McKinsey & Co. – metaverse market to $5T
McKinsey & Co. – metaverse market to $5T
By 2030, the worldwide metaverse sector will earn $5 trillion, according to the consulting company McKinsey & Company. Over half of this $5 trillion number, in McKinsey analysts’ estimation, will be spent on e-commerce, based on their analysis.
In a report titled “Value Creation in the Metaverse,” McKinsey & Co. explained the thinking behind its ambitious projections. In four regions—China, the United States, Europe, and the Asia-Pacific region—more than 3,400 individuals provided data for this new report from McKinsey.
McKinsey also questioned company executives and venture capital firms about their metaverse strategy in addition to interacting with regular consumers. Most of the people McKinsey & Co. dealt with had positive opinions about metaverse applications.
The Survey
Nearly 60% of customers surveyed by McKinsey could identify an online activity they preferred to a real-world one.
Although the majority of respondents claimed they preferred to purchase in the metaverse, users also expressed a preference for attending live events, playing video games, and exercising on Web3 platforms.
However, McKinsey & Co. predicts that by 2030, e-commerce would be the dominant factor, accounting for $2.6 trillion of all revenues generated by the metaverse.
For example, according to McKinsey researchers, Web3 gaming will be valued roughly $100 billion, while metaverse education and advertising will each generate $200 billion.
Returns from Metaverse Investment
If the McKinsey & Company research looked overly optimistic, Citi’s metaverse projections are more pessimistic. Citi has a low-end projection of $8 trillion for the global metaverse market valuation by 2030, according to a new analysis from Rarity Sniper.
According to CitiBank, the metaverse might be worth $13 trillion in the best-case scenario.
The market for the metaverse, according to Bloomberg, will be worth at least $800 billion by 2024. However, Bloomberg sees blockchain gaming as the main source of revenue for this sector, in contrast to McKinsey & Company. In fact, according to Bloomberg experts, video games will account for half of this estimated market size.
The Metaverse Investment Trend
The venture capital firm Andreessen Horowitz (a16z) also seems to believe that the market for metaverse gaming has the most potential. A16z just unveiled a $600 million fund for Web3 gaming. The California-based company claimed that the metaverse would bring in billions for the world’s gaming industry.
There is no doubt that more investment firms have high hopes for this developing sector, regardless of whether e-commerce or gaming account for the majority of the worldwide market cap.
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