Metaverse: Too Big to Ignore

By June 16, 2022The Sandbox
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(Image: Julien Tromeur; Unsplash)
(Image: Julien Tromeur; Unsplash)

From a relatively nascent market currently, the metaverse could generate up to $5 trillion for companies by the end of the decade.

Virtual land prices in Metaverse games have plummeted, as have NFT values and Metaverse crypto coins such as Ape (Otherside/Bored Ape Yacht Club), Sand (The Sandbox), Mana (Decentraland), and AXS (Axie Infinity). However, now might be a good entry point for investors who are convinced of the Metaverse's growth potential.

According to a study by the US consulting firm McKinsey, entitled «Value creation in the metaverse.» there is probably no way around the Metaverse in the long term.

McKinsey predicts the growth potential of the metaverse will be as high as $5 trillion by 2030. While the metaverse, is still in its infancy, its potential to trigger the next wave of digital disruption seems increasingly clear to early adopters and businesses.

Vast Potential

The metaverse has the potential to impact everything from employee engagement to customer experience, omnichannel sales and marketing, product innovation, and community building. The consulting firm sees e-commerce as the biggest commercial force, expected to generate $2.6 trillion followed by virtual learning with $270 billion, advertising at $206 billion, and gaming at $125 billion, according to McKinsey.

Enterprise, venture capital, and private equity firms are seeing the potential and investing heavily, already pouring over $120 billion into metaverse investments this year, which is more than double the $57 billion invested all of last year, the report said. It is a vast market as can be seen by the over three billion gamers that have access to different versions of the metaverse.

Business leaders are also convinced of the potential for value creation and growth. According to the study, 95 percent of executives expect the metaverse to have a positive impact on their industry within five to ten years. More importantly, a quarter of executives estimate that metaverse technology will contribute more than 15 percent to their company's overall margin growth over the next five years.

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