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Insight of the Day: Metaverse in 2025 – What users want and what’s holding others back

Why it is the topic trending:

  • Metaverse Adoption Rate:  The article provides data on the current adoption rate of the metaverse among US adults (26% usage in the past year), making it a trending topic for those tracking the growth and mainstream acceptance of metaverse technologies.

  • Consumer Behavior in the Metaverse:  The research explores how users are engaging in the metaverse (gaming, social interaction, virtual events, shopping), making it a trending topic for brands and businesses seeking to understand consumer behavior in virtual worlds.

  •   Barriers to Metaverse Adoption:  The article identifies key barriers preventing wider metaverse adoption (equipment cost, lack of interesting content, privacy concerns), making it a trending topic for discussions on how to overcome these hurdles and expand the metaverse user base.   

  • Brand Opportunities in the Metaverse:  The research highlights which brand categories are most likely to attract new users to the metaverse (entertainment, health, travel, education), making it a trending topic for brands exploring metaverse marketing and engagement strategies.

  • VR Headset Owners' Engagement:  The article differentiates between general users and VR headset owners, showing higher engagement among the latter group and their specific motivations, making VR technology and its role in the metaverse a continuing point of interest.

Overview:

  • The article analyzes YouGov survey data on US consumer behavior in the metaverse, examining usage rates, activities, valued features, and factors influencing adoption and engagement. The survey of 1,000 US adults found that 26% have used the metaverse in the past 12 months, with usage jumping to 80% among VR headset owners. Metaverse users primarily engage in free video games (50%), streaming content (47%), and social interaction (34%). High-quality graphics (54%) and social features (47%) are most valued, while equipment cost (29%) and lack of appealing content (23%) are major barriers for non-users. Entertainment and media brands (20%) are most likely to attract new users, followed by health, travel, and education brands. VR headset owners show even higher potential for increased engagement if content and cost barriers are addressed. The findings provide insights for brands seeking to enter or expand their presence in the metaverse by understanding user preferences and addressing adoption challenges.

Detailed Findings:

  • Metaverse Usage in Past 12 Months (US Adults):

    • Overall US adults: 26% have used the metaverse.

    • VR headset owners: 80% have used the metaverse.

  • Activities in the Metaverse (Among Users):

    • Played free video games: 50%

    • Streamed online content: 47%

    • Connected with friends/users: 34%

    • Purchased/played paid video games: 29%

    • Virtual art galleries/exhibitions: 24%

    • Fitness/wellness activities: 24%

    • Shopped for physical products: 22%

    • Virtual conferences/training/classes: 22%

    • Virtual travel/tourism: 22%

    • Attended virtual brand events/promotions: 18%

    • Purchased cryptocurrency: 17%

    • Purchased virtual skins/accessories: 14%

    • Purchased NFTs: 14%

    • Purchased virtual event tickets: 12%

    • Virtual real estate purchases: 6% (niche)

  • Most Valued Metaverse Features (Among Users):

    • High-quality graphics/visuals: 54% (most important)

    • Social interaction features: 47%

    • Smooth/seamless user experience: 44%

    • Affordability/free-to-use: 38%

    • Security/privacy concerns: 36%

    • Ability to complete work tasks: 29%

    • Avatar customization: 29%

    • Cross-platform compatibility: 29%

    • Virtual shopping opportunities: 24% (less priority)

    • Access to exclusive events: 21% (less priority)

  • Brand Categories to Attract Non-Users:

    • Entertainment and media: 20% (most influential)

    • Health and wellness: 19%

    • Travel: 18%

    • Education: 17%

    • Art and culture: 16%

    • Food and beverage: 15%

    • Gaming: 13%

    • Technology and electronics: 12%

    • Fashion and apparel: 12%

    • Sports: 12%

    • Beauty and personal care: 9%

    • Financial services: 7% or fewer (less sway)

    • Real estate: 7% or fewer (less sway)

    • Automotive: 7% or fewer (less sway)

    • Luxury: 7% or fewer (less sway)

    • No brand presence would tempt them: 31%

  • Factors to Encourage Non-Users to Join:

