Global metaverse market to reach $996 bn in 2030: Report

The global metaverse market is expected to reach $996 billion in 2030, at a compound annual growth rate (CAGR) of 39.8%, according to a new report. The report based on a study done by data and analytics company GlobalData revealed that the metaverse market size reached a value of $22.79 billion in 2021.

Metaverse is a technology that reduces the gap between the real and virtual world by using a combination of augmented reality (AR), virtual reality (VR) and blockchain and is expected to change in the way we work, interact, consume and transact.

"The strong presence of big technology giants in the advanced economies of North America and the emerging economies in the Asia-Pacific region are fuelling the metaverse market growth," said the report, adding that India is also becoming a key player in the metaverse universe.

American multinational investment bank Goldman Sachs calls metaverse a $8 trillion global opportunity by 2025 with India's own Metaverse-non-fungible technology (NFT) economy—already worth an estimated $50-100 million annually— and is expected to touch $100 billion by 2025.

The report said that globally brands are already spending 2-5% of their digital budgets on NFTs (the most successful element of metaverse till date), and that could touch 30-40% in the next five years.

Notably, companies especially those in non-tech sectors, are now increasingly investing in the technology for better engagement with customers, brand awareness expansion, and identification of new revenue streams, the study said.

"As of 2021, the media and entertainment market captured a sizable revenue share of the metaverse market. The entertainment experience we have seen through the metaverse has been through music and concerts," said Deepak Agarwal, Project Manager at GlobalData.

The report also said that various players in the technology sector, including those manufacturing semiconductors, components, and application software, are also leveraging metaverse.

Already, Indian companies like Mahindra & Mahindra, Tanishq, Cadbury’s India, Tata Tea and MakeMyTrip have ventured into the metaverse space and are paving the road to the digital future. Companies in these regions are focusing on Blockchain, machine learning, AR and VR, adtech, payment platforms, enterprise applications, gaming, data governance and others.

Even the Nasscom Centre of Excellence (CoE), in association with the electronics and IT ministry and K-Tech will organise a 'first-of-its-kind' metaverse conclave on October 13 in Bengaluru to spur engagements and discussion with industry leaders around the future business opportunities and innovations in the metaverse ecosystem.

"The metaverse is still largely conceptual but could transform how people work, shop, communicate, and consume content. Although it is in the early stages of development, it has the potential to be the next mega-theme in digital media," said Agarwal.

“Furthermore, the large-scale adoption of next-generation technologies, including AR and VR will accentuate the adoption of metaverse by most of the stakeholders involved,” he added.

Similar views have been expressed in other studies as well. For example, a study commissioned by software firm Ciena this month that surveyed 15,000 business professionals globally, including India, also found that 89% of Indian respondents, higher than the global average of 71%, could imagine their company introducing metaverse in their work processes.  

The study also said that the rollout of the fifth-generation or 5G technologies will play a pivotal role in advancing the use of Web 3.0 technologies. Due to its low latency, fast speed, and enormous capacity, 5G will effectively support the Metaverse and make it possible for digital words to functions.