Metaverse eCommerce - United Arab Emirates

The Metaverse eCommerce market in the United Arab Emirates is projected to reach a value of US$95.2m by 2024.
It is expected to grow at an annual growth rate (CAGR 2024-2030) of 37.15%, resulting in a projected market volume of US$634.0m by 2030.
China dominates this market with a projected market volume of US$10.2bn in 2024.
In terms of user base, the Metaverse eCommerce market is expected to have 2.5m users users by 2030.
The user penetration rate is projected to be 9.5% in 2024 and is expected to reach 25.4% by 2030.
The average value per user (ARPU) is expected to be US$104.0.
The United Arab Emirates is experiencing a surge in virtual shopping experiences, with a growing number of e-commerce platforms embracing the Metaverse.

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 United Arab Emirates is experiencing significant growth and development due to various factors.

Customer preferences: Customers in the United Arab Emirates are increasingly embracing the concept of the Metaverse eCommerce market. They are drawn to the convenience and accessibility it offers, allowing them to shop for a wide range of products and services from the comfort of their own homes. The ability to virtually explore and interact with products before making a purchase is particularly appealing to customers, as it provides a more immersive and engaging shopping experience.

Trends in the market: One of the key trends in the Metaverse eCommerce market in the United Arab Emirates is the integration of virtual reality (VR) and augmented reality (AR) technologies. These technologies enable customers to visualize products in a realistic and interactive manner, enhancing their shopping experience. This trend is particularly prevalent in industries such as fashion, furniture, and real estate, where customers can virtually try on clothes, visualize how furniture will look in their homes, or explore properties before making a purchase. Another trend in the market is the rise of virtual marketplaces within the Metaverse. These marketplaces provide a platform for individuals and businesses to buy and sell virtual goods and services. Customers can purchase virtual assets such as digital art, virtual real estate, and even virtual currencies. This trend is driven by the increasing popularity of blockchain technology, which ensures the security and authenticity of virtual transactions.

Local special circumstances: The United Arab Emirates has a tech-savvy population with high smartphone penetration and internet connectivity. This provides a solid foundation for the growth of the Metaverse eCommerce market. Additionally, the country is known for its strong retail sector and luxury market, making it an attractive destination for Metaverse eCommerce platforms and brands.

Underlying macroeconomic factors: The United Arab Emirates has a strong economy and a high per capita income, which contributes to the growth of the Metaverse eCommerce market. The government's focus on digital transformation and innovation further supports the development of the market. Additionally, the country has a young and dynamic population that is open to embracing new technologies and experiences, making it an ideal market for the Metaverse eCommerce industry to thrive. In conclusion, the Metaverse eCommerce market in the United Arab Emirates is experiencing significant growth and development due to customer preferences for convenience and immersive shopping experiences, as well as the integration of VR and AR technologies. The rise of virtual marketplaces and the country's tech-savvy population further contribute to the market's growth. With a strong economy and government support for digital transformation, the United Arab Emirates presents a promising market for the Metaverse eCommerce industry.

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.