Metaverse

The Metaverse market is projected to reach a value of US$314.7m in 2024.
This market is expected to grow at an annual rate of 41.13% from 2024 to 2030, resulting in a projected market volume of US$2.5bn by 2030.
In Saudi Arabia, the projected market volume is estimated to be US$23.0bn in 2024.
The United States is the country where the majority of value is generated in the Metaverse market.
By 2030, the number of users in the Metaverse market is expected to reach 18.2m users.
The user penetration rate is projected to be 15.6% in 2024 and is expected to increase to 44.9% by 2030.
The average value per user (ARPU) is estimated to be US$53.7.
The Metaverse market in Saudi Arabia is experiencing rapid growth, driven by the country's tech-savvy population and government support for digital innovation.

Definition:

The term metaverse refers to a virtual world or collection of virtual worlds that exist in a shared digital space and can be accessed by users through the internet. It typically includes virtual reality, augmented reality, and other immersive technologies. Its scope encompasses a wide range of possibilities and opportunities in education, entertainment, health and fitness, and even remote work, but it is commonly associated with eCommerce and gaming.

Structure:

The Metaverse market covers the markets eCommerce, Gaming, and Education. The eCommerce market covers all goods that can be purchased and distributed within and throughout the metaverse. Gaming encompasses all games that are either directly involved in classified metaverse apps or collaborative open-world games. Education covers the range of possibilities for consumers to experience courses, classes, field trips, and more in the metaverse. For a more detailed explanation of all the markets, see the respective market page.

Additional Notes:

The market comprises market sizes, users, average revenue per user, and penetration rates. Market sizes are generated through in-app purchases, advertising spending, and consumer spending on apps, games, items, products, and hardware such as headsets or glasses. Sales channel data shows both online and offline market sizes. Information on gaming, eCommerce, virtual assets, digital media, digital health, digital advertising, and education can also be found in the Digital Market Insights. Information on AR & VR hardware can also be found in the Advertising & Media Insights. Key players of the market include companies such as Meta, Roblox, Epic Games, and Decentraland.

Open-world games with social interaction, such as Fortnite
Ecommerce marketplaces, such as NIKELAND in Roblox
Virtual Assets used to buy goods in the metaverse, such as Ethereum
Education in form of online classes or certificates in the metaverse, such as Decentraland University

Non-related open-world games, such as World of Warcraft
Physical goods, service and products bought with cryptocurrencies, such as Fashion
Non-fungible Tokens bought as personal collectable, such as non-metaverse selection on OpenSea

The Metaverse market in Saudi Arabia is experiencing significant growth and development, driven by several factors.

Customer preferences: Saudi Arabian customers are increasingly drawn to the immersive and interactive experiences offered by the Metaverse. They are seeking virtual environments that allow them to connect with others, explore new worlds, and engage in various activities such as gaming, socializing, and shopping. The younger generation, in particular, is embracing the Metaverse as a means of self-expression and entertainment.

Trends in the market: One of the key trends in the Saudi Arabian Metaverse market is the rise of virtual reality (VR) and augmented reality (AR) technologies. These technologies are enabling users to experience the Metaverse in a more immersive and realistic way. VR headsets and AR glasses are becoming more accessible and affordable, leading to increased adoption among consumers. This trend is driving the demand for Metaverse content and applications that are compatible with these technologies. Another trend in the market is the integration of blockchain technology into the Metaverse. Blockchain provides a decentralized and secure infrastructure that allows users to own and trade virtual assets within the Metaverse. This has led to the emergence of virtual economies and marketplaces, where users can buy, sell, and trade digital goods and services. The use of blockchain technology also enhances the transparency and trustworthiness of transactions in the Metaverse.

Local special circumstances: Saudi Arabia has a young and tech-savvy population, which is contributing to the growth of the Metaverse market. The country has a high internet penetration rate and a strong digital infrastructure, providing a conducive environment for the development and adoption of Metaverse technologies. Additionally, the Saudi Arabian government has been actively promoting digital innovation and entrepreneurship, which has further fueled the growth of the Metaverse market.

Underlying macroeconomic factors: Saudi Arabia is the largest economy in the Middle East and North Africa region, with a strong focus on diversifying its economy beyond oil. The government has identified the digital sector as a key driver of economic growth and has been investing in digital transformation initiatives. This has created opportunities for companies operating in the Metaverse market to expand their presence in Saudi Arabia and tap into the growing demand for Metaverse technologies. Furthermore, the COVID-19 pandemic has accelerated the adoption of digital technologies in Saudi Arabia, including the Metaverse. The restrictions on physical gatherings and the increased reliance on remote work and online activities have led to a greater appreciation for virtual experiences. As a result, the Metaverse market in Saudi Arabia has experienced a surge in demand, as individuals and businesses seek alternative ways to connect and engage in the digital realm. In conclusion, the Metaverse market in Saudi Arabia is witnessing robust growth and development, driven by customer preferences for immersive experiences, the adoption of VR and AR technologies, the integration of blockchain, and favorable local circumstances. The underlying macroeconomic factors, including the government's focus on digital transformation and the impact of the COVID-19 pandemic, have further contributed to the expansion of the Metaverse market in Saudi Arabia.

Data coverage:

Figures are based on advertising spending, in-app spending, in-game spending, online and offline sales, consumer 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.

Regarded as the next iteration of the internet, the metaverse is where the physical and digital worlds come together. As an evolution of social technologies, the metaverse allows digital representations of people, avatars, to interact with each other in a variety of settings. Whether it be at work, in an office, going to concerts or sports events, or even trying on clothes, the metaverse provides a space for endless, interconnected virtual communities using virtual reality (VR) headsets, augmented reality (AR) glasses, smartphone apps, or other devices.