Generative AI in Metaverse Market Revenue to Attain USD 450.54 Mn by 2035
Published: 27 Feb 2026
Author: Precedence Research
Generative AI in Metaverse Market Revenue and Trends 2026 to 2035
The global generative AI in metaverse market revenue was valued at USD 59.89 million in 2025 and is expected to attain around USD 450.54 million by 2035, growing at a CAGR of 22.36% during forecast period.This market is experiencing unprecedented growth, driven by rising demand for realistic interaction and the shift toward multimodal AI integration.
What are the Factors Contributing to the Growth of the Generative AI in Metaverse Market?
The growing demand for digital experiences that offer scalable, hyper-realistic, and interactive virtual environments is the major driver for the rapid growth of generative AI in metaverse market during the forecast period. GenAI tools allow non-technical users to create 3D assets, textures, and scenes using text-to-3D and voice-driven commands. Generative AI efficiently streamlines the production of complex 3D models and virtual environments. The market’s growth is also primarily supported by the rapid technological innovation in VR/AR hardware that makes the integration of AI-generated content more immersive.
Segment Insights
- By platform type, the virtual reality (VR) platforms segment held the largest market share of approximately 31% in 2025, owing to its ability to deliver an immersive digital environment. The virtual reality (VR) platform is rapidly revolutionizing game development. It provides an immersive, 3D-spatial environment necessary to visualize and interact with AI-generated assets, creating an excellent blend of physical and digital realms.
- By functionality, the procedural content generation segment contributed the biggest market share of approximately 33% in 2025, owing to the growing need for automated creation of digital environments. The rapid technological advancement in AI enhances the capability to generate more complex and realistic outputs.
- By end-user, the entertainment and gaming segment accounted for the largest market share of approximately 32% in 2025. Game developers are widely deploying Gen-driven AI tools to design and develop virtual worlds, characters, and complex, engaging & interesting storylines. Generative AI makes gameplay feel less scripted and creates more immersive environments. Entertainment sectors are extensively adopting generative AI to create virtual events and concerts that offer high-fidelity, interactive, and personalized experiences. Generative AI allows for the creation of realistic digital avatars and interactive performances that boost audience attendance and engagement.
Regional Insights
North America dominated the global generative AI in metaverse market in 2025. The region’s leadership position is attributed to the strong ecosystem of AI research, rapid adoption of AR, VR, and blockchain technologies across industries, increasing demand for early adoption of AI-driven gaming, and growing demand for immersive virtual experiences in gaming. Several businesses across gaming, entertainment, training, and design are increasingly integrating generative AI to automate content creation and customize user experiences. The U.S. is a major contributor to the market, and the country is home to prominent tech companies. Seattle, Silicon Valley, Boston, and other innovation centers host startups and firms that propel advances in AI models and various immersive applications
On the other hand, Asia Pacific is expected to grow at the fastest CAGR in the market. The growth of the region is attributed to the presence of advanced 5G infrastructure, expanding digital infrastructure, rising government support for AI R&D, rising investments from tech giants, rising demand for immersive virtual experiences, and the rapid expansion of the leading gaming and entertainment sector.
Generative AI in Metaverse Market Coverage
| Report Attribute | Key Statistics |
| Market Revenue in 2025 | USD 59.89 Million |
| Market Revenue by 2035 | USD 450.54 Million |
| CAGR from 2026 to 2035 | 22.36% |
| Quantitative Units | Revenue in USD million/billion, Volume in units |
| Largest Market | North America |
| Base Year | 2025 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa |
Recent Developments
- In July 2024, Meta announced its plans to bring generative AI to metaverse games, specifically virtual, augmented, and mixed reality games, as the company looks to reinvigorate its flagging metaverse strategy. Meta aims to use generative AI research to create new 'consumer experience' prototypes, such as games that are 'non-deterministic, personalized, and change every time they are played'.(Source: https://techcrunch.com)
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