Article 6: How much is the metaverse Worth?
The metaverse market is growing, regardless of the short-term lack of interest Wall Street. Even though multiple metaverse ETFs have liquidated, metaverse growth has continued thanks to platforms like Roblox whose growth in users have continued into 2024.
The current market capitalization of the 12 top metaverse stocks, based on stockanalysis.com is over $7 trillion. This includes mega-cap stocks like Apple, NVIDIA, Meta Platforms, Advanced Micro Devices, Adobe, and others that are making significant investments in the metaverse.
The Current Value of Metaverse Platforms
There are numerous ways to measure the value the metaverse.
A report by grandviewresearch.com valued the global metaverse size to be over $65 Billion in 2022 with a CAGR of 41%. This means in 2024, the estimated metaverse size should now be sitting at $136 Billion.
That outlook differs from the estimated metaverse size reported by Statista, with its current 2024 estimated value at $74.4 Billion. This is off from the CAGR of 41%, and looking back at 2022 reports is looks that the market research was more bullish than what the reality currently is.
Precedence research estimates the metaverse market in 2024 is at $128 Billion. A keynote from precedence research is that hardware took the lion share of the market at 73.21% in 2023.
Sectors of the Metaverse Market
The global metaverse market can be broken down into several components:
Software & Services: This includes the software platforms that power the metaverse and the services that support their operation. The Metaverse Software segment is projected to record a 33.9% CAGR and reach $588.9 Billion by the end of the analysis period.
Displays: These are the devices that users employ to interact with the metaverse, such as VR/AR headsets.
Asset Creation Tools: These tools allow users to create digital assets for use within the metaverse.
Programming Engines: These are the engines that power the creation and operation of the metaverse.
Extended Reality Hardware: This includes devices like smart glasses, omni treadmills, and haptic sensors & devices that enhance the user’s experience in the metaverse.
As for the platforms that make up this market, here are some of the major ones:
Which Platforms Make up the Metaverse Market
Decentraland: A decentralized platform where users can create, trade, and monetize virtual experiences
The Sandbox: An Ethereum-based decentralized gaming metaverse where players can create, sell, buy, and monetize their virtual reality NFTs.
Roblox: A user-generated content platform and one of the largest metaverses.
Upland: A blockchain-based metaverse that merges the real and virtual world
Axie Infinity: A digital pet universe where players can earn tokens by playing the game.
Meta Platforms: One of the pioneers in the development of the metaverse
Microsoft: With its advancements in cloud computing and acquisition of gaming companies, it is well-positioned for the metaverse. The recent acquisition of Activision-Blizzard gives them access to multiple titles like some of the older metaverses like World of Warcraft and Battle.net.
NVIDIA: Its graphics processing units (GPUs) are crucial for powering the virtual and augmented reality experiences that are central to the metaverse.
Epic Games: Known for its popular game Fortnite, the private company is also developing its own metaverse platform.
Google: It is also making strides in the metaverse space with their virtual reality and augmented reality hardware.
What is the Expected Growth of Metaverse Stocks?
What’s Driving Metaverse Growth?
The growth of the metaverse is driven by several key factors:
Gaming: The gaming industry has been an innovator in experience and technology for many years. The metaverse will use gaming technologies, methodologies, development tools, and even game theory to create experiences for both entertainment and training simulations.
Digital Humans: These are interactive, AI-driven representations that have some of the characteristics, personality, knowledge, and mindset of a human. Organizations are already planning on using digital humans to act as identified digital agents within metaverse environments for customer service, support, sales, and other interactions11.
Integration of Digital and Physical Worlds: The growing focus on integrating digital and physical worlds using the Internet is a major driver for the metaverse.
AR, VR, and MR Technologies: The increasing momentum and popularity of Mixed Reality (MR), Augmented Reality (AR), and Virtual Reality (VR) are driving the growth of the metaverse.
Cryptocurrencies and Non-Fungible Tokens (NFTs): Cryptocurrencies redefine transactions, creating a decentralized, borderless digital economy within virtual realms. NFTs revolutionize ownership by certifying the uniqueness and provenance of digital assets.
High-Speed Internet and 5G: The availability of high-speed internet and the use of 5G are key drivers for the metaverse.
Forecasted Metaverse Revenue Growth
The expected revenue from the metaverse through 2030 varies according to different sources:
Statista’s Advertising & Media Markets Insights estimates that worldwide metaverse revenue will stand at USD 490 billion in 2030. This is a conservative forecast.
Other analyst companies assume a market volume of between approximately 750 and 1,700 billion U.S. dollars.
P&S Intelligence projects the global Metaverse Market to generate USD 1,525.7 billion revenue in 2030.
Researchandmarkets.com estimates the metaverse economy will be worth USD 400 billion by 2030, up from USD 48 billion in 2022.
Final Thoughts
Overall, the consensus is very bullish for the metaverse market space through the rest of the decade. CAGR predictions are bullish in the region of 30% to nearly 50%. Technology companies have reacted with capital being pushed into these areas.
Though some of these predictions may be too hopeful, it looks promising that the metaverse megatrend will continue to grow for the next ten years.
Read More
Investments in Metaverse Stocks
How the Metaverse Makes Money
Metaverse Investment Analysis
Article 6: How much is the metaverse Worth?
The metaverse market is growing, regardless of the short-term lack of interest Wall Street. Even though multiple metaverse ETFs have liquidated, metaverse growth has continued thanks to platforms like Roblox whose growth in users have continued into 2024.
The current market capitalization of the 12 top metaverse stocks, based on stockanalysis.com is over $7 trillion. This includes mega-cap stocks like Apple, NVIDIA, Meta Platforms, Advanced Micro Devices, Adobe, and others that are making significant investments in the metaverse.
