By 2030, the value of metaverse could reach $5 trillion, according to the latest the latest study titled, ‘Value Creation in the Metaverse’ by Mckinsey and Company. The report further stated that the potential impact of the metaverse varies by industry, although holds implications for all. For instance, it is estimated the market impact on e-commerce will be in the range of $2-2.6 trillion by 2030, depending on whether a base or upside case is realised. Similarly, it is estimated that the impact on academic virtual learning market will be of $180-270 billion, $144- $206 billion impact on the advertising market, and a $108-125 billion impact on the gaming market.
The metaverse is the envisioned end state which incorporates all digital worlds alongside the physical world, with interoperability between them all. It will include interoperability across platforms and devices, concurrency with thousands of people interacting simultaneously and use cases spanning human activity well beyond gaming.
Metaverse platforms include Decentraland, Fortnite, Minecraft, Roblox, and The Sandbox, said McKinsey and Company. This is in line with the Mark Zuckerberg, CEO, Meta (former Facebook) announcement in last November, when he changed the parent company’s name to Meta. “The metaverse will be the successor to the mobile Internet. We will be able to feel present like we are right there with people no matter how far apart we actually are,” he said.
Furthermore, almost 60% of consumers using today’s early version of the metaverse are transitioning everyday activities, with connectivity among people being the biggest
driver, followed by the potential to explore digital world. About 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. Industries most likely to be impacted by the metaverse include consumer and retail, media and telecommunications, and healthcare, and those industries are also among those already undertaking metaverse initiatives.
Origin of Metaverse
It all started in 1992 with ‘Metaverse’ being coined in Nea Stephenson’s novel Snow Crash. Also, Steven Spielberg’s Ready Player One was released three years earlier, based on a novel released in 2011. John Hanke, CEO, Niantic, said, “I think about the metaverse as a continuation of where tech was headed prior to COVID-19. When I think about a real-world vision of the metaverse, it’s really a union of those where they become much more deeply fused; where there’s a digital extension to everything that’s real.”
Myths to bust
Metaverse not same as multiverse:
The metaverse is the envisioned end state which incorporates all digital worlds alongside the physical world, with interoperability between them all. Metaverse platforms include Decentraland, Fortnite, Minecraft, Roblox, and The Sandbox.
Metaverse is not (just) gaming:
Multiple Indian brands have initiated the experiment on Metaverse based on its popularity. Yosuke, Matsuda, CEO of Square Enix, said that we are trying to not define the metaverse so rigidly that it limits the imagination of creators. Gaming platforms are evolving to address multiple use cases, such as virtual concerts being held in Fortnite. Game Gen Z, fitness, education, and shopping are popular among millennials.
The Metaverse is not Web3.0
As per the report, the metaverse sounds a lot like Web3, but while it contributes to the metaverse by espousing decentralisation and interoperability, it’s not the metaverse, which is anchored on immersive experiences that can be both centralized or decentralized.
For instance, there are three billion gamers in the world, spanning geographies, generations, and genders. Roblox, the gaming platform reportedly had nearly 55 million daily average users (DAUs) in February 2022 and generated $1.9 billion in revenue in 2021. Minecraft has about 140 million monthly active users, and Fortnite about 80 million. Roblox, launched in 2006, has Nike and Gucci as advertisers and partners. Naver Z’s Zepeto—Asia’s metaverse platform has over 300 million global subscribers, and in April partnered with Samsung for its Galaxy S22 Treasure hunt campaign.