & VR Hardware, Social Media Engagement (Ads), Virtual Live Entertainment - Epic, Games and Roblox Gaming Services), by End-User Industry (Gaming, Media & Entertainment, Commercial, Retail), and Geography

By Type
AR & VR Hardware
Social Media Engagement (Ads)
Virtual Live Entertainment - Epic Games and Roblox
Gaming Services
By End-User Industry
Media & Entertainment
North America
Asia Pacific
Rest of the World

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Metaverse Market Trends

This section covers the major market trends shaping the Metaverse Market according to our research experts:

Gaming Segment Accounted for the Largest Market Share

  • There has been significant growth in VR and AR gamers globally, broadening the market horizon. A provider of machine learning, artificial intelligence, big data analytics, and AR/VR solutions, NewGenApps predicts that by 2025, there will be 216 million people worldwide playing VR and AR games, with a market value of USD 11.6 billion.
  • Additionally, a crucial factor that points to a promising future for VR technology in gaming is the rising comfort levels of customers in situational uses, such as VR calls and VR gaming. According to the Entertainment Software Association's statistics, around 227 million Americans play video games weekly, including two-thirds of adults and three-quarters of children under 18. The average age of video game players is 31 years, with 55% of men and 45% of women participating.
  • In February 2022, Sony released the VR2 and VR2 Sense Controllers for the PlayStation 5 to provide customers with a high-quality virtual reality experience that enables users to lose themselves in the gaming world with a broad spectrum of experiences. High visual fidelity and improved trackers are added in VR2.
  • Moreover, in July 2021, Virtex declared that it intends to introduce a virtual reality stadium, "Virtex Stadium," allowing fans to watch games with their friends from the center of the field. The introduction coincides with the rise in e-sports' popularity and the growing improvement in consumer VR hardware's performance and accessibility. According to VentureBeat data, the worldwide eSports audience was 474 million in 2021 and will increase to 577.2 million by 2024.
  • The gaming world is changing at a rapid pace. A broad range of game developers worldwide is working on various futuristic game projects for select VR/AR platforms in 2022. According to a 2022 survey by Game Developers Conference, 27% of participating game developers globally said they were working on titles for the Oculus Quest virtual reality headset.
Metaverse Market: Share of game developers worldwide working on game projects for select VRAR platforms in 2022, in Percentage

North America Holds Significant Market Share

  • North America is predicted to have the most significant adoption of the metaverse solution. It is mainly because North American users and consumers adopt new and sophisticated technologies at a very rapid pace. Americans are progressively accessing and experiencing the metaverse as realistically possible through VR, MR, AR, and other new technologies. Americans also appreciate their metaverse experience, which motivates them to spend money on gadgets that would experience it even better. The rising desire for devices that improve users' experiences encourages market expansion.
  • The growing investments businesses and individuals make in these advanced technologies, and digital solutions play a very significant role in the market's overall expansion. Additionally, due to its technological development and advancement, North America leads all other markets in the creation of advanced technology for use in display devices. For Instance, in November 2021, Unity Simulation Pro was introduced, which enables the developers to unleash the full potential of scalable simulations. It is the only product developed from the ground up to help with distributed rendering, enabling multiple Graphics Processing Units (GPUs) to render the same project simultaneously, either locally or in the private cloud.
  • The Metaverse market in North America is expanding due to the wide application of AR technology in consumer devices. Additionally, the region has adapted metaverse technologies in 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. In addition, 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 modern way.
  • Furthermore, in December 2021, Meta introduced a closed beta for a streamlined AR creation tool called 'Spark AR Go.' Meta declared the distribution of its 'Spark Augmented Reality (AR) Go' mobile software as a beta version for iOS and Android smartphones. Meta created the smartphone app to go along with its spark AR Studio Software Development Kit (SDK). This potent tool enables webAR effects and 3D content on its social media sites, including Facebook and Instagram. With the help of "Spark AR Go," AR content producers can create, test, and post immersive experiences on Meta's social media platforms, monitor user performance metrics and get user feedback.
  • Another factor anticipated to boost the regional market's revenue growth is the rising number of start-ups concentrating on creating metaverse platforms for commercialization in the region. The region's significant concentration of gaming and metaverse companies like The Sandbox, Nvidia Corporation, and Epic Games, Inc., which primarily focus on merging metaverse into games, generate market development potential. For Instance, Nvidia Corporation declared partnerships with Blender and Adobe that will allow NVIDIA Omniverse, the first collaboration and simulation platform in the world, to reach millions more users.
Metaverse Market - Growth Rate by Region (2022-2027)

