In recent years, the Metaverse has taken a backseat as better technologies such as artificial intelligence (AI) have taken over the headlines. But the sector continues to grow, with one report saying it will be a $1.2 trillion market by 2033.
According to a report by Brainy Insights, a market research firm based in Pune, India, the value of the Metaverse market reached $62.22 billion in 2023. The report credits the COVID-19 pandemic with driving technology growth through increased remote work and remote work. Interactive distance learning.
The post-COVID-19 period has accelerated the growth of the metaverse as several major players battle to dominate new frontiers. Meta (NASDAQ: META) is the biggest entrant, with Mark Zuckerberg announcing a shift away from a pure social media model, completing a name change and focusing on new technology.
Zuckerberg predicted that the Metaverse would reach 1 billion people over the next decade, host hundreds of billions of dollars in digital commerce, and provide jobs for millions of content creators. Microsoft (NASDAQ: MSFT) founder Bill Gates was similarly optimistic, predicting in 2021 that over the next three years, “most virtual meetings will move from 2D camera image grids to the Metaverse, a 3D space with digital avatars. I predicted that it would.”
Meanwhile, Omniscape CEO and co-founder Robert Rice believes Metaverse is well-positioned to mature within the next six months.
According to a report by Brainy Insights, North America dominates the sector and will take the lead over the forecast period. The region is home to major market players, boasts a more robust infrastructure and has the most favorable regulatory conditions.
In the Metaverse industry, the software sector will be the largest with a market share of 35% in 2023. Augmented reality is the dominant technology over virtual reality and mixed reality.
According to the report, gaming continues to dominate the metaverse and is unlikely to be usurped in the next decade. Even before the blockchain-powered Metaverse became globally popular, gamers were already participating in immersive digital worlds through VR headsets, making the transition easier.
Media and entertainment is the next largest sector for Metaverse, with a market share of 20.11% in 2023.
Although high development costs remain a challenge, the report predicts that there is significant room for growth in expanding the Metaverse beyond entertainment. This technology is currently used in education, healthcare, remote work, tourism, aerospace, and more.
The report acknowledges that using the Metaverse in more critical areas carries the risk of cyberattacks, which could hinder the technology’s growth.
See how the Metaverse is changing the world as we know it: Dereck Hoogenkamp