The Current Value of Metaverse Platforms
There are numerous ways to measure the value the metaverse.
A report by grandviewresearch.com valued the global metaverse size to be over $65 Billion in 2022 with a CAGR of 41%. This means in 2024, the estimated metaverse size should now be sitting at $136 Billion.
That outlook differs from the estimated metaverse size reported by Statista, with its current 2024 estimated value at $74.4 Billion. This is off from the CAGR of 41%, and looking back at 2022 reports is looks that the market research was more bullish than what the reality currently is.
Precedence research estimates the metaverse market in 2024 is at $128 Billion. A keynote from precedence research is that hardware took the lion share of the market at 73.21% in 2023.
Sectors of the Metaverse Market
The global metaverse market can be broken down into several components:
Software & Services: This includes the software platforms that power the metaverse and the services that support their operation. The Metaverse Software segment is projected to record a 33.9% CAGR and reach $588.9 Billion by the end of the analysis period.
Displays: These are the devices that users employ to interact with the metaverse, such as VR/AR headsets.
Asset Creation Tools: These tools allow users to create digital assets for use within the metaverse.
Programming Engines: These are the engines that power the creation and operation of the metaverse.
Extended Reality Hardware: This includes devices like smart glasses, omni treadmills, and haptic sensors & devices that enhance the user’s experience in the metaverse. As for the platforms that make up this market, here are some of the major ones:
Which Platforms Make up the Metaverse Market
Decentraland: A decentralized platform where users can create, trade, and monetize virtual experiences
The Sandbox: An Ethereum-based decentralized gaming metaverse where players can create, sell, buy, and monetize their virtual reality NFTs.
Roblox: A user-generated content platform and one of the largest metaverses.
Upland: A blockchain-based metaverse that merges the real and virtual world
Axie Infinity: A digital pet universe where players can earn tokens by playing the game.
Meta Platforms: One of the pioneers in the development of the metaverse
Microsoft: With its advancements in cloud computing and acquisition of gaming companies, it is well-positioned for the metaverse. The recent acquisition of Activision-Blizzard gives them access to multiple titles like some of the older metaverses like World of Warcraft and Battle.net.
NVIDIA: Its graphics processing units (GPUs) are crucial for powering the virtual and augmented reality experiences that are central to the metaverse.
Epic Games: Known for its popular game Fortnite, the private company is also developing its own metaverse platform.
Google: It is also making strides in the metaverse space with their virtual reality and augmented reality hardware.
What is the Expected Growth of Metaverse Stocks?
The global metaverse market size was estimated at USD 65.5 billion in 2022. It is expected to grow at a compound annual growth rate (CAGR) of 41.6% from 2023 to 2030.
explodingtopics.com assesses that the metaverse market could reach $936.57 billion by 2030.
The Tech Report predicts that the worldwide number of Metaverse users is expected to exceed 1.4 billion by 2030, with the user penetration growing three-fold and hitting 18%.
Influencer Marketing Hub suggests that global spending on VR/AR, the metaverse’s foundation technologies, is expected to rise from $12 billion in 2020 to $72.8 billion in 2024.
Statista forecasts that by 2030, the number of users in the Metaverse market is expected to reach 2.6 billion users. The user penetration is predicted to be 14.6% in 2024 and is expected to increase to 39.7% by 2030.
Toptal cites that Goldman Sachs projects that between 15% and 33% of the global spend on digital transactions will eventually switch to the metaverse.
With metaverse platforms implementing ads within their experiences, these revenue projections could be significantly missing a key growth area for the metaverse megatrend.
What’s Driving Metaverse Growth?
The growth of the metaverse is driven by several key factors:
Gaming: The gaming industry has been an innovator in experience and technology for many years. The metaverse will use gaming technologies, methodologies, development tools, and even game theory to create experiences for both entertainment and training simulations.
Digital Humans: These are interactive, AI-driven representations that have some of the characteristics, personality, knowledge, and mindset of a human. Organizations are already planning on using digital humans to act as identified digital agents within metaverse environments for customer service, support, sales, and other interactions11.
Integration of Digital and Physical Worlds: The growing focus on integrating digital and physical worlds using the Internet is a major driver for the metaverse.
AR, VR, and MR Technologies: The increasing momentum and popularity of Mixed Reality (MR), Augmented Reality (AR), and Virtual Reality (VR) are driving the growth of the metaverse.
Cryptocurrencies and Non-Fungible Tokens (NFTs): Cryptocurrencies redefine transactions, creating a decentralized, borderless digital economy within virtual realms. NFTs revolutionize ownership by certifying the uniqueness and provenance of digital assets.
High-Speed Internet and 5G: The availability of high-speed internet and the use of 5G are key drivers for the metaverse.
Forecasted Metaverse Revenue Growth
The expected revenue from the metaverse through 2030 varies according to different sources: Statista’s Advertising & Media Markets Insights estimates that worldwide metaverse revenue will stand at USD 490 billion in 2030. This is a conservative forecast.
Other analyst companies assume a market volume of between approximately 750 and 1,700 billion U.S. dollars.
P&S Intelligence projects the global Metaverse Market to generate USD 1,525.7 billion revenue in 2030.
Researchandmarkets.com estimates the metaverse economy will be worth USD 400 billion by 2030, up from USD 48 billion in 2022.
Final Thoughts
Overall, the consensus is very bullish for the metaverse market space through the rest of the decade. CAGR predictions are bullish in the region of 30% to nearly 50%. Technology companies have reacted with capital being pushed into these areas.
Though some of these predictions may be too hopeful, it looks promising that the metaverse megatrend will continue to grow for the next ten years.
Read More
Investments in Metaverse Stocks
How the Metaverse Makes Money
Metaverse Investment Analysis