A study commissioned by the owner of Facebook, Meta Platforms, has revealed that Metaverse could contribute up to $760 billion, or about 2.4 per cent of the annual US gross domestic product by 2035.
The report, conducted by consulting firm Deloitte and accessed by Reuters, suggests that economic gains could come from the use of these technologies in sectors such as defence, medicine, and manufacturing, as well as entertainment use cases such as video games and communication.
The metaverse involves the use of augmented and virtual reality technologies that allow users to immerse themselves in a virtual world or overlay information digitally on images of the real world. It is essentially a shared virtual space where users can interact with a computer-generated environment and each other. In the metaverse, users can create avatars, participate in virtual events, and even conduct business transactions.
Meta has recently shifted its focus towards developing metaverse technologies, and the company predicts that the technology will eventually replace mobile as the main computing platform.
Despite this, investors have expressed doubts about Meta’s large investments in its metaverse project, questioning the returns at a time when a downturn in the advertising sector has put pressure on the company’s revenue growth.
It was also reported that Meta said “The European Union may see an increased economic opportunity of up to 489 billion euros ($538.29 billion) in annual GDP by 2035 or about 1.3%–2.4% of its total GDP.”
Deloitte said, “The metaverse could contribute between C$45.3 billion ($33.88 billion) and C$85.5 billion to Canada’s annual GDP by 2035.”
Meta Platforms (formerly Facebook) commissioned consulting firm Analysis Group to conduct a global economic impact report last year, which estimated that the adoption of the metaverse would contribute $3.01 trillion by 2031. The regional projections that have followed are specific to particular areas and come after the global report.
The metaverse has been a topic of increasing interest in the tech industry in recent years. It is seen by some as the next phase of the internet, offering an immersive and interconnected experience beyond what is currently possible with the internet as we know it.
While the idea of the metaverse has been around for a while, recent advancements in virtual and augmented reality technologies have made it more feasible.
However, there are also concerns about the potential social and economic implications of the metaverse, including issues around privacy, security, and the concentration of power in the hands of a few large companies.