A study by Technavio, a market research firm, predicts that the area of the metaverse dedicated to entertainment, including virtual concerts, video games and movies, will reach a value of $28.92 billion between 2021 and 2026. The report states that 33% of this growth will come from U.S. markets, due to the intersection of gaming and movie companies.
Entertainment metaverse to grow, fueled by consumer adoption
The metaverse and its future adoption continue to be actively researched by market forecasting firms. A report released Nov. 11 by Technavio, a market research firm, determined that the market size for entertainment-related metavers initiatives will grow to $28.92 billion during the period 2021 to 2026.
The report identified two key areas that will fuel this growth, including increased consumer spending on virtual concerts and virtual events, enabled by growing advances in virtual reality (VR) and augmented reality (AR) technologies. The second key factor is the growing adoption of online gaming, which, when combined with the aforementioned technologies, offers a level of immersion that will encourage spending in this area.
However, the study also shows that market growth will face challenges, including concerns about privacy and security in the metaverse. This issue has already been raised by institutions such as the World Economic Forum (WEF) and even Interpol, the latter of which has already begun to integrate its services into a police-oriented metaverse.
New trends and the role of the United States
The study also predicts the rise of the metaverse in film production, predicting that films will become interactive and viewers will be able to act on cinematic environments, using VR technology for this purpose. Attempts have already been made in this direction, but none have been massively successful with the general public.
According to the study, most of the projected growth in metavers will come from the United States, due to a confluence of factors. Thirty-three percent of the increase is expected to come from that region, in part due to the “rapid convergence of the entertainment industry and gaming culture traction, the integration of gaming services into the service offerings of major entertainment brands, and increased investment in creating more immersive gaming and entertainment experiences.“
Other reports have also projected metavers in the entertainment industry. On September 12, JPMorgan said that the Chinese metaverse gaming market could be worth more than $100 billion. Similarly, in March, Citi predicted that the metaverse could represent a $13 trillion opportunity.