    • Cheaper equipment cost: 29% (major barrier)

    • More activities/experiences of interest: 23%

    • Stronger security/privacy protections: 22%

    • Use without VR headset: 19%

    • More people they know using it: 12%

    • Positive reviews/recommendations: 10%

  • Factors to Increase Engagement for VR Headset Owners:

    • More activities of interest: 44% (most influential)

    • Lower equipment costs: 40%

    • Stronger social/work/education opportunities: 33%

    • Greater presence of favorite brands: 31%

    • Exclusive deals/virtual shopping: 30%

    • Positive recommendations: 30%

    • Security/privacy improvements: (also motivator)

    • Knowing more people who use it: (also motivator)

    • Fear of missing out: (also motivator)

Key Takeaway:

  • Metaverse adoption in the US is at 26% overall, but significantly higher among VR headset owners. Gaming and content streaming are primary use cases, but users explore diverse experiences. High-quality visuals and social features are key to user satisfaction. Cost of equipment and lack of compelling content are major barriers to wider adoption.  Entertainment, health, travel, and education brands have the most potential to attract new users. Addressing cost, content, and privacy concerns are crucial to expanding metaverse usage and engagement, especially for VR headset owners who are already more inclined to participate.   

Main Trend:

  • Experiential Metaverse Engagement

Description of the Trend (Experiential Metaverse Engagement):

  • This trend describes the shift in metaverse usage towards seeking rich, engaging, and multifaceted experiences beyond basic functionalities. "Experiential Metaverse Engagement" emphasizes users' desire for high-quality graphics, immersive visuals, social interaction, diverse activities (gaming, entertainment, virtual events), and seamless user experiences within virtual worlds, driving demand for more compelling and feature-rich metaverse platforms and content.

What is Consumer Motivation (Metaverse Consumer Motivation for Experiential Metaverse Engagement):

  •   Immersion and Escapism: Consumers seek immersive and escapist experiences in the metaverse, desiring virtual worlds that offer a sense of presence, visual fidelity, and a departure from everyday reality.   

  •   Social Connection and Community:  The metaverse is seen as a space for social connection, community building, and shared experiences with friends, family, and like-minded individuals, driving demand for robust social features.   

  •   Entertainment and Leisure:  Gaming, content streaming, virtual events, and other entertainment options are primary drivers of metaverse engagement, with users seeking diverse and high-quality leisure activities in virtual spaces.   

  • Exploration and Novelty:  Consumers are motivated by the novelty and exploratory potential of the metaverse, seeking new experiences, virtual travel, and opportunities to discover and interact with virtual environments and content.

  •   Personalization and Self-Expression:  Avatar customization and personalized experiences within the metaverse allow users to express their individuality and create virtual identities, enhancing engagement and sense of ownership.   

What is Driving the Trend:

  • Advancements in VR/AR Technology:  Improvements in VR/AR hardware and software are enabling more immersive and visually compelling metaverse experiences, driving consumer interest and adoption.

  • Growth of Metaverse Platforms and Content:  The increasing availability of metaverse platforms, virtual worlds, and diverse content (games, events, experiences) provides more options and reasons for users to engage.

  • Social Media and Hype Around Metaverse:  Social media buzz, marketing hype, and media coverage surrounding the metaverse contribute to consumer awareness and curiosity, driving exploration and experimentation.

  • Desire for New Forms of Digital Interaction:  Consumers are seeking new and more engaging forms of digital interaction beyond traditional social media and online platforms, with the metaverse offering a potentially more immersive and interactive alternative.

  • Pandemic-Driven Shift to Virtual Experiences:  The pandemic accelerated the shift towards virtual experiences and digital interactions, making consumers more open to exploring and adopting metaverse technologies for social, entertainment, and work purposes.

What is Motivation Beyond the Trend:

  • Seeking Enhanced Digital Life and Connection: The underlying motivation is seeking an enhanced digital life and deeper digital connections. Consumers are looking to the metaverse to enrich their online experiences, foster social bonds, and find new forms of digital engagement that complement or transcend real-world limitations.   

