Metaverse market outlook in 2023
Metaverse has led to the development of virtual economies that leverages digital currencies. Consumers are able to purchase the platform's native currency and utilize them for buying digital assets online. This has led to exciting business opportunities for global brands. In 2022, many have begun to set up their virtual stores within different metaverse platforms. Some have even developed their virtual worlds. Nike and Gucci, for instance, launched Nikeland and Gucci Gardens. Large financial firms, JPMorgan and HSBC, have also bought land in the metaverse to create immersive experiences for their customers. In 2023, more big brands and corporations are projected to enter the metaverse segment.
The expanding presence of brands and corporations in the virtual world is expected to be more significant for luxury clothing brands. With immersive experiences offered by augmented reality and virtual reality, more and more brands in the segment are projected to add a layer of interactivity and provide personalized experiences to their customers by leveraging the capabilities offered by the metaverse. The foray of more major customer-focused brands into the metaverse will also lead to the increasing usage of avatars, as they continue to become more realistic and customizable.
Read More - From retail giants to banking institutions, more and more firms are foraying into the metaverse sector
The metaverse gaming market will continue to grow significantly amid increasing interest in the space
Along with retail, online gaming is expected to make further inroads into the emerging space. Gaming, as it stands right now, is already a significant component of the metaverse industry. In 2023, TechInsight360 expects accelerated growth in the virtual reality gaming market. With big players expressing their interest, 2023 can be a breakout year for the metaverse gaming industry.
Microsoft, for instance, has expressed an interest in the acquisition of Activision Blizzard. The transaction, if successful, will give Microsoft access to more than 400 million gamers as well as a strong library of prebuilt games. This will ensure that Microsoft is equipped with all the necessary tools that it needs to begin offering immersive experiences for online gamers around the world.
The US$68.7 billion deal announced in January 2022, however, has faced hurdles from competitors as well as government entities. In December 2022, the Federal Trade Commission filed a lawsuit with the aim to block the acquisition deal. The United States-based independent agency has concerns that the acquisition will lead to Microsoft establishing its monopoly in the online gaming sector. In Chile, though, the Financial National Economy Authority has approved the acquisition, stating that the acquisition does not create an unfair situation for the firm's competition in the country.
With the gaming and metaverse industry getting integrated significantly, TechInsight360 expects more such major acquisition and merger deal announcements in 2023, as firms seek to strengthen their position in the fast-emerging segment.
Read More - Metaverse is projected to be the future of the online gaming industry
The macroeconomic environment will continue to create barriers for firms seeking to drive widespread metaverse adoption
2022 has been a worrisome year for most corporations, as macroeconomic factors have led to a significant decline in consumer spending. Furthermore, the economic uncertainty has also resulted in declining valuation, negative investor sentiments, and lesser-than-expected metaverse adoption among consumers.
Meta’s metaverse push never really took off and the outlook for the firm does not look promising in 2023. One of the initial worries for the firm is the declining sales of its virtual reality (VR) headsets. According to NPD Group, sales have declined 2% year over year in the United States to reach US$1.1 billion, as of early December 2022.
Rising inflation and surging cost of living are among the leading factors that have affected the sales of VR headsets. In times when consumers are finding it difficult to fund their grocery bills, buying a US$1,100 headset is a pretty big challenge for consumers.
As inflation continues to rise in 2023, TechInsight360 expects the troubles for Meta to keep growing, at least from the short to medium-term perspective. However, the firm has announced that it will keep investing in the space to further build on its metaverse ambitions. In 2023, the firm announced 20% of its investment into the development of the metaverse sector.
Meta will also have to contend with other big corporations that have announced their entry into the metaverse sector. Apple and HP are among the many that are seeking a slice of the metaverse market. Apple’s potential entry into the VR headset segment will be one of the key developments in the metaverse industry in 2023. Should it materialize, the pricing of the VR headsets will again remain a critical point in driving the adoption among consumers.
Read More - Meta continues to push its way into the metaverse world with mergers and acquisitions
Other trends to watch out for in the global metaverse sector in 2023
Virtual reality is also expected to expand its presence in the healthcare and education segment in 2023. There are a few metaverse hospitals that have been already launched globally, and the trend will further accelerate over the next 12 months. With the ability of the metaverse to provide a controlled and safe environment, healthcare firms can use the technology to treat mental health conditions, including depression and anxiety, among others.
Furthermore, growth and innovation are expected in the metaverse training and education segment. Many businesses have already implemented such initiatives and these are projected to further grow in 2023. The immersive and interactive nature of learning will keep driving the popularity of metaverse education across industry verticals. Furthermore, metaverse corporate and government governance will also become more mainstream with the advancement in technology.
Although the metaverse industry is still in its early stages of development, firms will seek to build on their experiences and consumer behavior in 2023. There is a strong interest in the segment, across industry verticals, and this will keep driving investment in the development of the metaverse market globally.