A new report has predicted that the metaverse wallet will surge to meteoric levels by the end of the decade, matching the expected rise of virtual worlds and their growing use cases.
The market assessment report, compiled by InsightAce Analytics, disclosed that the metaverse wallet ecosystem will reach a valuation of $42.9 billion in 2031. Currently, the market is valued at $7.39 billion, with the seven-year forecast period representing a compound annual growth rate (CAGR) of 24.7%.
Metaverse wallets are digital asset wallets, primarily designed to hold assets in virtual worlds, such as tokens, in-game currencies, non-fungible tokens (NFTs), and other identification credentials.
Several factors are expected to be tailwinds for the metaverse wallet market in the lead-up to the start of the new decade. Analysts argue that the rise of metaverse technologies and virtual worlds is the primary driver of wallet growth alongside their increasing utility.
Metaverse wallets are becoming indispensable in facilitating seamless user interaction in virtual worlds and streamlining transactions between users. Furthermore, the utility of establishing verifiable asset ownership and consolidating digital holdings in a single interface is considered a key element in the push for a $42 billion valuation.
The report highlighted prominent service providers in the metaverse wallet landscape, indicating that they are expected to hold a significant portion of the market share by 2031. Key players include ConsenSys, Enjin, Coinbase (NASDAQ: COIN), Decentraland, The Sandbox, Somnium Space, and Alpha Wallet.
In terms of regional distribution, the report predicts North America to be the most dominant force in 2031. The market report hinges its forecast on North America’s streak of investment in blockchain and digital innovation, with Southeast Asia expected to close the distance.
Despite the glowing numbers and upside opportunity, the report noted that market expansion will face significant headwinds from limited interoperability between metaverse platforms. Furthermore, regulatory uncertainty compounds the challenges as market participants seek clarity on taxation, data handling, and ownership status.
Metaverse market set to balloon to a trillion-dollar industry
Several reports are backing the resurgence of the metaverse market after its boom and bust in recent years. Amid emerging use cases, one report predicted a “metaverse revival,” tipping the industry to reach a market capitalization of $1 trillion by decade’s end.
Meanwhile, a FINRA report forecasted that the metaverse would reach $3 trillion by 2031, buoyed by the broadening utility of virtual worlds. Currently, the metaverse is finding utility in education, while several manufacturing firms are racing to integrate the technology into their internal processes.
Metaverse solutions gear up for growth
A separate study conducted by analysts at World Wide Market Reports has predicted that the industrial metaverse olution market will record a significant growth spurt in the coming years, driven by a range of factors alongside the anticipated growth of virtual worlds.
According to the report, the sector is poised to achieve a double-digit CAGR within eight years from its current levels. Conservative estimates place the industrial metaverse solution market valuation at $124 billion, while bullish predictions tip the industry to reach $315 billion.
While both bull and base scenarios remain impressive, the report highlights several factors expected to drive the market to double-digit CAGRs. The growing adoption of digital twin technologies in manufacturing, oil and gas, and energy sectors is considered the biggest tailwind for the industrial metaverse solution market.
Furthermore, the report highlights the rapid growth of Internet of Things (IoT) technology in industrial applications and the increasing demand for sensor data by enterprises. A key factor driving the forecasted growth is the growing demand for artificial intelligence (AI) applications in predictive maintenance, energy optimization, and quality control.
Meanwhile, use cases in workforce training and remote operations, interfacing with virtual worlds, are being explored to drive adoption levels to unprecedented levels. Other drivers include the rise in the demand for simulation before production, supply chain integration, and improvements in cloud and edge computing.
Several Big Tech firms are spearheading innovation and broadening use cases with Microsoft (NASDAQ: MSFT), Siemens (NASDAQ: SIEGY), PTC, GE Digital, and Unity Technologies leading the way. A streak of collaboration and partnerships between Big Tech firms is expected to cement their positions at the top of the pyramid, but the report highlighted the possibility of new market disruptors.
By application, manufacturing operations and training will hold the lion’s share of the emerging market, while remote maintenance and field service will follow closely behind. Meanwhile, design collaboration and prototyping are projected to record rising adoption among enterprises keen on embracing digital systems.
Already, several industries are positioning themselves to capitalize on the growth of the incoming metaverse. Pioneers in the manufacturing industry and energy sectors have since unveiled plans to adopt the metaverse, aiming to improve their productivity and efficiency with emerging technologies.
Watch | The Web3 trifecta: AI, metaverse & blockchain
Source: https://coingeek.com/metaverse-wallets-solutions-poised-for-growth-reports/