  • Desire for Novelty and Future-Forward Experiences:  There is a human desire for novelty and to experience future-forward technologies and trends. The metaverse, as a nascent and evolving technology, appeals to this desire for exploration and being at the forefront of digital innovation.

  •   Escapism and Stress Relief in Virtual Worlds:  The metaverse offers opportunities for escapism and stress relief, providing virtual environments and activities that can offer relaxation, entertainment, and a break from real-world pressures.   

Description of Consumers Article is Referring to (US Adults Interested in Metaverse):

  • Age:  Likely skewing slightly younger (18-45) as younger demographics are typically early adopters of new technologies, but with interest across adult age groups.

  • Gender:  Likely slightly male-skewed in early adoption phases, but with growing interest from all genders as metaverse becomes more mainstream.

  • Income:  Likely a mix of income levels, with early VR headset owners potentially skewing towards higher-income brackets due to equipment costs, but broader metaverse interest across income levels as accessibility increases.

  • Lifestyle:  Tech-savvy individuals, gamers, content consumers, social media users, those interested in virtual experiences, and individuals seeking new forms of entertainment, connection, and digital engagement.

Conclusions:

  • "Experiential Metaverse Engagement" is the key trend shaping metaverse adoption.

  •   Consumers are motivated by immersion, social connection, entertainment, and novelty.   

  • VR/AR advancements, platform growth, and social media hype drive the trend.

  • Beyond the trend, consumers seek enhanced digital life, novelty, and escapism.

  • The trend impacts US adults interested in new digital experiences.

Implications for Brands (Metaverse Platforms, Content Creators, Brands Entering Metaverse):

  •   Prioritize High-Quality Visuals and Immersive Experiences:  Metaverse platforms and content creators must prioritize high-fidelity graphics, immersive visuals, and engaging sensory experiences to meet user expectations and drive engagement.   

  • Focus on Social Features and Community Building:  Develop robust social features, community-building tools, and multiplayer experiences to foster social connection and user interaction within metaverse platforms.

  • Create Diverse and Engaging Content Library:  Offer a wide variety of content, activities, and experiences within the metaverse, including gaming, entertainment, virtual events, social spaces, and educational/work applications, to cater to diverse user interests.

  • Address Cost and Accessibility Barriers:  Explore strategies to reduce equipment costs and improve accessibility to the metaverse, including browser-based experiences and mobile compatibility, to broaden the user base.

  •   Build Trust and Prioritize Security/Privacy:  Implement strong security and privacy protections within metaverse platforms and communicate these measures clearly to build user trust and address privacy concerns.   

Implication for Society:

  • Evolution of Digital Social Interaction:  The metaverse has the potential to significantly evolve digital social interaction, creating new forms of virtual communities, social spaces, and online relationships.

  • New Entertainment and Leisure Medium:  The metaverse is emerging as a new medium for entertainment and leisure, offering immersive gaming, virtual events, and interactive content experiences that could transform how people spend their free time.

  •   Potential for Virtual Economy and Commerce:  Growth of virtual shopping, virtual events, and virtual real estate within the metaverse could lead to the development of a significant virtual economy and new forms of digital commerce.   

  • Need for Ethical and Responsible Metaverse Development:  As the metaverse evolves, there is a growing need for ethical considerations, responsible development practices, and regulations to address issues like privacy, security, digital equity, and virtual identity.

Implications for Consumers (Potential Metaverse Users):

  •   Access to New Forms of Immersive Entertainment:  Consumers will gain access to new and immersive forms of entertainment, gaming, virtual events, and social experiences within the metaverse, expanding their digital leisure options.   

  •   Opportunities for Virtual Social Connection and Community:  The metaverse offers opportunities to connect with others in virtual spaces, build online communities, and engage in shared experiences regardless of physical location.   

  •   Potential for New Skills and Digital Literacy:  Engaging with the metaverse may require and foster new digital skills and literacies, as users navigate virtual environments, interact with virtual interfaces, and participate in virtual economies.   

  • Need to Navigate Privacy and Security in Virtual Worlds:  Consumers will need to be aware of and proactive about privacy and security concerns within the metaverse, understanding data collection practices and taking steps to protect their virtual identities and information.

