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Metaverse Market Value to Hit $5 Trillion by 2030

Metaverse Market Value to Hit $5 Trillion by 2030

A McKinsey report entitled “Value Creation in the Metaverse” states that the market value for the metaverse is expected to touch $5 trillion by 2030 – equivalent to the size of the world’s third-largest economy, Japan.

“We believe the metaverse has the potential to be the next iteration of the internet. It may seamlessly combine our digital and physical lives by featuring a sense of immersion, real-time interactivity, user agency, interoperability across platforms and devices, the ability for thousands of people to interact simultaneously, and use cases spanning activities well beyond gaming,” reads a section of the report.

To reach this conclusion, McKinsey surveyed over 3,400 consumers and executives. Almost 60% of consumers using today’s early version of the metaverse are excited about transitioning their everyday activities into the space, with social connectivity being the biggest driver, followed by the potential to explore digital worlds. Some 95% of business leaders expect the metaverse to have a positive impact on their industry within five to ten years, and 61% expect it to moderately change the way their industry operates. Sectors most likely to be impacted by the metaverse include consumer and retail, media and telecommunications, and healthcare, with each already undertaking metaverse initiatives, the report observes.

Gauging the future impact of the metaverse among industries, the report estimates between $2 trillion and $2.6 trillion on e-commerce by 2030; $180 billion to $270 billion on the academic virtual learning market; $144 billion to $206 billion on the advertising market; and a $108 billion to $125 billion impact on the gaming market.

Investment wise, more than $120 billion has already flowed into the metaverse space in 2022—more than double the $57 million of 2021. This being the result of large technology companies, start-ups and established brands seeking to capitalize on the growth opportunity.

Sectors leading metaverse adoption and committing significant shares of their digital investment budgets to the metaverse include energy (18%); automotive, machinery, and assembly (17%); high tech (17 %); tourism (15%); and media and entertainment (15%) over the next three to five years.

The four technology enablers needed for the metaverse to reach its full potential have been listed as: 1) AR/VR, sensors, haptics and peripherals; 2) interoperability and open standards; 3) Platforms to facilitate the metaverse economy; 4) tools for building a safe and secure metaverse.

“The metaverse will be iterative – no one size or shape – but ultimately the devices which we connect to it, the depth at which we can immerse ourselves in it and capabilities we have within it will be unlocked by open standards but also the devices ays Brian Solis, Global Innovation Evangelist, Salesforce.

The report further suggests, “Business leaders should develop a strategic stance by defining metaverse goals and the role they want to play; testing, learning, and adopting by launching initial activities, monitoring results, and examining user behavior; and preparing to scale by identifying necessary capabilities and embedding the metaverse in their operating model. They should also explore becoming metaverse users themselves.”

Cities have begun to outline their metaverse strategies. Dubai, as an example, aims to increase the contribution of the metaverse sector to its economy to $4 billion by 2030, and its Virtual Assets Regulatory Authority announced plans to establish Metaverse HQ in The Sandbox platform. Similarly, the Seoul city government plans to spend at least $32 million on a metaverse ecosystem to improve city services as well as the planning, administration and support for virtual tourism.