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The metaverse industry in Australia is expected to grow by 39.0% on an annual basis to reach $5.8 billion in 2023, according to research published by TechInsight360.
The industry is expected to grow steadily over the forecast period, with a projected compound annual growth rate (CAGR) of 33.4% from 2023-2030.
The research also predicts that the Metaverse Spend Value in the country will increase from $4.1 billion in 2022 to reach $22 billion by 2030.
The hype surrounding the metaverse and its applications has grown significantly last year. The combination of physical and virtual worlds means that more and more are brands investing in the sector to drive customer engagement.
Firms are raising funding rounds to further expand their metaverse space presence
With the prominence of the metaverse growing rapidly among consumers and brands across Australia, firms are raising funding rounds to further expand their presence in the sector.
In September 2022, Animoca Brands, an NFT-based metaverse firm, announced that the firm had raised US$110 million in a strategic funding round from Temasek, Boyu Capital, and GGV Capital.
Mirae Asset Management and True Global Ventures also participated in the funding round. Notably, the firm is planning to use the freshly infused capital for funding strategic acquisitions, product development, obtaining licenses, and further expanding its presence in the space.
The ecosystem is projected to evolve rapidly in Australia over the next three to four years, as more and more startups are expected to enter the industry in the country.
Consequently, to support the growing metaverse-focused startup ecosystem in Australia, Web3-focused Investment Decentralised Autonomous Organisations (DAO) are also raising funding rounds.
In October 2022, Upside, a Web3-focused DAO, announced that it had raised US$5 million in funding, which will be used to support the best Web3 startups in Australia. Notably, some of the startups where Upside has made initial investments include Reservior, PrePo, Mirror Planet, and Astro Lab.
The publisher expects more venture capital and private equity fund to flow into the Australian metaverse ecosystem, as the demand for robust infrastructure and digital service continues to grow in the country.
Globally, many of the major brands and B2C e-commerce marketplaces have launched shopping capabilities inside the metaverse, as consumers are demanding innovative shopping experiences. Notably, similar trends are emerging in the Australian market.
According to TechInsight360’s’s Global Metaverse Consumer Survey, over 43% of consumers are willing to shop for products inside the metaverse. This shows that more than half of Australian consumers are aware of the technology and the innovative shopping experiences that it can offer.
With the interest in metaverse shopping rising among consumers, the publisher expects more brands and e-commerce marketplaces to launch shopping capabilities in the country. Notably, Alibaba and Flipkart have launched such infrastructure for their customers in China and India, respectively.
The growing development in the Australian metaverse industry has led to regulators showing a keen interest in the sector. Notably, the metaverse market remains largely unregulated globally, and the trends are no different in Australia, at present.
However, Australian regulators have started to keep track of the rapid developments in digital communication.
In October 2022, the Australian Communications and Media Authority (ACMA), the regulatory body which regulates phone, internet, and gambling content in the country, announced that it has included the metaverse in its 2022-23 research program.
The ACMA is expected to keep track of the rapid developments in the metaverse space.
Beyond metaverse, the ACMA is also expected to conduct a thorough review of how digital platforms are handling user complaints and reports.
The announcement from the ACMA marks the first time when the Australian regulators have shown formal interest in the sector and how the emerging technology is impacting the lives of consumers in the country.
