Quick take:
- A new report by McKinsey & Co predicts the metaverse will reach $5 trillion by 2030.
- According to the report, eCommerce will account for the most that value with $2.6 trillion.
- Virtual learning, advertising and gaming to hit $270 billion, $206 billion and $105 billion, respectively.
The metaverse could be worth $5 trillion by the year 2030 according to a new report published by McKinsey and Co. In the report titled “Value creation in the metaverse”, McKinsey says the 3D virtual world, relatively seen as science fiction may be too big to ignore.
The publisher thinks the metaverse could have a significant impact on multiple sectors over the coming years.
According to the report, eCommerce is seen as offering the greatest opportunity with a forecasted market value of $2.6 trillion, while virtual learning is expected to hit $270 billion, followed by advertising-$206 billion, and gaming with $105 billion.
The report explores various use cases of the metaverse, highlighting the movers and shakers of the new industry, as well as, the key drivers of investment, and the potential for consumer and business-to-business (B2B) companies.
It comes at the back of previous reports published by Citi, Morgan Stanley and Goldman Sachs.
In their separate analyses, Morgan Stanley and Goldman Sachs said the metaverse could be an $8 trillion opportunity, while Citi predicts the immersive virtual space could be worth as much as $13 trillion overall.
McKinsey’s $5 trillion forecasted by the year 2030 is one of the boldest estimates to come out that has a defined timeframe. Bloomberg also came up with its own estimate, which predicted a market value of approximately $800 billion in 2024 while the Global X ETF fund issuer expects the market to hit $1.5 trillion by 2029.
McKinsey surveyed a population of 3,400 subjects including consumers and executives on the adoption of the metaverse, its potential, and its likely impact on behavior.
“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 at McKinsey & Co., 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,” he added.
The report also cites the impact of venture capital funding on the metaverse, which has already hit $120 billion this year compared to last year’s $57 billion venture funding.
Lareina Yee, senior partner at McKinsey & Co. highlighted the fact people can now practically use the metaverse for experiential activities and spend real money as part of the reason why it is gaining traction fast.
“Yet this booming interest has made it difficult to separate hype from reality. It’s worth remembering that while the bust of the first dot-com boom resulted in the disappearance of scores of companies, the internet itself went from strength to strength, giving rise to new entrants,” Yee added.
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