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Metaverse has begun to take center stage in the digital landscape, turning out to be more than just a fashionable technological concept. Now that generative AI has garnered a lot of attention, emphasis is turning to the growing interest in metaverse.
Meta (META - Free Report) founder and CEO, Mark Zuckerberg, in the company’s fourth-quarter 2023 conference call, stated that the tech giant has made substantial investments in both AI and metaverse, essential components of the company's long-term vision over the next decade.
According to Nasdaq, the metaverse hype has surged within publicly traded companies, evidenced by a notable uptick in references during quarterly conference calls after Facebook's rebranding to Meta Platforms.
Anticipating Metaverse’s Market Expansion
According to Earthweb, as quoted on CompTIA, the global metaverse market is projected to witness a CAGR of 47.2%, reaching $426.9 billion by 2027. Per Statista’s estimations, metaverse’s revenue will witness a CAGR of 36.7%, resulting in a market that is expected to reach $490.4 billion by 2030.
According to CompTIA, Bloomberg forecasts metaverse to reach a value of $800 billion by 2024. McKinsey & Company provides one of the most bullish perspectives on the metaverse market, approximating the metaverse economy to reach a valuation of $5 trillion by 2030.
Gauging the Market Reach
According to Statista, 2.63 billion users are expected to be part of the metaverse market by 2030, with the user penetration reaching 39.7% in 2030 from 14.6% in 2024.
The utilization of the metaverse is experiencing steady growth daily. As per CompTIA, virtual concerts have already become a massive phenomenon in metaverse, drawing in tens of millions of fans who eagerly tune in to watch performances by artists like Ariana Grande, Travis Scott and others. McKinsey further forecasts that by 2030, over 50% of live events will migrate to metaverse, with its influence extending to over 80% of commerce.
According to Gartner, as quoted on CompTIA, an estimated 25% of individuals are anticipated to dedicate at least an hour daily to activities within the metaverse by 2026. Meanwhile, by the same year, it's projected that 30% of global organizations will have developed products and services tailored for metaverse.
Sectoral Opportunities:
Many industries are positioned to take advantage of the exceptional potential for growth and innovation that metaverse has to offer. Metaverse presents a dynamic environment for industries to flourish in, ranging from gaming and healthcare to banking, manufacturing and other fields.
Healthcare
The influence of metaverse in healthcare has seen rapid growth in recent years. The impact of emerging technology in the healthcare space is poised to witness a CAGR of 34% till 2028, reaching a valuation of $44.44 billion, according to Research and Markets.
However, the sector is in its developing stages. Per a Boston Consulting Group survey, about 77% of healthcare providers and 94% of payers anticipate a rise in their engagement with the metaverse in the coming years.
Manufacturing
According to Industry Week, based on their research, revenues generated by the industrial metaverse are estimated to hit $100 billion by 2030, facilitating the sector by making it more efficient and economical.
The global manufacturing metaverse market is projected to reach $337 billion by 2033 at a CAGR of 38.60%, with North America showcasing the fastest growth rate, according to Precedence Research.
Gaming
Whatech, estimates that the influence of metaverse in the gaming industry will see a CAGR of 40% from 2023 to 2030. North America leads the gaming metaverse market thanks to its early adoption of technology and the domination of major players in the sector like Microsoft and Meta. With significant investments from firms like Tencent and Sony, Asia Pacific has emerged as a noteworthy competitor.
According to Statista, the user base in the Metaverse Gaming market is anticipated to reach 943.3 million by the year 2030, with the user penetration rate surging to 14.2% by 2030 from 4.7% in 2024.
ETFs in Focus
Below, we highlight a few metaverse ETFs for investors to capitalize on the optimistic outlook of the emerging technology.
Roundhill Ball Metaverse ETF follows the Ball Metaverse Index which seeks to track the performance of globally-listed equity securities of companies that engage in activities or provide products, services, technologies or technological capabilities to enable the metaverse and benefit from its generated revenues.
