Metaverse Analysis: Market Share and Size, Growth Predictions

Many people predicted the rapid growth of the Metaverse. The size of the Metaverse market is usually estimated based on calculations of the development of the sectors that make up the emerging industry of the Metaverse. 

However, sizing the Metaverse market is challenging as the sectors that make up this industry are just emerging, and the concept of Metaverse is relatively new. In this article, we will look at the structure of the Metaverse market, which will give us a better understanding of its market size.  

Table of Contents

Market Overview

The Metaverse is a fast-growing virtual reality with a large user base across various applications, such as gaming, content creation, social interaction, training, learning, and online virtual commerce. Due to the growing acceptance of VR, AR, and MR technologies, the global media, entertainment, and gaming industy have seen the most rapid growth.

Devices like VR headsets, MR headsets, HMD, HUD, smart helmets, and smart glasses can provide first-person views, act as natural user interfaces, and allow 6 degrees of freedom to create realistic images. Among other things, these devices create realistic-looking virtual scenarios to enhance the overall gaming experience of end users.

Through the development of various gadgets and solutions, the user experience has been dramatically improved. The virtual user experience in real-time has been one of the best gifts technology offers humanity. 

Leading companies in the market have invested heavily in response to the growing demand for extended reality devices. The recognition of the Metaverse in games and entertainment are predicted to grow as important market participants increase their investments and advances. 

Metaverse Market: COVID-19 Impact Analysis

The impact of COVID-19 has resulted in overwhelming demand for services during the forecast period. Above-average growth is primarily due to a significant acceleration in the development of online video game and video conferencing services. Because of this, the Metaverse market experienced 3.3% growth in 2020 compared to 2.6% in 2019.

The growth is attributed to a surge in the adoption of online video games and growing consumer preference for online shopping for retail products. According to the Newzoo Report, the global e-sports gaming audience reached about 495 million in 2020, up 11.7%, and is projected to reach 646 million by 2023. This growth in the gaming audience has created a massive demand for the services market. 

In addition, the pandemic has changed the demand for online and virtual shopping. The mainstream has prompted several organizations to enter the online marketplace. Several leading players have completed investments during the pandemic by adopting various business strategies, partnerships, and product launches. For example,

  • Niantic Inc., the VR and AR platform, raised $300 million from gaming company Coatue Pokemon Go. The company is planning to build a real-time virtual world platform. 
  • Epic Games Inc. received $1 billion in funding to support the future growth opportunities of the Metaverse market. The company’s funding round includes a $200 million strategic investment from Sony Group Corporations. 

Moreover, the revenues of the leading players have increased since the pandemic, which has increased the demand for services. 

Top Impacting Factors

The Increase in Interest in Virtual Tokens and NFTs

In recent years, non-fungible NFT tokens have received significant growth and acceptance. The rise in popularity of virtual goods and digital currencies among the younger generation is fueling the growth of NFTs. 

According to a US news outlet CNBC report in March 2022, the total number of NFT transactions was more than $17.6 billion, up 210.00% from 2020 to 2021. Such cases contribute to the growing popularity of virtual goods and currencies in today’s digital landscape that the Metaverse global marketplace is driving.

Work From Home and Remote Tools

With the advent of Metaverse platforms, users have found an innovative way to communicate with other people from all over the world in a fictional world and spend time in virtual worlds with limitless possibilities. Metaverse can provide tools to address the current challenges of working remotely and from home. 

Metaverse can provide businesses and organizations with a virtual environment where they can meet and manage their employees, communicate with them, read their body language, and maintain face-to-face interactions while remote. In addition, by tracking the team in the virtual office, employers can address issues such as workplace time theft. This application of Metaverse platforms in modern workplaces is fueling the growth of the Metaverse market. 

Market Restraints

High Cost of Installing and Maintaining Meta Components

Metaverse hardware includes XR devices combined with sensors, trackers, semiconductors, and other state-of-the-art hardware. To experience the Metaverse in a realistic and immersive way, large storage, high node hardware, and fast networking play an important part, which is more costly. These devices, used in the Metaverse, employ 3D and other modern technologies to create a realistic virtual environment, increasing their cost. 

