The metaverse market in the travel and tourism industry is expected to record a compound annual growth rate (CAGR) of 26.01% between 2021 and 2026, according to a report by global technology research and advisory firm Technavio. 

As a result, the metaverse market in this sector is expected to reach $188.24 billion by 2026. Some of the key factors speculated to propel market growth include enhanced internet penetration, 5G implementation, the presence of digital assets in the metaverse, and surging demand for virtual reality (VR) and augmented reality (AR) technology.

On the other hand, North America is expected to take the lion’s share in the regional category.Technavio pointed out:

“North America is estimated to account for 37% of the growth of the global market over the forecast period.”

Compared to other regions like South America, Europe, Asia Pacific (APAC), and the Middle East and Africa, North America is anticipated to lead the pack based on reasons like notable investments in augmented reality (AR) technology by key vendors.

Others include robust research and consumers’ heightened adoption of technologically advanced applications.

Nevertheless, the Technavio report indicated that security and privacy issues surrounding the metaverse were impeding market growth. 

Meanwhile, a previous study by Technavio disclosed that the size of the entire metaverse sector is expected to reach $1.15 trillion by 2027, recording a CAGR of 40.06%. 

Per the report:

“The growing smartphone penetration and use of 5G are notably driving the market growth, although factors such as privacy and security concerns over the metaverse may impede the market growth.”

On the other hand, the size of the metaverse in the entertainment market is expected to hit $33.32 billion by 2027 thanks to growing adoption of VR/AR gaming by users. 

Therefore, Technavio revealed that the travel and tourism industry would be a key beneficiary in the metaverse based on heightened growth.

Brian Njuguna

CBW - External Analyst

KENYA