Metaverse

Key Takeaway:

Although some influential brands in distinct industries are leading the experiments in the Metaverse, and some use cases are inspirational, the mainstream digital user metaverse still needs to catch up to its promise. In 2023 it is expected some trough of disillusionment if the slope of enlightenment is to pick up later on and reach the projected 4 trillion USD by 2030, mainly in gaming and e-commerce.

Trend Type: Technology

Sub-trends: Metaverse Education, Metaverse Support, Metaverse Falls Short, Branded Games, Digital Identities

April, 2023 • Less than 4 min read

Metaverse is a combinatorial innovation made up of multiple technology themes and trends. Individually, these trends are projected to provide new opportunities, and challenges, to organizations across a broad spectrum of industries and use cases. Last year was powered by big moves (such as Microsoft’s $69 billion acquisition of Activision Blizzard, now under antitrust review) and small ones (about $12 billion to $14 billion of venture capital and private equity investment). According to Gartner, by 2027, over 40% of large organizations worldwide will use a combination of Web3, spatial computing, and digital twins in metaverse-based projects to increase revenue. Bloomberg states that the metaverse market is expected to reach $783 billion in 2024, up from $479 billion in 2020, and Mckinsey projects between $4 trillion to $5 trillion by 2030 across consumer and enterprise use cases. Statista suggests that 15% of the digital economy has already shifted to the Metaverse, and its reach is projected to be 700 million people worldwide by the end of the decade – stating that metaverse e-commerce sales alone could grow to more than $200 billion by 2030 from currently just around $20 billion.

Metaverse Revenue Estimates – Relative 2030 use case potential, McKinsey & Co 2023

 

Gaming is expected to grow from around $10 billion to approximately $163 billion in 2030. The virtual interactivity that’s possible in the Metaverse has made it the perfect space for brands to create experiences that are based on or aligned with games. These branded metaverse-based games familiarize consumers with brands’ products while prioritizing experience. Consumers increasingly engage with the space as the Metaverse and its impact on various industries expands. The Statista report suggests that health & fitness, workplace, and education are the most significant metaverse revenue applications.
Regarding education, brands, and institutions are creating spaces in the Metaverse designed to educate customers in everything from specialized education to educational programs. Virtual learning has become popular in the last several years because of the pandemic and its ability to make education more accessible despite geographic or cost-related barriers. By taking the next step and adapting educational programs or experiences into the Metaverse, consumers can find even more immersive online learning programs they can benefit from. But at present, the fulfillment of the initial promise made for the technology remains elusive, and courses in the Metaverse are still struggling to compete with the real world.
Another sub-trend of the Metaverse is how more innovative brands enhance their customer service, given the advantages of such an immersive technology to guarantee valuable support by fostering empathy and optimizing efficient processes.
But at the same time, other customer and business factors are at risk, such as privacy, security, safety, and identity, as further explored in the paper “Interoperability in the Metaverse” from the World Economic Forum and Accenture. Digital identity has been wildly discussed in metaverse-related forums, reports, and events both from the perspective of risks and the customer needs view as digital lifestyles mature. According to Wunderman Thompson Intelligence’s “New Realities: Into the Metaverse and Beyond” report, 76% of people familiar with the Metaverse across the United States, United Kingdom, and China want their avatar to express their individuality in ways that they can’t in the physical or offline world. And 51% feel it would be easier to be their true, authentic selves in the Metaverse or digital worlds.
“People who go online have a certain ability to express a particular aspect of their identity, more like a prism. You can dial up or down some aspects of your persona so it’s more relevant for the conversation or the context of that community. In Reddit and “Big Picture,” this is a key reason these are thriving. For instance, you’d never go to certain social media and ask, “Best bar in NYC to break up with your girlfriend,” which is a true example.” Rob Gayge, Head of Global Insights Reddit, GWI Consumer Trends 2023 Webinar
Few consumers currently see this value as experiments fall short of capturing the public’s imagination. According to Forrester’s Media And Marketing Benchmark Recontact Survey, 2022, the majority of online adults in the US (65%), the UK (73%), France (67%), and Germany (65%) prefer to have social experiences in person.
This is expected and quite frequent in innovation case studies, and as with any technology so vast and all-encompassing, the potential is enormous. For instance, augmented reality (AR) was invented in 1968 at Harvard when the “father of computer graphics,” Ivan Sutherland, created an AR head-mounted display system. But it didn’t hit the global mainstream until 48 years later with Niantic’s 2016 launch of Pokémon GO, which made AR accessible and approachable with a smartphone game. Virtual and Metaverse technologies aren’t hitting the scrap pile, ultimately. Still, in 2023 they will be eclipsed by generative AI apps like ChatGPT, global macroeconomics dynamics, and the tech industry’s recession.
Therefore, we expect to see some “metaverse washing” this year, but innovative brands will bypass simple repackaging of old immersive media experiences and do new things. This will involve reimagining hybrid experiences to seek new sources of revenue, insights, and customer engagement.

