Metaverse To Generate $5 Trillion In Value By 2030, ‘Too Big For Companies To Ignore’: McKinsey
The report suggests that the metaverse will comprise five daily activities — gaming, socialising, fitness, commerce, and remote learning.
Metaverse will generate $5 trillion in annual spending from businesses and consumers globally by 2030, a report by management consulting firm McKinsey has revealed. Touting metaverse to be “too big for companies to ignore,” the McKinsey report said that 95 percent of business leaders “expect a positive impact on their industry within five to 10 years.” For those unaware, Metaverse can be defined as a virtual, unified universe that can be accessed via virtual reality (VR) and augmented reality (AR) peripherals.
Within the metaverse, users can interact with each other via virtual avatars, conduct meetings, play games, socialise, shop for virtual clothing and plots of land, or even attend live concerts. Metaverse offers a never-before-seen version of the traditional Internet.
Several companies are already taking to metaverse with gusto. Social media giant Facebook rebranded itself as Meta in October 2021 to reflect its renewed focus on the metaverse. Recently, Airtel unveiled Xstream, India’s first multiplex in the metaverse, which will offer access to popular OTT content.
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As per the McKinsey report, the metaverse will “significantly impact our commercial and personal lives.” In 2022, over $120 billion in investment has already flowed into the metaverse. The report took into account the results of a survey of 3,104 consumers from across 11 countries. The firm has also conducted a poll of C-level executives at 448 companies across 10 nations and 15 industries.
The report also noted that 79 percent of consumers “active on the metaverse” have made a purchase. Additionally, over 15 percent of corporate revenue is “expected to come from the metaverse in the next five years according to 25 percent of senior executives.”
McKinsey noted that virtual ads on metaverse will make up $144 billion to $206 billion of the total, whereas e-commerce will amount to $2 trillion to $2.6 trillion.
The report suggests that the metaverse will comprise five daily activities — gaming, socialising, fitness, commerce, and remote learning. As per McKinsey’s survey, 79 percent of respondents said that they have already made a purchase in the metaverse. Out of that, 47 percent have made in-game purchases, 37 percent bought virtual cosmetic items, and 33 percent purchased real-world items via virtual platforms.
The study also noted that 25 percent of executives believe metaverse can help drive 15 percent of their organisation’s total margin growth in five years.
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