- The recent rise in metaverse investment is driven by the progress in underlying technologies such as AR, VR, digital twins, and cloud computing, among others.
- Gaming, apparel, and social media sectors are driving the popularity of metaverse.
- Technologies for the future of work such as AR, VR, wearable tech, 5G and collaboration tools are driving the development of the metaverse.
- Apple and Google are well-positioned to influence the development of the theme in the long run as they are strong in key metaverse technologies and have massive partners and user bases.
Every company must start exploring the metaverse now and must design a five-year strategy as it is being touted by leading tech companies and emerging Web 3 companies as the next internet, industry experts at GlobalData said.
GlobalData defines the metaverse as a virtual world where users share experiences and interact in real-time within simulated scenarios, which could transform how people work, shop, interact, and consume content.
Companies investing in the metaverse will increasingly focus on themes, including artificial intelligence (AI), augmented reality (AR), virtual reality (VR), 5G, and cloud computing.
David Bicknell, Principal Analyst at GlobalData’s thematic team, said that metaverse means different things to different people at this stage of maturity.
“Most companies can make the metaverse whatever they wanted to be.”
The driving force
Rupantar Guha, Project Manager at GlobalData’s thematic intelligence team, said multiple factors are driving the popularity of metaverse.
“The recent rise in metaverse investment is driven by the progress in underlying technologies such as AR, VR, digital twins, and cloud computing, among others. But many of these technologies are still under development and are maturing steadily,” he said.
However, he said that companies from sectors such as gaming, apparel, and social media are driving the metaverse’s popularity.
Gaming metaverse involves communities built on “highly-engaging content”.
The two factors, content and communities, Guha said are driving the video games market to be worth more than $450 billion by 2030.
So, he said that gaming is an idle “starting point” for the metaverse.
“Several social media companies are seeing user growth decelerate due to a rise in awareness of data privacy issues, advertisement and increased competition. Metaverse will combine several aspects of the social media that we know, including content sharing, collaboration, e-commerce and live events with immersive experiences based on AR and VR,” he said.
Metaverse will be an extension of social media, adding a more immersive user experience, he added.
Leading apparel brands – Nike, Gucci, Palencia and many others are legitimising the metaverse in the eyes of the general public and have set up virtual worlds, platforms like Roblox and the sandbox to improve brand awareness and consumer engagement while some are investing in non-tangible tokens (NFTs), realising it has a new revenue channel as well as a gateway into the metaverse, Guha said.
Future of work framework
Guha said the future of work includes five main categories – visualisation, connectivity, collaboration, interpretation and automation.
Technologies for the future of work such as AR, VR, wearable tech, 5G and collaboration tools are driving the development of the metaverse.
Big tech companies such as Microsoft, Nvidia, Meta and startups like Varjo, Virbela and Spatia, especially, view metaverse as the next stage of this collaboration. PixelMax and NextMeet are developing virtual workplaces in the metaverse while Hour One and SoulMachines are creating technologies for enterprises that can be used in the metaverse.
“While most enterprise metaverse platforms focus on collaboration, some use digital twins to replicate physical places, for example, factories. In terms of adoption, large companies from different sectors are entering the metaverse with a focus on the future of work while some are in the wait and watch approach. Interestingly, startups are creating technologies for the enterprises that can be used in the metaverse,” he said.
Guha said that the strategies for companies investing in the platform can include three different phases.
Exploration
- A company needs to understand what the metaverse is and how is it developing.
- How does the metaverse fit into the company’s long-term vision and revenue targets?
- What are the existing capabilities that the company has that can be used for the metaverse?
- How well poisoned the company is to build a strong partner ecosystem that can help it achieve the desired results and objectives.
- Emphasise safety, data protection, and data security strategies before launching the platform.
Education
- Inform the workforce and the clients about the metaverse and its possibilities.
- Learn the language of the new-age start-ups, especially those in the Web 3 space.
- Communicate the value of the metaverse offering to customers as opposed to existing services.
- Track the progress of metaverse-related and adhere to local laws where the platform is offered.
Execution
- It is going to redefine the way brands or companies communicate stories with consumers.
- Focus on the core target consumers but include uses for broader consumers.
- Monitor return on investment at regular intervals of the planned timeline.
- Incorporate maturing technologies, especially in terms of connectivity and interactivity.
- Focus on evolving the metaverse and use cases, so consumers are compiled to return to the platform.
Steven J. Schuchart Jr., Principal Analyst for Enterprise Networking at GlobalData, said that the metaverse is relevant both to B2C and B2B.
“The metaverse is an emerging mega-theme involving a variety of companies across the value chain. Some companies are taking early positions, while others have yet to enter the metaverse,” he said.
However, he said their competencies are a natural fit for this developing theme.
Apple and Google are examples of those who have yet to make official entry into the metaverse, he said, but they are well-positioned to influence the development of the theme in the long run.
Both Apple and Google are strong in key metaverse technologies (e.g., AI, AR, user interfaces, and experiences) and have massive partners and user bases.
“It is unknown if they will launch competitive platforms to Meta’s offerings, but the companies will certainly benefit from the maturity of the metaverse theme,” Schuchart Jr. said.