Metaverse Avatar Market Size (2022 – 2030)

As per our research report, the global Metaverse Avatar market size was USD 63.08  billion in 2022 and is estimated to grow to USD 1034.01 billion by 2030. This market is witnessing a healthy CAGR of 41.85% from 2023 - 2030. Increasing demand for applications and products based on virtual and augmented and mixed reality and rising focus on converging digital/virtual and physical worlds are majorly driving the growth of the industry.

Industry Overview:

Avatar is nothing new in the social media world, but Facebook's Metaverse adds a whole different dimension to it. In addition to the name change to Meta in Connect 2021, Facebook has made numerous announcements centered on VR technology, future directions, and research in this area. Facebook's Metaverse may feature surrealistic 3D avatars that use artificial intelligence, advanced modeling techniques, and electromyograms to accurately represent human features and movements in virtual space.

Meanwhile, other companies like Microsoft have announced their views on Metaverse user avatars, and the future looks bright. Etymologically, the word avatar comes from the Sanskrit word "descent," especially referring to gods who descend to Earth and take the form of humans. In computer technology, avatars became popular in the 1980s as a representation of Internet users, especially gamers on the screen. The 1985 game  Ultima IV: Quest of the Avatar established the need for a user's on-screen representation with some credibility.

 The idea was that seeing yourself accurately projected on the screen from a first-person perspective would allow users to become more aware of the ethical issues of the game and experience the content in an immersive way. The same principles apply to social media, as our avatars are literally in virtual space or the world of games, and their actions/decisions are the same as ours. This approach was first presented in the 1992 science fiction novel, Snow Crash by Neal Stephenson – which, incidentally, was also the first debut of the metaverse concept.

Fast forward three decades and tech companies like Facebook (now Meta) and Microsoft are looking to realize the vision of a rich metaverse, populated by lifelike avatars.

COVD-19 impact on the Metaverse Avatar industry

The global Metaverse market, which was valued at the US $ 107.1 billion in 2020 during the COVID19 crisis, is projected to reach a modified size of US $ 758.6 billion by 2026 and grow at a CAGR of 37 during the analysis period. The US Metaverse market is valued at $ 58.5 billion in 2021. The country currently has a 41.2% share of the world market. China, the world's second-largest economy, is projected to reach an estimated market size of US $ 103.1 billion in 2026, with a CAGR of 38.1% during the analysis period. Other notable geographic markets include Japan and Canada, which are expected to grow by 31.3% and 29.6%, respectively, during the analysis period. Within Europe, Germany is projected to grow at a CAGR of about 36.8%, while the remaining European market (as defined in the study) will reach $ 59.5 billion by the end of the analysis period. The results of the COVID19 pandemic have changed the outlook for various industries. During the pandemic, the gaming industry and social media platforms gained significant traction. This is due to the importance of the culture of working from home. In addition, online education has also increased student interest in games that have driven the market.

MARKET DRIVERS:

The growing use of Digital Human Avatar in the Education Sector

The use of advanced technologies such as artificial intelligence (AI) in the education sector has significantly improved distance learning experiences, student support, virtual class offerings, and more. The use of digital human avatars with conversational AI helps to provide a personalized, emotionally resonating, scalable educational experience that is expected to significantly transform today's digital learning environment. .. Virtual idols provide the benefits of digital education solutions while making virtual learning environments more specific and memorable, presenting information in the way students learn best.

These avatars also use text, audio, video, images, and interactions to make education more attractive and interesting. In addition, digital teachers who look and behave like humans are available 24/7 and are programmed to interact face-to-face with students and deliver content to students, revolutionizing education. increase. Applications and benefits are expected to further increase traction.

The Rising Traction & Popularity of Mixed Reality (MR) also Drives the Global Metaverse Market.

The driving force and popularity of mixed reality (MR) is also driving the global metaverse market. Blended Reality (MR) Fragment is used to register what is essentially a huge supply as the use of Mixed Reality (MR) becomes more and more effectively connected in the Metaverse. This is known as mixed reality because clients can connect directly to the real-world metaverse environment. Customers don't have to worry about VR headsets to work with the Metaverse. Clients can interact with the Metaverse through the keyboard, regardless of their level of immersiveness.

MARKET RESTRAINTS:

High Cost Associated With Digital Human Avatar in Metaverse is Restraining the Growth of the Market

The high costs of installation, maintenance, and various other support services associated with digital human avatars can hinder market revenue growth during the forecast period. Only the most funded organizations can take advantage of digital human avatars. Concerns about the ability of digital humans to make intuitive decisions in specific classroom situations can also hinder market growth. The Digital avatar is sometimes not perfect which creates bad behavior in the minds of customers and also creates a bad impression on other consumers as well.

METAVERSE AVATAR MARKET REPORT COVERAGE:

This research report on the global  Metaverse Avatar Market has been segmented and sub-segmented based on type, application, delivery mode, end-user, and region.

Metaverse Avatar Market - By Platform:

• Mobile
• Desktop

Based on the platform, the worldwide metaverse marketplace has been segmented into cellular and desktop. The mobile phase is anticipated to account for an appreciably massive sales proportion withinside the international metaverse marketplace over the forecast period. The increasing improvement of programs to provide higher digital surroundings for cellular video games is using the boom of this phase. In September 2021 for instance, the famed cellular massive records answers platform in China – Aurora Mobile Limited – introduced a hit utility of its push notification provider JPush right into a self-advanced demo sport at the famous Roblox online game platform. It is a vast development in progressive digital technology using JPush Services` boom into the digital world. Users in a sport could be capable of shipping digital messages to at least one another's smartphones withinside the actual world, attributable to the emergence of this ground-breaking function and particular improvement for the metaverse concept. In addition, the growing utilization of smartphones and a better emphasis on growing metaverse video games with programming engines are different key elements anticipated to maintain aid the sales boom of this phase.

