We are all becoming more aware of the metaverse. This merging of the real and virtual worlds is driven by technologies like virtual reality (VR), augmented reality (AR), and artificial intelligence (AI).
As technology develops and gamers seek a more immersive and connected experience, the metaverse in the gaming market increases in value. This growth crosses all gaming types, from video gaming, where platforms like Unity and Epic Games create interconnected gaming opportunities, to casino game developers. These developers recognize the value of interactive elements of the metaverse in transforming the player experience, and they embrace these elements to create a whole new dimension for casino games.
The work of metaverse-focused platforms and developers is reflected in the enhanced value of the metaverse in the gaming market. This market covers all aspects of developing, distributing, and monetizing the metaverse gaming experience. Its value was an estimated $17.71 billion in 2022 and $22.7 billion in 2023. By 2028, this value is expected to increase to $119.2 billion, with a further increase to around $734.7 billion expected by 2033.
In addition to the technologies mentioned earlier, like AR, VR, and AI, this substantial market growth is driven by factors like the expansion of Internet connectivity and significant investment in metaverse application innovation.
A further driving force behind increased metaverse in gaming market value is the global appetite for gaming. According to recent data, there are around 3.32 billion active video gamers globally, and the gaming market is valued at $282 billion. Delving deeper into gaming market statistics shows that Gen Alpha is the generation most dedicated to gaming, with members dedicating around 22% of their entertainment time to gaming. For Gen Z, this figure is 19%.
Comparing these figures with 18% for Millennials, 14% for Gen X, and 11% for Boomers shows that although all generations participate in gaming, younger generations have higher participation levels and are more impactful on gaming growth. It follows that they are also a greater driving force behind the growth of metaverse gaming.
Younger generations relish the social aspects of gaming. The metaverse creates opportunities for more interaction and presents chances to create connections. This positive relationship between younger gamers and the metaverse is essential to the metaverse in gaming value growth.
The same can be said for more advanced gaming engines, VR and AR, which have created more realistic and immersive gaming environments. For example, the global market value of VR alone was around $25.11 billion in 2023 and is expected to grow to around $244.84 billion by 2032. Although this value includes all areas of VR and not just gaming, the significant increase further emphasizes how the various aspects of the metaverse will combine to increase the worth of metaverse gaming.
VR is one of the largest segments of the metaverse gaming market, with a market share of around 38.5%. Software is the dominant segment in the market. It captures a market share of around 41%.
In terms of gaming genre, metaverse adventure games are prominent in the market, with a share of more than 30% in 2022. The popularity of this genre is largely due to immersive storytelling and narrative-driven gameplay that transport players into the virtual world.
The sandbox genre is challenging the dominance of metaverse adventure games, with a predicted CAGR of around 44%. These games give players the freedom to create their own experiences, craft content, and engage with other players.
The healthy and expanding metaverse in the gaming market creates opportunities, including in-game purchase monetization, global audience reach, innovative game design, creation of industry jobs, integration with AI technology, and further VR and AR development.
There is also potential for increased Internet penetration as the Internet’s reach expands globally. This expansion will allow more gamers to interact with games and other participants, increasing demand for interactive gaming features.
The positive potential of metaverse gaming must be measured alongside possible restraining factors, including the high cost of AR and VR hardware, which may deter some users. Other factors that could have a restrictive impact include the challenges of using complex technology, concerns over data security and privacy, regulatory changes, and the dependence on hardware to get the best possible gaming experience.
Current data shows that the metaverse in the gaming market is expanding, and expert predictions suggest its value will continue its upward trajectory. Driving forces that will increase the market’s value include technological innovation and increased demand for immersive and connected gaming.
Challenges around the complexity of technology, privacy, and accessibility could somewhat restrict growth. However, they are not expected to cause serious limitations given the opportunities that exist, including engaging with a receptive younger audience and creating connections between players that are essential to this audience. If these opportunities are embraced, they should enable gaming platforms and developers to overcome challenges and continue growing the market value.
