Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Metaverse Market size was valued at USD 120.5 billion in 2024 and is poised to expand to USD 17.1 trillion during the forecast timeline from 2025 to 2037, expanding at a CAGR of 46.1% during the forecast period. In 2025, the industry size of metaverse is assessed at USD 168.2 billion.
A major indicator of a market’s growth is a well-established supply chain involving a complex network of software developers, service providers, and hardware manufacturers. The demand for virtual reality (VR) and augmented reality (AR) has led to the estimate that the market’s revenue share is expected to exceed the trillion mark by the end of 2037. Additionally, global trade has a direct impact on the market, due to VR/AR devices requiring rare earth metals and silicon. The table below maps the global trade datasets that have an impact on the market.
|
Category |
Data/Statistics |
|
U.S. Semiconductor Imports (2023) |
$5 billion |
|
Percentage of Imports from Asia |
61% |
|
Global AR/VR Hardware Production (China) |
71% |
|
Global Trade in AR/VR-Related Goods (2023) |
$45.5 billion |
|
U.S. Rare Earth Imports from China |
81% of the U.S. needs |
Furthermore, an analysis of the two indices, PPI and CPI, highlights the future outlook and current trends of the sector. For instance, the PPI analysis from 2022 to 2023 indicates a 2.1% rise in the manufacturing of electronic and computer products. The PPI's rise is impacted by an increase in component costs. The CPI has largely remained stable, exhibiting a minuscule increase of 0.7% from 2022 to 2023. The stability of CPI is owed to the lack of change in end user pricing despite mounting pressures from the supply chain.
|
Category |
Data/Statistics |
|
Development Time Reduction with Virtual Prototyping |
21% reduction due to metaverse technology adoption |
|
PPI for Software Development Services (2023) |
3.5% increase |
|
CPI for Software Subscriptions (2023) |
2.6% increase |
|
Global Investment in Metaverse Infrastructure (2023)
|
$3.3 billion allocated by public-private partnerships |
|
EU Imports of U.S. VR/AR Tech (2023) |
$10.6 billion (12% increase from 2022) |
|
U.S. Imports of Display Panels for VR Headsets (2023) |
$4.4 billion (8% increase) |
|
Cost Increase Due to Semiconductor Bottlenecks (2023) |
5.3% increase |
Metaverse Sector: Growth Drivers and Challenges
Growth Drivers
-
Advancements in AR/VR/MR Technologies: Ongoing innovations in augmented AR, virtual reality (VR), and mixed reality (MR) benefit the sector’s growth. A key demand is from the entertainment industry for immersive experiences in gaming. The entertainment industry as a whole is ultra-competitive, and garnering the attention of consumers is a challenge due to competition from multiple segments. For instance, one consumer can choose multiple modes for entertainment during his/her leisure time. This has created a heightened demand for advanced AR/VR/MR tech to provide an immersive experience that bolsters consumer retention. The table below highlights key figures highlighting the sales figures of AR/VR/MR tech.
|
Category |
Data/Statistics |
|
VRChat Concurrent Users (2025) |
130,500 concurrent users on New Year's Day 2025 |
|
Apple Vision Pro Sales (2024) |
200,100 units sold during the two-week pre-order period |
- Growing adoption of metaverse in remote work and collaboration: The metaverse is being adopted for remote work, holding a 20.5% share of enterprise metaverse applications in 2024. In 2023, the World Economic Forum (WEF) released a report citing that more than 30% of U.S. employees work full-time in remote settings, leading to a growth in demand for immersive virtual workspaces. Moreover, the metaverse solves a critical pain point by bolstering collaboration in comparison to traditional video conferencing. To map the rising demand for metaverse applications, Microsoft’s Mesh platform experienced more than 9 million users in 2024, and reportedly increased productivity by more than 15%. The successful use cases augur well for the future outlook of the market.
- Growing government investments & policy support for metaverse development: Across the world, governments are bolstering support for the metaverse through policy initiatives. APAC is leading in formulating favorable policies for the responsible adoption of the metaverse. For instance, China, a leading APAC market, endorses AR and VR tech in its fourteenth 5-year plan, whilst South Korea has already invested upwards of USD 180 million in the metaverse project. Additionally, government backing mitigates barriers to entry for innovative startups, making emerging regions such as APAC lucrative for the responsible metaverse development. The table below highlights key major policy or regulatory changes that support the metaverse. Across the world, governments are bolstering support for the metaverse through policy initiatives.
|
Category |
Data/Statistics |
|
European Commission Investment (2023) |
EUR 2.5 billion investment in immersive technologies, including the metaverse, for virtual training and cultural heritage preservation |
|
University of Hong Kong AR/VR Research Grants (2022) |
Six USD 101,000 grants for AR/VR policy research promoting ethical metaverse development |
|
Dubai Metaverse Strategy (2023) |
Aims to create 40,100 virtual jobs and contribute USD 3.9 billion to the economy by 2030 |
Technological Trends Shaping the Global Market
The global market is impacted by technological advancements. In a competitive market, key players need to invest in R&D for advanced solutions is necessary to create lucrative segments. For instance, the advent of Meta’s Quest Pro and Apple Vision Pro offering headsets with higher resolutions and lightweight boosts consumer experience. Improvements in haptic feedback add to the immersive experience of end users, ensuring that consumer retention remains high. The table below highlights advancements within the metaverse market and its impact.