Implication for Future:

  • Metaverse as a Hybrid Reality - Integration with Real World:  The future metaverse will likely be a hybrid reality, increasingly integrating with the real world through augmented reality, location-based experiences, and interconnected digital and physical environments.

  •   Metaverse for Work, Education, and Beyond Entertainment:  Metaverse applications will expand beyond entertainment to encompass work, education, collaboration, training, and various other sectors, becoming a more versatile and integral part of daily life.   

  •   Personalized and AI-Driven Metaverse Experiences:  AI and personalization technologies will play a growing role in shaping metaverse experiences, tailoring virtual environments, content, and interactions to individual user preferences and needs.   

  •   Interoperability and Open Metaverse Standards:  The future metaverse may move towards greater interoperability and open standards, allowing users to seamlessly move between different platforms and virtual worlds with their avatars and digital assets.   

Consumer Trend (Technology Trend):

  • Name:  Immersive Digital Living

  • Detailed Description: This consumer trend describes the growing integration of immersive digital technologies, like VR/AR and metaverse platforms, into daily life, blurring the lines between the physical and digital realms. "Immersive Digital Living" signifies a shift towards consumers spending increasing amounts of time in and relying on immersive digital environments for work, leisure, social interaction, and various aspects of their lives.

Consumer Sub Trend (Experience Trend):

  • Name:  High-Fidelity Virtual Worlds

    • Detailed Description: A sub-trend within "Immersive Digital Living," specifically focusing on the consumer expectation for "High-Fidelity Virtual Worlds." Users are increasingly demanding visually stunning, realistic, and immersive virtual environments with high-quality graphics, seamless performance, and rich sensory experiences, setting a high bar for metaverse platform and content development.   

Big Social Trend (Technological Social Trend):

  • Name:  Metaverse as the Next Social Frontier

  • Detailed Description: The broader social trend of the "Metaverse as the Next Social Frontier," positioning the metaverse as the next major evolution of social interaction and online community building. This trend suggests that the metaverse is not just about gaming or entertainment but is becoming a significant platform for social connection, communication, and the formation of virtual societies.

Worldwide Social Trend (Global Technological Trend):

  • Name:  Convergence of Physical and Digital Realities

  • Detailed Description: The worldwide social trend of the "Convergence of Physical and Digital Realities," reflecting a global movement towards increasingly interconnected physical and digital worlds. This trend encompasses the metaverse, IoT, augmented reality, and other technologies that are blurring the boundaries between the online and offline, creating new hybrid experiences and transforming how people live, work, and interact with the world.

Social Drive (Human Motivation Trend):

  • Name:  Connection & Exploration

  • Detailed Description: The underlying human drive is "Connection & Exploration." Consumers are fundamentally motivated by a need for social connection, community, and belonging, as well as a desire for exploration, novelty, and new experiences. The metaverse taps into both of these core human motivations by offering virtual spaces for social interaction and opportunities to explore new worlds and digital frontiers.

Learnings for Brands to Use in 2025 (for Metaverse & Tech Brands):

  •   Immersion is the Price of Entry:  High-quality graphics and immersive visuals are no longer optional but the minimum expectation for metaverse experiences. Brands must prioritize visual fidelity and sensory engagement.   

  • Social is the Soul of the Metaverse:  Social interaction and community features are paramount. Metaverse platforms must be designed with social connection at their core to foster user engagement and retention.   

  • Content is King (and Queen, and Court):  Diverse, engaging, and high-quality content is essential to attract and retain users. Metaverse platforms need a rich ecosystem of experiences beyond just gaming.

  •   Accessibility and Affordability are Key to Mass Adoption:  Overcoming cost barriers and improving accessibility are crucial for expanding the metaverse beyond early adopters and reaching a mass audience.   

  •   Trust and Safety are Non-Negotiable:  Security, privacy, and user safety are paramount for building trust and ensuring the long-term viability of the metaverse. Brands must prioritize these aspects from the outset.   

Strategy Recommendations for Brands to Follow in 2025 (for Metaverse & Tech Brands):

  • Invest in Next-Gen Immersive Technologies:  Prioritize R&D investment in VR/AR technologies, graphics rendering, and sensory feedback systems to push the boundaries of metaverse immersion and visual fidelity.

