Business News Report SMW
May 10, 2023

Meta Shares a Study on the Economic Potential of the Metaverse

meta metaverse potential

With the potential to enable immersive experiences that combine digital and physical worlds, the metaverse has been hailed as a successor to the internet. While estimating its economic impact is challenging, new research backed by Meta and created by Deloitte draws on the deployment and innovation impact of mobile technology to create an analog for the metaverse. The study’s findings suggest that, like mobile technology, the metaverse could have a substantial impact on global and local economies.

Mobile technology has transformed how users connect with the internet by overcoming the limitations of geography, and the metaverse appears to be poised to follow a similar path. Combining technologies like AR/VR, videoconferencing, and multi-player gaming could fundamentally transform how we connect and break down location barriers. 

The expected range of metaverse applications is also similar to that of mobile technology, including communications, entertainment, education, healthcare, manufacturing, and retail. Moreover, mobile technology is a relatively recent technological innovation with readily available data on its adoption and impact. Its value proposition for consumers is similar to that of the metaverse, making it an ideal analog to understand the potential impact of the metaverse.

The reports investigate the current use of metaverse technologies, including AR and VR, in different regions and countries, as well as the potential economic benefits that could be realized by maximizing their use.

“By 2035, the impact of the metaverse on annual GDP could be significant,”

Meta wrote.

The US is Rapidly Developing the Metaverse

According to the research, the United States has a strong position in the metaverse’s global development, with the potential to contribute between $402 billion and $760 billion in annual GDP by 2035. The report points out that American companies are currently using the metaverse to establish new sources of income and augment their current ones. Brands and retailers in the US are selling virtual merchandise along with their physical items. Meanwhile, other American companies use the metaverse to promote their physical products and enable customers to test them through virtual overlays before making purchases.

Furthermore, the report describes how American companies are witnessing improved operational efficiencies, particularly in immersive VR employee training and enhancing remote work by making online interactions more realistic. Digital twins, for example, are already being used by US companies to optimize the design of objects or buildings before construction, offering the potential to save businesses time and money.

Read: Survey conducted by Deloitte reveals that about 85% of merchants consider enabling crypto payments a high priority

Europe Leads in VR/AR Technology, Saudi Arabia and UAE Invest Heavily in Metaverse, while Asia Emerges as Top Adopter

Similarly, the study points out that the EU has already demonstrated relatively high business adoption rates of technologies like AR and VR, with EU rates of 10% surpassing those of the US (9%). European retail brands are already investigating ways to engage with consumers in the metaverse. EU farmers are conducting trials to evaluate how metaverse technology can enhance production, while European automotive manufacturers are developing VR-based systems for optimizing their factories and training procedures to enhance safety and efficiency. The research estimates that sustained progress in the development of the metaverse could contribute an additional €259-€489 billion annually to the region’s GDP by 2035.

The Middle East and North Africa are undergoing economic transformation and digitalization, with businesses and governments showing increasing interest in immersive digital tools. The United Arab Emirates and Saudi Arabia are most actively investing in the metaverse. Saudi Arabia has already invested $1 billion in metaverse-related projects to become a global technology hub, while Dubai has launched a Metaverse Strategy to become one of the top 10 metaverse economies worldwide. The report estimates that metaverse technologies could contribute significantly to the region’s economy, with the potential benefits to Saudi’s GDP reaching $20.2 – $38.1 billion by 2035 and $8.8- $16.7 billion to the UAE’s GDP.

The Asia Pacific region is a global leader in metaverse technology development and adoption, with last year’s independent analysis by Deloitte Centre for the Edge estimating that the impact of the metaverse on regional GDP could be between $0.8 and 1.4 trillion annually by 2035. Japan, Taiwan, and Korea all have thriving VR industry ecosystems, and virtual platforms are already being used for learning, socializing, purchasing, gaming, and accessing social services.

In developing markets like Thailand, India, and Indonesia, where VR technology is not yet widespread, there is a growing creator economy, with AR technology leading the way. The metaverse is creating new marketplaces, businesses, employment opportunities, and new ways of working, with creators at the forefront of bringing this future closer in the Asia Pacific region.

Read more:

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

More articles
Agne Cimerman
Agne Cimerman

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

Hot Stories
Join Our Newsletter.
Latest News

Supply and Demand Zones

Cryptocurrency, like any other currency, is a financial instrument based on the fundamental economic principles of supply ...

Know More

Top 10 Crypto Wallets in 2024

With the current fast-growing crypto market, the significance of reliable and secure wallet solutions cannot be emphasized ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Parcl Unveils Tokenomics Ahead of PRCL Launch, Allocates 75M Tokens to Point Holders
News Report Technology
Parcl Unveils Tokenomics Ahead of PRCL Launch, Allocates 75M Tokens to Point Holders
March 28, 2024
Circle to Introduce Native USDC On zkSync Network for Enhanced Liquidity
News Report Technology
Circle to Introduce Native USDC On zkSync Network for Enhanced Liquidity
March 28, 2024
GoPlus Report Unveils How Utilization of API Security Data by Blockchain May Communities May Aid in Addressing Web3 Threats
News Report Technology
GoPlus Report Unveils How Utilization of API Security Data by Blockchain May Communities May Aid in Addressing Web3 Threats
March 28, 2024
What Regulatory Impact Will Coinbase’s Introduction of Coins Futures Have on Cryptocurrency Trading?
Stories and Reviews Technology
What Regulatory Impact Will Coinbase’s Introduction of Coins Futures Have on Cryptocurrency Trading?
March 28, 2024
What You
Need to Know

Subscribe To Our Newsletter.
Daily search marketing tidbits for savvy pros.