Generative AI in Metaverse Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 59.89 Mn

Forecast Year, 2035

USD 450.54 Mn

CAGR, 2026 - 2035

22.36%

Report Coverage

Global

What is Generative AI in Metaverse Market Size in 2026?

The global generative AI in metaverse market size was calculated at USD 59.89 million in 2025 and is predicted to increase from USD 73.28 million in 2026 to approximately USD 450.54 million by 2035, expanding at a CAGR of 22.36% from 2026 to 2035. This market is growing because generative AI helps to create content and characters in gaming, training, and online interaction, significantly reducing development costs and time.

Key Takeaways

• North America dominated the generative AI in metaverse market in 2025, with approximately 34% share.
• Asia Pacific is expected to be the fastest-growing region between 2026 and 2035.
• By platform type, the virtual reality (VR) platforms segment held a dominant position in the market with a share of approximately 31% in 2025.
• By platform type, the augmented reality (AR) platforms segment is expected to grow at the fastest CAGR during the forecast period.
• By functionality, the procedural content generation segment led the global market with a share of approximately 33% in 2025.
• By functionality, the NLP for virtual interactions segment is expected to witness the fastest growth in the market with a CAGR over the forecast period.
• By end-user, the entertainment and gaming segment registered its dominance over the global market with a share of approximately 32% in 2025.
• By end-user, the healthcare and education segment is expected to expand rapidly in the market with a CAGR in the coming years.

Market Overview

The generative AI in metaverse market refers to the global industry where advanced generative artificial intelligence technologies are integrated into metaverse platforms to autonomously generate virtual content, immersive environments, characters, interactions, and personalized experiences within digital worlds. This market supports the creation of dynamic landscapes, AI-driven characters, procedural assets, and interactive narratives that enhance immersion and engagement in gaming, entertainment, education, social, and enterprise metaverse use cases. Growth is fueled by rising demand for scalable, interactive digital experiences and personalized virtual ecosystems.

Generative AI in Metaverse Market Trends

• Growing investment in next-generation AI technologies shows AI is reshaping the digital platforms, including virtual worlds, offering an advanced experience.
• A shift in multimodal AI models, where users can interact using text, voice, and visuals, which offers a great experience for users.
• Businesses are exploring generative AI in a virtual environment for practical applications such as employee training simulations and skill acquisition.
• Generative AI is shifting from constant manual interventions to automated procedures, which is reducing cost and time for development.
• Generative AI is used to develop immersive 3D worlds, characters, avatars, and storylines faster. It is also used in educational platforms for creating more engaging learning experiences.
• Growing consumer interest in immersive experiences for gaming, social connection, collaboration, and brand interactions, which is increasing demand.

Market Scope

Segmental Insights

Platform Insights

Which Platform let the Generative AI in Metaverse Market in 2025?

The virtual reality (VR) platforms segment accounted for a considerable revenue share of approximately 31% in the market in 2025 because of its ability to deliver an immersive digital environment. VR platforms fully rely on AI to create 3D spaces, characters, and engaging storylines. Generative AI helps to develop virtual assets faster, which reduces manual efforts and time.

In gaming, GenAI created non-player characters that behave more naturally, improving engagement. Many industries, such as healthcare, manufacturing, and defence, are exploring immersive simulations to improve skill development. The growth of VR platforms has increased because of advancements in VR hardware and software, and increased investment in VR applications.

The augmented reality (AR) platforms segment is expected to witness the fastest growth in the generative AI in metaverse market with a CAGR over the forecast period because of its practical, real-world integration. Generative AI supports real-time object recognition, contextual content creation, and personalization in AR applications. Retailers use AR powered by generative AI to enhance virtual try-ons and interactive shopping experiences. Healthcare industries are also using features like 3D models for surgical planning.

Functionality Insights

How Procedural Content Generation Segment Dominated the Generative AI in Metaverse Market?

The procedural content generation segment registered its dominance over the global market with a share of approximately 33% in 2025 because of its automated creation of digital environments. AI systems are used to generate large-scale virtual worlds based on predefined rules. This reduces the developmental time and cost. It allows continuous content updates without reworking from scratch. This technology is very adaptive, which is suitable for gaming industries and educational simulations. The continuous advancement in AI and machine learning enhances its capability to generate more complex and realistic outputs.

The NLP for virtual interactions segment is expected to grow with the highest CAGR in the generative AI in metaverse market during the studied years. NLP is making the virtual environment feel less mechanical and more conversational. Instead of following fix commands or scripted input, the user can speak or type naturally and receive meaningful responses. This makes interaction smoother and engaging. In workplace settings, virtual assistants can guide employees, answer questions, or support in training sessions in real-time. Retailers and educators are using conversational AI to create guided shopping experiences and interactive lessons.

End-user Insights

Why Entertainment & Gaming Dominated the Generative AI in Metaverse Market?

The entertainment and gaming segment held a dominant position in the market with a share of approximately 32% in 2025. Game developers are using AI tools to design and develop virtual worlds, characters, and complex, engaging storylines. This reduces development timelines while increasing variety and return value. Generative AI-created non-player characters are becoming more realistic and natural, which makes gameplay feel less scripted and more immersive. Increase in virtual reality (VR) and augmented reality (AR) in gaming and entertainment further boosted the growth of the segment in the market. Entertainment sectors used generative AI to produce virtual events and concerts that makes interactive and personalized experience, which attracts more audiences.

The healthcare and education segment is expected to expand rapidly in the market with a CAGR in the coming years. Medical institutions are using immersive virtual environments to train students and professionals using more realistic simulations of surgeries, emergency care, and complex procedures without real-world risk. AI-generated scenarios can adjust difficulty levels and complications, making training more hands-on and effective.

