Metaverse - South Africa

South Africa

The projected value of the Metaverse market in 2024 is expected to reach US$275.5m.
This market is anticipated to experience a steady annual growth rate (CAGR 2024-2030) of 40.72%, resulting in a projected market volume of US$2,139.0m by 2030.
It is worth noting that in South Africa is a part of this growing market segment.
In 2024, United States is projected to generate the highest value in the Metaverse market, with a market volume of US$23.0bn.
This indicates the significant influence and contribution of the United States to this industry.
Looking at the number of users in the Metaverse market, it is expected to reach 22.5m users by 2030.
In 2024, the user penetration rate is estimated to be 12.0%, but it is projected to increase significantly to 34.9% by 2030.
This indicates a growing interest and adoption of the Metaverse market platform among users.
Furthermore, the average value per user (ARPU) is expected to amount to US$37.5.
This metric provides insight into the average value generated by each user in the Metaverse market.
Overall, the Metaverse market presents a promising opportunity for growth and development, with in South Africa being a part of this evolving landscape.
South Africa is witnessing a surge in the adoption of Metaverse technologies, with virtual reality experiences and digital art gaining popularity among the tech-savvy population.

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Analyst Opinion

The Metaverse market in South Africa is experiencing significant growth and development.

Customer preferences: South African consumers are increasingly embracing digital technologies and virtual experiences. They are seeking immersive and interactive platforms that allow them to connect with others, explore new worlds, and engage in various activities. The Metaverse provides a unique opportunity for individuals to escape reality and engage in virtual experiences, making it highly appealing to the South African market.

Trends in the market: One of the key trends in the Metaverse market in South Africa is the growing adoption of virtual reality (VR) and augmented reality (AR) technologies. These technologies enable users to enter a digital world and interact with virtual objects and environments. The demand for VR and AR devices, such as headsets and goggles, is increasing as more South Africans seek to enhance their virtual experiences. Another trend is the rise of social platforms within the Metaverse. South African consumers are looking for ways to connect with others and build communities in virtual spaces. Social platforms within the Metaverse offer opportunities for networking, socializing, and collaboration, which are highly valued by the South African market.

Local special circumstances: South Africa has a vibrant gaming and entertainment industry, which provides a strong foundation for the growth of the Metaverse market. The country has a large population of gamers and tech-savvy individuals who are eager to explore new digital experiences. Additionally, South Africa has a growing number of tech startups and innovators who are actively developing Metaverse-related technologies and platforms.

Underlying macroeconomic factors: South Africa's increasing internet penetration and smartphone adoption rates are key drivers of the Metaverse market. As more South Africans gain access to the internet and mobile devices, the demand for digital experiences and virtual platforms is expected to rise. Additionally, the COVID-19 pandemic has accelerated the shift towards digital technologies, as people seek alternative ways to connect and engage in activities. In conclusion, the Metaverse market in South Africa is experiencing rapid growth and development, driven by customer preferences for immersive and interactive virtual experiences. The adoption of VR and AR technologies, the rise of social platforms, and the country's vibrant gaming and tech industry are all contributing to the expansion of the Metaverse market. With increasing internet penetration and smartphone adoption rates, as well as the ongoing impact of the COVID-19 pandemic, the Metaverse market in South Africa is poised for further growth in the coming years.

Methodology

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.