Roundhill Ball Metaverse ETF has gathered an asset base of $451.2 million and charges an annual fee of 0.59%. The fund has major allocations to META with a share of 7.66%, followed by Roblox (RBLX - Free Report) and NVIDIA (NVDA - Free Report) having a share of 7.39% and 7.19%, respectively. METV has gained about 21.70% in the past three months.
ProShares Metaverse ETF follows the Solactive Metaverse Theme Index, which consists of companies that provide innovative technologies to offer products and services around the Metaverse.
ProShares Metaverse ETF has amassed an asset base of $5.5 million and charges an annual fee of 0.58%. The fund has major allocations to NVDA, with a share of 4.81%, followed by META and Alphabet (GOOGL - Free Report) , having a share of 4.55% and 4.54%, respectively. VERS has gained about 21.29% in the past three months.
Fidelity Metaverse ETF follows the Fidelity Metaverse Index, which is designed to reflect the performance of a global universe of companies that develop, manufacture, distribute or sell products or services related to establishing and enabling the Metaverse.
Fidelity Metaverse ETF has gathered an asset base of $28.1 million and charges an annual fee of 0.39%. The fund has major allocations to NVDA, with a share of 5.70%, followed by META and GOOGL, having a share of 5.16% and 4.57%, respectively. FMET has gained about 18.06% in the past three months.
First Trust Indxx Metaverse ETF follows the Indxx Metaverse Index, which is rules-based and invests in the next generation of the Internet that has the potential to allow creators to build the next chapter of human interaction through immersive experiences in three-dimensional virtual spaces.
First Trust Indxx Metaverse ETF has amassed an asset base of $1.8 million and charges an annual fee of 0.70%. The fund has major allocations to NVDA, with a share of 3.81%, followed by META, with a share of 3.68%. AVRV has gained about 19.25% in the past three months.
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Surfing Metaverse ETFs for Opportunities in 2024
Metaverse has begun to take center stage in the digital landscape, turning out to be more than just a fashionable technological concept. Now that generative AI has garnered a lot of attention, emphasis is turning to the growing interest in metaverse.
Meta (META - Free Report) founder and CEO, Mark Zuckerberg, in the company’s fourth-quarter 2023 conference call, stated that the tech giant has made substantial investments in both AI and metaverse, essential components of the company's long-term vision over the next decade.
According to Nasdaq, the metaverse hype has surged within publicly traded companies, evidenced by a notable uptick in references during quarterly conference calls after Facebook's rebranding to Meta Platforms.
Anticipating Metaverse’s Market Expansion
According to Earthweb, as quoted on CompTIA, the global metaverse market is projected to witness a CAGR of 47.2%, reaching $426.9 billion by 2027. Per Statista’s estimations, metaverse’s revenue will witness a CAGR of 36.7%, resulting in a market that is expected to reach $490.4 billion by 2030.
According to CompTIA, Bloomberg forecasts metaverse to reach a value of $800 billion by 2024. McKinsey & Company provides one of the most bullish perspectives on the metaverse market, approximating the metaverse economy to reach a valuation of $5 trillion by 2030.
Gauging the Market Reach
According to Statista, 2.63 billion users are expected to be part of the metaverse market by 2030, with the user penetration reaching 39.7% in 2030 from 14.6% in 2024.
The utilization of the metaverse is experiencing steady growth daily. As per CompTIA, virtual concerts have already become a massive phenomenon in metaverse, drawing in tens of millions of fans who eagerly tune in to watch performances by artists like Ariana Grande, Travis Scott and others. McKinsey further forecasts that by 2030, over 50% of live events will migrate to metaverse, with its influence extending to over 80% of commerce.
According to Gartner, as quoted on CompTIA, an estimated 25% of individuals are anticipated to dedicate at least an hour daily to activities within the metaverse by 2026. Meanwhile, by the same year, it's projected that 30% of global organizations will have developed products and services tailored for metaverse.
