Metaverse In E-commerce Market Size, Share, Analysis, Forecasts, 2032

Metaverse In E-commerce Industry Prospective:

The global metaverse in e-commerce market size was worth around USD 22.05 billion in 2023 and is predicted to grow to around USD 380.80 billion by 2032 with a compound annual growth rate (CAGR) of roughly 37.24% between 2024 and 2032.

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Metaverse In E-commerce Market: Overview

Metaverse in e-commerce is a nice market, referring to the development of the metaverse, specially designed for the online shopping experience.

According to market experts, the metaverse is an extensive virtual world that allows people to interact, play, shop, and work using digital personas, also known as avatars. The digital ecosystem is enabled by several new-age technologies, such as virtual reality (VR), augmented reality (AR), artificial intelligence (AI), and others.

Metaverse in e-commerce will encourage improved customer experience in terms of online shopping. For instance, the technology facilitates walking through virtual stores in 3-dimension from remote locations. Buyers can pick and choose products that mimic the actions of real-world shopping.

The growing investments in digital goods and non-fungible tokens (NFTs) are expected to encourage the adoption of metaverse in e-commerce during the forecast period.

Furthermore, the rising advancements in VR and AR technology, along with excellent usage while purchasing luxury items, hold excellent expansion opportunities for market players.

The high cost of technology development and implementation is the most significant growth barrier working against the metaverse in e-commerce industry.

Key Insights:

• As per the analysis shared by our research analyst, the global metaverse in e-commerce market is estimated to grow annually at a CAGR of around 37.24% over the forecast period (2024-2032)
• In terms of revenue, the global metaverse in e-commerce market size was valued at around USD 22.05 billion in 2023 and is projected to reach USD 380.80 billion by 2032.
• The metaverse in e-commerce market is projected to grow at a significant rate due to the rising number of customers on e-commerce platforms.
• Based on technology, the virtual reality (VR) & augmented reality (AR) segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on application, the virtual events segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Metaverse In E-commerce Market: Growth Drivers

Rising number of customers on e-commerce platforms will drive the market demand rate

The global metaverse in e-commerce market is expected to grow due to the rising number of customers across major and emerging e-commerce channels. Consumers are actively seeking solutions that allow them to purchase goods from the comfort of their homes.

In addition, companies and brands are increasingly launching online sites and partnering with e-commerce companies to tap into the growing consumer base.

E-commerce platforms have proven beneficial to customers as well as businesses in the past. For instance, Amazon, one of the world’s leading e-commerce companies, has more than 310 million active customers globally.

Similarly, other online platforms are registering a surge in the number of active buyers. The expansion of consumer electronics, enabling a smooth online buying experience, will further encourage the entry of new consumers across all e-commerce platforms.

Increased investments across supporting technologies such as AR and VR will smoothen technology adoption trends

One of the key propellers for the adoption of the metaverse in the online shopping industry is the increasing investment toward ancillary technologies such as VR and AR.

The successful integration of metaverse in e-commerce depends on supporting solutions that assist in creating an immersive and engaging experience.

For instance, virtual reality and augmented reality tools are necessary for creating the right set of environments to facilitate smooth engagement among virtual buyers and sellers.

For instance, in January 2024, Rokid, an emerging player in the AR segment, announced that it had received funding of USD 70 million.

Additionally, the global metaverse in e-commerce market can also benefit from the increased research & innovation in the field of blockchain technology and artificial intelligence (AI).

In August 2024, Nvidia, a leading AI chipmaker, announced that the company had recorded sales of more than USD 27 billion in the last quarter. Such positive trends toward ancillary technologies will promote investments toward incorporating metaverse solutions across e-commerce channels.

Metaverse In E-commerce Market: Restraints

High cost of technology development and implementation will affect the market growth rate

The global industry for metaverse in e-commerce is projected to be restricted due to the high cost of developing and implementing the technology.

According to market research, only a limited number of players are currently operational in the commercial scenario, leading to high costs.

Moreover, current e-commerce platforms are not designed to support the integration of advanced solutions such as virtual reality and augmented reality.

E-commerce companies must invest in making changes to the current platform to improve compatibility with metaverse-related solutions, leading to an increase in overall expenses.

Metaverse In E-commerce Market: Opportunities

Growing adoption among end-users to generate growth opportunities during the coming years

The global metaverse in e-commerce market is expected to generate growth opportunities due to the increasing adoption among end-users, encouraging more players to follow suit.