Use Cases

Volkswagen Game On

Branded Games: Volkswagen South Africa launched an integrated Metaverse campaign through an NFT treasure hunt dubbed Game On. The hunt brings interactive storytelling to life as it introduces the world to the company’s latest safety and intelligence features in the IQ.DRIVE Polo model. The player to first uncover the secret NFTs will be rewarded with a selection of real and virtual prizes, including a PS5 and tuition offered by the Volkswagen Advanced Driving Academy. Volkswagen successfully blends the online gaming world with reality through this unique NFT offering. The game includes 100 NFTs dubbed the Mzansiverse. Since the game is localized in the South African market, players will travel through the recognizable Johannesburg streets throughout the game as they

Chipotle Burrito Builder

Branded Games: Chipotle Mexican Grill has partnered with virtual reality gaming platform Roblox to launch the Chipotle Burrito Builder, a new simulation experience that invites Roblox players to roll their own burritos in the metaverse. Through the unique experience, players will be able to earn Burrito Bucks, which can be exchanged for an entrée code that can be cashed on the Chiptole app. The Chipotle Burrito Builder marks the first time a brand has used Roblox to offer in-game currency that can be exchanged for real-world products, making it a phygital experience that is certainly worth taking note of, especially for other brands looking to innovate in this space. “We’ve tapped into play-to-earn, an emerging engagement model in the

JPMorgan Chase

Metaverse: JPMorgan Chase, the U.S. investment bank, bets metaverse is a $1 trillion per year opportunity as it became the first bank to open in Decentraland — one of the world’s most popular metaverse platforms.

Winkyverse

Metaverse Education: French tech startup Mainbot launched ‘Winkyverse‘ the first-ever global educational games metaverse dedicated to teaching children and their families about emerging technologies, powered by its own digital currency, The Winkies. The WinkyVerse is the first educational ecosystem who manages to combine no less than six of the most promising technologies: Robotics, Artificial Intelligence, Programming, Gaming, Augmented Reality and Blockchain. The WinkyVerse is divided in three distinct spaces where families from all over the world will go to Learn, Create, Play and Connect.

TMRW

Metaverse Customer Support: ‘TMRW’ crowns itself as the first entity to launch a medical customer support center in the metaverse. The TMRW platform allows patients to simply open the MOHAP’s website and click a button to launch a 3D, simulated reality office that resembles a real-world medical office. In this metaverse application, patients will be able to handle account-based information such as medical card renewal and payment processing, as well as minor medical appointments such as regular check-ups, diagnostic appointments for non-emergency symptoms, and more. The TMRW platform is expected to save citizens both time and money as it eliminates the need to travel to a physical clinic for countless services.

Use Cases

Volkswagen Game On

Branded Games: Volkswagen South Africa

Chipotle Burrito Builder

Branded Games:

JPMorgan Chase

Metaverse:

Winkyverse

Metaverse Education: French tech startup

TMRW

Metaverse Customer Support:

Sub-Trend Sources
Metaverse: Gartner Strategic Trends
Metaverse Education: Trend Hunter 2023 Trend Report
Metaverse Suport: Trend Hunter 2023 Trend Report
Metaverse Falls Short: Forrester Predictions 2023
Branded Games: Trend Hunter 2023 Trend Report
Digital Identities: Foresight Factory Trending 2023, Wunderman Thompson The Future 100