A new McKinsey report predicts that the metaverse could be worth $5 trillion by 2030, with e-commerce, machine learning, advertising and gaming driving growth.
The metaverse could be worth $5 trillion by 2030, according to a new report released by McKinsey and Co. In the report titled “Creating Value in the Metaverse,” McKinsey says the 3D virtual world, relatively viewed as science fiction, may be too big to ignore.
Beyond the hype, the #metaverse is shaping up to be the biggest new growth opportunity in the coming decade. Check out our new report to learn more about the current landscape and the actions leaders should consider to capture the value: https://t.co/UMAzJ7Yuhm pic.twitter.com/bxbcJd7jGz
— McKinsey & Company (@McKinsey) June 16, 2022
The publisher believes that the metaverse could have a significant impact on multiple industries in the coming years.
According to the report, e-commerce is seen as offering the biggest opportunity, with a projected market value of $2.6 trillion, while virtual learning is expected to reach $270 billion, followed by advertising at $206 billion and gaming at $105 billion.
The report explores several metaverse use cases, highlighting the drivers of the new industry, as well as key investment drivers and the potential for consumer and business-to-business (B2B) companies.
The report joins others published by Citi, Morgan Stanley and Goldman Sachs.
In their separate analyses, Morgan Stanley and Goldman Sachs stated that the metaverse could represent an $8 trillion opportunity, while Citi predicts that the immersive virtual space could be worth as much as $13 trillion globally.
McKinsey’s $5 trillion forecast for 2030 is one of the boldest estimates to come out with a defined time frame. Bloomberg also came out with its own estimate, which predicted a market value of approximately $800 billion in 2024, while ETF fund issuer Global X expects the market to reach $1.5 trillion by 2029.
McKinsey surveyed a population of 3,400 subjects, including consumers and executives, on metaverse adoption, its potential and its likely impact on behavior.
“The metaverse represents a strategic inflection point for businesses, and presents a significant opportunity to influence the way we live, connect, learn, innovate and collaborate,” said Eric Hazan, senior partner at McKinsey & Co, in a statement.
“Our ambition is to help leaders in consumer and B2B companies better understand their power and potential, identify strategic imperatives and act as a force for their evolution,” he added.
The report also cites the impact of venture capital funding in the metaverse, which has already reached $120 billion this year, up from $57 billion in venture funding last year.
McKinsey & Co. senior partner Lareina Yee noted that the fact that people can now practically use the metaverse for experiential activities and spend real money is part of the reason it is rapidly gaining traction.
“However, this booming interest has made it difficult to separate the hype from the reality. It’s worth remembering that while the fall of the first dotcom boom saw the demise of dozens of companies, the Internet itself was gaining traction, giving rise to new entrants,” Yee added.
About the report
McKinsey surveyed more than 3,400 buyers and senior executives in Asia-Pacific, China, Europe and the United States to learn about the habits of current metaverse customers, their motivations, what they are doing and what they expect to do. In analyzing the value creation potential of the metaverse and the funding landscape as a whole, we examined the drivers of the exercise among major corporations, venture capital and private equity funds.
We examine the potential impact of the metaverse on the sectors most closely linked to its knowledge and uses, complementing our work with further analysis, case research and real-world examples.
The report also includes an in-depth assessment of 5 sectors: apparel, trends and luxury; customer packaged goods; monetary providers; retail; and telecommunications, media and technology.
About McKinsey & Company
McKinsey & Company is a global management consulting agency dedicated to helping organizations achieve sustainable and inclusive progress.
We work with purchasers from the personal, public and social sectors to solve advanced problems and create optimistic change for all their stakeholders.
We combine daring methods and transformative applied sciences to assist organizations innovate more sustainably, realize lasting beneficial properties in efficiency, and construct workforces that can thrive in this technology and the following.
Follow us on our social networks and keep up to date with everything that happens in the Metaverse!.
Twitter Linkedin Facebook Telegram Instagram