Regional Insights

North America Generative AI in Metaverse Market Size and Growth 2026 to 2035

The North America generative AI in metaverse market size is estimated at USD 20.36 million in 2025 and is projected to reach approximately USD 155.44 million by 2035, with a 22.54% CAGR from 2026 to 2035.

North America dominated the global generative AI in metaverse market with a share of approximately 34 % in 2025 because of its advanced research institutions, wide adoption of cloud, and AI infrastructure. Businesses across entertainment, gaming, training, and design are integrating generative AI to automate content creation, customize user experiences, and enhance workflow. Strong partnerships between academics and industries have further strengthened the market dominance. The government of the region is very supportive, and favourable regulations encourage the development of AI technologies. The practical application of generative AI across various industries drives demand and integration of generative AI in the market.

U.S. Generative AI in Metaverse Market Size and Growth 2026 to 2035

The U.S. generative AI in metaverse market size is calculated at USD 15.27 million in 2025 and is expected to reach nearly USD 117.82 million in 2035, accelerating at a strong CAGR of 22.67% between 2026 to 2035.

U.S. Generative AI in Metaverse Market Trends

The U.S. is the central force shaping the generative AI in metaverse market, home to many technological companies. Silicon Valley, Seattle, Boston, and other innovation centres host startups and firms pushing advances in AI models and immersive applications. Gaming studios and entertainment companies are using generative AI to build larger, more interactive digital worlds, while enterprises are adopting immersive simulations for employee training and product design. The government in the country supports initiatives like the establishment of AI research institutes and heavy funding for AI development projects, boosting the growth of the generative AI market.

Which Factors Influence the Fastest Growth of the Asia Pacific Market?

Asia-Pacific is expected to grow at the fastest CAGR of 22.3 % in the generative AI in metaverse market during the forecast period because of rapid digitalization, rising internet access, and large adoption of technology. Local companies are investing in AI, immersive applications, virtual reality (VR), and augmented reality (AR) for gaming, social media, entertainment, and e-commerce. Government policies are supporting digital transformation, and 5G infrastructure also boosts the growth of the region in the market.

China Generative AI in Metaverse Market Trends

China is a major driver within the Asia Pacific region, with a large user population, rapid adoption, and widespread use of generative AI technologies. Government support, increasing investment in AI research, and a startup environment are encouraging the development in the country. Chinese technological companies are using generative tools in gaming platforms, social media applications, and cloud services, making immersive technologies more accessible to the population. The development of local AI models and domestic cloud infrastructure reduces reliance on foreign technologies.

India Generative AI in Metaverse Market Trends

India is significantly growing in the generative AI metaverse market because of its growing startup activities, rising developer interest, and expanding digital user base. Indian technology companies and service providers are implementing generative AI tools for gaming, marketing, education, and virtual training environments. Many Indian startups are focusing on cost-effective, scalable AI solutions thar serves both domestic and international clients. The Government policies support digital initiatives for AI research and upgrading infrastructure. Companies are using Generative AI to train employees and engage customers digitally.

Which Factors Made Europe a Significantly Growing Region in the Market?

Europe is significantly growing in the generative AI in metaverse market. The region has strong privacy standards, ethics, and a regulatory framework that shapes how AI tools are built and deployed across the region. Countries like the United Kingdom, Germany, and France are significantly investing in digital infrastructure, AI advancement, and industrial metaverse applications. Collaboration among government, universities, and private companies is helping Europe to create advanced and secure virtual experiences for business and consumers.

Generative AI in Metaverse Market Companies

• NVIDIA Corporation
• OpenAI
• Unity Technologies
• Epic Games
• Microsoft Corporation
• Facebook Reality Labs (Meta Platforms Inc.)
• Alphabet Inc. (Google)
• IBM Corporation
• Magic Leap
• Adobe Inc.
• Amazon Web Services Inc.
• Anthropic
• Arm Ltd.
• Cohere Inc.
• Databricks Inc.
• Google LLC
• Hugging Face
• IBM Corp.
• Jasper AI Inc.
• Midjourney
• Oracle Corp.
• Salesforce Inc.
• SAP SE
• ServiceNow Inc.
• Stability AI
• Synthesia Ltd.

Recent Developments in the Market

• In September 2025, Microsoft added Anthropic's Claude AI model to its 365 Copilot platforms, as its partnership with OpenAI shifts. It is starting with the researcher feature in 365 Copilot and is also available in Copilot Studio, giving companies more options to create and manage custom AI agents using different models, not just OpenAI. This shows tough competition in the generative AI field. (Source: https://www.geekwire.com)
• In September 2025, Oracle announced a $300 billion agreement to provide cloud services to OpenAI. This will be a new era of cloud computing and help to grow supporting markets such as chipmakers and semiconductors. (Source: https://www.pymnts.com)
• In February 2025, GlobalLogic's leadership said investments in Generative artificial intelligence (AI), the metaverse, and quantum computing are giving tangible returns. The company can bring customers to market faster, and the growing adoption of these AI-driven technologies. (Source: https://www.techcircle.in)

Segments Covered in the Report

By Platform

• Virtual Reality (VR) Platforms
• Augmented Reality (AR) Platforms
• Social Media Platforms
• Gaming Platforms
• Immersive Digital Platforms
• Other Platforms

By Functionality

• Procedural Content Generation
• AI Driven Character & Object Creation
• Natural Language Processing (NLP)
• Intelligent Virtual Assistants
• Personalized Experiences
• Other Functionalities

By End-User

• Entertainment & Gaming
• Education & Training
• Healthcare
• Social Media & Communication
• Automotive
• Other End-Users

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa