(MENAFN- P&S Intelligence) According to the latest market research study published by P&S Intelligence, the U.S. metaverse market size reached USD 29.4 billion in 2024 and is projected to expand at a strong 36.4% CAGR from 2025 to 2032, ultimately reaching USD 349.1 billion by 2032.

This rapid growth is driven by continuous advancements in virtual reality (VR), augmented reality (AR), artificial intelligence (AI), 5G, and cloud infrastructure.

Devices such as Meta Quest, Apple Vision Pro, and HoloLens are making immersive experiences more accessible, while AI is enabling intelligent avatars, dynamic environments, and personalized user interactions.

The increasing demand for engaging digital spaces and enhanced connectivity is pushing users beyond traditional screens, encouraging them to explore, collaborate, and socialize in virtual worlds.

A major development occurred in January 2024, when Meta Platforms Inc. contracted Nvidia for 350,000 H100 GPUs to strengthen its metaverse services using artificial general intelligence (AGI).

U.S. Metaverse Market Trends & Growth Drivers

Social & Collaborative Experiences

The metaverse provides immersive 3D environments that go far beyond traditional digital interactions like text messages, video calls, and social media.

Users can now participate in virtual events, conferences, and concerts, building deeper, more personal relationships within shared digital spaces.

Key updates:

• February 2025: Meta announced a USD 100 billion investment in its extended reality (XR) portfolio, including AR smart glasses and VR headsets.
• Qualcomm’s Snapdragon Metaverse Fund committed USD 100 million to companies developing immersive technologies.

Technological Advancements

VR and AR devices continue to improve in terms of performance, comfort, and accessibility.
The rollout of 5G ensures low-latency connectivity essential for fast rendering and real-time virtual interactions.

AI and ML enable:
• Realistic avatar behavior
• Responsive virtual environments
• More-natural digital interactions

Additional boost comes from the CHIPS and Science Act of 2022, which allocates part of USD 280 billion to NIST and NSF for R&D in immersive technologies.

U.S. Metaverse Market Segmentation

Component Analysis

• Hardware – 70% share in 2024 (Largest)
Essential devices such as VR headsets and AR glasses dominate the market.
• Software – 37.5% CAGR (Fastest Growing)
Growth driven by increased demand for virtual platforms and apps.

Platform Analysis

• Desktop – 45% share in 2024 (Largest)
Desktops efficiently handle VR/AR processing requirements.
• Console – 37% CAGR (Fastest Growing)
Driven by increasing compatibility with VR headsets.
Platforms covered: Desktop, Mobile, Console.

Offering Analysis

• Avatars – 50% share in 2024 & 36.8% CAGR (Largest & Fastest Growing)
Users increasingly demand personalized digital identities.
Offerings include Avatars, Virtual Platforms, Asset Marketplaces, and Financial Services.

Technology Analysis

• Virtual Reality (VR) – 35% share in 2024 (Largest)
Highly immersive simulations drive adoption.
• Augmented Reality (AR) – 37.2% CAGR (Fastest Growing)
AR overlays digital information on the real world (e.g., navigation, shopping).

Vertical Analysis

• Gaming – 30% share in 2024 (Largest)
Gaming laid the foundation for immersive digital worlds.
• Education – 37.4% CAGR (Fastest Growing)

Post-pandemic virtual learning environments are enhancing real-time interaction.

Other verticals include Manufacturing, Entertainment & Media, Healthcare, Retail, Fashion, and Aerospace & Defense.

Geographical Analysis

West – 35% share in 2024 (Largest)

The region benefits from the presence of key tech giants such as Meta, Google, Apple, Nvidia, and Microsoft, and a highly tech-savvy population.

South – 38% CAGR (Fastest Growing)

Tech expansion in Texas, Florida, and Georgia is accelerating investment and adoption of metaverse technologies, while falling prices make hardware and software more accessible.

Market Structure & Key Companies

The U.S. metaverse market is fragmented, with participants ranging from hardware manufacturers to software developers and IT service providers. Many smaller companies focus on specialized use cases like digital art, virtual learning, and digital fashion.

Key Companies
• Microsoft Corporation
• Sony Semiconductor Solutions Corporation
• Meta Platforms Inc.
• Alphabet Inc.
• Apple Inc.
• Huawei Technologies Co. Ltd.
• Logitech International S.A.
• NVIDIA Corp.
• HTC Corporation
• Autodesk Inc.
• Alibaba Group Holding Ltd.
• Roblox Corporation

Latest Industry Updates

• February 2024: Roblox launched automatic chat translation, enabling seamless multilingual communication.
• February 2023: Google introduced XR Immersive Stream, a cloud-based rendering service using Google Cloud GPUs to deliver immersive content to any device.

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