Metaverse Landscape in the Year 2022: A Current Overview
The Evolution and Future of the Metaverse Market
The concept of the metaverse has accelerated over the past year, garnering significant attention from global corporations that have invested billions of dollars in this innovative virtual world. By 2030, the metaverse market is estimated to exceed $1.6 trillion, according to Emergen Research, demonstrating its potential growth.
Reach and Investment
The recognition of the metaverse has been gaining momentum, with companies such as Microsoft making substantial investments, like the acquisition of Blizzard Entertainment for $75 billion, to develop metaverse infrastructure. In the initial five months of 2022 alone, approximately $120 billion was invested in metaverse-related companies, doubling the investment from the previous year. Furthermore, the word 'metaverse' was featured in more than 1,100 regulatory filings within six months, indicating a rising interest in metaverse solutions for businesses.
However, the public's engagement with the metaverse is yet to reach widespread adoption. While virtual goods, NFTs, virtual reality experiences, and digital real estate are becoming increasingly popular, a January 2022 Statista survey showed that 31% of US adults were unaware of the metaverse, and 27% held a lack of interest in the concept. Nevertheless, 26% deemed it the future of technology, while 33% expressed curiosity regarding the metaverse.
Early indications show that Decentraland and The Sandbox, two leading metaverse platforms, have attracted limited user interaction. On their peak days, Decentraland averaged 8,000 users, with only 675 remaining as active participants, while The Sandbox saw4,503 active users on their busiest day. These numbers suggest that the metaverse still has room for growth in terms of user engagement.
Perception and Challenges
The metaverse's growth may be hindered by skepticism stemming from Facebook's rebranding to Meta. According to Statista data, more individuals believed that the name change was a strategy to evade negative press rather than a brand refresh. Concerns about data protection, an issue that has plagued the internet for over a decade, have also raised questions about the security of personal information in the metaverse.
Interoperability is another challenge preventing the metaverse from reaching its full potential. Currently, there are separate platforms and experiences within the metaverse, with no interconnection or method for transferring information or value across platforms. The Metaverse Standards Forum works towards creating an open, connected, and interoperable virtual realm, while avatars such as Ready Player Me can be transferred between various worlds. However, progress toward a fully interoperable metaverse remains slow.
Opportunities and Projections
Despite these challenges, the metaverse shows significant growth potential. In 2021, the media and entertainment sector comprised a substantial portion of the market, facilitated by the metaverse's immersive storytelling capabilities, opening up new avenues for audience engagement. Additionally, demand has increased for applications and products based on virtual, augmented, and mixed realities, as well as the rise in popularity of virtual tokens, virtual economies, and online gaming.
The business world has been the driving force behind the metaverse's progress, with 71% of executives expecting a positive impact on their businesses, while 42% believe that the metaverse will be transformational, according to Accenture's Technology Vision 2022 report. By 2022, more than 500 companies have already built their own metaverses, with 17% considering the area a priority investment, according to a Statista survey. The potential market size for the US alone in 2022 is estimated to be worth $8.3 trillion.
Conclusion
Though the metaverse is still in its infancy, its rapid growth is undeniable. The technological advancements and expanding applications across various sectors hold promise for the metaverse's continuous evolution. Despite the challenges, the growth trajectory indicates that the metaverse is well on its way to becoming a major player in reshaping various aspects of our lives.
Additional Reading: How to Invest in the Metaverse.
- The business world is increasingly investing in data-and-cloud-computing and technology sectors to develop infrastructure for the metaverse, with giant corporations like Microsoft making significant investments.
- The metaverse market, already valued at billions of dollars, is projected to surge, particularly in real-estate and virtual economies, as more businesses explore metaverse solutions.
- As the metaverse evolves, opportunities in investing, developing, and creating immersive experiences for games, entertainment, and business are expanding, with approximately 500 companies already building their own metaverses.
