Metaverse Could Grow to $5 trillion by 2030
New research from McKinsey & Company, titled "Value Creation in the Metaverse" examines the global impact of the metaverse across key sectors and businesses.
June 15, 2022
McKinsey & Company released its new report, “Value creation in the metaverse,” which addresses the magnitude of the metaverse. McKinsey’s preliminary forecast shows the metaverse has the potential to grow up to $5 trillion in value by 2030. It shows e-commerce as the largest economic force ($2.6 trillion), ahead of sectors such as virtual learning ($270 billion), advertising ($206 billion) and gaming ($125 billion).
This extensive report aims to offer a clear view of what the metaverse is and is not, what first movers are doing, what’s fueling the investment and the potential for consumer and B2B companies.
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 behavior. Researchers also interviewed metaverse builders and industry experts.
“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,” says Eric Hazan, senior partner, McKinsey & Company. “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.”
Fueling the Metaverse Investment
Already this year, companies, venture capital, and private equity firms have invested more than $120 billion in the metaverse—more than double the $57 billion invested in all of last year.
Multiple factors are driving the investments:
- ongoing technological advances across the infrastructure required to power the metaverse;
- demographic tailwinds;
- consumer-led brand marketing and engagement; and
- marketplace readiness as users explore today’s version of the metaverse, which is largely driven by gaming while applications emerge in socializing, fitness, commerce, virtual learning and other uses.
Already, more than 3 billion gamers worldwide have access to different versions of the metaverse.
“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,” says Lareina Yee, senior partner, McKinsey & Company. “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.”
Senior Leaders See Metaverse Impact
Business leaders see the metaverse’s potential to drive impact and margin growth. Ninety-five percent of leaders say they expect the metaverse to have a positive impact on their industry within 5 to 10 years, with 31% saying the metaverse will fundamentally change the way their industry operates, according to McKinsey & Company. More significantly, a quarter of leaders expect the metaverse technology to drive more than 15% of their organization’s total margin growth in the next 5 years.
“The metaverse has put us at the cusp of the next wave of digital disruption,” says Tarek Elmasry, senior partner, McKinsey & Company. “It’s transformative. It will likely have a major impact on our commercial and personal lives, which is why businesses, policy makers, consumers and citizens may want to explore and understand as much as they can about this phenomenon, the technology that will underpin it, and the ramifications it could have for our economies and wider society.”
Sources: Press materials received from the company and additional information gleaned from the company’s website.