While most crypto believers and investors are sweating like hogs going to slaughter. McKinsey & Company has put together a detailed report on almost every aspect of what the “Metaverse” world entails. Based on research, surveys, and input from top-notch virtual reality champions.
Companies are using metaverse platforms for a competitive edge against their competitors. Will it pay off? Read the report to find out!
Global management consulting firm McKinsey & Company says the metaverse has the potential to generate value equivalent to the world’s third-largest economy, Japan.
In a new report, McKinsey says that based on the metaverse’s consumer and use cases, the nascent sector could be worth $4 trillion to $5 trillion by 2030, divided up among multiple markets.
$5 Trillion Dollar Breakdown
“We estimate it may have a market impact of between $2 trillion and $2.6 trillion on e-commerce by 2030, depending on whether a base or upside case is realized. Similarly, we estimate it to have an impact of:
- $180 billion to $270 billion in the academic virtual learning market,
- $144 billion to $206 billion impact on the advertising market
- $108 billion to $125 billion impact on the gaming market.
These effects may manifest in very different ways across the value chain, however.”
Top 3 Metaverse Technologies Gives an Edge
According to McKinsey, companies are now leveraging the metaverse could be building lasting competitive advantages. The report says executives currently consider cryptocurrency, artificial intelligence, and augmented/virtual reality as the top three metaverse technologies.
The McKinsey report examines the emergence of the metaverse:
- Its history and characteristics, the factors driving investment
- How consumers and businesses are using it today and may in the future
- Its value-creation potential, and how leaders and policymakers can plan their strategies and near-term actions.
The report also says that along with cryptocurrency and non-fungible tokens (NFTs), one sector in the metaverse space will remain volatile in the near term – the virtual real-estate asset market.
Just What is the Metaverse?
It is a gaming platform, a virtual retail destination, a training tool, an advertising channel, a digital classroom, a new gateway to digital experiences. The metaverse seems to be whatever people’s imaginations dream it to be. But today the metaverse remains difficult to define,8 even though the term has been in circulation for decades. What we do know is that, beyond the hype, the metaverse is real, potentially revolutionary, and has the makings of a significant opportunity. Yet how it will eventually develop remains to be seen.
“Yet price increases are driven by scarcity that is designed into present-day platforms like Decentraland and The Sandbox. That heightens the investment risk involved, even if organizations making the investments aim to derive utility from their virtual real estate by, for instance, using it as their metaverse base of consumer interactions.
Their bet is not only on mass adoption of the metaverse in the coming years but also on adoption of the specific platform that the virtual land is bought in (given near-zero interoperability between worlds for now).”
McKinsey’s team’s ambition is for this report to help drive ongoing dialogue about the development of the metaverse, help leaders of both consumer and business-to-business clients better understand its power and potential, identify strategic imperatives, and act as a force for its positive evolution.
This work is independent and has not been commissioned or sponsored in any way by any business, government, or other institution. Truly a decentralized Metaverse report.
Featured Image: Shutterstock/Andrey Suslov
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