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New research from McKinsey & Co. shows that the Metaverse could reach $5 trillion in value by 2030. This illustrates the impact the Metaverse is expected to have on key industries and businesses over time.
McKinsey said the report, called Creating value in the metaverse, shows that the metaverse may be too large to ignore. Many of us think this is science fiction because the metaverse is the universe of virtual worlds all connected together, as in novels like Snowfall and borrow player one† But it has become a vision for the next generation of computers, as a spatial version of the Internet. (Neal Stephenson, author of Snow Crash, which was published in 1992, just launched an open metaverse effort called Lamina1).
Preliminary predictions from McKinsey show that the metaverse has the potential to grow to $5 trillion by 2030. It shows that e-commerce is the largest economic force ($2.6 trillion), ahead of sectors such as e-learning ($ 270 billion), advertising ($206 billion) and games ($125 billion).
As businesses of all shapes and sizes look to enter the Metaverse, this report provides a clear picture of what the Metaverse is and isn’t, what early movers are doing, what drives investment and potential for consumers and businesses. business enterprises (B2B).
The report is based on multiple proprietary insights and analytics, including a survey of more than 3,400 consumers and executives about Metaverse adoption, potential, and likely impact on behavior. The researchers also interviewed metaverse builders and industry experts.
“The metaverse represents a strategic inflection point for businesses and an important opportunity to influence how we live, connect, learn, innovate and collaborate,” said Eric Hazan, senior partner at McKinsey & Co., in a press release. “Our ambition is to help consumer and B2B business leaders better understand its strength and potential, identify strategic imperatives and act as a force for its evolution.”
This year, corporations, venture capital firms and private equity firms have already invested more than $120 billion in the metaverse, more than double the $57 billion invested last year.
There are several factors behind this investor enthusiasm:
- ongoing technological advancements in the infrastructure needed to power the metaverse
- demographic headwind.
- increasingly consumer-oriented marketing and brand engagement.
- Increases market readiness as users explore the current version of the metaverse, which is largely powered by gaming as applications emerge in socialization, fitness, commerce, virtual learning, and other uses.
- More than three billion players worldwide already have access to different versions of the metaverse.
“While the idea of connecting virtually took decades, it’s now more and more real, meaning real people are using it and spending real money and companies betting big,” said Lareina Yee, senior partner at McKinsey & Co. pronunciation. “Yet this growing interest makes it difficult to separate hype from reality. It’s worth remembering that while the collapse of the first dotcom boom led to the disappearance of dozens of companies, the Internet itself has grown stronger and stronger, creating new entrants.
Consumers are already working on the metaverse
Consumers are already here. Research from McKinsey shows that consumers are excited about transitioning from life to the Metaverse, with nearly six in 10 consumers (59%) preferring at least one Metaverse experience over the physical alternative.
Among these consumers, certain types of activities stand out as the most preferred in the immersive world:
- purchases — purchase of physical or virtual goods (79%).
- attend virtual social events or play social games (78%).
- sports with virtual reality (76%).
Senior executives believe the metaverse will have a significant impact on their industry
Business leaders see the potential of the metaverse to drive impact and margin growth. Ninety-five percent of executives say they expect Metaverse to positively impact their industry within five to 10 years, while 31% say Metaverse will fundamentally change the way their industry works. More importantly, a quarter of executives expect metaverse technology to drive more than 15% of their organization’s overall margin growth over the next five years.
“The Metaverse has put us on the cusp of the next wave of digital disruption,” said Tarek Elmasry, senior partner at McKinsey & Company. “It’s transformative. This is likely to have a major impact on our business and personal lives. Therefore, companies, policymakers, consumers and citizens may want to explore and understand as much as possible about this phenomenon, the technology behind it and the consequences it can have. for our economies and society as a whole.
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