The metaverse market is expected to surpass $500bn by 2028, driven by increasing investments in metaverse and crypto technology, according to a new study by Global Market Insights.
The segment is expected to grow at a compound annual growth rate (CAGR) of around 35% from 2022 to 2028 due to the “increasing demand for smart wearable devices [for enhanced gaming experiences] and the extensively growing gaming industry”.
Looking at the global metaverse market, Global Market Insights said Europe is projected to grow exponentially following the rising adoption of advanced technologies and increasing demand for 5G network services.
“The number of individuals working remotely in the countries, such as France, Germany and the UK, is relatively high, enabling enterprises to adopt advanced virtual platforms. Moreover, the increasing adoption of cloud computing services is driving leading vendors, such as Amazon Web Services and Microsoft Corporation, to serve their requirements,” said the study.
Avatars and online shopping
According to the research, the avatar offerings segment accounted for more than 20% of the metaverse market share in 2021 as a consequence of the growing adoption of digital avatars.
“The retail sector is increasingly using avatars to provide improved services and enhanced customer satisfaction. Avatars consist of the capability to efficiently handle customers and offer relevant product recommendations. Moreover, healthcare and education sectors are also extensively using avatars with the help of conventional [artificial intelligence] AI technology,” said the study.
In addition, online shopping is projected to register a 35% gain by 2028, led by the increasing level of digitalisation across the retail sector.
Immersive experiences – artificial realitty, virtual reality and mixed reality – are transforming the retail sector by “revising the space of retail stores [and] providing customised and personalised experiences to the customers”. The study added: “Various retail companies are taking steps toward the adoption of [the] metaverse to transform the way of interacting with customers.”
Tech giants investing in the metaverse
Tech giants, such as Meta Platforms (formerly Facebook), Microsoft and Amazon, are extensively investing in the metaverse to enhance customer experiences, focusing on developing advanced metaverse games and platforms.
For instance, in November 2021, Microsoft launched its corporate metaverse. The company is expanding the metaverse concept into its existing software and applications. Microsoft Team’s software is also planning to develop AI-powered avatars and an immersive workspace.
Meanwhile, Meta recently announced the opening of a Meta Store, the first physical retail space, which will open in May in California.
In October 2021, Meta invested $10bn in its Facebook reality lab, a metaverse division, expanding its AR/VR offerings to improve its customer experience.