How is Metaverse Technology Expected to Influence the Global Market?

Metaverse is probably the most searched topic that gained massive momentum in 2021. Even though it took a backseat with the arrival of artificial intelligence (AI), it is still grabbing headlines. You might imagine a person playing a video game or a virtual avatar dancing in the enormous cyberspace when you think about the metaverse. Although, Facebook founder Zuckerberg would not have staked his entire business on it, if it were just a giant video game or some really cool avatars.

This article dives into everything you need to know about the metaverse and how it might influence the global market.

What is Metaverse?

The metaverse is an evolving 3D digital environment that enables lifelike personal and professional encounters online by utilizing virtual reality, augmented reality, and other cutting-edge internet and semiconductor technology. It is a fictitious version of the internet that is a global, all-encompassing virtual setting emphasizing social interaction.

It is broadly segmented into two parts:

1. Non-fungible tokens (NFTs) and cryptocurrencies used in blockchain-based products. A NFT is an individual non-transferable digital asset on a blockchain. These NFTs could expedite the adoption of Extended Reality if they become a frequently used means of trading.

1. The virtual world where people can meet and greet one another, which Meta is working on presently. If virtual, 3D worlds that are accessible and interactive in real time become a reality in the near future, universal acceptance of extended reality will be necessary. Integrating physical reality and the virtual world is not a new concept. For hobbyists and enthusiasts, virtual reality has remained a niche market. As a result of Meta’s recent feats, there have been discussions and arguments about this developing technology globally. Fans of virtual technology are looking forward to seeing what Meta has in store for them in the near future.

Metaverse: A Hotbed of Innovation

The internet’s future is the metaverse, which entails the creation of a new, real-time 3D infrastructure. In October 2021, Meta (erstwhile Facebook) stated that it would invest $50 million for its development. In a virtual world, people can exist, communicate, and participate, but the new infrastructure is still being developed. Two years later, Meta invests $19.2 billion in its developmental division, Reality Labs, in 2023.

In order to establish a powerful virtual world, the social media giant has already revealed its intention to hire 10,000 individuals in the European Union over the next five years. Although, in the realm of augmented and virtual reality, organizations like Fortnite and Roblox Corp have a head start.

Despite the moderate historical success of Meta’s Reality Labs with the Oculus Quest 2, a low-cost headgear that was popular last year, virtual reality remains a niche sector for amateurs and enthusiasts. The gear is frequently complicated and costly to operate. Some consumers have also expressed dissatisfaction with the headsets, claiming they make them feel sick.

Regardless, the metaverse could potentially reshape our relationships and society on a whole new level.

How to Invest in Metaverse?

Real estate in the metaverse, or virtual estate, is already a lucrative industry. Major corporations like JP Morgan, PwC, HSBC, and Samsung have already purchased virtual parcels of property that they plan to use for different projects.

Given below are several ways to invest in the metaverse:

• Exchange-traded funds:ETFs, are a type of investment fund that monitors the performance of a market or industry. The Global X Virtual Reality (VR) & Augmented Reality ETF and ARK Next Generation Internet ETF (AWKW) the are two examples that concentrate on technological firms participating in the creation of the metaverse.
• Metaverse Real Estate: As the technology gains traction, investing in virtual property has become more appealing. Several businesses are starting to sell virtual land or property, and some are even providing virtual rentals.
• Investment Funds:The metaverse is a hot investment area, with a number of funds focused on businesses in this space. For example, the VR Vision Fund invests in startups developing virtual and augmented reality technologies.
• Purchasing Shares:Another choice is to invest in particular metaverse businesses by acquiring stock in them. Facebook, Google, and Microsoft are some companies actively contributing to its creation.

How will the Metaverse Impact the Global Market?

From immersive experiences to new business paradigms, let us uncover the far-reaching impact of the metaverse on different industries.

1. Entertainment and Gaming: In these industries, the metaverse offers users the chance to participate in immersive experiences, blurring the lines between virtual and physical worlds. Gaming can become more interactive and social, allowing players to collaborate, compete, and explore together like never before. This enhanced engagement can lead to new monetization models, such as virtual goods and assets, creating new revenue streams for game developers.
2. Virtual Events and Experiences: With the rise of remote work and digital events, the metaverse would transform how people attend conferences, concerts, trade shows, and other gatherings. Integrating virtual reality (VR) and augmented reality (AR) technologies can provide realistic and engaging event experiences, reaching a global audience without being limited to a physical space.
3. E-Commerce and Retail: The metaverse can reimagine shopping by enabling immersive virtual stores and showrooms. Consumers can try on virtual clothing, test products in virtual environments, and make purchases seamlessly. This fosters a new level of customer engagement and personalization, potentially leading to increased online sales and a more interactive shopping experience.
4. Education and Training: The technology can offer innovative educational opportunities by creating interactive and immersive learning environments. Students can participate in virtual classrooms, conduct hands-on experiments in virtual labs, and explore historical events through immersive simulations. This technology can make education more accessible and engaging for learners of all ages.
5. Real Estate and Architecture: The metaverse can disrupt the real estate and architecture industries by allowing potential buyers or renters to explore properties virtually. Architects and developers can use the technology for collaborative design and visualization, streamlining the planning and approval processes.
6. Advertising and Marketing: Brands can leverage the technology for creative and engaging advertising campaigns. Marketers can create interactive branded experiences within virtual spaces, enhancing brand engagement and customer loyalty. Additionally, the metaverse could redefine influencer marketing by allowing influencers to build their own virtual presence.
7. Social Interaction: The technology will redefine social media by offering more immersive and interactive ways to connect. People can gather in virtual spaces, attend events, and engage in activities together, which can drive new forms of social networking and communication beyond traditional platforms.
8. Digital Identity and Ownership: The metaverse can introduce novel concepts of digital identity and ownership through blockchain technology. Users can own and trade virtual assets, art, and goods securely, which can have implications for copyright, intellectual property, and authentication.

In a Nutshell

The metaverse, a new frontier where physical and virtual realities collide, offers countless opportunities for creativity, cooperation, and immersive experiences. It has the potential to disrupt and transform various industries by providing immersive experiences, enhanced engagement, and new business opportunities. As this technology continues to evolve, businesses that embrace its capabilities early on are likely to be better positioned to adapt to changing consumer behaviors and preferences in the digital age.