The metaverse is often referred to as the internet's next step in evolution. It's a virtual environment that provides more immersion and interaction than ever before.
With projections that the metaverse could be valued at more than $12 trillion by 2030, there is a huge opportunity for growth and alternative revenue streams for enterprise businesses.
In this article, we'll look at what the metaverse is, the potential market opportunity, and how businesses may benefit from it.
The metaverse is not a new concept. It was first popularised by Neal Stephenson in his science fiction novel Snow Crash, which was published in 1992. In the novel, the metaverse is a virtual world where users can interact with each other and with digital objects in ways that are not possible in the physical world. The metaverse concept has been further popularised by films such as The Matrix and Ready Player One. It's sometimes referred to as virtual reality, augmented reality, and mixed reality altogether, and it's a place where users can build their avatar or digital self, and travel throughout the world.
New developments in technology are making it possible for businesses to enter the metaverse and create their own digital spaces. We're already seeing businesses creating their own virtual reality experiences, as well as mixed reality experiences that combine the physical and digital worlds.
The market for virtual reality technology is expected to grow exponentially in the coming years driven by advances in technology and the increasing popularity of gaming and other immersive experiences.
In 2019, the global virtual reality market was worth $17.53 billion and is expected to reach $44.07 billion by 2025, whereas the augmented reality industry was worth $11.14 billion in 2018 and is projected to grow to $60.55 billion within 10 years.
Businesses’ and consumers’ annual global spending related to the metaverse could reach $5 trillion by 2030, according to a recent report from McKinsey & Co.
Grayscale Investments suggested that “The market potential for bringing the metaverse to life may be worth more than $1 trillion in annual revenue and could compete with Web 2.0 companies worth around $15 trillion today”.
According to investment bank Morgan Stanley, the metaverse is expected to be an $8 trillion business opportunity.
Goldman Sachs also predicts that by 2030, the metaverse would be valued at more than $12 trillion, making it roughly twice as big as today's US economy.
One of the most significant benefits is that it may help you acquire new consumers. It is anticipated that the metaverse will reach over a billion members by 2025. The metaverse allows businesses to engage with customers uniquely, allowing them to rapidly expand into new markets and demographics. Using the metaverse, companies may create their own unique loyalty programmes and incentives for people who spend time in their virtual spaces.
Another significant advantage of the metaverse is that it facilitates increased engagement with customers. In physical stores, the average conversion rate is around two percent. However, in virtual reality, businesses may increase their conversion rates by as much as 20%. The metaverse provides a more immersive and interactive experience that can lead to higher sales and better customer retention.
The metaverse also offers the potential to improve client experience. Businesses are limited in the physical world by their location and available space. In the metaverse, companies may develop infinite virtual locations that can be modified to meet the demands of their consumers. This allows firms to give their clients a more individualised and tailored service.
The metaverse provides businesses with a new way to advertise and promote their products and services. Businesses can use avatars to interact with customers, as well as create digital billboards and other advertising experiences to extend brand awareness.
A new breed of behavioural data can be captured and blended with existing web 2 data to improve marketing strategies, product development, and overall business operations. This new dimension of data can provide a significant competitive edge to understanding your customer and use it to level up your marketing strategies.
The metaverse provides a new platform for e-commerce. In the metaverse, businesses can sell digital goods and services, as well as physical goods that can be delivered to the customer allowing businesses to tap into new revenue streams and open up new markets.
Metaverse also allows for a new level of customer service and support. In the metaverse, businesses can offer real-time customer service and support, as well as providing a more immersive and interactive experience that can lead to higher satisfaction rates.
The metaverse presents a significant opportunity for businesses to reach new markets, engage with customers, and improve marketing strategies. It provides a new platform for e-commerce and offers real-time customer service and support. It could be valued at more than $12 trillion by 2030.