Market Overview - Metaverse

Metaverse market size reached USD 47.69 Billion in 2020 and is expected to register a revenue CAGR of 43.3% during the forecast period, according to the latest analysis by Emergent Research. Rising focus on converging digital and physical worlds through the internet and the recent COVID-19 outbreak are expected to support market revenue growth between 2021 and 2028. In addition, increasing emphasis on developing metaverse platforms for the education industry will continue to boost the market's revenue growth.

The Metaverse market may reach $783.3 billion in 2024 vs. $478.7 billion in 2020, representing a compound annual growth rate of 13.1%, based on Bloomberg analysis and Newzoo, IDC, PWC, Statista, and Two Circles data. As Metaverse makers continue to elevate existing titles into 3D online worlds that better resemble social networks, their market opportunity can expand to encapsulate live entertainment, such as concerts and sports events, and fight for a share of social-media advertising revenue. The total Metaverse market size may reach 2.7x that of just gaming software, services, and advertising revenue.

Online Metaverse makers, including Roblox, Microsoft, Activision Blizzard, Electronic Arts, Take-Two, Tencent, NetEase, and Nexon, may boost engagement and sales by capitalizing on the growth of 3D virtual worlds.

Based on Bloomberg analysis, the primary Metaverse revenue opportunity for video-metaverse makers consists mainly of the existing gaming software and services market and rising gaming hardware sales within this primary market opportunity that may reach $412.9 billion in 2024 vs. $274.9 billion in 2020, software and services revenue and in-metaverse advertising revenue account for about 70% of the total market size. Although this is the existing market for online metaverse makers, those that successfully capture a higher share of users and engagement by elevating existing metaverses into virtual worlds can garner a higher share of sector sales.