Sectoral Opportunities:
Many industries are positioned to take advantage of the exceptional potential for growth and innovation that metaverse has to offer. Metaverse presents a dynamic environment for industries to flourish in, ranging from gaming and healthcare to banking, manufacturing and other fields.
Healthcare
The influence of metaverse in healthcare has seen rapid growth in recent years. The impact of emerging technology in the healthcare space is poised to witness a CAGR of 34% till 2028, reaching a valuation of $44.44 billion, according to Research and Markets.
However, the sector is in its developing stages. Per a Boston Consulting Group survey, about 77% of healthcare providers and 94% of payers anticipate a rise in their engagement with the metaverse in the coming years.
Manufacturing
According to Industry Week, based on their research, revenues generated by the industrial metaverse are estimated to hit $100 billion by 2030, facilitating the sector by making it more efficient and economical.
The global manufacturing metaverse market is projected to reach $337 billion by 2033 at a CAGR of 38.60%, with North America showcasing the fastest growth rate, according to Precedence Research.
Gaming
Whatech, estimates that the influence of metaverse in the gaming industry will see a CAGR of 40% from 2023 to 2030. North America leads the gaming metaverse market thanks to its early adoption of technology and the domination of major players in the sector like Microsoft and Meta. With significant investments from firms like Tencent and Sony, Asia Pacific has emerged as a noteworthy competitor.
According to Statista, the user base in the Metaverse Gaming market is anticipated to reach 943.3 million by the year 2030, with the user penetration rate surging to 14.2% by 2030 from 4.7% in 2024.
ETFs in Focus
Below, we highlight a few metaverse ETFs for investors to capitalize on the optimistic outlook of the emerging technology.
Roundhill Ball Metaverse ETF (METV - Free Report)
Roundhill Ball Metaverse ETF follows the Ball Metaverse Index which seeks to track the performance of globally-listed equity securities of companies that engage in activities or provide products, services, technologies or technological capabilities to enable the metaverse and benefit from its generated revenues.
Roundhill Ball Metaverse ETF has gathered an asset base of $451.2 million and charges an annual fee of 0.59%. The fund has major allocations to META with a share of 7.66%, followed by Roblox (RBLX - Free Report) and NVIDIA (NVDA - Free Report) having a share of 7.39% and 7.19%, respectively. METV has gained about 21.70% in the past three months.
ProShares Metaverse ETF (VERS - Free Report)
ProShares Metaverse ETF follows the Solactive Metaverse Theme Index, which consists of companies that provide innovative technologies to offer products and services around the Metaverse.
ProShares Metaverse ETF has amassed an asset base of $5.5 million and charges an annual fee of 0.58%. The fund has major allocations to NVDA, with a share of 4.81%, followed by META and Alphabet (GOOGL - Free Report) , having a share of 4.55% and 4.54%, respectively. VERS has gained about 21.29% in the past three months.
Fidelity Metaverse ETF (FMET - Free Report)
Fidelity Metaverse ETF follows the Fidelity Metaverse Index, which is designed to reflect the performance of a global universe of companies that develop, manufacture, distribute or sell products or services related to establishing and enabling the Metaverse.
Fidelity Metaverse ETF has gathered an asset base of $28.1 million and charges an annual fee of 0.39%. The fund has major allocations to NVDA, with a share of 5.70%, followed by META and GOOGL, having a share of 5.16% and 4.57%, respectively. FMET has gained about 18.06% in the past three months.
First Trust Indxx Metaverse ETF (ARVR - Free Report)
First Trust Indxx Metaverse ETF follows the Indxx Metaverse Index, which is rules-based and invests in the next generation of the Internet that has the potential to allow creators to build the next chapter of human interaction through immersive experiences in three-dimensional virtual spaces.
First Trust Indxx Metaverse ETF has amassed an asset base of $1.8 million and charges an annual fee of 0.70%. The fund has major allocations to NVDA, with a share of 3.81%, followed by META, with a share of 3.68%. AVRV has gained about 19.25% in the past three months.