Global spending in the Metaverse could reach $5 trillion by 2030, according to a new report from international consultancy McKinsey & Company.
Released yesterday, the 77-page report “Creating Value in the Metaverse” analyzed current adoption trends and extracted additional insight from two global surveys; One collected data from 3,104 consumers in 11 countries, while the other surveyed a group of CEOs from 448 companies in 15 industries in 10 different countries.
McKinsey used this data to predict that the future of consumer behavior in the metaverse will likely be broken down into five core activities: gaming, socializing, fitness, commerce and distance learning.
McKinsey found that nearly 60% of all consumers surveyed would prefer at least one activity in the virtual world over its physical alternative, and that 79% of consumers who are currently active in the etaverse have already made a purchase.
E-commerce will be the main cash cow in the Metaverse, with McKinsey predicting it will account for anywhere from $2 trillion to $2.6 trillion in total spending by 2030. Virtual advertising will be another key segment, with associated revenue expected to make up $144. Another billion to 206 billion dollars.
In the face of current pessimism in the traditional crypto market, the report highlights that in the first five months of this year, more than $120 billion has already been invested in metaverse-related technology and infrastructure — more than double the total $57 billion invested in Metaverse tech over the course of a year. all of 2021.
In an associated blog post, the report’s lead authors and McKinsey’s lead partners, Larina Yee and Eric Hazan, provided additional comments on their research.
“What’s exciting is that the metaverse, like the Internet, is the next platform in which we can work, live, connect and collaborate.”
Speaking of CEOs’ response, Yi added, “Executives often don’t agree much, but our research shows that they broadly agree on one thing: 95% of them believe that a positive impact will have a positive impact on their industry.”
The report added that 25% of all CEOs said they expect Metaverse to drive 15% of their organization’s total margin growth in five years and nearly a third believe that the etaverse can make a significant difference to how their industry operates.
Despite the general enthusiasm, there was still a healthy dose of skepticism, with 31% of all CEOs remaining somewhat unsure of the return on investment for Metaverse trials.
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Hazan said that while brands should be excited about the opportunities they await in the Metaverse, they should also be willing to take on challenges head-on and do some serious planning.
There are pressing challenges to consider. First, there will be a need to reskill a portion of the workforce to take advantage of metaverses rather than compete with them. Stakeholders will need to build a roadmap to ensure that the metaverse experience is ethical, safe and inclusive.”
Yi ended her comment by reiterating that the Metaverse is still very much a dynamic and evolving space. She said that individual creators and big brands alike need to adopt a long-term mindset if they want to be successful in the future of the Metaverse.