The metaverse is anticipated to become a platform where people, especially Gen Z, spend time with social communities, consume media, and participate in virtual events and sports. Frost & Sullivan’s recent analysis, Global Metaverse Growth Opportunities, finds that the metaverse will be an interconnected network of virtual worlds that will eventually become an extension of the real-world economy. It will allow organizations to participate in economic activities as they do in the physical world. As companies across consumer segments jump on this trend to expand their reach, the metaverse will become a nearly $750 billion market opportunity by 2030.
“Big technology companies see huge potential in the metaverse, deeming it the next level of the internet,” said Kiran Kumar, ICT Research Director at Frost & Sullivan. “Gaming, media & entertainment, and retail are the sectors which have witnessed high adoption and promise high growth potential over the next 12 months, based on Frost & Sullivan’s assessment of the application ecosystem.”
Kumar added: “Interoperability is the defining property of the metaverse. The success of the metaverse would rely on the ability to unify systems, platforms, and economies in terms of incentives and benefits tied to the physical world, which remains a critical challenge to be addressed.”
To tap into the endless opportunities of the metaverse, market participants should:
- Decentralize the metaverse experience and create a more open and interoperable ecosystem than the traditional application ecosystem dominated by a few platforms.
- Expand the services model beyond traditional capabilities and provide clients with unique revenue models in the metaverse as services will play a crucial role in the metaverse ecosystem.
- Focus on mitigating the creation of deep fake copies of digital assets and avatars and design virtual worlds with machine learning (ML) to automate user privacy measures in dynamic and diversified contexts within the metaverse.
Global Metaverse Growth Opportunities is the latest addition to Frost & Sullivan’s Information & Communication Technology research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.