While we were captivated by the unfolding narrative of Pandora in the Avatar series, where humans create avatars to interact with the indigenous Na’vi, little did we know that we were being introduced to a groundbreaking technology: the metaverse. Or consider Roblox, a popular online gaming platform often called “metaverse for kids,” where users can create and play games in a shared virtual world. Now a rapidly evolving technology, the metaverse has captured the imagination of both technologists and consumers. As a potential game-changer in technological advancements, it’s quickly becoming a tangible reality.
The latest edition of “The People Weekly” delves into the metaverse, exploring its potential scope and how it could revolutionise business practices. As always, PeopleLogic is committed to providing valuable insights, information, and knowledge on emerging industry and technological trends to help our valued audience make informed business decisions.
Metaverse – The Alternate Universe
The metaverse is a loosely defined term referring to virtual worlds in which users represented by avatars interact, usually in 3D. Metaverse is a 3-D-enabled digital space that uses augmented reality (AR), virtual reality (VR), and other internet-related technologies to provide users a life-like experience. Powered by Web 3 and AI, it’s often described as the next evolution of the internet, where instead of simply looking at screens, we can immerse ourselves in digital environments.
Evolution
“Neal Stephenson coined the term “metaverse” in his influential sci-fi novel, “Snow Crash.” In 1997, the video game developer John Linden used the term to describe his online role-playing game, “Ultima Online.”
Three years later, in 2003, Linden Lab launched “Second Life,” a pioneering virtual world where users could interact, create, and trade virtual goods. In 2006, Roblox, a platform allowing users to build and play in virtual worlds, gained rapid popularity.
These early successes sparked increased interest in virtual worlds and virtual reality. In 2014, Facebook acquired Oculus, a leading VR headset manufacturer. The subsequent popularity of AR/VR-based games like Pokémon Go and Fortnite further fueled the metaverse trend.
In 2021, Facebook rebranded itself as Meta, signalling its commitment to the metaverse. Microsoft followed suit with “Mesh,” a platform for immersive 3D collaboration. Other companies, such as Siemens and Nvidia, have also embraced the metaverse, partnering on industrial applications.
Ikea’s Place app allows the customers to choose a furniture piece of their choice and view how it looks in the office or at home
HSBC uses meteverse to win business from rich Indian diaspora
Indian media conglomerate Shemaroo GMetri to launch AI-based Bollywood games in metaverse
E Commerce giant Amazon has already integrated metaverse to provide customers with immersive shopping experience
Hong University Of Science and technology launched the world’s first twin-campus metaverse university.
These are just a few of the examples and more and more companies are moving towards using metaverse for business.
Metaverse: Market Size and Growth
The global metaverse market is expected to grow at a CAGR of 37.73% to reach US$507.8bn by 2030. At the same time the number of users will reach 2,663 million for the same period.
Interestingly, as against a global CAGR of 37.73%, the Indian metaverse market will grow at a CAGR of 40.03% to reach a projected value of US$16.1bn by 2030.
Growth Drivers
Customer Preferences: Customers are looking for different ways to connect, engage, and interact. The metaverse offers new ways for people to connect with friends, family, and communities, especially during times of physical distancing. Also in a distributed workplace metaverse helps the employee to have a social connection with each other.
Entertainment and Gaming: Immersive gaming experiences, virtual concerts, and other forms of entertainment are driving consumer interest in the metaverse.
E-commerce and Retail: Brands are exploring the metaverse as a new channel for selling products and services, offering unique experiences and opportunities for customer engagement.
Business Opportunities: Companies can generate revenue through virtual goods, services, and advertising within the metaverse. The metaverse can provide unique and engaging customer experiences, leading to increased brand loyalty
Technological advancement: Increasing demand for AR/VR devices and blockchain technology that decentralize ownership of digital assets and facilitate secure transactions within the metaverse coupled with AI has led to the growth in metaverse.
3 broad categories of Metaverse
Metaverse can be categorised into 3 board heads for the sake of use cases. They are
- Consumer Metaverse
- Industrial Metaverse
- Enterprise Metaverse
Consumer metaverse targets primarily individuals and general customers and provides immersive shopping, gaming, and entertainment experiences. Ikea, Gucci, Roblox, Meta, etc are some examples.
Industrial metaverse uses augmented reality and digital twins to bring the metaverse to the outside operations of business. It involves creating digital twins of physical assets, such as factories, machinery, and products, to simulate and optimise various aspects of manufacturing, maintenance, and design. Nvidia’s Omniverse platform provides a virtual environment for collaboration among designers, engineers, and artists. The latest news is about Sony and Siemens launching industrial VR set by December 2024.
Enterprise metaverse refers to the use of virtual and augmented reality technologies within businesses to improve collaboration, training, and productivity. It can involve creating virtual meeting spaces, simulating real-world scenarios for training purposes, and visualising complex data sets. For example, Accenture metaverse “Nth Floor” bring together people in a virtual space to meet, collaborate and learn.
Future
The metaverse is poised for significant growth, with the number of users expected to surpass 600 million by 2026, thanks to advancements in generative AI. This transformative technology is set to revolutionise various industries, from education and training to healthcare and entertainment.
- The metaverse will redefine on-the-job training, offering immersive simulations with virtual instructors.
- The tourism industry is embracing the metaverse to offer virtual tours and experiences, allowing travellers to explore destinations without physical travel and opening up new possibilities for the industry.
- Metaverse is transforming entertainment and the day is not far when one can enjoy concerts in Paris to sporting events from the comfort of one’s home.
- The gaming industry, a key driver of metaverse growth, will witness increased interoperability. This means users can seamlessly move between different virtual worlds within various games.
- The metaverse has the potential to revolutionise healthcare delivery with telehealth, remote therapy, and virtual medical training becoming more accessible and efficient, improving patient care.
- Metaverse is creating virtual economies where users engage in economic activities, trade virtual goods etc . Cryptocurrencies and other digital currencies will play a crucial role in metaverse economies, enabling transactions and exchange of value
Metaverse & Job Creation
The rise of the metaverse is set to create a wave of new job opportunities across various industries. As this immersive digital world expands, demand for professionals with expertise in the metaverse will surge. Some of the roles that are in high demand are
PeopleLogic Opinion
While still in its infancy, the widespread adoption of AR/VR devices will soon make the metaverse a reality. People are increasingly seeking immersive experiences that connect them more deeply to the digital world. The metaverse will be powered by a convergence of technologies, including AR, VR, AI, blockchain, and others. This synergy will drive its rapid growth and development.
However, along with the exciting opportunities, there are also challenges to overcome. Current technologies may still have limitations in terms of graphics, performance, and user experience. Privacy and security is another important challenge. Addressing issues such as digital inequality, addiction, and the potential for misuse of the metaverse is important. Despite these challenges, the metaverse represents a significant opportunity for innovation and economic growth. As technology continues to advance, the potential for this interconnected digital universe will only grow, offering unparalleled opportunities for social, economic, and creative endeavours.
With emerging technologies like AR/VR, Web3, and the metaverse shaping the next decade, PeopleLogic, one of the top recruiting firms in India, with 17 years of experience, is well-equipped to provide the right talent solutions for companies in these fields.