|
Technology |
Industry |
Company/Initiative |
Investment/Statistics |
|
5G Connectivity |
Telecom |
Verizon |
$1.4B investment in 5G to enhance AR/VR services |
|
AI |
Financial Services |
Goldman Sachs |
AI-powered trading systems generating $501M in revenue |
|
Blockchain/NFTs |
Retail |
Nike |
NFT sales grew by 20.3% in 2023 due to digital sneaker sales |
|
Virtual Reality (VR) |
Healthcare |
Stryker |
Invested in VR for surgical training, improving outcomes |
|
Augmented Reality (AR) |
Education/Entertainment |
Meta (formerly Facebook) |
$10.5B investment in AR/VR content development (2023) |
AI and ML Trends in the Global Market
The integration of AI has ensured that user experiences have become considerably more personal through smarter virtual assistants. Additionally, the rise in the lucrativeness of content creation has ensured applications to simulate environments. Within the gaming sector, AI & ML together have improved gameplay by introducing NPC (non-player character) behaviors and dynamic environments, leading to the creation of virtual worlds that are more interactive. As a result of the improved user experiences, the investments in the metaverse are accelerating rapidly.
|
Company |
Integration of AI & ML |
Outcome |
|
Siemens |
AI-powered digital twins for design |
20% reduced downtime |
|
JPMorgan |
AI for fraud detection |
25% fewer incidents |
|
Verizon |
AI for 5G network optimization |
30% lower latency |
|
Mayo Clinic |
AI for diagnostics |
15% improved accuracy |
|
Roblox |
AI-driven avatars for engagement |
30% increased user engagement |
Challenges
-
Interoperability between metaverse platforms: The metaverse market is riddled with challenges, such as the lack of interoperability across platforms. For instance, major players such as virtual ecosystems of Meta and Microsoft are creating a bottleneck in not being able to transfer avatars or experiences between platforms, which can hamper the consumer experience. Moreover, the fragmentation poses challenges to the users in engaging across multiple virtual spaces. Such constraints have the potential to reduce the potential of metaverses, although efforts to boost interoperability, such as the Metaverse Standards Forum, are at their nascent stages to successfully negate the challenge.
-
Content moderation and ethical governance: The immersive nature of the metaverse has made it extremely difficult to regulate user-generated content. The challenge differs from traditional social media, where text and images are prevalent, as the metaverse creates 3D interactions, avatars, and virtual spaces, which in turn complicates efforts to monitor illegal activities. The blurring of ethical guidelines may snowball into a major challenge in the future, violating regulatory norms in regions.
Metaverse Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
46.1% |
|
Base Year Market Size (2024) |
USD 120.5 billion |
|
Forecast Year Market Size (2037) |
USD 17.1 trillion |
|
Regional Scope |
|
Metaverse Segmentation
Platform (Mobile, Desktop)
The mobile segment is estimated to hold a leading revenue share of 59.2% by the end of 2037. The metaverse ecosystem is dominated by smartphones owing to their vast accessibility, along with a considerably large user base. For instance, ITU reported that there were over 7 billion smartphone users worldwide in 2024, a significantly large number that is only going to increase in the future. A supportive trend for the segment is the worldwide proliferation of 5G networks; GSMA estimates more than 80% global coverage by 2030, leading to improved performance of metaverse applications. Moreover, mobile-friendly metaverse environments such as Roblox are already thriving due to their affordability in comparison to AR/VR systems, which also adds to their accessibility to a comparatively larger user base.
|
Data Point |
Details |
|
Government Initiative |
U.S. FCC’s $9 billion 5G Fund (fcc.gov) |
|
Impact of AR Integrations |
AR for retail and education supported by mobile devices |
|
Web 3.0 and Blockchain Apps |
Rise of blockchain-based mobile apps for metaverse growth |
|
Platform Growth |
Mobile is the primary gateway to the global metaverse |
Hardware (VR Headsets, AR Devices)
The VR headsets are poised to hold a major revenue share of 54.5% in the global market owing to their wide-ranging applications in multiple facets, from gaming to healthcare. A list of recent trends impacting VR headsets includes the sustained push for 4K displays and lighter designs. Moreover, a major factor that is set to expand VR headset access to a wider set of user demographics is its falling price. For instance, the entry-level headsets are experiencing a drop in their price, falling to below USD 300, which has facilitated their availability to a larger number of users. Apart from the applications mentioned earlier, the U.S. Department of Education launched an initiative for virtual learning, and NIH-funded VR therapy programs.
