While the metaverse is not exactly widespread yet, it is still lucrative. In 2021, total virtual real estate sales across the metaverse topped $500 million and are expected to double in 2022. By 2030, the metaverse is expected to be worth $1.6 trillion, expanding at a compound annual growth rate (CAGR) of 40%.1
Retailers are buying property and setting up shop, developing awareness, engagement, and loyalty with early adopters. Luxury brands including Burberry, Hermes, Dolce & Gabbana, and Gucci are using NFTs to generate interest.2
Users access the metaverse through hardware such as virtual reality (VR) goggles and augmented reality (AR) glasses that are connected to the internet. Meta Platforms (formerly Facebook) is the leader in the rapidly growing VR headset market. In 2021, the company’s Quest 2 VR headset captured 78% (8.7 million units) of the entire headset market (11.2 million units).3
As the number of people venturing into the metaverse grows, so does the hardware sales. In 2021, the number of AR/VR headsets that shipped increased 92.1% year-over-year. In 2022, the number of AR/VR headsets sold is expected to reach 16.49 million. By 2026, that number is expected to soar to more than 50 million.
Snap Launched New Pocket-Sized Hardware
Snap Inc has begun offering a subscription called Snapchat+, which provides users with exclusive and early access features. Priced at $3.99 per month, this is Snap’s first attempt at generating revenue outside of advertising. The tiered membership has been rolled out in the U.S., Canada, the United Kingdom, Germany, France, Australia, New Zealand, Saudi Arabia, and the United Arab Emirates.4
Snap also recently launched its second piece of hardware, a small, pocket-sized drone called Pixy. Designed for taking selfies, the Pixy has a front camera that also allows users to create
videos and a button camera for navigating. Pixy comes six years after Snap launched its first hardware product, Spectacles, which are glasses that allow users to send clips without touching their phone.5
Roblox to Launch Samsung Space Tycoon
Roblox Inc. is being tapped by Samsung Electronics to launch its Samsung Space Tycoon. A virtual playground built inside the metaverse platform Roblox, Space Tycoon is set in the Samsung Space Station and allows visitors to create, play games, and interact using Samsung products.6
In addition to a global electronics company using Roblox to reach out to the next generation of consumers, the online platform is also a magnet for popular brands like Nike, and luxury brands like Gucci, Tommy Hilfiger, Ralph Lauren, and Givenchy.7
Roblox has a massive captive audience with 54.1 million active daily users.
Meta Shares Expectations for AR, VR, and the Metaverse
Mark Zuckerberg, CEO of Meta Platforms, has said that the metaverse could be a major source of sales in the back half of this decade. He said, “We hope to basically get to around a billion people in the metaverse doing hundreds of dollars of commerce, each buying digital goods, digital content, different things to express themselves, so whether that’s clothing for their avatar or different digital goods for their virtual home or things to decorate their virtual conference room, utilities to be able to be more productive in virtual and augmented reality and across the metaverse overall.” They plan to achieve this with the company’s virtual reality (VR) and augmented reality (AR) products.8
MESH ETF: Investing in Canada’s First Metaverse ETF
If you’re interested in investing in the metaverse, consider the Evolve Metaverse ETF (MESH ETF), Canada’s first metaverse ETF. MESH ETF provides investors with an actively managed diversified portfolio of companies involved in the development of the metaverse. To learn more about MESH ETF, please click here: https://evolveetfs.com/mesh/.
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- “The Global Metaverse Market in 2030 will be worth USD 1.6 trillion, having a CAGR of 38.25%,” Strategic Market Research, June 23, 2022; https://www.globenewswire.com/en/news-release/2022/06/23/2468305/0/en/The-Global-Metaverse-Market-in-2030-will-be-worth-USD-1-6-trillion-having-a-CAGR-of-38-25.html#.
- Murad, A., and Smale, W., “The retailers setting up shop in the metaverse,” BBC.com, July 4, 2022; https://www.bbc.com/news/business-61979150.
- Kapoor, P., “Tech Giants Bet big On Metaverse Hardware,” Entrepreneur.com, July 12, 2022; https://www.entrepreneur.com/article/431142.
- “Introducing Snapchat+,” Snap Inc.., June 29, 2022; https://newsroom.snap.com/en-GB/snapchatplus.
- “SPS 2022: Meet Pixy,” Snap Inc., April 28, 2022; https://newsroom.snap.com/en-GB/sps2022close.
- “Samsung Unveils Experiential Virtual Playground ‘Space Tycoon’ on Roblox,” Samsung Electronics, July 12, 2022; https://news.samsung.com/global/samsung-unveils-experiential-virtual-playground-space-tycoon-on-roblox.
- Bein, K., “5 Luxury brans With Explorable Space in Roblox,” Gotham.com, July 11, 2022; https://gothammag.com/ralph-lauren-gucci-nike-tommy-hilfiger-givenchy-roblox.
- Novet, J., “Mark Zuckerberg envisions a billion people in the metaverse spending hundreds of dollars each,” MSNBC.com, June 22, 2022; https://www.cnbc.com/2022/06/22/mark-zuckerberg-envisions-1-billion-people-in-the-metaverse.html