fbpx

THE METAVERSE

Value of the Metaverse could be up to US$5-trillion by 2030 - McKinsey

By our News Team | 2022

Consultancy says this “represents a strategic inflection point for companies” and a significant opportunity to influence the way we live.

Is the Metaverse really going to be as big as some techies and marketers predict? Management consultancy McKinsey & Company thinks it is going to be very big indeed – with the potential to grow up to US$5-trillion in value by 2030.

McKinsey’s new report, entitled Value Creation in the Metaverse, shows e-commerce as the largest economic force ($2.6-trillion), ahead of sectors such as virtual learning ($270-billion), advertising ($206-billion), and gaming ($125-billion).

The Metaverse

Image by Tumisu from Pixabay

“The Metaverse represents a strategic inflection point for companies and it presents a significant opportunity to influence the way we live, connect, learn, innovate and collaborate,” said Eric Hazan, Senior Partner at the consultancy. 

“Our ambition is to help leaders of both consumer and B2B companies better understand its power and potential, identify strategic imperatives, and act as a force for its evolution.”

Already this year, companies, venture capital and private equity firms have invested more than $120-billion in the metaverse—more than double the $57-billion invested in all of last year.

The study says multiple factors are driving this investor enthusiasm:

  • Ongoing technological advances across the infrastructure required to power the metaverse.
  • Demographic tailwinds.
  • Increasingly consumer-led brand marketing and engagement.
  • Increasing marketplace readiness as users explore today’s version of the Metaverse, which is largely driven by gaming, while applications emerge in socialising, fitness, commerce, virtual learning and other uses.

Now it’s all becoming real as people spend real money

“While the idea of connecting virtually has been decades in the making, it is now increasingly real – meaning real people are using it and spending real money. And companies are betting big,” said Lareina Yee, another Senior Partner at McKinsey. 

“Yet this booming interest has made it difficult to separate hype from reality. It’s worth remembering that while the bust of the first dot-com boom resulted in the disappearance of scores of companies, the internet itself went from strength to strength, giving rise to new entrants.”

Consumers are already there. McKinsey’s research shows consumers are excited about transitioning life into the Metaverse, with almost six in 10 (59%) consumers preferring at least one Metaverse experience over its physical alternative.

Among those consumers, certain types of activities stand out for being most preferred in the immersive world:

  • Shopping—purchasing physical or virtual goods (79%).
  • Attending virtual social events or playing social games (78%).
  • Exercising using virtual reality (76%).

The report says business leaders see the Metaverse’s potential to drive impact and margin growth. Ninety-five percent of leaders say they expect the Metaverse to have a positive impact on their industry within five to 10 years, with 31 percent saying the Metaverse will fundamentally change the way their industry operates. 

Perhaps more significantly, a quarter of leaders expect the Metaverse technology to drive more than 15 percent of their organisation’s total margin growth in the next five years.

Social Media

Social Media

While some legislators want a complete ban on TikTok due to spying concerns, US marketers want to spend more on the platform.

Read More »
Social Media

Social Media

Utah is the first state to heavily curb minors’ access to social media, but others may follow with even stricter laws.

Read More »
Supply Chain

Supply Chain

Businesses can make more accurate predictions about demand, optimise their operations and make better decisions about inventory management.

Read More »
AMC News

AMC News

High-level Chartered Marketer (Africa) programme equips marketers to operate successfully in the continent’s complex and diverse markets.

Read More »
Content Marketing

Content Marketing

Why do some articles captivate readers and encourage them to keep reading, while others make them lose interest after just a few sentences?

Read More »
Digital Marketing

Digital Marketing

Analysis finds social media used by less than 4% of people, while mobile phone connections are equivalent to less than 60% of Malawians.

Read More »
E-commerce

E-commerce

E-commerce giant is yet another tech company that is finding the market increasingly tough. It has already cut 18,000 jobs.

Read More »
Customer Data

Customer Data

Survey finds 60% of marketing leaders believe collecting customer data while balancing privacy and customer value is now more challenging.

Read More »
Consumer Health

Consumer Health

It is not sufficient for consumers to want to decrease sugar intake. Brands should offer appealing products that help reduce consumption.

Read More »