There has been a lot of talk about Metaverse since last year. The point of convergence of the physical and digital universe thanks to virtual reality and augmented reality (VR and AR), it is a place that “provides a sense of immediacy and immersion, a shared virtual environment that will replace Internet 3.0 in the next 5. for 10 years,” says management company Pictet Asset Management, for which 2020 could be 2020 like Metaverse, after Gafa’s triumph in 2010.
The Metaverse concept is particularly popular among Generation Z (born between the late 1990s and early 2010s), who now make up a third of the world’s population. “True digital natives, these young people are already more than comfortable with virtual environments thanks to digital streaming, social media platforms (including Instagram and Snapchat) and video games such as Fortnite and Roblox, where they can imagine and create their own avatars,” he underlines. Pictet AM.
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Metaverse, a fast-growing market boosted by the Covid-19 pandemic
According to a Bloomberg study, the size of the global Metaverse market could reach roughly $800 billion by the middle of this decade. And the health crisis contributed to the growth of the topic. With 3.9 billion people stuck at home, “social relationships, entertainment, commerce, work and physical exercise have become digitized almost overnight,” according to Pictet Asset Management, which adds that this has coincided with the arrival of new technological advances . “Virtual reality and augmented reality have allowed people to stay connected and use technology to enjoy a greater sense of immediacy and immersion than if they were just visiting a website or communicating using a smartphone,” the management company points out.
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Globally, spending on VR and AR headsets will increase by about a quarter to $12 billion in 2020, and according to Pictet AM, “it’s just the beginning.” Industry estimates expect the technology’s compound annual growth rate (CAGR) to rise to 40-50% between 2020 and 2025, according to Citi Research.
The retail industry already spends more than $1 billion annually on VR and AR solutions, and according to the VR/AR Association, spending is increasing by 240% annually. “The appeal of VR and AR technologies to the retail sector is linked to their ability to make products more real on screen with images that can be rotated, zoomed in and experienced in an interactive way. More brick-and-mortar retailers like Macy’s and Adidas are exploring the possibilities of virtual fitting rooms. Other options include virtual test drives of cars and virtual tours of holiday accommodation,” reports Pictet AM.
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Which sectors will benefit from the Metaverse boom?
Industries such as e-commerce, video games, social networking, digital health and sports, online education, online entertainment and work platforms are “expected to benefit from Metaverse’s expansion and improve monetization through higher retention rates, improved user experience and customer experience . loyalty,” judges Pictet AM. By investing in Metaverse, we can participate in this transformation… and benefit from it.
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