Metaverse is making significant strides in the digital domain and immersive digital realities. It promises data-rich future concepts like digital twins and the internet of everything (IoE) while boosting artificial intelligence. It is leading the world towards future digital communities and web-based societies, where everything has complete control over digital identities, lives, and data.
Then there’s the internet of ownership being instrumental in Metaverse innovations, establishing unique identities in the form of 3D holographic avatars/ hyper-realistic avatars for people & objects and enabling cryptocurrency and new forms of commerce like fungible & non-fungible tokens and new products. Also, the programmable world that metaverse enables has become a game-changing idea, especially from a business perspective.
Soon, this landscape will enable a computer-enhanced world, helping to bridge the gap between digital and real-world identities. It is also expected that the metaverse would create a far more immersive experience, enhancing data portability between different domains and moving the sense of identity and digital presence along with it.
Most tech companies are seen increasingly investing in the metaverse. This has become a trend now, highlighting its position as critical for the future of the online world. Tech giants like Microsoft have increased their R&D budget for metaverse-related purchases, and companies like Adobe have their Photoshop application to support the creation of Metaverse-ready NFTs.
Resultantly, the global metaverse market is garnering significant traction, witnessing a substantial rise. According to Market Research Future (MRFR), the valuation of the global metaverse market will reach USD 105,597.5 million by 2030, growing at 45.2% CAGR throughout the assessment period (2024-2030). In the future, the metaverse will contribute to the new age of the internet.
Key Industry Trends
Metaverse enables immersive virtual experiences meticulously blending digital and physical worlds. In addition to bringing people and things together with extended reality, the metaverse works on a concept that relies on the transition to a new kind of internet landscape. Crucially, the metaverse pushes the world of Web3 with low-code platforms and development opportunities.
The emergence of blockchain and digital assets has allowed convenient, trustless data exchanges, recorded histories, and decentralized authority. The blockchain will play a causal role in creating a safe and fair metaverse. The blockchain is also helping to form the creation of a new economy within the metaverse, monetizing things and receiving adequate compensation for products.
For instance, NFTs or non-fungible tokens allow people to sell everything from data to services and experiences. With more platforms emerging to enable developers and large enterprises increasingly use low-code platforms to build their infrastructure, the market will perceive a significant demand.
Main players in the metaverse sector include virtual reality (VF)/augmented reality (AR) and mixed reality (MR) providers, gaming & internet giants, digital currency community/blockchain community, and infrastructure/interaction technology providers. At the same time, six major technical components of the metaverse include the internet of things (IoT), networking & cloud computing, artificial intelligence, interactive technology based on AR, MR, and projection, gaming, and blockchain.
There is an immense need for transparency beyond basic manufacturing as customers emphasize that brands must urgently take responsibility for environmental impacts and violate human rights across their entire supply chains. They also emphasize that manufacturers should control carbon emissions in the supply chain, tracking it down to the raw material.
Brands should also publish their carbon footprint at the raw material and the production/process level emissions for their own operations and facilities. However, very few brands disclose absolute energy reduction data and renewable energy use data in their direct operations and the supply chain. The reason is the difficulty of capturing carbon and energy data down the supply chain. Also, major brands cannot accurately measure their climate impacts without tracking carbon emissions in the supply chain down to the raw material level.
Increasing Metaverse Application Areas
Gaming companies like Minecraft, Fortnite, and Roblox have already employed metaverse inklings. The penetration of non-fungible tokens (NFTs) and cryptocurrencies has boosted the interest in purely digital technology useful in assuring the security of virtual experiences. On the other hand, virtual productivity platforms have spiked dramatically.
Also, hybrid offices, video-based education, and online social communities have embraced the metaverse. Many innovative products are being developed to enhance immersive virtual reality experiences in living and shopping spaces. In the 3D digital world, customers would be able to walk through the store and choose products as easily as in the physical world.
Metaverse in Governments & Federal Agencies
It is observed that the government’s attitude toward the metaverse is mixed. Concerning the VR/AR sector, Ministries of Industry and Information Technology in many countries are accelerating the metaverse development. They are stressing the virtual reality industry and R&D and content service provision as a foundation for metaverse development.
Also, they are releasing measures for promoting the innovation and development of the metaverse. On one side, where local governments are bolder and intend to promote the powerful metaverse technology as it has a greater potential for major innovation and revenue growth, on the other hand, state-owned think tanks and judicial departments are flagging risks to national security concerning the metaverse.
However, many countries are not planning to take any explicit steps to oppose the sector’s expansion. Instead, they are seen planning to establish their own version of the metaverse suiting their economic ambitions, policy directives, and development of technical expertise. They are expressing complete support for the metaverse that can match the aspirations of their people.
In the next couple of years, there are more concrete regulations to be seen guiding the development of the metaverse, like the fintech sector. Investors and relevant stakeholders are foreseen to pay close attention to the regulatory developments in the metaverse field, promoting innovation agglomeration and encouraging enterprises to become highly specialized. They support technological upgrades, where institutions and businesses should work together to solve technical bottlenecks.
North America Dominates Metaverse Space
The region witnesses vast adoption of metaverse solutions and services in prominent industries, such as BFSI, retail & consumer goods, and healthcare. Besides, the increasing development and adoption of innovative technologies in the region positively impact the market growth.
The presence of well-established industry players, like Facebook, Inc., Roblo Corporation, and Nvidia Corporation, and technology development centers boost the region’s market shares. Additionally, increasing cyber-attacks and data theft threats create vast market demand. The burgeoning healthcare sectors and manufacturing industries, alongside the rapid adoption of smart devices, foster market revenues.
Strategies Metaverse Players Follow to Gain Competitive Advantage
The metaverse market appears to be highly competitive due to the presence of several small and large-scale players. These players incorporate strategic initiatives such as innovations in products and manufacturing techniques, mergers & acquisitions, and brand reinforcement to churn the market competition and maintain their market positions.
Notable Industry Updates
Major Banks are increasingly entering the metaverse space. For instance, on April 26, 2022, Standard Chartered Bank, Hong Kong Ltd. (SCBHK) announced its foray into the metaverse to explore co-creation opportunities in this new and exciting space, engaging its clients, partners, staff, and the tech community.
SCBHK has acquired virtual land at The Sandbox metaverse’s Mega-City district, a cultural hub. The bank has partnered with Sandbox, a popular blockchain virtual gaming platform, to create a metaverse experience. The initiative is led by Standard Chartered Ventures, SC Group’s innovation, fintech investment, and ventures arm.
For the past few years, SCBHK has been building business models in crypto, and digital assets, seeing the rise of the metaverse as a critical milestone in the Web3.0 evolution. The bank also aims to work on building new experiences for clients and bring the local sports and art communities into the metaverse.
Author Bio
My name is Abhishek Singh and I currently work as a Team Lead in a market consultancy firm. An Electronics & Tell-comm engineer by education, I have prior experience in technology firms, market research.
Sources:- https://www.marketresearchfuture.com/reports/metaverse-market-10744
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