Metaverse software costs more, such as 3D modeling, engines, and rendering tools. In addition, the installation of these devices and gadgets and their solutions require additional costs. Furthermore, the maintenance costs of these devices add to all the investment needed to understand this technology. Consequently, high installation and maintenance costs hinder the growth of the global metaverse market. 

Security Concerns Related to Virtual Currencies

One of the main issues holding back this exponentially growing market is the security and legality of virtual currencies. It has been challenging to convince users of the safety of any trade on the virtual market, which combines various digital and physical currencies to make them a fast and easy exchange. 

Furthermore, cryptocurrencies are banned in several countries as some perceive them as a threat to their current monetary systems while at the same time concerned about their use to access illegal activities such as money laundering, drug trafficking, and terrorism. For example, from 2021, the Indian government has banned financial institutions and banks from working with virtual currencies and offering any services to use funds. 

Moreover, some of the major players in the metaverse market have suffered billions of dollars in losses due to atmospheric cyberattacks. Thus, the increase in the number of cyber-attacks and highly sensitive issues hinders the growth of this market. 

Market Opportunity

Infrastructure Development in Emerging Nations

The Metaverse can grow in several ways, depending on an ecosystem of innovation, investment, policy, and research. If the Metaverse materializes, it will evolve into events that no one can foresee. Anyone claiming to know what will happen lacks the adaptability of inquisitive optimism. 

The Metaverse has the potential and promises to be an extension of people’s lives where they can constantly work, live and play in real-time. While the Metaverse provides consumers with an immersive user experience, it also empowers businesses across various industries. However, this opportunity can only be fully exploited with effective Internet penetration, including Wi-Fi, 5G, in-home fiber, satellite broadband, private networks, and more. 

These services will require a high-speed connection that can support an intense and seamless on-demand user experience. Ascribed dependency, communications service providers (CSPs) are in the best place to get involved and take advantage of this marketplace’s endless possibilities. 

Moreover, telecommunications companies, technology companies, and the government should work together to improve the network and create an efficient infrastructure that supports 5G and other advanced technologies such as the Metaverse. In addition, network optimization, reducing latency between devices and within networks with radio access, also needs to be reassessed. 

When it comes to enhanced connectivity, several wireless technologies need to be looked at today. For example, Bluetooth lacks range, reliability, and speed. Current generations of WiFi offer the speed you need but often suffer from congestion and huge latency when connecting multiple devices. Communication service providers will be able to act as aggregators for several types of networks. 

When it comes to enhanced connectivity, a seamless end-to-end customer experience will be critical when entering and leaving the network. Artificial intelligence and network management will become extremely important in managing this.

Components Insights

The hardware segment accounts for the largest revenue share in 2021, with a CAGR of 39% from 2022 to 2030. This segment comprises consumer equipment providers such as augmented reality, VR/AR headsets, and displays

This segment includes other hardware devices: tracking systems, projections, industrial cameras, and scanning sensors. 

Cutting-edge technological advancement in ER and VR is a crucial factor driving the growth of the hardware segment. There are a lot of companies that can provide asset-creation tools as well as programming engines. 

Unreal Engine and Unity are game engines that create digital worlds in the gaming sector. Unreal Engine and unity are used to create the digital world in games like Fornite. With the growing interest in online gaming, games are creating a more realistic environment, which is a significant factor supporting the revenue growth of the software and hardware segments. 

  • The hardware segment was valued at $38 billion in 2021 and has a CAGR of 44.2% from 2022 to 2030.
  • The Software segment reached $13.70 billion in 2021 and grew at a CAGR of 45.3% from 2022 to 2030. 

Platform Insights

Based on the platform used, the desktop segment had the largest revenue share in the global metal market until 2021. Valve index, HTC Vive, and Oculus are AR and VR headsets that work well when paired with a powerful desktop computer. Furthermore, revenue growth in the desktop platforms segment is expected to increase as both enterprise and consumer spaces develop. There are a lot of VR experiences exclusive to PC in high definition. 