Our in-depth analysis of the global metaverse market includes the following segments:
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Platform |
|
|
Hardware |
|
|
Software |
|
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Customize this ReportMetaverse Industry - Regional Synopsis
North America Market Forecast
The North America metaverse market is expected to hold a 44.6% revenue share by the end of 2037 and remain the leading market, supported by the rising consumer adoption across the region. A well-established digital infrastructure supports an improved consumer experience. Two major policies in the region bolstering the market are the U.S. CHIPS Act and Canada's proactive investment in broadband connectivity via ISED. Moreover, the presence of an industry leader, i.e., Meta Platforms Inc., boosts the regional sector.
The U.S. market is fueled by supportive government policies and tech giants in the past decade, laying the groundwork for further expansion in the current decade. In 2024, Meta and Apple launched advanced VR headsets, Quest Pro and Vision Pro, respectively, which changed the course of immersive tech. Furthermore, the National Science Foundation (NSF) reported investments exceeding USD 2 billion in AR/VR tech. Throughout the forecast period, the entertainment sector is poised to register the largest application of the metaverse.
The Canada metaverse market is expected to register sustained growth during the anticipated timeline. The gaming industry in Canada generated around CAD 5.0 billion in 2023, creating a favorable demand for platforms compatible with the metaverse. The government is supporting the growth curve, with ISED proactively investing CAD 3.0 billion in initiatives to improve connectivity and make Canada digitally self-reliant. In addition to entertainment, Canada has focused on developing virtual healthcare solutions by leveraging VR/AR. By the end of 2037, Canada is expected to expand its share in North America.
APAC Market Overview
The APAC metaverse market is estimated to register the fastest growth rate of 41.2% during the forecast timeline. A key factor of the market’s expansion is smartphones' large-scale penetration and the expansion of digital economies. Recent initiatives in the market are from the Japan Metaverse Initiative and South Korea’s push for a digital economy. The two countries have implemented national policies supporting the development of virtual spaces, creating a favorable ecosystem for the market. Additionally, the most vital factor of APAC’s growth is the presence of a strong gaming culture supported by multiple gaming companies, which are expected to be the leading forces in the continued expansion of the market in the region.
The China metaverse market is poised to lead in APAC. The China Metaverse Development Plan highlights China’s ambition to establish itself as a leader globally in the market. Additionally, China has a well-developed digital economy and an extensive consumer base, creating lucrative segments within the market. For example, Newzoo estimated that China had more than 75% of customers who are interested in interacting within gaming worlds, a number that is considerably higher than the U.S. at 55%.
A key facet of the India metaverse market is an extremely large user base and the rise in disposable income. For instance, the Department of Telecommunications estimates more than 900 million internet users in India by the end of 2025. Companies such as Reliance Jio are steadily venturing into AR/VR technologies, whilst the gaming industry of India, although at its nascent stage, promises lucrative opportunities within the metaverse market. Additionally, nationwide initiatives such as the Digital India program support the development of advanced technologies, which in turn create a favorable ecosystem for innovations in virtual environments.
Companies Dominating the Metaverse Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The metaverse market is highly competitive, with the presence of global giants such as Meta, NVIDIA, and Tencent. Regionally, various companies dominate different segments of the market. For instance, the U.S. firms dominate with VR/AR hardware and platforms, while China and Japan lead in gaming and 5G infrastructure. In terms of strategic investments, Meta invested USD 10.2 billion in VR in 2021, which is bearing fruit now. Furthermore, partnerships such as the acquisition of Activision Blizzard by Microsoft are major market movements. The table below highlights a list of the major players in the metaverse market.
|
Company Name |
Country of Origin |
|
|
Meta Platforms, Inc. |
USA |
15.0% |
|
NVIDIA Corporation |
USA |
12.5% |
|
Microsoft Corporation |
USA |
10.0% |
|
Unity Software Inc. |
USA |
7.4% |
|
Epic Games, Inc. |
USA |
6.3% |
|
Tencent Holdings Ltd. |
China |
xx% |
|
Samsung Electronics Co., Ltd. |
South Korea |
xx% |
|
HTC Corporation |
Taiwan |
xx% |
|
Accenture plc |
Ireland (Europe) |
xx% |
|
Infosys Limited |
India |
xx% |
|
Animoca Brands Corp. Ltd. |
Australia |
xx% |
|
Tech Mahindra Limited |
India |
xx% |
|
Malaysia Digital Economy Corp. |
Malaysia |
xx% |
Below are the areas covered for each company in the metaverse market:
In the News
- In February 2025, Improbable launched the Somnia blockchain. The new solution is designed to process over 400,000 transactions per second and is developed under the Virtual Society Foundation. Additionally, Somnia is capable of supporting large-scale metaverse applications with Ehereum compatibility.
- In December 2024, Infinite Reality announced an immersive digital twin of the Dubai Multi Commodities Centre (DMCC) Crypto Centre. The digital twin allows businesses to interact in a co-working space.
Author Credits: Abhishek Verma
- Report ID: 3925
- Published Date: May 12, 2025
- Report Format: PDF, PPT
