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.

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.

About the author

Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.