Global metaverse revenue grew 6.2% in 2023 as demands for products pick up steam: S&P Global Market Intelligence

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    Ani |
    Has been updated:
    March 21, 2024 12:06 IST

    New Delhi [India]March 21 (ANI): Global Metaverse revenue is estimated to grow 6.2% year-on-year in 2023 as core products related to games and workflow digitization continue to gain momentum, according to S&P Global Market Intelligence. The total amount was USD 19.26 billion.
    The recent spending increases have not matched the dizzying growth rate of revenue from Metaverse products, but the financial information and analytics firm says it will recover from the sector's 2.7% decline in 2022.
    Revenue trends in 2023 are already reflecting that dynamic, and the growing list of companies leaning into the metaverse in 2024 highlights the growing opportunity, according to the report.
    Ian Hughes, senior research analyst at S&P Global Market Intelligence, said: “Disney's investment in Epic will accelerate consumer experiences, and Apple's Vision Pro headset will accelerate virtual reality (VR) and augmented reality.'' “We have entered the reality (AR), spatial ecosystem.” .
    By definition, a metaverse is a 3D digital space that uses virtual reality, augmented reality, and other technologies to enable lifelike experiences.

    The analytics firm said in a report that commercial software and services from vendors such as Accenture and Siemens grew by 13% in 2023.
    However, revenue growth began to slow in the final quarter of this year, suggesting there may be friction regarding new sales opportunities.
    Metaverse Interface Hardware decreased 3.0% year over year to $5.27 billion in 2023 as consumers lost interest in aging headsets. The paper noted that the segment has room to grow in 2024 due to new products from Meta and Apple.
    “While some have suggested that the Metaverse is dead due to the overall focus on artificial intelligence (AI), the direction of evolution of all digital interactions is evolving towards a Metaverse future. It continues,” Hughes said.
    “Earnings trends in 2023 already reflect that dynamic, and the growing list of companies leaning into the Metaverse in 2024 highlights the growing opportunity. With its investments in enhanced consumer experiences, Apple has entered the virtual reality (VR), augmented reality (AR) and spatial ecosystem with the Vision Pro headset,'' analysts said.
    “But as companies such as Siemens and Nvidia’s ongoing partnership create industrial metaverse applications, a less exotic and more engineering-robust world of manufacturing continues to advance.”
    Metaverse aims to deliver significant cost savings and improvements as we evolve into a future powered by AI-enhanced virtualization, simulation, and robotics, where many technology trends from industrial IoT to digital twins converge. (Ani)


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