- According to MarketsandMarkets, metaverse projects are set to experience a $1.3 trillion surge by 2030.
- The firm projects an impressive 48% CAGR for the sector.
- It anticipates significant growth in applications of this technology across entertainment, gaming, fashion, art, and retail.
- Render and Stacks currently lead as the top metaverse-related tokens, each boasting a market cap exceeding $2.7 billion.
MarketsandMarkets, a market intelligence organization focused on emerging trends, recently made an ambitious prediction regarding the metaverse in a report released on Monday. This comes at a time when various innovative technologies, particularly those tied to artificial intelligence (AI), are overshadowing metaverse initiatives.
As per the company’s research division, it expects the metaverse industry’s market size to swell from $83.9 billion to $1.3034 trillion by 2030. For reference, this would be roughly equivalent to the current market cap of Bitcoin (BTC).
Under current market conditions, the firm estimates a compound annual growth rate (CAGR) of 48% for the metaverse leading up to this target year.
MarketsandMarkets’ latest report highlights specific drivers behind the rapid expansion of the metaverse sector. One of the primary applications for its technology lies within the entertainment and gaming industries.
Investors are encouraged to explore burgeoning opportunities in markets adjacent to gaming and entertainment, as well as the increasing utility observed in fashion, art, and retail.
Additionally, MarketsandMarkets anticipates opportunities emerging from the integration of metaverse and related technologies in areas like aerospace, defense, 5G infrastructure, and virtual experiences across corporate and hospitality sectors.
Key Players to Monitor
Among the significant players poised to drive the growth of this niche are Microsoft, Sony, Meta, HTC, Google, Apple, Qualcomm, Samsung, Activision Blizzard, NetEase, and Electronic Arts. Notably, the researchers did not include Epic Games in their top list of influential companies in this space.
In a recent discussion with The Verge, Epic Games CEO Tim Sweeney stated that the company is now “financially sound” and is preparing to develop the next generation of metaverse tools. He indicated that a key focus will be improving interoperability among different metaverse platforms.
Significant Challenges Ahead
Despite the optimistic potential outlined in the report, MarketsandMarkets acknowledges that participants in the metaverse face considerable budgetary challenges, mainly due to the substantial installation and maintenance expenses related to high-end components necessary for project execution.
Moreover, as the technology remains nascent, it suffers from a lack of regulatory compliance and support, and it may continue to encounter hurdles in cybersecurity, privacy, and usage standards.
While MarketsandMarkets presents a positive outlook for the metaverse’s future, investors looking to capitalize on the industry’s anticipated growth should keep an eye on associated tokens. Currently, Render (RENDER) and Stacks (STX) hold the highest market capitalization among digital assets closely linked to the metaverse, each with a total market valuation exceeding $2.7 billion.
Render focuses on delivering decentralized graphics processing unit (GPU) solutions for developers in the digital space, while Stacks serves as a Bitcoin layer for smart contracts, with its full potential still yet to be realized. Forbes is optimistic about its possible applications in the metaverse.
Investors should also keep a lookout for other notable assets such as Internet Computer (ICP), Axie Infinity (AXS), The Sandbox (SAND), MultiversX (EGLD), and Decentraland (MANA).
