Metaverse Will Be Worth $5 Trillion by 2030, Report

• Adoption rate of the Metaverse is comparable to that of artificial intelligence five years ago.
• As the Metaverse continues to absorb everyday life
• Eric Hazan, Metaverse is comparable to Web 2.0 in 2004

McKinsey & Company, a global management consulting firm, has released a new report estimating that the Metaverse will be worth $5 trillion in eight years – roughly the same size as Japan’s economy. The “Value Creation in the Metaverse” report drew data from two surveys, including 3,104 consumers in 11 countries and 448 businesses in 15 industries.

As the Metaverse continues to absorb everyday life, the report predicts that by 2030, 50 percent of live events will be held in a virtual space, and 80 percent of commerce will be “impacted by something consumers do there.” At that time, each Internet user spent approximately six hours per day on the platform.

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The gaming industry will be the driving force behind the Metaverse, surpassing entertainment industries such as music and film. Currently, there are approximately 3 billion gamers worldwide, and the market is valued at $200 billion.

In addition to gaming, e-commerce and virtual advertising are two major sectors that could benefit from the Metaverse by 2030, with $2 trillion to $2.6 trillion of total spending in the former and $144 billion to $206 billion in the latter, as per the report.

Eric Hazan, the lead author of the report, revealed in a separate blog post that the current state of the Metaverse is comparable to Web 2.0 in 2004. At that time, online social networks and user-generated content were about to revolutionize Internet communication between individuals. However, he added, the infrastructure technology was not ready to support “utopian visions of consumer control and the democratization of the internet.”

Citing the Metaverse as an emerging field comparable to artificial technology five years ago, Hazan presumed that capital will continue to flow into the area for the development of the foundational technologies required for its infrastructure.

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“Billions of dollars are flowing into every corner of metaverse infrastructure to help get it there. This ranges from back-end tech enablers like engines, blockchain, and hardware devices to platforms and virtual worlds.”