7 Stats That Prove the Metaverse is Definitely Not Dead

The Metaverse, often touted as the next phase of the internet and thought to be the darling of the Web3 era, has faced considerable skepticism due to the gap between its visionary potential and the current reality of cartoony avatars and expensive headsets. However, recent discussions surrounding the Metaverse and its demise may be premature.

This trend of overestimating the short-term impact of a new technology, while simultaneously underestimating it in the long-term is common. In fact Roy Amara, a Stanford University computer scientist and head of the Institute for the Future, coined a “law” for this tendency, referred to as Amara’s Law.

In the case of the Metaverse, Amara’s Law is in full effect. However, a closer look at the data reveals that while challenges persist, the Metaverse is far from dead and it’s long-term impact and staying power is undeniable.

Let’s examine the top statistics that prove the Metaverse’s ongoing development and potential.

Some 120 companies are working on Metaverse technologies, which include digital twin (a virtual model designed to accurately reflect a physical object) and Internet of Things (IoT) data integration, avatars and identity, interface hardware such as haptics, holography, spatial audio, and augmented reality, according to a by S&P Global Market Intelligence.

While the hype surrounding the Metaverse has subsided, the underlying technologies continue to develop and mature. Hardware and software improvements are gradually bridging the gap between the Metaverse’s vision and its current state. The establishment of organizations like the Metaverse Standards Forum indicates the growing consensus on standards.

3. Metaverse investment transactions topped $24 billionsurvey conducted by Protiviti and the University of Oxford found that two-thirds of respondents believed the Metaverse would have a substantial influence on global business. , with the biggest investments going to Meta Platforms, Epic Games, Infinite Reality, and Roblox Corp., according to S&P Capital IQ Pro.

As mentioned in the full S&P Report, “ For the consumer, we expect 3D virtual worlds to more fully embrace advertising, social networking, live sports, video exhibitions and e-commerce functions in the years ahead, in addition to the more gaming-focused applications that are popular today. The Metaverse also is a place for less commercially focused social uses, art, education, sharing of experiences and just plain fun things to do. The use case of an industrial manufacturing plant improving efficiency, safety and energy use — instrumented through IoT creating a digital twin and supported by AI predictive maintenance and shopfloor tools such as autonomous robots and augmented reality (AR) headsets — is very different from a collaborative community art project.”

Almost three quarters (73%) of business leaders surveyed believe Metaverse technologies will impact employee engagement in the next decadeFinancial services firm BlackRockrecognizes the metaverse’s disruptive potential and has established an exchange-traded fund (ETF)Apple Vision Pro just changed the entire Metaverse game.It’s predicted that eventually, 10% of Apple’s revenue’ will come from the Vision Pro. Apple’s entry into this space is crucial to mainstream adoption of the overall Metaverse — revealing a combination of benefits from an entertainment and media perspective. focused on tech companies with a wide-ranging connection to the Metaverse concept, including Apple and Microsoft, Nvidia and Qualcomm, Ubisoft and others. Moreover, according to a McKinsey report, over $120 billion was invested in Metaverse-related technologies in 2022, more than double the previous year’s investment. , with immersive training and learning most widely cited (54%), followed by collaboration (45%), recruitment (41%), and internal company events (35%).

Almost half (45%) have already begun to use the Metaverse to engage with customers, and a further 20% plan to start doing so in the next two to three years. Marketing and advertising is the most common use case (79%), followed by immersive shopping and product simulations (43%).

Games such as Roblox, Fortnite, and Minecraft Marketplace have been viewed as one way for businesses to engage in an early form of the Metaverse, as well as blockchain-based digital worlds such as Decentraland and Sandbox, which have a strong focus on commerce. Nike, Lego, Walmart, H&M, Coca-Cola, and Burberry are among the brands that have established a presence in these types of shared 3D worlds in recent years.

The Metaverse also offers retailers the opportunity to experiment with new retail concepts and products. Retailers can test new store layouts or product designs in a virtual environment before committing to a physical store or product line, reducing the risk associated with introducing new products or concepts to the market. The Metaverse can also create a sense of community among customers, bringing customers together, fostering engagement and loyalty, and building a strong brand identity.

The Metaverse will enhance the remote collaboration experience by providing participants with a virtual office space that will be so realistic that everyone will feel like they’re in the same room together. Microsoft is already building Metaverse capabilities on its Teams collaboration tool, using the company’s Meshplatform on Azure, and deployed the technology at the World Economic Forum meeting in Davos in January. Additionally, companies like Virtuworx create avatar-based hybrid of virtual reality and mixed reality environments that turn remote work into a meaningful and productive experience.

With mass adoption of remote work, startups saw an opportunity and pounced. Some have raised serious funding from big-name investors. Gather, founded in May 2020, raised $77 million, and Teamflow has raised $50 million since its launch in 2021.

While BlackRock is the most recognizable participant in the Metaverse investment ecosystem, it’s certainly not the only one. Roundhill Ball Metaverse ETF ( METV), Fount Metaverse ETF ( MTVR), Amplify Transformational Data Sharing ETF ( BLOK), and the most recent — Subversive Metaverse ETF ( PUNK).

The Metaverse is an environment that is an amalgamation of multiple technologies and domains. It’s a complex digital environment that relies on seven distinct layers, populated with companies that contribute to, or impact, each specific layer. For investors looking to enter into the investment landscape now, this means that the list of relevant public companies to choose from will constantly be growing over the next few years. Some companies, like Meta Platforms (FB), Apple (AAPL), Amazon (AMZN), Tencent (TCEHY), and IBM (IBM) impact multiple layers, which include the following: Infrastructure, Human Interface, Decentralization, Spatial Computing, Creator Economy, Discovery and Experiences.

The launch of the Apple Vision Pro represents a momentous occasion for app developers, ushering in a realm of spatial computing filled with unbounded opportunities. It challenges them to reconsider the nature of apps, inspiring them to create richer, more immersive experiences that exist not just on a screen, but in the user’s space. This, in turn, offers businesses the opportunity to engage with their customers in innovative ways and take their services to the next level.

In a note to clients last week cited by MarketWatch, Bank of America Securities analyst Wamsi Mohan commented: “Although the lackluster uptake of the AR/VR (augmented reality/virtual reality) market and the transitory enthusiasm about the metaverse create a backdrop of challenges, it is instructive to remember that Apple invents entire new categories that have the potential to disrupt existing markets (e.g., AirPods) and create entirely new markets.”

While the Metaverse may not be fully realized in its envisioned form, these statistics underscore its ongoing development and potential. Businesses are actively engaging with the concept, exploring its use cases, and investing in the underlying technologies. The journey towards a mature Metaverse may take time, but the signs of progress and growing interest suggest that the Metaverse is far from dead.

Originally published at https://www.thestreet.com on June 13, 2023.