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If the stock trades at 20 times sales, its valuation could hit $1 trillion. If Unity hits that target and grows at a more modest CAGR of 15% between 20, it could generate $50 billion in annual revenue by the final year. If Unity grows its revenue at a CAGR of 30% between 20, its annual revenue could nearly hit $12 billion by the end of the decade. It will also likely acquire smaller companies to expand its ecosystem, widen its moat, and maintain its momentum. We should take those long-term estimates with a grain of salt, but Unity might outgrow all of those markets if it maintains or expands its 50% share of the gaming market. The firm expects that growth to be driven by the advertising, animation, videography, research and training, and gaming markets. Meanwhile, the global visualization and 3D rendering software market - which is also served by Adobe and Autodesk - could grow at a CAGR of 12.7% between 20, according to Valuates Reports. Many VR applications, including the hit Oculus game Beat Saber, were created with Unity. On its own, the metaverse market might grow at a CAGR of 37.1% between 20, according to Research and Markets, as companies like Meta Platforms ( META -2.18%) sell more VR headsets and expand their VR worlds. However, the combined AR/VR markets might expand at a stunning CAGR of 40.7% between 20, according to Report Ocean, as more companies develop immersive "metaverse" experiences. The global video game market could expand at a compound annual growth rate (CAGR) of 9.6% between 20, according to Mordor Intelligence.
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