Metaverse could grow up to £4.1 trillion value by 2030, claims new report

McKinsey & Company has released its new report “Value creation in the metaverse,” which shows the metaverse may be “too big to ignore”. McKinsey’s preliminary forecast shows the metaverse has the potential to grow up to $5tn (approx. £4.1tn) in value by 2030.

It shows e-commerce as the largest economic force (£2.1tn), ahead of sectors such as virtual learning (£223bn), advertising (£170bn), and gaming (£103bn).

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.

Eric Hazan, senior partner, McKinsey & Company, commented: “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.

“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 $120bn in the metaverse, more than double the $57 billion invested in all of last year.

Myriad factors are driving this “investor enthusiasm”: Ongoing technological advances across the infrastructure required to power the metaverse Demographic tailwinds Increasingly consumer-led brand marketing and engagement Increasing marketplace readiness as users explore today’s version of the metaverse, which is largely driven by gaming while applications emerge in socialising, fitness, commerce, virtual learning, and other uses

Already, more than three billion gamers worldwide have access to different versions of the metaverse.

Lareina Yee, senior partner, McKinsey & Company, added: “While the idea of connecting virtually has been decades in the making, it is now increasingly real, meaning real people are using it and spending real money and companies are betting big.

“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.”