Metaverse to grow at 47% CAGR, Estimated to be worth $1.5T by 2029: Report

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 that are 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”, estimating 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 is currently 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 gaming using blockchain technology. Last September, Facebook owner Meta announced a $50 million fund to facilitate the research and development of metaverse.

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Robust Demand for AR and VR Devices

In the report, the FBI also said growing demand for sophisticated virtual reality (VR) and augmented reality (AR) devices from medium-scale and large-scale businesses and individual consumers are stimulating the market growth. In February 2022, the Ethereum-powered metaverse platform Decentraland raised $1.2 million through a fungible tokens auction.

“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 report states.

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 record-high inflation and hawkish monetary policy by central banks wiped billions off nearly all markets.

Do you think the global metaverse market will reach the projected $1.5 trillion market value by 2029? Let us know in the comments below.