THE METAVERSE will be worth $3trillion to the world economy by the end of the decade, according to new research,
A study by economic experts at international consulting firm Analysis Group believe the rapid growth in virtual reality will have a lasting impact around the globe in the years to come.
They suggest that is mass adoption of metaverse technology was to being today, it would contribute to 2.8 per cent of global GDP by 2031.
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“If we assume that metaverse adoption were to begin today, in 2022, then we can also estimate the metaverse’s potential contribution to GDP in dollars and compare it to industry projections of the potential size of the metaverse,” the analysts wrote in their report.
“Our model implies that if metaverse adoption began today, it would have a contribution to global GDP of $3.01trillion (measured in 2015 US dollars) in 2031.
“This estimate lies within the range of existing industry projections, which include estimates ranging from $800billion to $2trillion over the next few years, which tend to focus on near-term impacts on gaming, social media, e-commerce, and live entertainment, for example, to longterm estimates ranging from approximately $3trillion to over $80trillion.”
The results were gathered by looking at how quickly technology has previously been adopted worldwide and how it has impacted the global economy.
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Analysts took the data and applied to if the metaverse had the same speed and spread of uptake.
The report said the method was needed in part due to the early stages of the metaverse’s development.
However, it added that the true economic potential of the metaverse could only be realised if it was full embraced by businesses and individuals.
It warned reluctance to accept the technology would undermine the potential to boost global GDP.
The analysts stated: “The metaverse is still in an early stage, with many contributors from around the world helping to plan its inclusive design and construction.
“We are currently witnessing the early phases of development, including the rolling out of infrastructure and technologies that will likely support the metaverse.”
“The extent to which the economic potential of the metaverse is realised depends on how effectively the necessary infrastructure and technology are developed and deployed, as well as how widely the new technology is adopted by consumers and businesses — that is, whether the metaverse can make it past the ‘Trough of Disillusionment and onto the ‘Slope ofEnlightenment’.
“Once the infrastructure is in place and adoption is underway, it opens the door for the development of endless endeavours built by creators, developers and businesses, as has been the case with the
internet and mobile technology.”
The infrastructure for the metaverse to be adopted on a global stage is still a way off.
Meta founder Mark Zuckerberg warned earlier this year that current broadband connectivity speeds would be overloaded if there was mass adoption of the metaverse.
He said higher upload and download speeds are required to cope with the data that comes with metaverse platforms.
The entrepreneur warned in March that the improvements in infrastructure would need to be “bigger than any of the step changes we’ve seen before”.
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