A new report by McKinsey & Company posits that the metaverse has the potential to grow to $5 trillion in value by 2030.
The report, “Value creation in the metaverse,” provides a clear picture of what the metaverse is, as well as what it is not, how early adopters are driving innovation, factors behind investment in the new technology, and lays out the potential for consumer and B2B companies to establish a new virtual presence. The report breaks down potential value growth by sector as well, predicting e-commerce as the leading force at $2.6 trillion, with virtual learning following at $270 billion, then advertising and gaming at $206 and $125 billion, respectively.
McKinsey surveyed more than 3,400 consumers and executives on metaverse adoption, its potential, and the likely impacts it will have on human and business behavior, as well as gathering insights from metaverse builders and industry experts, building on multiple proprietary analyses and insights.
“The metaverse has put us at the cusp of the next wave of digital disruption,” said Tarek Elmasry, senior partner at McKinsey. “It’s transformative. It will likely have a major impact on our commercial and personal lives, which is why businesses, policy makers, consumers, and citizens may want to explore and understand as much as they can about this phenomenon, the technology that will underpin it, and the ramifications it could have for our economies and wider society.”
In 2022 alone, a variety of players—from companies, to venture capitalists, to private equity firms—have invested more than $120 billion in the metaverse, more than doubling 2021’s spend of $57 billion. Multiple factors are drawing the attention and enthusiasm of investors, such as ongoing advances in the technology that powers the metaverse, demographic tailwinds, increasingly personalized brand marketing and engagement, and the growing adoption of virtual reality technology by the mainstream.
While gaming appears to be driving early adoption of the technology, surveyed consumers reported shopping, virtual social events or social games, and exercising in virtual reality to be their most preferred experiences in the new digital world. Businesses are seeing value too, with 95% of leaders saying they expect the metaverse to have a positive impact on their industry within the next decade, and a third of leaders believing that the metaverse will fundamentally change the way their industry operates.
With the underlying technology continuing to advance, it’s just a matter of time before the metaverse becomes a key component of the online world, and McKinsey’s new report can help business leaders get in on the newest iteration of the internet as we know it.