In September 2023, the Indian e-commerce company Flipkart launched  Virtual Worlds. The new offering is a metaverse-powered, highly engaging, and immersive virtual shopping feature.

The tool is currently available on the Flipkart application and aims to enhance the overall customer experience. Virtual Worlds consist of a 3D digital environment allowing users to try out products before making the purchase.

In May 2024, US-based retail giant, Walmart, launched Walmart Realm. It is a prime example of integrating metaverse with the e-commerce industry. Walmart is expected to differentiate itself from competing firms such as Amazon by leveraging the offerings of Walmart Realm.

High applications in luxury shopping will aid in improved results in the future

The demand for luxury shopping has been growing over the years. Luxury products across segments such as clothing, accessories, footwear, home decor items, and others are witnessing a surge in demand from international consumers.

However, online shopping for luxury products raises several concerns, such as the risk of fraud and the product’s condition in real life. Luxury product sellers can invest in using solutions available in the global metaverse in the e-commerce industry to create a better customer buying experience.

Metaverse In E-commerce Market: Challenges

Limited adoption among end-users to challenge the market expansion rate

Ordinary consumers may not have access to the systems and tools required to access the metaverse in e-commerce. Additionally, a large portion of potential consumers prefer to make purchases offline through physical stores. Lack of sufficient consumer awareness and hesitancy toward adopting changes will impact the metaverse in e-commerce industry’s overall revenue in the long run.

Metaverse In E-commerce Market: Segmentation

The global metaverse in e-commerce market is segmented based on technology, platform, application, and region.

Based on the technology, the global market segments are edge computing, virtual reality (VR) & augmented reality (AR), blockchain, and others.

In 2023, the highest growth was witnessed in the virtual reality (VR) & augmented reality (AR) segments. It dominated nearly 35.81% of the total market share. VR and AR are essential tools required to make the metaverse in e-commerce a reality. They act as primary solutions that facilitate access to the digital world.

During the forecast period, edge computing is expected to generate significant results due to increased demand for privacy and security in the metaverse.

Based on the platform, the global metaverse in e-commerce industry is fragmented into AR/VR headsets, mobile/tablets, and desktops.

Based on the application, the global market segments are virtual events and virtual stores. In 2023, the highest demand was listed in the virtual events segment. It held dominance over 77.45% of the final revenue.

One of the primary reasons for higher segmental demand is the increasing focus on social commerce and the need to build communities. Brands can create higher brand awareness and loyalty by hosting virtual events that connect global audiences.

Metaverse In E-commerce Market: Report Scope

Metaverse In E-commerce Market: Regional Analysis

North America to continue its growth streak during the forecast period

The global metaverse in e-commerce market is projected to be led by North America during the forecast period. In 2023, the region contributed to nearly 33.15% of the global revenue. The increasing investments in next-generation technologies such as AI, AR, VR, blockchain, and others are helping the region thrive.

In addition, major technology companies such as Google and Meta are consistently exploring new expansion opportunities for metaverse-powered solutions, including the e-commerce sector.

Growth in North America is further assisted by the existence of a relatively well-established framework and foundation for the development and implementation of the metaverse.

Asia-Pacific is a growing market with exceptional growth potential. Countries such as China, India, Japan, South Korea, and Singapore may act as crucial growth drivers in the regional market during the projection period.

The rapid adoption of VR and AR across regional populations along with extensive growth in the e-commerce industry across Asia-Pacific will be crucial to shaping the region’s growth rate.

For instance, Alibaba, a leading e-commerce giant in Asia-Pacific is also investing heavily in innovative technologies to reach a broader audience and generate higher revenue.

Metaverse In E-commerce Market: Competitive Analysis

The global metaverse in e-commerce market is led by players like:

• Unity Technologies
• Microsoft
• Louis Vuitton
• Nike
• Epic Games
• Hyundai
• Meta
• Gucci
• Disney
• Forever 21
• Nvidia
• Apple
• Balenciaga
• Roblox
• Coca-Cola

The global metaverse in e-commerce market is segmented as follows:

By Technology

• Edge Computing
• Virtual Reality (VR) & Augmented Reality (AR)
• Blockchain
• Others

By Platform

• AR/VR Headset
• Mobile/Tablets
• Desktop

By Application

• Virtual Events
• Virtual Stores

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa