Study Estimates Metaverse Entertainment Space to Touch USD 29B in 2026

Study Estimates Metaverse Entertainment Space to Touch USD 29B in 2026

The study report published by market research company, Technavio, has estimated the metaverse space dedicated to entertainment, such as virtual concerts, video games, and movies to grow in value to USD 28.92 billion between 2021 and 2026. The report states that 33% of this growth is likely to come from the US markets, due to a large number of gaming and film companies.

Consumer Adoption Key to Growth of Metaverse Entertainment

The metaverse and its consumer adoption continue to be an issue of active research by market research companies. A report released by Technavio, a market research company, has estimated the market size of metaverse entertainment to reach USD 28.92 billion in the period from 2021 to 2026.

The report has identified two key areas that will fuel this growth. The rising consumer spending on virtual concerts and virtual events is possible because of the growing advancements in virtual reality (VR) and augmented reality (AR) technologies. The second key factor is the rising adoption of online gaming, which offers a level of immersion that will encourage spending in the area.

However, the study also reveals challenges to the growth of the market, including concerns regarding privacy and security in the metaverse. Security-related issues have already been raised by the World Economic Forum (WEF) and even Interpol. The International Criminal Police Organization, Interpol, has announced the launch of what is claimed to be the first global police-focused metaverse experience at its 90th General Assembly in New Delhi in October.

US Focused Report

The study also indicates the use of the metaverse in film production. Cinema is expected to become interactive, and viewers will be transported to cinematic environments using VR technology. However, previous attempts have failed, and none has achieved the mass appeal of mainstream cinema.

Most of the projected metaverse growth is expected from the US, according to the study, which has accounted for several factors. 33% of the increase is attributed to the "rapid convergence of the entertainment industry and traction of the gaming culture, the integration of gaming services by major entertainment brands, and increased investment to create more immersive gaming and entertainment experiences."

Other reports have also made facile projections about the metaverse in the entertainment industry. On Sept. 12, JPMorgan stated that the Chinese metaverse gaming market could explode to over USD 100 billion in value. In March, Citi predicted the metaverse might be a USD 8–13 trillion opportunity.

Metaverse platforms Decentraland and The Sandbox are valued at USD 1.3 billion, but both have less than 1,000 daily active users. There is too much hype about the metaverse platforms. How many are using them right now? All these projections will drive capital, but consumer adoption is the key to success. Please post your comments.