Posted by Metaverse may create up to $5 trillion in impact by 2030 according to McKinsey & Co’s new report titled ‘Value in the Metaverse.’ That’s a sizeable opportunity lying ahead for businesses to explore and monetise.
The metaverse is still being defined, both literally and figuratively. Yet, the metaverse’s potential to unleash the next wave of digital disruption with real-life benefits already is emerging for early-adopting users and companies, according to the report.
Although the report estimates that metaverse may create up to $5 trillion in impact by 2030. McKinsey notes that metaverse development will depend on multiple technological and user-experience factors, and is not limited to one platform, device, or even technology.
Equivalent to Japan’s economy
Metaverse’s $5 trillion in impact by 2030 is equivalent to the size of Japan‘s economy today, the third-largest economy in the world. As per the report, metaverse’s four components in its technology stack and their interoperability would largely drive business opportunities and impact.
The four components are content and experiences, platforms (such as game engines), infrastructure and hardware (including devices and networks), and enablers (such as payment mechanisms and security). In addition, ten layers span these components, providing the critical building blocks on which all metaverse experiences are based.
On how the metaverse may create up to $5 trillion in impact in the coming decade, the report points to the metaverse’s potential to enable new business models, products, and services. And act as an engagement channel for both business-to-consumer (B2C) and business-to-business (B2B) purposes.
Metaverse market impact
In terms of the breakup of the overall metaverse impact, e-commerce may have a market impact of between $2 trillion and $2.6 trillion. Likewise, the academic virtual learning market may have an impact in the range of $180 billion to $270 billion. The advertising market may have an impact of between $144 billion and $206 billion. And the gaming market may have an impact of between $108 billion to $125 billion range.
Capitalize on the metaverse opportunity
According to McKinsey’s report, large technology companies, venture capital (VC), private equity (PE), startups, and established brands are seeking to capitalize on the metaverse opportunity.
Corporations, VC, and PE have already invested over $120 billion in the metaverse in the first five months of 2022. That’s overall double the 2021 investment of $57 billion. Microsoft’s $69 Activision acquisition is one such example of investment anticipating future opportunities around the metaverse.
The estimates in McKinsey’s report are based on an extensive survey of over 3,400 consumers and executives. Among them, around 60% of consumers are using the metaverse’s early version and are excited about moving everyday activities to the metaverse.
Positive impact on industries
As many as 95% of business leaders expect metaverse’s positive impact on their industry within five to ten years. However, some 61% of executives expect that metaverse will moderately change the way their industry operates, revealed in the report.
Connectivity among people and exploring digital worlds are key driving factors of the metaverse. Metaverse is most likely to impact across industries including consumer and retail, media and telecommunications, and healthcare. And these industries already are undertaking metaverse initiatives, as per the report findings.