The desktop and mobile segments will experience robust revenue growth over the forecast period. The use of smartphones has become highly significant over the past decade. It was noted that over the past decade, there has been a substantial shift in viewing YouTube content, which is about 70% on mobile phones worldwide. In many developing countries, the smartphone is the only powerful multimedia device available to users. 

Therefore, the concept of the Metaverse on mobile devices is growing. As the trend includes developing countries, this is becoming a growing area for many competing companies. Due to the COVID-19 pandemic and lockdown, there has been significant growth in the Metaverse market in developing countries. For these reasons, the metal market is expected to grow even in developing countries. 

Offering Insights

Based on supply, the asset market segment is expected to grow at a maximum CAGR of 41% over the forecast period. 

The virtual platform is about creating and managing immersive settings, digital 3D simulations, and environments that allow people and other businesses to create, communicate, explore and participate in various activities. Increasing smartphone use in developing countries is driving the penetration of metals and an increase in app developers. 

The increasing availability of high-speed and broadband Internet connectivity is a significant driver of revenue growth in the virtual platforms segment. Following the world zoom platform segment, the asset market segment is also expected to grow well during the forecast period. This segment will present great income opportunities for many market participants. Asset marketplaces are used to purchase digital assets.  

Somnium Space VR is an asset market used to buy digital assets. This allows users to sell and buy virtual land on Ethereum. It is a platform that is based on blockchain technology. Many significant investments are forecast to do so, and it is expected to support the growth of this segment.  

Technology Insights

Regarding technology, the market share of virtual and augmented reality in 2021 was about 36%. The Metaverse creates a sense of virtual presence using virtual 3D environments. The technology that is used to make this sense of virtual reality is VR and AR. They are expected to become the most revolutionary technological changes in the next five years. This is the main factor that is expected to influence the forecast period. 

Following the augmented and virtual reality segments, the blockchain segment is also expected to show steady growth during the forecast period. Blockchain technology helps provide digital proof of ownership, transfer of value through cryptocurrencies or regulators, and digital asset collection. Axie Infinity, Decentraland, and Secondlife are blockchain-based metaphors that open up opportunities for various companies to meet growing demand. 

Application Insights

Regarding apps, the gaming segment accounted for the largest revenue share in 2021, at about 28%.

The social media segment is expected to grow strongly during the forecast period. There is a growing focus on improving the social interaction of various users on social media platforms. This is a key factor determining the trend in the market. Social media companies may use virtual reality and 3D metal imaging to improve their social connections and enhance the user experience. 

The introduction of 5G networks and artificial technologies, in addition to cloud processing, are key factors that are expected to support the future revenue growth of the social media segment. In the gaming sector, adopting the Metaverse is expected to gain momentum. 

There are a lot of growing investments in the game to earn profit which helps players to make money. Also, there is an increase in spending money on virtual skins, virtual events, virtual avatars, and other virtual items. 

End User Insights

In 2021, the media and entertainment market share was 39%. Metaverse can influence the content and experience of all these sectors. The media and entertainment sector help to improve the social interaction of participants. Companies are using metaphors to add value to entertainment brands to enhance their operations, such as world-building, immersive storytelling, and fan creativity. Captivating storytelling, building a ward and unleashing frank creativity, or assisting in creating a franchise.  

It also helps to increase the number of people who engage in this activity. With an immersive and interactive experience, the storytelling concept will be enhanced. During the pandemic, the media and entertainment segment received good support. Many artists have had to play virtual concerts in 2020 due to tight restrictions during the pandemic. Insomniac has partnered with Roblox. With the help of these platforms, a musical event was created. 

The defense and aerospace segments are also expected to grow significantly during the forecasted period. There reported cases of military training for the Navy, army, and Air Force with the support of the Metaverse, which has increased the quality of personal training and the chances of successful missions.

The meter training soldiers and other personnel is an extremely exciting, entertaining, and enjoyable experience. This ensures more active participation and a better understanding of the concept, which contributes to better learning. 

Regional Insights

North America’s 2021 revenue share was about 46%. Due to the presence of many large companies located in the North American market, the market is expected to experience significant growth. Various academic and research centers present in the region are working to explore other metal market theater potentials. There should be rapid and conditional growth in the Asia Pacific region. 

