By Shelly Melancon (Switzerland)
The global consulting firm, McKinsey and company, recently completed detailed research on potential developments in the metaverse. The report predicts that overall spending in the metaverse space could be $5 trillion by 2030. McKinsey titled the 77-page report “value creation in the metaverse.” It released it to the public yesterday.
Highlights From The Report
The report was based on a compilation of data from consumers and executives of various companies. The consumers were 3,104 drawn from 11 nations. But the polled executives were from 15 industries and 448 firms from 10 nations. According to the report, McKinsey predicts that five main activities will drive consumer actions in the metaverse in the next ten years.
Activities include remote learning, socializing, gaming, commerce, and fitness. A survey of the consumers shows that 60% of them would like to engage in at least one activity in the metaverse.
79% of these consumers state that they have made at least one purchase in the metaverse. They added that they are already active there. McKinsey predicts that e-com will be the main driver of the metaverse economy.
According to the report, e-com spending in the metaverse could reach $2.6 trillion by the next ten years. The report added that virtual advertising is the second driver of the metaverse economy.
Also read:McKinsey predicts that spending in this sector would be up to $206B. Despite the decline in the current crypto market, the report states that over $120B has been invested in the metaverse space since the start of this year. That figure is more than double the total amount invested in this space last year ($57B).
An Additional Explanation Of The Report
McKinsey’s senior partners, Eric Hazan and Lareian Yee, published a blog post to further explain the conclusions from the report. Part of their comments reads, “the good news is that the metaverse is the new platform for collaboration, connection and living among human beings. It is the new internet.”
Yee added comments on the survey responses from executives. He said, “many of the executives weren’t open about the metaverse. However, 95% agree that this new space will positively affect their industry.”
According to the report, 25% of these executives believe that 15% of their firms’ overall margin growth will depend on the metaverse. About 34% of them said the metaverse would cause huge changes in their industry’s operations.
While the majority of them were hopeful, some of these executives were skeptical. 31% are unsure about earning any return on investment from their metaverse foray. Hazan noted that brands need to brace up for the challenges ahead despite the potential of a huge opportunity.
The McKinsey executive added, “brands would need to reskill most of their workforce. Otherwise, they won’t be able to maximize the opportunities in this space fully. Regulators must develop standard procedures ensuring that the metaverse space is inclusive, safe, and ethical.”
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