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Metaverse’s Value Could Hit $5 Trillion in 2030, Equal to Japan’s Economy – Report

The gaming sector will be the “powerful force” of the Metaverse, surpassing the movie and music industry.

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Global consultancy firm McKinsey & Company released its June 2022 report that Metaverse may generate up to $5 trillion by 2030, equivalent to the size of the world’s third-largest economy today, Japan.

According to the report, 50% of live events will be held in a virtual space by 2030, and every internet user is expected to spend about six hours a day in the space.

In addition, the gaming sector will be the “powerful force” of the Metaverse, surpassing the movie and music industry, with a total value of more than $200 billion.

“Consumers and companies are already experimenting with the early metaverse for everything from socializing to fitness, commerce, virtual learning, and scores of other daily activities. Like any technology, the metaverse is neither inherently good nor bad; it will be what we make it, and we can learn from previous eras of dramatic technological change,” the report read.

Aside from gaming, other industries that will fuel the Metaverse are e-commerce and virtual advertising with about $2 to $2.6 trillion and $144 to $206 trillion, respectively.

“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

On the other hand, 95% of the executives stressed that they believe that Metaverse will have a positive impact in their industry, but 31% of them are concerned about the investments in the up-and-coming technology as it is viewed as “a fledgling and rapidly evolving space with instability.”

Meanwhile, the report also found out that two-thirds of the consumers have experienced the metaverse, 80% of them appreciate shared virtual experiences with friends and family, 63% prefer virtual work meetings, and 59% enjoy virtual education sessions more than in-person ones.

It also emphasized that over $120 billion has already been put into the Metaverse-related technologies, more than double compared to last year’s $57 billion worth of investments.

“In the end, with its potential to generate up to $5 trillion in value by 2030, the metaverse is simply too big to be ignored. It will have a major impact on our commercial and personal lives, which is why businesses, policymakers, consumers, and citizens are well advised to explore and understand as much as they can about this phenomenon, the technology that will underpin it, and the ramifications it will have for both our economies and wider society,” the report concluded.

The report, with a title of “Value Creation in the Metaverse,” surveyed more than 3,400 consumers and executives, including 13 senior leaders and metaverse experts, across 11 countries and 448 companies within 15 industries. The data collected was used to estimate the future of the Metaverse, especially by 2030.

This article is published on BitPinas: Metaverse’s Value Could Hit $5 Trillion in 2030, Equal to Japan’s Economy – Report

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