Strategic Intelligence: The Metaverse

The metaverse is a virtual world where users share experiences and interact in real-time within simulated scenarios. The analyst estimates the metaverse economy will be worth $155 billion by 2030, up from $40 billion in 2024. This growth will be driven by advancements in underlying technologies like augmented reality (AR), artificial intelligence (AI), and digital twins.

Key Highlights

• The metaverse, hailed as the future of technology in 2021, has collapsed under the weight of its own hype. Immature technologies, a lack of interoperability, high costs, poor user experience, and limited real-world utility have contributed to this decline. Major tech players like Meta, Microsoft, and Tencent are scaling back or shuttering their metaverse investments. While underlying technologies like AR, AI, cryptocurrencies, and blockchain will continue to evolve, the grand vision of a fully immersive platform is on ice.
• The metaverse is entering a long period of recalibration. Its future will be less about grandiose, all-encompassing virtual worlds and more about subtle, practical integrations of immersive technologies into real-world applications. This will require a slower, pragmatic, and financially cautious approach over the next five to 10 years. The focus will be on narrower applications and sector-specific use cases rather than the sweeping, transformative consumer-focused technology once envisioned.

Scope

• This report provides an overview of the metaverse theme.
• It identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
• The detailed value chain is split into four layers: foundation, tools, user interfaces, and experience.

Reasons to Buy

• The metaverse theme involves companies from all technology sectors, including semiconductors, component makers, application software, and advertising. Some companies rushed to take early positions in the metaverse during 2021 and 2022, while others have yet to enter it. This report identifies companies that are well-positioned to benefit from the metaverse over the next five years.