Metaverse: Changing the Dynamics of Future Business (Riyadh Valley Company)

Summary

• The global metaverse market is projected to reach $507.8 billion by 2030, up from $46.1 billion in 2022, with a CAGR of 34.97%.p.5
• Metaverse gaming and metaverse eCommerce are expected to lead market share, growing 16 times and 11 times respectively between 2022 and 2030.p.6
• The deal-count index for PE and VC funding rounds in metaverse-based companies closed at 48 in 2023, down from 65 in 2022.p.7
• Strategy& expects metaverse technologies to contribute about $15 billion to GCC economies by 2030.p.9
• Saudi Arabia's metaverse market is estimated at $7.6 billion by 2030.p.11
• By 2030, more than half of live events could be held through metaverse technologies and about 80% of commerce could be affected by virtual store visits.p.13
• The US metaverse industry was estimated at $51 billion in 2023.p.10

Key insights

1. The metaverse is described as seven core layers, each representing a stage of the metaverse value chain.p.4
2. The global market is forecast to grow from $46.1 billion in 2022 to $507.8 billion by 2030.p.5
3. Interest from venture capital investors persists despite the 2023 slowdown, with the deal-count index at 48 versus 65 in 2022.p.7
4. Technical bottlenecks, hardware limits, privacy and security concerns, inflation and higher interest rates are cited as reasons for the funding slowdown.p.7
5. Lack of interoperability and standardization between metaverse platforms is described as one of the biggest challenges.p.7
6. Saudi Arabia's $500 billion NEOM city includes a digital component and metaverse gaming is expected to be a key part of the project.p.9
7. China's metaverse industry was estimated at $1 trillion in 2023.p.10
8. Saudi investments of over $1 billion are planned for a digital replica of NEOM.p.11