  • Develop Social-First Metaverse Platforms:  Design metaverse platforms with social interaction as the central focus, incorporating robust social features, community tools, and multiplayer experiences that encourage user connection and collaboration.

  • Curate a Diverse and High-Quality Content Ecosystem:  Actively curate and incentivize the creation of diverse and high-quality content within metaverse platforms, partnering with content creators, developers, and brands across various sectors to build a rich ecosystem.

  • Implement "Metaverse Lite" and Cross-Device Accessibility Options:  Offer "metaverse lite" experiences accessible on standard devices (PCs, mobile) alongside VR/AR options to lower the barrier to entry and broaden user accessibility.

  • Establish Robust Security and Privacy Frameworks and Communication:  Develop and implement comprehensive security and privacy frameworks for metaverse platforms, clearly communicate these measures to users, and prioritize user data protection and safety in all aspects of metaverse development.

Final Sentence (Key Concept):

  • The "Experiential Metaverse Engagement" trend signifies a critical evolution in the metaverse landscape in 2025, requiring metaverse and tech brands to prioritize "High-Fidelity Virtual Worlds" that are social-first, content-rich, accessible, and secure to fulfill the "Connection & Exploration" human drive and unlock the full potential of "Immersive Digital Living" as the "Metaverse as the Next Social Frontier" emerges in the globally converging physical and digital realities.

What Brands & Companies Should Do in 2025 to Benefit from Trend and How to Do It:

Metaverse and tech brands should strategically capitalize on the "Experiential Metaverse Engagement" trend in 2025 to establish market leadership, drive user adoption, and build thriving metaverse ecosystems by:

  • Launching a flagship "Immersive Metaverse Platform" initiative:  Develop and launch a core metaverse platform that prioritizes high-fidelity graphics, seamless user experience, robust social features, and a diverse content library, positioning it as a leading destination for experiential virtual engagement.

  • Creating a "Metaverse Content Creator Fund" and developer ecosystem:  Establish a fund and support programs to incentivize and empower content creators and developers to build high-quality, engaging experiences within their metaverse platform, fostering a vibrant and diverse content ecosystem.

  • Partnering with entertainment, media, health, travel, and education brands for metaverse experiences:  Collaborate strategically with brands in key sectors identified as drivers of metaverse adoption to create compelling branded experiences, virtual events, and content partnerships within their platform, attracting new users and diversifying content offerings.

  • Implementing a "Metaverse Accessibility Program" focused on cost reduction and cross-device support:  Develop programs to reduce the cost of VR/AR equipment for consumers (subsidies, financing options) and prioritize cross-device compatibility (PC, mobile, browser-based access) to broaden metaverse accessibility and user base.

  • Establishing a "Metaverse Trust and Safety Council" and transparent privacy policies:  Create a dedicated council focused on metaverse safety and ethics, develop transparent and user-friendly privacy policies, and implement robust security measures to build user trust and address growing concerns about virtual world safety and data protection.

Final Note:

  • Core Trend: Experiential Metaverse Engagement - Metaverse users seek immersive experiences.

  • Core Strategy: High-Fidelity, Social-First, Content-Rich Platforms - Build platforms with immersive visuals, social features, and diverse content.

  • Core Industry Trend: Metaverse as Next Social Frontier - Metaverse is evolving into the next major social platform.

  • Core Consumer Motivation: Connection & Exploration - Users seek connection and new experiences in the metaverse.

Final Conclusion:

The "Experiential Metaverse Engagement" trend presents a pivotal opportunity for metaverse and tech brands in 2025. By strategically focusing on building "High-Fidelity Virtual Worlds," prioritizing social interaction and diverse content, and actively addressing accessibility and trust concerns, brands can effectively tap into the "Connection & Exploration" human drive, lead the charge in "Immersive Digital Living," and establish their position as pioneers in the emerging "Metaverse as the Next Social Frontier," shaping the future of digital interaction and virtual experiences in a world increasingly defined by the convergence of physical and digital realities.

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