United Kingdom Metaverse Market Report 2023: Market is Expected to Grow by 45.6% to Reach $7.828 Billion in 2023 - Fashion Brands are Forging Strategic Alliances to Create Metaverse Experiences
Metaverse industry in United Kingdom is expected to grow by 45.6% on an annual basis to reach US$7,828.3 million in 2023.
The Metaverse industry is expected to grow steadily over the forecast period, recording a CAGR of 34.3% during 2023-2030. The Metaverse Spend Value in the country will increase from US$5,375.0 million in 2022 to reach US$61,598.7 million by 2030.
In the United Kingdom, adoption of metaverse has increased in 2022 across various applications. From socializing to online shopping and attending entertainment events such as concerts in the metaverse, consumers are open to conducting varied activities inside the virtual world.
These trends have resulted in many major brands innovating with customer experiences and driving the future growth of their businesses in the country. As firms continue to build the future of the internet, investment in the sector is expected to grow significantly from the short to medium-term perspective. While the sector is still in its early stages of development in the United Kingdom, the publisher maintains a robust growth outlook for the industry over the next three to four years.
Businesses expect metaverse to have a major impact on their organization
Although the metaverse sector is still in its nascent stages in the United Kingdom, a growing number of businesses in the country feel that emerging technology will play a crucial role in the future growth of their businesses.
With the growing interest in the sector and the potential to drive innovative customer experiences, many businesses have also started to invest in technology. According to the Global Metaverse Survey (Q4 2022), nearly 16% of businesses are evaluating experimenting a range of opportunities in the metaverse sector.
The trend is expected to further accelerate from the short to medium-term perspective, thereby driving business investment toward the development of metaverse infrastructure and innovative applications in the United Kingdom over the next three to four years.
UK-based innovative metaverse startups are raising funding rounds to develop infrastructure
At present, the virtual worlds seem to offer limited experience. However, for the mass adoption of the metaverse, wide-scale infrastructure is required that can drive the future of the internet. To develop the infrastructure, startups are raising capital from private equity and venture capital firms.
In October 2022, Improbable, a United Kingdom-based metaverse startup, announced that the firm had raised US$100 million at a US$3 billion valuation. Founded in 2012, the firm develops metaverse infrastructure, thereby allowing institutions, businesses, and developers, among others to create and build their virtual worlds. The firm also works with militaries in the United Kingdom and the United States to offer simulation experiences. The firm is planning to use the funding round to further develop metaverse infrastructure for its clients.
In September 2022, Hadean, another metaverse startup in the United Kingdom, announced that the firm had raised US$30 million in a Series A funding round, which was led by Molten Ventures. The firm is also planning to use the fresh capital to build out its metaverse infrastructure, thereby providing creators the tools to build virtual worlds. The firm has already signed multi-year agreements with firms in the entertainment business. These include Mine craft, Sony, and Pixelynx, among several others.