Metaverse Avatar Market - By Application:

• Social Media
• Gaming
• Aircraft Maintenance
• Conference
• Content Creation
• Online Shopping
• Virtual Runway Shows
• Others

Based on the application, the global metaverse market is divided into social media, games, aircraft maintenance, meetings, content creation, online shopping, virtual runway shows, and more. The online shopping segment is expected to record a very large revenue share during the forecast period. Increasing demand for virtual real estate is one of the key factors behind revenue growth in this segment as companies develop platforms for buying and selling virtual real estate using blockchain technology. In addition, growing interest from various fashion brands in building a virtual community to become a leader in Metaverse apparel is driving the growth of this segment. 

Metaverse Avatar Market - By End-User:

• Media & Entertainment
• Aerospace & Defense
• Fashion
• Education
• Others

Based on its end-use, the global Metaverse market is divided into media & entertainment, aerospace & defense, fashion, education, and more. The fashion segment is expected to record a significantly stable revenue growth rate during the forecast period. The use of NFTs is steadily increasing in the fashion industry as games and digital fashion become more popular. Increasing adoption of NFTs by fashion brands such as Clinique Laboratories, LLC, Balenciaga, and D & G is expected to drive revenue growth in this segment. For example, to celebrate Pokemon's 25th anniversary, fashion label Charli Cohen has partnered with British luxury department store chain Selfridges to create a digital shopping experience. Yahoo Ryot Lab has partnered with both companies to launch an immersive shopping platform called Electric / City. This is a 360-degree cyberpunk video experience that you can access using your computer or smartphone. Visitors can "walk" through the digital world, inspired by the capitals of countries around the world, shop in AR merchandise vans, and watch virtual performances.

Metaverse Avatar Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

Geographically, Based on regional analysis, North America is expected to have the largest revenue share in the global market during the forecast period, as many start-ups with different Metaverse platforms are entering this market. The US government has also invested heavily in virtual technology, which should also drive market growth. Users are rapidly adopting VR devices for a wide range of activities. For example, when it comes to games, people are moving to VR, which offers high-resolution graphics, motion, and high-quality audio. These factors are expected to significantly drive the growth of the North American Metaverse market. The European market will register a CAGR with stable sales during the forecast period. The expansion of the gambling industry is a key factor expected to drive market revenue growth. As the number of multiplayer games grows, the concept of the Metaverse is rapidly gaining popularity. For example, Facebook's announcement to hire 10,000 people in the European Union (EU) to develop the Metaverse has aroused interest in this concept among people in developed countries in the region. This initiative also provides businesses with access to a large consumer market. Due to the high utilization of the Metaverse platform in the entertainment, gaming, and social sectors of the region, Asia Pacific is expected to grow fastest in the global Metaverse market. The Metaverse epidemic has hit the Asian gaming and social networking industry with hundreds of millions of investments. The interaction of many people is shifting to the online world, and the interest in digital entertainment services is increasing significantly. For example; in October 2021, Hangzhou-based video game giant NetEase and its subsidiaries filed dozens of trademark applications related to the Metaverse.

Metaverse Avatar Market Share by company

1. Roblox Corporation
2. Facebook INC
3. Nvidia Corporation
4. Nextech AR Solutions Corp
5. Unity Technologies inc.
6. Lilith Games
7. Tencent holdings
8. byte France
9. NetEase
10. ZQgame

Offbeat Media Group, which is a digital media startup, announced receiving investment from Atlanta Ventures and Mark Cuban. Offbeat created VirtualHumans.org as a hub for designing, promoting, and strategizing virtual influencers for companies and brands.

Nextech AR Solutions Corp. announced the launch of its NFT hologram creation platform. Customers will be able to easily experience its digital collectibles in AR once it is available. In addition, the company is in talks with existing marketplaces to leverage its recently acquired Threedy.AI 3D content creation technology to turn existing NFT artwork into AR NFTs at scale. Through the integration of a simple JavaScript tag, NFT product photos are automatically onboarded, 3D models are created for each NFT through the power of AI and hosted on the Threedy’s cloud, and 3D visualizations are served to client properties using web AR/3D, all within a single integrated platform.

Suppliers invest in research and development to develop technologically advanced systems that give them a competitive advantage over other providers and provide an economic benefit to the industry. The industry is expected to see several mergers and acquisitions over the next few years. Companies are taking proactive steps to gain market share and provide a diversified product portfolio.

NOTABLE HAPPENINGS IN THE GLOBAL TELEMEDICINE MARKET IN THE RECENT PAST:

• Product Launch - In April 2022, Trace Network Labs has recently launched its first product called ‘Buddy’, which will bring your metaverse avatar to life. It will pave the way to build the NFT and digital fashion-powered metaverses of the future.
• Collaboration - In January 2022, Sandbox announced a partnership with the Warner Music Group, launching the first world of music with the Sandbox Metaverse. With this partnership, Warner Music Group (WMG) will take the first step into the Metaverse and NFT sectors.
• Collaboration - In November 2021, Tencent announced a partnership with the Asian Institute of Digital Finance. The two companies will work together in education, research, and entrepreneurship to support the Asian fintech industry.