According to a McKinsey report, global spending on the metaverse could reach $5 trillion by 2030. E-commerce will be the main cash cow for the metaverse, accounting for $2 trillion to 2.6 trillion of total spending. The report estimates that digital promoting will account for another $144 billion to $206 billion in related income. The report makes some important points.
Global spending in the metaverse could reach $5 trillion by 2030
According to a report released by McKinsey & Company, global spending in the metaverse could be as much as $5 trillion dollars by 2030. That’s a substantial amount, and it is on the order of Japan’s economy today. According to the study, there are five main sectors of the metaverse that will account for this money. Those are e-commerce, advertising, gaming, and virtual learning.
This growth in the metaverse is predicted to be fueled by the development of virtual reality technologies. This will enable users to move and communicate virtually. The metaverse is a crucial part of Web3, a new version of the World Wide Web that promotes decentralisation, greater accessibility, and greater utility. According to Hazan, senior partner at McKinsey, the metaverse represents a strategic inflection point for companies. By 2022, it is estimated that companies and investors will invest $120 billion in the metaverse.
E-commerce will be the main cash cow in the metaverse
The next ten years could see E-commerce become one of the biggest cash cows in the metaverse. With digital advantages in the metaverse, enterprises will be able to personalize their offerings for each customer. This could include inviting everyone to see a new line before the public. In the meantime, they will be able to collect feedback from all of their customers. This, in turn, will allow them to better tailor their offerings to customers.
The emergence of the metaverse is expected to spur innovations in digital real estate, gaming and digital commerce. It is expected to upend the eCommerce domain. Several industry players are focusing on this technology, from major brands to celebrities and athletes. Here are some of the predictions for the industry:
Consumers are already engaging in the metaverse
According to a new survey from the data consultancy The Circus, consumers are already engaging in the metaverse, and they may not even know it. Approximately half of those surveyed said they are already comfortable in the virtual environment and are more comfortable there than they are in their everyday lives. The other half, or a little over 40%, said they enjoy engaging in branded activities in the virtual world. The metaverse may be the next big thing for brands, but consumers are already engaging in it.
Mark Zuckerberg, the CEO of Facebook, believes that the concept of the metaverse is already taking shape in the consumer’s mind. According to him, the metaverse should encompass all consumer-access devices and include the full range of consumer activities. If this sounds a little far-fetched to you, take it with a grain of salt. But this does not mean the technology will go away. Instead, it is an important part of the future of marketing and advertising.
Companies are already investing in the metaverse
The Metaverse is a virtual world where users can own a virtual land, avatar, or anything else they want to. Its popularity has already spurred investment and development in the area. While there are some drawbacks to the Metaverse, companies are already investing in it. One such company is Unity Sofware. It offers various software solutions and tools for creating 3D content. The company has plans to launch several platforms and is investing heavily in gaming. The company went public in 2020 and its stock value has increased by nearly 45 percent since that date.
Another interesting aspect of the Metaverse is that it is rapidly growing. While companies like Netflix and Disney have a long history of investing in the space, there are some notable exceptions. For instance, Google is investing $39.5 million in the Metaverse fund and has talked about mapping the Metaverse and incorporating its YouTube content into the virtual worlds. Microsoft is also investing in the Metaverse. If the Metaverse succeeds, it will be a big player in the gaming and entertainment space.