According to a new research report, the metaverse market is expected to hit $1.5 trillion in global market value by 2029.
The global metaverse market is projected to grow from $100.27 billion in 2022 to $1.527 trillion by 2029 at a compound annual growth rate (CAGR) of 47.6% during that period, according to a new market research report by Fortune Business Insights (FBI). The report outlines several important factors expected to drive the growth of the metaverse industry, including rapidly growing online e-commerce and gaming markets, as well as the emergence and growth of blockchain technology.
Gaming and E-Commerce Boosting Metaverse Growth
Market research firm Fortune Business Insights published a new report, “Metaverse Market Forecast, 2022-2029”, which estimates the global metaverse market will grow to $1.5 trillion by 2029. The report suggests that the metaverse market is expected to grow at a whopping pace over the next few years, given that the market was valued at just $100.2 billion and $68.8 billion a year ago.
The report noted that the exponential growth of online shopping, gaming, and blockchain technology is estimated to support the metaverse expansion. Online video game services have experienced a boom during the coronavirus pandemic, and the gaming industry is now seen as one of the key metaverse growth drivers.
Newzoo recently reported that the global gaming audience for e-sports is estimated to hit $646 million by 2023 as major industry players continue to invest in gaming startups. Last year, Space Falcon secured roughly $4 million to support traditional blockchain-based gaming. Last September, Facebook (NASDAQ:META) owner Meta announced a $50 million fund to facilitate the research and development of metaverse.
Robust Demand for AR and VR Devices
In the report, the FBI also said the growing demand for sophisticated virtual reality (VR) and augmented reality (AR) devices from medium-scale, large-scale businesses and individual consumers are stimulating market growth. In February 2022, the Ethereum-powered metaverse platform Decentraland raised $1.2 million through a fungible tokens auction. The report states,
“Metaverse is a simulated digital environment that is enabled with augmented reality (AR), virtual reality (VR), mixed reality, Blockchain, and others. These technologies are used to create areas for a rich user experience of the virtual space.”
The Tokenist reported in June 2021 that the demand for talent in crypto and metaverse space is on a sharp rise, resulting in aggressive hiring efforts by major crypto firms. That trend has slowed down significantly this year as central banks' record-high inflation and hawkish monetary policy wiped billions off nearly all markets.