How large may the metaverse market become in the coming years?  A recent report from Citi pegs the total potential addressable metaverse market at $8 trillion to $13 trillion by 2030.[1]  What is behind these assumptions?  Can the metaverse reach these lofty projections?

It’s Definitional

Citi’s definition of the total addressable metaverse market is broad.  For example, it includes users who may access the metaverse via a mobile phone rather than solely through augmented reality (AR) or virtual reality (VR) platforms.  Based on this broad definition, Citi reaches its $8 trillion - $13 trillion dollar estimate with 5 billion users.

Constraining the definition to those accessing the metaverse via AR/VR, the audience may be closer to 1 billion users and a total addressable market of $1 trillion to $2 trillion, still a healthy potential market.

Further Infrastructure Investment Needed

Citi concedes that further investment is needed in infrastructure technology to enable the low latency required to build a fully immersive content streaming environment that allows users to move seamlessly from one experience to another. This may provide investment opportunities for companies building out the needed infrastructure.

Expanded Use Cases

While gaming may be the first thing that comes to mind when considering the metaverse, the Citi report highlighted expanded use cases that may propel the metaverse market.

Smart Manufacturing

Digital twin technology allows for the virtual representation of real-world physical assets or systems.  Such technologies may permit companies to design in the metaverse.  For example, mobile phone equipment manufacturer Ericsson is building city-scale digital twins to help study the interplay of 5G cells and the environment for maximum performance and coverage.

Virtual Cities

Governmental agencies are looking for ways to move administrative functions to the metaverse.  Seoul, South Korea, as part of its Seoul Vision 2030, plans to establish a metaverse platform which will include a virtual city hall and public services centers. This is intended to allow for citizens to interact with city officials for virtual consultations and feature tourism locations.

Virtual Collaboration

• Education – The metaverse may be used to create virtual classrooms where students may interact with instructors and other students in a virtual classroom rather than just through boxes on a computer screen
• Work – Technology already exists to create virtual workspaces and conference rooms.
• Recruiting and Training – The metaverse may host virtual job fairs, while companies may use the technology for training purposes.

These are just a few of the many potential ways that the metaverse may be used in the future.

[1] All data sourced from: Metaverse and Money: Decrypting the Future, Citi GPS: Global Perspectives & Solutions, March 2022