Discover the potential of the avatar market in the metaverse as a new report reveals it’s set to exceed $500 billion by 2030. Explore how avatars shape the user experience and provide digital identities for users across different platforms and applications.
Ever since the metaverse became the forefront of the web3 conversation, the question of how players would be depicted virtually has been a feature that has been treated differently by each builder and developer.
But one thing was in consensus from the very beginning, Avatars are a crucial feature in crafting the metaverse gaming industry. How exactly is the avatar market contributing this the metaverse’s success?
According to a recent report by Blockchain Research Lab, the avatar market is expected to exceed US$500 billion by 2030. The report takes what most users often take advantage of in online games, taking the avatars we embody into the spotlight for analysis. Avatars allow players across different platforms to create a digital identity, allowing them to participate in the virtual worlds as an entirely different digital character.
Digital Avatar’s Massive Market
In NFT(non-fungible token) games, we already have metaverse-drive titles that place an emphasis on avatars like The Sandbox and Decentraland. But what you probably didn’t know is that traditional gaming already has a pre-existing massive market for the avatar industry.
Roblox, for instance, disclosed that it had 200 million monthly active users in Q3 2021, with an average of 20% of them updating their avatars daily. The platform’s over 2.7 million creators earned a total of $538 million in 2021, demonstrating the high demand and potential for avatar markets in Web 3.0, which further motivates creators.
Psychology in Digital Avatars
The study has also revealed an exciting factor in how psychology plays a factor in a user’s avatar selection. The report highlights three main psychological factors that influence the choice of avatars in virtual environments:
- Self-expression and identity
- Social comparison and group dynamics
- Self-esteem and self-regulation
These theories suggest that people choose avatars that reflect their own identities, values, and social status, as well as those that help them navigate and fit in with the social dynamics of virtual environments.
The report also notes that factors such as expression, emotions, behavior, history, and social networks contribute to avatars alongside their physical appearance. Avatars can provide their users with various other utilities, including social, educational, psychological, commercial, and entertainment.
Overall, the report highlights the enormous potential for the avatar market in the metaverse. As the metaverse continues to grow and evolve, avatars will play an increasingly important role in shaping the user experience. With the avatar market expected to exceed US$500 billion by 2030, it is clear that this market has significant growth potential.
Edmond is a passionate writer for Video games, GameFi and Web3. He has worked for top GameFi companies and video game/crypto news websites.