Metaverse becoming ‘too big to ignore’ with projected value of $5 trillion by 2030

Thus far in 2022, companies, venture capitalists, and private equity firms have invested more than $120 billion in the metaverse, which is already more than double the $57 billion invested in 2021

The metaverse is becoming ‘too big to ignore’ with a preliminary forecast showcasing the technology trend likely to grow up to $5 trillion in value by 2030, according to the latest report released by McKinsey & Company.

The Value creation in the metaverse report also highlights e-commerce as the largest economic force with a value of $2.6 trillion, ahead of sectors such as virtual learning worth $270 billion, advertising worth $206 billion, and gaming worth $125 billion.

“The metaverse represents a strategic inflection point for companies, and it presents a significant opportunity to influence the way we live, connect, learn, innovate, and collaborate,” Eric Hazan, the senior partner at McKinsey & Company, said.

“Our ambition is to help leaders of both consumer and B2B companies better understand its power and potential, identify strategic imperatives, and act as a force for its evolution.”

As companies of all different shapes and sizes look to enter the metaverse, this extensive report provides a clear view of what the virtual world is and is not, what first movers are doing, what’s fueling the investment, and the potential for consumer and B2B companies.

The report builds on multiple proprietary insights and analysis, including a survey of more than 3,400 consumers and executives on adoption of the metaverse, its potential, and its likely impact on behavior. The researchers also interviewed metaverse builders and industry experts.

What’s fueling the metaverse investment?

Already this year, companies, venture capital, and private equity firms have invested more than $120 billion in the metaverse — more than double the $57 billion invested in all of last year.

Multiple factors are driving this investor enthusiasm:

• ongoing technological advances across the infrastructure required to power the technology
• demographic tailwinds
• increasingly consumer-led brand marketing and engagement
• increasing marketplace readiness as users explore today’s version of the virtual world, which is largely driven by gaming while applications emerge in socialising, fitness, commerce, virtual learning, and other uses

Source: Arabian Business