Metaverse: A Virtual Reality Emerging Market

A Metaverse is a virtual reality environment in which users can interact in a computer-generated setting. There are many uses for the metaverse, including healthcare, real estate, and education. The metaverse is increasingly being used by individuals for investment, work, and art purposes. A PC Magazine study found that 52% of global Internet users use the metaverse to find job opportunities. 48% are looking for live entertainment and art, 44% are looking for financial investment, 44% are looking for education, and 32% are searching for dating and socializing online. 29% of internet users use it for gaming.

In 2022, the metaverse market was USD 47.48 million. By 2030, it is expected to grow at a CAGR of 39.44% to USD 678.80 trillion. North America had the largest market share of over 45% in 2021.

Market Dynamics

• Market growth is being driven by the increasing adoption of new technologies within the metaverse industry such as artificial intelligence (AI), mixed realities (MR), and Blockchain. Facebook, Fortnite, and NVidia are just a few of the companies that have incorporated extended metaverse reality systems (XR) and other technologies. A study found that the LG Group filed 688 extended reality patents in 455 patent families, Sony filed 87 XR Patents in 78 patent families, and Qualcomm Incorporated filed 80 metaverse patents in 28.
• The metaverse uses cryptocurrency to pay for everything, from avatar shoes to non-fungible tokens. One study found that 53% of companies invest in cryptocurrency, and 44% in non-financial tools (NFTs). CNBC’s survey found that one in ten people has invested in cryptocurrency, mostly for trading commodities like NFTs.

Market Restraints

The industry could face growth limitations because its users are not aware of the security options and services available. Cyber-attacks on market participants have raised security and sensitivity concerns as well as raised high levels of sensitivity. SonicWall reports that nearly 500 million cyber-attacks have been reported as of September 2021. There were over 1700 reported attacks per organization.

Opportunity

There are many career options in the metaverse. The increased demand for different products and services is causing more jobs in the metaverse, which could result in market growth. One study estimates that the metaverse will soon have 10,000 jobs in safety, planning, development, and safety.

What are Metaverse Companies Doing?

The metaverse is home to companies that are developing vast projects. Most of their work falls within one of seven metaverse layers. Metaverse projects can generally be described in seven layers.

• Infrastructure is the network implementations and hardware that power our metaverse. Examples of infrastructure that includes networking implementations include WiFi, 5G, and cloud systems.
• There are many ways that people interact with the outside world. When that interaction extends to the metaverse, it creates a human interface. Communication methods include vocal commands, gestures, and neural interfaces.
• Decentralization is the term for a system where no single organization controls the metaverse. Companies may create elements that depend on or collaborate with each other. It is most common in the metaverse’s economic system.
• Spatial computing refers to the 3D elements of a metaverse. This section will focus primarily on 3D engines and the components that are used to model multiverse.
• A creator economy is the ability of an average person to create and market goods. A creator economy is a collection of design tools and asset materials that are used to create metaverse material.
• Discovery is the name of the method used to discover new content. It may include elements like AI or ad networks that seek out people who are interested in certain products or services.

Key Companies

The development and launch of new products is a major undertaking for large companies such as Meta and Microsoft. They provide various metaverse solutions to meet the market’s needs and demands.

Recent Developments in the Metaverse

• The Sandbox announced in January 2022 a partnership with Warner Music Group to launch The Sandbox’s first music-themed world. Warner Music Group (WMG), will make its first forays into the metaverse sector and NFT sectors with this alliance.
• Tencent and The Asian Institute of Digital Finance partnered in November 2021. These companies will collaborate to support Asia’s fintech sector through education, research, and entrepreneurship.
• Epic Games, Inc. bought Harmonix Music Systems, Inc. on November 20, 2021. The Harmonix team will continue to support existing products like Rock Band 4 and work closely with Epic Games, Inc. to create musical adventures as well as Fortnite gameplay.
• Epic Games, Inc. purchased Sketchfab, Inc. on July 20, 2021. Sketchfab is a 3D asset platform where users can download, view, share and sell 3D models.