The Metaverse Market size is projected to grow from USD 61.8 billion in 2022 to USD 426.9 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 47.2% during the forecast period, according to Markets and Markets.
Major factors that are expected to drive the growth of the Metaverse Market include affordability of the metaverse devices for customers – the launch of VR devices in countries such as China and India at low prices, which are affordable to the masses, helps the widespread use of metaverse in consumer applications. Electronics companies are also offering XR devices as a complimentary gift on the purchase of electronic appliances such as television sets, gaming monitors, and gaming consoles. Furthermore, surge in demand of devices, such as VR headsets, MR headsets, HUD, HMD, smart glasses, smart helmets, from media & entertainment industry is expected to drive the market. The key reasons for adopting these technologies are that they can offer the first-person perspective, act as natural user interfaces, and provide 6-degree freedom, to create realistic-looking virtual scenarios to enhance the overall gaming experience of end users; hence enabling to create ample opportunities for metaverse vendors.
The hardware segment to hold a larger market size during the forecast period
The software segment for the Metaverse Market is projected to contribute majorly among the components division, while the hardware segment is projected to witness a higher growth rate during the forecast period. This high software market share is attributed to the need for creating 3D ecosystems using engines, enabling its centralized as well as decentralized storage, movement and data update securely and optimizing vendors and users coordination in getting the best out of them as well. Direct impact factors such as with 3D reconstruction, the software can create realistic and natural-looking spaces, through special 3D cameras, we can take our world online by rendering accurate 3D photorealistic models of buildings, physical locations, and objects, now volumetric video is a technique for capturing footage in three dimensions for viewing in virtual or mixed reality environments. Metaverse software have several use cases, especially in sports, entertainment, medical, education, training, and advertising applications. When a real object is recorded with volumetric capture, the content is fully scanned and reproduced by recording details such as depth, intensity, color, and other parameters. Components such as camera arrays, processing units, sensors, and photogrammetry software programs capture and process volumetric videos, and these have very delicately contributed to the high adoption of the metaverse software.
Asia Pacific to grow at the highest CAGR during the forecast period
The region is projected to experience extensive growth opportunities the reason being higher consumer spending and internet implementation and usage, and the rising adoption of advanced technologies, such as XR, AI, and cloud. The qualitative presence of many display panel manufacturers in the region has led to a rising demand for the latest display technologies, such as 3D displays and holographic displays. The rise in demand for extended reality devices and metaverse software from the consumer, commercial sector is expected to drive the market’s growth in the Asia Pacific. Asia Pacific registers the highest demand for consumer electronic products such as smartphones, tablets, laptops, and TV sets. The region is a booming, attractive market for cellphones, tablets, laptops, and television manufacturers. Key vendors in this region are electronics and IT giants namely Samsung, LG, Sony, Panasonic, Sharp. BCS Bureau