With Facebook’s announcement of Metaverse, a new segment of the digital economy has started getting attention recently.
Despite still being an amorphous concept, there are some indications that it might be a huge opportunity. And corporations, developers, as well as investors are looking into it.
But the question that is often tossed around is how big is the metaverse? And in the port, we will explore this question, so let’s start digging.
How Big Is The Metaverse?
You need to understand that the metaverse has not yet been clearly defined. Therefore, the definitions can be as narrow as an interconnected and interactive world accessible via VR headsets.
You can expand it to the entire internet; it exists in the modern era. But Bloomberg has assessed data from various sources and has its definition. It goes;
Metaverse combines gaming hardware and software with live experiences and digital advertising. All are present within different digital worlds.
And as per the definitions, this metaverse can be worth around USD 479 billion in 2020. It is almost the same size as the US home services industry, so that’s pretty massive.
But wait, there’s more!
Metaverse is also attracting more and more capital, and it has started to grow at a much faster rate than most other traditional sectors of our global economy.
Is It a Long-Term Opportunity?
Based on the assessment presented by Bloomberg, this segment can grow with an annual compounding rate of over 13 percent up to anywhere in the foreseeable future.
By 2024, metaverse could have a net worth of around USD 783 billion. Now, you can see how big the metaverse is!
It means it will become almost triple the size of the gaming services and software sector at the current date.
So, it won’t take too much time to become a trillion-dollar industry. And if it is compared with a country, it would certainly be one of the largest economies in the world.
The current video game developers aim strenuous efforts to elevate their recent titles, not a 3D world online that works better with social media.
Their market opportunity can pretty much expand at an exponential rate.
The games that we play today will become live entertainment, just like any sporting events or concerts. The developers will also be fighting for social media ad revenues.
The overall metaverse market size can grow 2.7 times the gaming industry revenue. Now, that is pretty huge!
Various online game makers such as Microsoft, Roblox, Take-Two, Electronic Arts, Activision Blizzard, Tencent, Nexon, NetEase, and others might drive more engagement and sales by tapping into the opportunity of 3D virtual worlds.
Gaming, VR, & AR Create Over USD 400 Billion Primary Market
The primary revenue opportunity for game makers through Metaverse depends more on the current gaming software market and services.
It also includes the rising sales of different gaming hardware based on assessment.
The primary market opportunity might go up to USD 413 billion by 2024 from USD 275 billion in 2020.
The software and services revenue and in-game revenue comprise approximately 70 percent of the total market size.
It is a market of online game makers. But those who capture more share of engagement and users by elevation of the existing games and converting them to virtual worlds might work.
It is for acquiring more market share in the sector sales.
Today’s gaming hardware includes various peripherals, gaming PCs, AR and VR hardware, and headsets such as Oculus and others comprise the remainder of the primary market share opportunity.
So there’s plenty on offer here for grabs.
Social Ads & Live Events Can Double the Market
The capability of bringing live events like concerts, sporting events, and film shows into a 3D virtual world highlights other opportunities for game makers.
Game makers such as Roblox and Epic Games have already hosted concerts within their games.
Whereas Unity is already investing in various opportunities to bring live sports content and the tools into the 3D developmental kits.
Revenue from this live entertainment business can quickly become part of Metaverse concepts.
And this can further contribute to its USD 200 billion by 2024. Therefore, a huge opportunity is there, and it’s just about tapping into it.
Tapping Into the Opportunity
But it’s not just about the question: of how big the metaverse is. It is about tapping into the opportunity too.
Based on the size, there is no surprise that tech giants are already battling out for their dominance in the metaverse. Facebook and Microsoft are already in action and are building a lead over other corporations.
Facebook has already changed its corporate name to Meta.
On the other hand, Microsoft emphasizes various enterprise solutions and applications. They are building a new platform, also known as the Mesh. This platform will combine the Hololens AR headsets with different enterprise apps.
These include the likes of MS Teams to create virtual worlds for professionals. The company believes that this platform can become an essential part of business and education in the near future.
However, corporate giants like Facebook and Microsoft are not the only ones involved in this area.
A vast majority of people and experts believe that a successful platform such as metaverse might need a grassroots approach.
Therefore, it is important for driving engagement and blockchain technology to add more value.
Axie Infinity is one example of that. This online game is developed using blockchain technology to kick-start a self-contained digital economy.
Love potions and NFTs are traded throughout its ecosystem. And the trading occurs between thousands of players from all across the globe.
Therefore, the future of education, work, business, collaboration, and marketing might look like this game. But we will have to wait and watch for that.
The metaverse is swiftly becoming the largest segment of the entire digital economy. Different tech giants are already involved in it.
However, blockchain games and any decentralized apps might have a critical role in these future virtual worlds.
The opportunity is there. But we will have to see how different tech giants pounce upon it to reap the benefits.