According to MarketsandMarkets, the metaverse landscape is undergoing significant transformation, driven by the widespread use of virtual reality (VR) and augmented reality (AR) technologies. The convergence with artificial intelligence (AI), blockchain, and the Internet of Things (IoT) shapes various applications beyond gaming. The market is also witnessing the rise of digital economies, driven by the popularity of non-fungible tokens (NFTs).
Vendors are strategically focusing on attracting customers, with VR hardware experiencing remarkable improvements in quality, affordability, and accessibility. Notably, VR is finding applications in training and education across various industries, from medical simulations to job training, contributing to the increasing demand for the metaverse market.
The report highlights the extended reality (XR) software segment as the largest market size during the forecast period. This category encompasses AR and VR web app development tools, AR and VR mobile app development tools, AR and VR studios, software development kits (SDK), and cloud-based tools. Mass consumerization is expected to drive widespread adoption of XR software globally.
XR, a spectrum of immersive technologies including VR, AR, and mixed reality (MR), is crucial in developing and utilizing the metaverse. These technologies enhance user experiences by providing immersive environments, enabling avatar customization, and facilitating virtual meetings and collaboration. The industrial manufacturing vertical is projected to record the highest compound annual growth rate (CAGR) during the forecast period, leveraging metaverse technologies for installation, assembly, maintenance, and remote assistance.
The analysis indicates that North America will dominate the metaverse market in 2023 and beyond, holding the largest market size. This trend is attributed to numerous businesses with advanced IT infrastructure, technical skills, and a high adoption rate of the metaverse. Key players operating in North America’s metaverse ecosystem include Apple, Google, Microsoft, and Meta. Apple, in particular, stands out for its focus on integrating AR technology into its hardware.
The region’s high usage of social media apps, such as Snapchat, Facebook, and Instagram, is expected to drive demand for advanced technologies in consumer applications. Additionally, multiple cloud service providers in North America will empower metaverse companies to host virtual worlds, store large amounts of data, and leverage edge infrastructure for real-time responses, particularly in AR, VR, and gaming applications.