Metaverse trends, solutions on the rise: report

Getting your Trinity Audio player ready...

Rising trends in the metaverse ecosystem could cause the sector’s market capitalization to inflate in the coming years, according to a report from USD Analytics Market.

The metaverse market capitalization can climb as high as $4 trillion by 2034 from its current $149 billion, with a projected compound annual growth rate (CAGR) of 45.9% during the forecast period.

The report bases its predictions for the metaverse industry on several key factors, including a growing investor appetite and streaks of capital injection. Rising consumer interest in the sector is the biggest driver of market cap growth for the metaverse.

Currently, the need for virtual experiences for socializing, entertainment, and remote work is fueling a new push. Furthermore, technology giants are matching consumer interest by launching several innovative metaverse products and earmarking billions for research and development.

Digital commerce and replicas of real-world items in virtual worlds are also helping the industry. The recent leaps in innovation, accentuated by “hyper-realistic avatars” and far-reaching personalization features, are also attracting a new demographic to the metaverse.

Enterprise use cases are expected to snag a significant portion of the metaverse market capitalization. Early pioneers are testing the use of immersive office environments, merging with blockchain solutions for manufacturing and supply chain simulations.

A significant aspect of the rapid move toward metaverse integration will be the extensive implementation of metaverse-as-a-service (MaaS) to facilitate enterprises’ transition.

Use cases for the metaverse will span financial technology, education, gaming, health, advertising, car testing, and simulation training in various industries. By regional distribution, the United States and Europe are tapped to lead the industry, but Asia-Pacific is projected to record the largest CAGR.

Despite the industry’s favorable fundamentals, a $4 trillion market capitalization for the metaverse remains a significant challenge. Sector players must address hardware accessibility issues, which are complicated by high prices.

Industrial metaverse solutions gain ground

Meanwhile, a separate study conducted by the Worldwide Market Report shows an increasing number of metaverse applications. Analysts are tipping industrial applications to record impressive growth in the coming years, driven by several factors.

Currently, early indicators of significant growth are evident in various industry sectors, with increasing revenues and applications. The most notable segment is the manufacturing sector, particularly in the automobile industry.

The energy and medical industry come in second and third place with food processing coming at a distant fourth. A common denominator in all sectors will be quality control use cases and virtual training for employees.

The report names potential industry leaders as Siemens Digital Industries (NASDAQ: SIEGY), General Electric, PTC, Chicheng Technology, and Schneider Electric (NASDAQ: SBGSF).

In terms of regional outlook, North America will maintain a clear lead over the industry while Europe, buoyed by strides in Germany and the United Kingdom, will be the second-largest market. Furthermore, the Asia-Pacific region will record the fastest industry growth driven by China, India, and Singapore.

Several firms have already indicated a readiness to dabble in industrial metaverse solutions to improve their existing solutions. T-Systems is pursuing metaverse solutions for digital twins with Drees & Sommer, with manufacturing at the heart of the partnership.

While the overall metaverse is projected to exceed $1 trillion, the Financial Industry Regulatory Authority (FINRA) is urging regulators to establish guardrails for consumer protection. The industry has to grapple with steep implementation costs and interoperability issues with existing systems.

Watch: Omniscape’s Robert Rice looks at the state of the Metaverse