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Explore the latest trends and actionable insights on the Metaverse market to inform business strategy and pinpoint opportunities and risks

Metaverse – The Latest Buzzword

Industry: Consumer Electronics
Current: Thematic Indicators

Metaverse as a concept, gained considerable popularity after Mark Zuckerberg announced Facebook’s name change to Meta
Major tech giants such as Meta, Microsoft, and NVIDIA, besides start-ups, are competing for novel Metaverse territory
The future of the Metaverse is dependent on the development of AR, VR, AI, and IoT

Metaverse – The Latest Buzzword

Metaverse is considered the next paradigm shift in technology. Metaverse can be described as a computer-generated virtual space where a group of people can simultaneously interact using dedicated virtual reality (VR) instruments. Increased discussions around the concept follow the recent rebranding of Facebook to Meta. It is also evident from social media analytics, which depicts a spike on October 29, 2021, the day after Mark Zuckerberg presented the company’s vision for Metaverse. Metaverse as a concept is strongly linked with technologies such as augmented reality (AR), virtual reality (VR), artificial intelligence (AI), and the Internet of Things (IoT) and has elevated buzz in countries such as China, the US, and South Korea.

Heightened Corporate Activity Around Metaverse

Roadmaps of significant companies in the technology sector can help determine possibilities that Metaverse will create. Recently, Meta restructured its business, creating “Facebook Reality Labs (FRL)” – a dedicated segment to realize its Metaverse dream. FRL will focus on augmented and VR technologies. An announcement of a $10 billion investment in Metaverse through FRL suggests that the social media mogul is planning for a head start in the virtual world.

Microsoft has also joined the Metaverse race. During a recent public note FutureReady, the CEO expressed Metaverse as a place where Microsoft can digitally represent itself. Mesh, the next-generation collaboration software released by Microsoft, is considered as the first step by the tech giant in “metaverse for work.” Unlike Meta, Microsoft’s Metaverse is expected to be more enterprise-centric.

NVIDIA considers Metaverse as the next venture to create a footprint in the virtual world. NVIDIA’s flagship hardware supports new Metaverse technologies, but it is also expanding into the software aspect. At the recent Consumer Electronics Show (CES), the company announced that it would distribute its “Omniverse,” NVIDIA’s Metaverse, to individual artists. Individual artists can create virtual art on Omniverse and will be able to sell those on marketplaces and content libraries.

Smaller tech firms have also increased investments around Metaverse. Recently Niantic, a start-up spun off from Google, raised $300 million at a $9 billion valuation considering the potential of “Real World Metaverse.” Niantic has already proved itself in the AR arena with Pokemon Go and has continued multiplying its Metaverse potential through acquisitions of Lowkey, Hoss Technology, Toolbox AI, and Mayhem Interactive, among others.

Roblox, a gaming company, has led the Metaverse movement with partnerships in the retail sector. Roblox has shaped collaborations with Gucci, Vans, Balenciaga, and Sony. When limited mobility constrained human experiences during the pandemic, Roblox reinvented virtual concerts, launch parties, and listening parties. These shared experiences can become the backbone of the Metaverse future. In collaboration with Nike, Roblox recently launched Nikeland, which can be regarded as a leap towards virtual retail space.

Building Blocks of Metaverse and its Future

Metaverse stands on principal technological pillars of AR, VR, AI, and IoT. According to GlobalData, the AR market was reportedly valued at $7 billion in 2020 and is expected to reach $37 billion by 2025, growing at a CAGR of 40%. At present, consumer-focused AR holds the majority market share, with most of the revenue generated from AR software.

The VR market is estimated to be valued at $10 billion in 2020 and is expected to reach $19 billion by 2025, growing at a CAGR of 41%. The current VR market is identical to the AR market, dominated by the consumer sector and tilted towards software revenue. Sony, HTC, and DPVR lead the VR market with promising challengers such as Nintendo, Varjo, and Valve.

Metaverse interactions will create a humongous amount of user-centric data, where AI will come into the picture. The valuation of the overall AI market ranges from a few billion dollars to several trillion because of the various technologies clubbed under the AI universe, including deep learning, machine learning, and symbolic learning. IoT will enhance the real-life interactions by Metaverse. Consumer-centred IoT has become part of everyday life with wearables such as smartwatches. Industrial IoT is also being fuelled by tech giants such as Google and Amazon, who consider it an underutilized market opportunity.

Still a Nascent Concept

Metaverse is a nascent concept, and it will experience unforeseen challenges as it grows. Scarce talent, cybersecurity threats, complex intellectual property laws, content licensing, constrained data storage technology, and elevated electricity consumption are a few of the challenges for the development of Metaverse. Mass adoptions in the future will bring Metaverse under the radar of various governments and international regulatory agencies. The future of the Metaverse will be the future of hyper-convergence, which can redefine the way people go through their daily lives.

Explore the latest trends and actionable insights on the Metaverse market to inform business strategy and pinpoint opportunities and risks Explore the latest trends and actionable insights on the Metaverse market to inform business strategy and pinpoint opportunities and risks Visit Report Store