MCKINSEY & COMPANY: METAVERSE COULD GROW UP TO US$5 TRILLION IN VALUE BY 2030

KUALA LUMPUR, June 16 (Bernama) -- McKinsey & Company, a global management consulting firm has released its new report ‘Value creation in the metaverse’, showing the metaverse may be too big to ignore.

McKinsey’s preliminary forecast shows the metaverse has the potential to grow up to US$5 trillion in value by 2030. It shows e-commerce as the largest economic force (US$2.6 trillion), ahead of sectors such as virtual learning (US$270 billion), advertising (US$206 billion), and gaming (US$125 billion). (US$1 = RM4.397)

As companies of all different shapes and sizes look to enter the metaverse, this extensive report provides a clear view of what the metaverse is and is not, what first movers are doing, what’s fuelling the investment, and the potential for consumer and B2B companies.

“The metaverse represents a strategic inflection point for companies, and it presents a significant opportunity to influence the way we live, connect, learn, innovate, and collaborate,” said Eric Hazan, senior partner, McKinsey & Company in a statement.

“Our ambition is to help leaders of both consumer and B2B companies better understand its power and potential, identify strategic imperatives, and act as a force for its evolution.”

Already this year, companies, venture capital, and private equity firms have invested more than US$120 billion in the metaverse—more than double the US$57 billion invested in all of last year.

Multiple factors are driving this investor enthusiasm including ongoing technological advances across the infrastructure required to power the metaverse; demographic tailwinds; and, increasingly consumer-led brand marketing and engagement.

Consumers are already there. McKinsey’s research shows consumers are excited about transitioning life into the metaverse, with almost six in 10 (59 per cent) consumers preferring at least one metaverse experience over its physical alternative.

In addition, business leaders see the metaverse’s potential to drive impact and margin growth. Ninety-five per cent of leaders say they expect the metaverse to have a positive impact on their industry within five to 10 years, with 31 per cent saying the metaverse will fundamentally change the way their industry operates. 

The report builds on multiple proprietary insights and analysis, including a survey of more than 3,400 consumers and executives on adoption of the metaverse, its potential, and its likely impact on behaviour. The researchers also interviewed metaverse builders and industry experts.

-- BERNAMA