Metaverse Market Competitor Analysis

The Metaverse Market is neither consolidated nor fragmented. Some of the established vendors in the market include Qualcomm Technologies Inc., AWS, and Cloudflare, among others. These companies are implementing various product development, mergers, acquisitions, strategic partnerships, etc., to launch new products to remain competitive in the market

  • February 2022 - Electronic Arts Company released GRID Legends to facilitate smooth action, organize the ideal multiplayer session, and build stories with other racers. It allows users to browse for live events that meet their preferences, enter events in real-time, open design races using the Race Creator, or create a private lobby for users' parties.
  • January 2022 - Microsoft disclosed that it has acquired Activision Blizzard, Inc. Microsoft believes that this acquisition will foster the metaverse industry's development and accelerate Microsoft's gaming business growth across mobile, PC, cloud, and console platforms.

Metaverse Market Top Players

  1. Electronic Arts Inc.

  2. Amazon Web Services, Inc.

  3. Qualcomm Technologies Inc.

  4. Cloudflare, Inc.

  5. Oculus

*Disclaimer: Major Players sorted in no particular order

Metaverse Market Concentration

Metaverse Market Recent Developments

  • September 2022 - Somnium Space and Decentraland, two most effective blockchain-based metaverse technologies, were unveiled by Wolters Kluwer. The company said that by using these highly developed platforms, they would be able to demonstrate to clients their residential properties, gaming assets, etc., improving their sales growth.
  • January 2022 - A blockchain-based gaming business, Space Falcon, raised USD 4 million to use blockchain technology in transforming conventional gaming. Additionally, the organization sought to create a metaverse environment using premium NFTs and Blockchain technology.

Metaverse Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Ecosystem Analysis

    3. 4.3 Industry Attractiveness-Porter's Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Impact of COVID-19 on the Metaverse Market


    1. 5.1 Market Drivers

      1. 5.1.1 Favorable trends such as convergence of games and social media platforms

      2. 5.1.2 Technological advancements in hardware and networking

    2. 5.2 Market Restraints

      1. 5.2.1 Moderation, Privacy, accessibility & regulatory challenges

    3. 5.3 Analysis of key business models for Metaverse

    4. 5.4 Role of NFTs in furthering ownership of gaming and event-based models (Play-to-Earn & Collect)


    1. 6.1 By Type

      1. 6.1.1 AR & VR Hardware

      2. 6.1.2 Social Media Engagement (Ads)

      3. 6.1.3 Virtual Live Entertainment - Epic Games and Roblox

      4. 6.1.4 Gaming Services

    2. 6.2 By End-User Industry

      1. 6.2.1 Gaming

      2. 6.2.2 Media & Entertainment

      3. 6.2.3 Commercial

      4. 6.2.4 Retail

      5. 6.2.5 Others

    3. 6.3 Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia Pacific

      4. 6.3.4 Rest of the World


    1. 7.1 Company Profiles - Metaverse Experiential Solutions

      1. 7.1.1 Fortnite

      2. 7.1.2 EA Sports

      3. 7.1.3 Hologate

    2. 7.2 Company Profiles - Metaverse Infrastructure

      1. 7.2.1 AWS

      2. 7.2.2 Qualcomm

      3. 7.2.3 Cloudflare

    3. 7.3 Company Profiles - Metaverse End-user devices

      1. 7.3.1 Oculus

      2. 7.3.2 Vive

      3. 7.3.3 Vuzix

    4. 7.4 Company Profiles - Metaverse Created Economy

      1. 7.4.1 Epic

      2. 7.4.2 Roblox

      3. 7.4.3 Polystream

    5. 7.5 Company Profiles - Metaverse Discovery Platforms

      1. 7.5.1 Facebook

      2. 7.5.2 Unity

      3. 7.5.3 Steam

      4. 7.5.4



**Subject to Availability
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Metaverse Market Research FAQs

The Metaverse Market is studied from 2018 - 2028.

The Metaverse Market is growing at a CAGR of 41.6% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

Electronic Arts Inc., Amazon Web Services, Inc., Qualcomm Technologies Inc., Cloudflare, Inc., Oculus are the major companies operating in Metaverse Market .

Metaverse Industry Reports

In-depth industry statistics and market share insights of the Metaverse Market sector for 2020, 2021, and 2022. The Metaverse Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Metaverse Market report PDF.

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