Introduction to Metaverse

The metaverse is where physical and virtual space converges, and is accessed through computers. It is enabled by immersive technologies, for example Virtual Reality (VR), Augmented Reality (AR) and Mixed Reality (MR). This virtual 3D world is a collective, shared space where digital avatars of ourselves move freely, going from one experience to another, with our identities and monetary assets (Tucci, et al., 2024).

This concept goes beyond the augmented and virtual experiences provided by Extended Reality (XR). It encompasses a complete and shared virtual world which has its own content, currencies, economy, social interactions, and user participation (Willing, 2024). In this world, you can try on clothes without stepping out of your house. These experiences in the Metaverse are made possible by VR, AR, and XR (Metaverse 101: Explaining VR, AR, XR, and the Metaverse, 2022). Among other things, the metaverse allows for Virtual Goods and Services, Immersive Learning Experiences and Realistic ‘In Person’ Meetings (Panel, 2025).

The good thing about the metaverse is that it allows for immersive experiences, encourages social connection, opens opportunities for new businesses, allows access to improved education channels and methods, and gives equal access to virtual experiences. However, it also brings with it privacy issues, gives rise to health concerns, worsens the digital divide, needs advanced technical requirements, and may potentially affect culture or society negatively (The Pros and Cons of Metaverse: A Comprehensive Guide, 2023).

Metaverse may also be used for many purposes, and the 2024 trends include Virtual Workspaces, AR Applications, AI Integration, Digital Fashion, Virtual Real estate Investments, and Gaming (Team, 2024). Well-known metaverse companies include Roblox, Epic Games which developed Fortnite, Meta (formerly Facebook), NVIDIA, Apple, Google, Microsoft and Roblox (Biba, 2023) (Jackson, 2023).

In Malaysia, the Metaverse market projected value in 2025 is expected to reach US$361.3 million. This is forecasted to show an annual growth rate (CAGR 2025-2030) of 40.50 percent, with a projected market volume of US$1,978.0 million by 2030. The projected market volume for Malaysia in 2025 is estimated to be US$32.1 billion, and it will make Malaysia a leading contributor to the Metaverse market. The number of users in Malaysia by 2030 is expected to increase to 16.6 million users. In 2025, the user penetration rate is projected to be 18.8 percent, and by 2030 this is expected to increase to 45.1 percent. The average value per user (ARPU) is expected to be US$54.8 in Malaysia’s Metaverse market. The Metaverse market in Malaysia is growing rapidly with a surge in the adoption of VR among the tech-savvy and increased interest from local businesses (Metaverse – Malaysia, 2024).