Metaverse eCommerce - Saudi Arabia

The Metaverse eCommerce market in Saudi Arabia is projected to reach a value of US$96.9m in 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2030) of 44.69%, resulting in a projected market volume of US$889.2m by 2030.
China leads the market with a projected market volume of US$10.2bn in 2024.
In terms of users, the Metaverse eCommerce market in Saudi Arabia is expected to have 6.6m users users by 2030.
The user penetration rate is projected to be 5.3% in 2024 and is expected to increase to 16.4% by 2030.
The average value per user (ARPU) is estimated to be US$49.2.
Saudi Arabia is experiencing a surge in Metaverse eCommerce platforms, with virtual shopping becoming increasingly popular among tech-savvy consumers.

Definition:

The eCommerce market refers to the buying and selling of goods and services within virtual reality environments, such as virtual worlds, social VR platforms, and other immersive digital spaces. These can include virtual storefronts, digital marketplaces, and other online shopping experiences that allow users to purchase real-world products or virtual items using virtual currencies and/or real-world money. Metaverse eCommerce can also include virtual shopping experiences, where users can explore and interact with virtual stores, try on virtual clothing and accessories, and make purchases through virtual cash or real-world money.

Structure:

The eCommerce market also covers the markets Beauty, Health, Personal & Household Care, Toys, Hobbys, DIY & Media, Furniture, Electronics, Fashion, and Food & Beverages. All of them refer to the specific goods that can be bought in the metaverse.

Additional Notes:

The market comprises market sizes, users, average revenue per user, and penetration rates. Market sizes are generated through in-app purchases and consumer spending on items, products, and hardware such as headsets and glasses. Market numbers for eCommerce are also featured in the Digital Market Insights. Key players in the market include companies, such as IKEA, Virtual Realms, and Holition. For more information on the data displayed, use the info button right next to the boxes.

Marketplaces in the metaverse, such as Decentraland's Marketplace
Items bought for avatars used in the metaverse, such as Costumes or Skins
Fashion for avatars, such as Gucci stores
Electronics, such as AR and VR hardware

Physical items used for the metaverse, such as Oculus Quest
Purchase of games that are considered metaverse, such as Roblox or Sandbox

The Metaverse eCommerce market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Customers in Saudi Arabia are increasingly turning to the Metaverse eCommerce market for their shopping needs. The convenience and accessibility of online shopping platforms have made it a preferred choice among consumers. Additionally, the ability to explore virtual stores and interact with products in a virtual environment has enhanced the overall shopping experience for customers.

Trends in the market: One of the key trends in the Metaverse eCommerce market in Saudi Arabia is the integration of augmented reality (AR) and virtual reality (VR) technologies. This allows customers to virtually try on products or visualize how they would look in their homes before making a purchase. This trend has gained popularity as it helps customers make more informed decisions and reduces the likelihood of returns. Another trend in the market is the increasing focus on personalized shopping experiences. Metaverse eCommerce platforms are leveraging customer data and artificial intelligence to provide personalized recommendations and tailored shopping experiences. This not only enhances customer satisfaction but also increases the likelihood of repeat purchases.

Local special circumstances: Saudi Arabia has a young and tech-savvy population, which has contributed to the rapid growth of the Metaverse eCommerce market. The country has one of the highest smartphone penetration rates in the region, and this has facilitated the adoption of online shopping platforms. Additionally, the government's initiatives to promote digital transformation and entrepreneurship have created a favorable environment for the development of the Metaverse eCommerce market.

Underlying macroeconomic factors: The Metaverse eCommerce market in Saudi Arabia is also influenced by underlying macroeconomic factors. The country has a strong economy and a high per capita income, which has increased disposable income and purchasing power. Additionally, the COVID-19 pandemic has accelerated the shift towards online shopping, as consumers prioritize safety and convenience. These factors have contributed to the growth of the Metaverse eCommerce market in Saudi Arabia. In conclusion, the Metaverse eCommerce market in Saudi Arabia is witnessing significant growth and development. Customer preferences for convenience and personalized shopping experiences, along with the integration of AR and VR technologies, are driving this growth. Local special circumstances, such as a young and tech-savvy population, and favorable government initiatives, are also contributing to the market's expansion. Furthermore, underlying macroeconomic factors, including a strong economy and the impact of the COVID-19 pandemic, are fueling the growth of the Metaverse eCommerce market in Saudi Arabia.

Data coverage:

Figures are based on in-app spending, consumer spending, in-game spending, app downloads, and investment and funding data.

Modeling approach / Market size:

Market sizes are determined by a top-down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use reports, third-party studies, and research companies. Next we use relevant key market indicators and data from country-specific associations such as GDP, consumer spending, and internet penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are consumer spending per capita, level of digitalization, and cloud revenues.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Before Mark Zuckerberg announced Facebook’s name change to Meta to the surprise and sniggers of social media users, the metaverse was a niche and futuristic concept familiar to the tech and science-fiction aficionados. Yet now, it has become the catchphrase that sets the scene for the next stage of the internet. Facebook’s rebranding of Meta as one of the building blocks of the metaverse was powerful enough to trigger immediate response from the world’s biggest retail and consumer brands. In the week following Zuckerberg’s Meta presentation, Nike made patent applications for a number of its logos and slogans, and in December 2021 acquired the virtual sneakers company RTFKT. Nike is one of the growing number of retail brands that are silently preparing their launch into the metaverse where fashion is flaunted not as physical goods but as virtual assets. According to a study, Nike applied for 12 IoT patents in the three months running up to May 2022.