Due to strong economic development and the reduction of digitalization in countries such as India, Japan, and China, the market is expected to grow. 

The presence in this region of various technology giants, government departments, and startups facilitates technological progress. The reasons behind the market’s anticipated expansion are the presence of a reliable industrial environment, the technological revolution, and high commercial value in the Asia-Pacific market related to social media, entertainment, digitization trends, education, and games.

Recent Developments

  • Epic Games’ 3D development tool Unreal Engine will link to the Spire animation pipeline to create the Metaverse in February 2022, allowing the firm to bring existing character assets and worlds into the Metaverse. 
  • Tencent Holding Ltd. announced its interest in acquiring gaming smartphone maker Black Shark in January 2022, moving deeper into the Metaverse. Black Shark is one of the most famous manufacturers of gaming smartphones in China. After the purchase is completed, it will become a manufacturer of VR headsets for Tencent. 
  • The world’s first technological platform, NVIDIA Omniverse Enterprise, enables global 3D design teams working across multiple software to collaborate in real-time within a shared virtual realm.
  • The Sandbox announced a partnership with Warner Music Group to launch the first music world in The Sandbox metaverse. With this alliance, Warner Music Group (WMG) will take its first steps into the Metaverse and NFT sectors. 
  • Tencent announced a partnership with the Asian Digital Finance Institute. The companies will collaborate on education, entrepreneurship, and research to support Asia’s fintech industry. 
  • Epic Games, Inc purchased Harmonix Music Systems, Inc. While continuing to push the existing products like Rock Band 4, the team will work with Epic Games Inc to create musical adventures and gameplay for Fortnite. 
  • Facebook Reality Labs is estimated to have spent at least $10 billion to create AR and VR hardware, software, and content. Facebook Reality Labs is a Meta Platform, Inc division, formerly known as Facebook, Inc. 

Metaverse Market Forecasts

Various market experts have calculated how far they think the Metaverse Market size will grow in the next eight years. While all of these market analysts agree that the Metaverse market will be significant by the end of the decade, the market size tends to vary considerably. 

These estimates range from $700 billion to $13 trillion. This wide range of estimates is because estimating the market size of an industry entails many assumptions about how these markets will grow over the next decade, literally predicting the future. While examining various metaverse market size calculations, Metaverse Insider conducted a meta-analysis of various market sizes, comparing the differences in the estimates of these market sizes.  

Simply put, market size refers to the total addressable market of a particular industry. It includes the total revenue that the Metaverse market will generate, which can also be called the general address market. In other words, analysts estimate an industry’s total income by calculating the current total income and assessing the growth rate of the underlying sectors. 

Many organizations tend to calculate and project the size of the Metaverse Market based on assumptions and predictions of how the Metaverse market will develop and how much revenue each sector will generate. 

Companies use these market size calculations to identify opportunities in an existing market. Startups also use these numbers to analyze market entry and justify investment in a highly volatile and unpredictable enterprise. 

The calculations of various market analysts have helped developers, investors, and other new entrants in the Metaverse market to identify the opportunities presented in the Metaverse.

In June 2022, McKinsey & Company released a detailed market report titled Value creation in the Metaverse. The report predicts the Metaverse market size to be $5 trillion by 2030. This is indeed an ambitious prediction. However, in Appendix B, the report details how McKinsey & Company calculated the size of the $5 trillion market. This section looks at each part of the Metaverse industry and explains how the market size for each section was calculated. Readers can analyze the sectors that make up the industry of the Metaverse. 

Moreover, readers can understand the size of the metaverse market and interpret which sectors will have an impact in the coming decade. Reading descriptions of how the market size of each sector was calculated, one can understand that many of these calculations are based on assumptions and conjectures. While it is nearly impossible to make a correct prediction, this is a helpful guide for decision-makers.


The Metaverse concept is still a new idea, including many emerging technologies such as 5G, artificial intelligence, and blockchain technology. It is difficult to predict the growth of all such technologies and reach a certain number. The size of the Metaverse market is a great tool for predicting the growth of Metaverse and identifying the sectors in which to get involved. In conclusion, while the numbers may vary, the success of Metaverse is universally acknowledged by market experts.

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