For better or worse, it was difficult to avoid the word “metaverse” during 2022. Facebook’s rebranding of itself as Meta drew attention to the metaverse concept.  In some forms, the metaverse exists today.  Augmented and virtual reality technology has created immersive experiences for individuals, while virtual worlds and experiences have been created and experienced.

What developments may await us in 2023?  Forbes outlined their top five metaverse trends to watch in 2023. [1]

Metaverse as a New Marketing Channel

Consumer-facing brands are looking to the metaverse as a new marketing channel. Fashion and apparel giants, such as Nike and Gucci have already established a presence in the metaverse. Many retailers and fashion houses have built stores in virtual worlds, such as Decentraland and Sandbox or are creating virtual clothes for avatars in video games like Fortnite.  Financial companies, such as J.P. Morgan, have built online banks where consumers may interact with digital bankers via avatars. 

As the walls separating the digital and physical worlds come down, businesses will likely increase their presence in the metaverse.

The Corporate Metaverse

Companies are creating digital twins of factory floors to test new manufacturing processes before initiating them in physical space.  They are also creating virtual representations of products to perform more realistic testing of new products before manufacturing them.

Companies are also creating virtual offices for remote workers and utilizing metaverse technology for training and development.

Web3 and Decentralization

Web3, a new iteration of the World Wide Web incorporating concepts such as decentralization, blockchain technologies, and token-based economies, is expected to grow. Many companies like Nike, Adidas, and Forever 21, have already created non-fungible tokens (NFTs) to create digital goods that can only be worn in the metaverse.  Blockchain technology may remove control of the internet from the control of large, global corporations.

Virtual and Augmented Reality (AR/VR)

The central premise of the metaverse is immersive experiences.  Therefore, AR and VR technologies are paramount as they are the mediums through which individuals interact with the metaverse.  Large corporations like Apple, Google, and Microsoft either currently have or are racing to get headsets to the market. 

Technology may increase the immersive experience of the metaverse through innovations like full-body haptic suits, and even bring smell to the virtual experience.

More Advanced Avatar Technology

Avatars are the mediums through which people represent themselves in the metaverse. Originally, avatars were crude, cartoon-like characters.  However, in the future, our avatars may look much more like our physical selves, if we so desire.  They may also sound like us and employ more of our unique gestures and body language. 

Exciting Possibilities May Lead to an Exciting Investment Opportunity

The promise of the metaverse may offer individuals an exciting investment opportunity. How may investors gain exposure to companies involved in metaverse technologies?

[1] Marr, Bernard, The Top 5 Metaverse Trends in 2023, Forbes, 10/24/22.