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Metaverse to generate $5 trillion in economic value by 2030, Mckinsey

Metaverse to generate $5 trillion in economic value by 2030, Mckinsey
Photo Credit: 123RF.com
16 Jun, 2022
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Metaverse may generate up to $5 trillion in economic value by 2030 in both consumer and enterprise segments, consultancy firm Mckinsey & Company estimated in its latest June report. Mckinsey said that this is equivalent to the GDP of some economies like Japan. 

According to Mckinsey, more than $120 billion have been invested in metaverse in the first five months of 2022, which is twice the $57 billion invested in the entire CY2021. However, Mckinsey is also taking into account the $68.6 billion Microsoft-Activision deal, which was announced in January. Though Microsoft had cited that it would leverage Activision’s capabilities to build its metaverse, the deal will give it a huge leg up in the gaming business. 

Retail, healthcare, media, and telecommunications are some of the industries that are most likely to be impacted by metaverse. Mckinsey estimated that metaverse’s “market impact” on e-commerce will be between $2 trillion and $2.6 trillion by 2030. Similarly, the market impact on advertising is expected to be $144 billion to $206 billion, while on gaming it is anticipated to be $108 billion to $125 billion and on academic virtual learning, it is expected to be $180 billion to $270 billion. 

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Mckinsey also conducted a survey involving more than 3,400 consumers and executives. Out of which, 60% of consumers who are using early versions of the metaverse said that they are excited to see their daily activities on metaverse. Around 95% of business leaders said that they are expecting a positive impact of metaverse on their industry, while 61% said that it will moderately change their industry. 

The consulting firm said that companies that are “already leveraging the metaverse may build lasting competitive advantages.” It urged business leaders to create a strategy and set business goals and even become metaverse consumers to gain insights. Having said that, Mckinsey also warned that metaverse will require companies to re-skill the workforce. Stakeholders will also have to define a roadmap and guidelines for ethical and safe use of metaverse.