The Metaverse Will Be Valued at $5 Trillion by 2030

metaverse
The Metaverse continues infiltrating into daily life. Source: Shutterstock

Global consultancy firm McKinsey & Company released a report on the Metaverse. The company suggests that in eight years the sector will be valued at $5 trillion — roughly the same as Japan’s economy now. The report is based on two major surveys featuring 3104 consumers from 11 countries and 448 companies across 15 industries.

Just the Beginning

The concept of metaverse is no longer a novelty to the digital world. The Metaverse continues infiltrating into daily life. According to the report entitled “Value Creation in the Metaverse”, about 50% of all events will be held in the metaspace by 2030, and about 80% of commerce will be influenced by the actions of metaverse users.

The company suggests that in eight years we will be spending an average of 6 hours in the virtual space daily. Gaming and entertainment will be the fuel to the progress (and the magnet to new users). As of now, the gaming industry is valued at $200 billion already. It is worth noting that, as the report predicts, another two sectors have a potential in the metaverse besides gaming. E-commerce and virtual advertising could take advantage of the Metaverse, with approximately $2 to 2.6 trillion spending in the former and $144 to 206 billion spending in the latter.

Eric Hazan, the lead author of the report, contemplates in a separate post that the current stage of development of the Metaverse is similar to that of Web 2.0 in 2004. At that time, online social networks and user-generated content were about to transform how people interacted with one another on the Internet. However, he added, the infrastructural technology was not ready to boost the “utopian visions of consumer control and the democratization of the internet.”

“Billions of dollars are flowing into every corner of metaverse infrastructure to help get it there. This ranges from back-end tech enablers like engines, blockchain, and hardware devices to platforms and virtual worlds,” — Eric Hazan, McKinsey & Company.

Enthusiasm and Skepticism

The report indicated that 95% of the executives believe that the Metaverse development will bring a positive impact to their industry. Roughly two-thirds of surveyed consumers are excited about the changes that the integrated technology between the virtual and the physical worlds can bring. Eric Hazan is positive that the integrated network of virtual worlds could “open new avenues to providing public services like education and healthcare, creating employment, and planning community spaces.”

However, 31% of executives are concerned about investing in the up-and-coming technology and approach the issue with caution. They link the rapid rate of evolution and the overall novelty of the technology with risks and instability. Nevertheless, despite the pessimism taking over the crypto market recently, over $120 billion has already been invested into Metaverse-related technologies — double the total $57 billion investments by 2021.