Metaverse was the hottest trend in the tech world about five years ago. Everyone, including startups, tech giants, and legacy brands, were rushing to get an early lead in the tech.
However, the Metaverse word has quietly faded from mainstream conversation in the last few years.
Despite the diminishing hype, many experts believe it’s not over for the Metaverse. In fact, there’s a strong consensus that it will come back stronger than ever.
Let’s take a closer look at why the Metaverse’s golden era may still be yet to come, and where we might see the tech applied in our daily lives.
What is the Metaverse?
The Metaverse is the next evolution of social interaction. In it, users can interact with each other in a three-dimensional, fully virtual realm. Additionally, users can interact with digital objects in real time, allowing them to shop, work, play, and hang out.
Within the Metaverse, users are represented by digital avatars, which are easily customizable to represent their personality and preferences. VR headsets or AR devices, such as the Meta Quest, are usually required to access the digital space.
Technologies including AI, Web3, blockchain, NFTs, and cryptocurrencies are used to power different applications within the Metaverse, such as interaction, ownership, and monetization.
What happened to the Metaverse?
Just like AI is today, the Metaverse was the buzzword some five years back. The big players in the tech world were all rushing to get their leg forward in the Metaverse race, with CEO Mark Zuckerberg even rebranding Facebook to Meta.
Other big brands have also made massive investments in Metaverse projects. Nike, for instance, launched Nikeland in Roblox, while Gucci and Adidas came up with their virtual wearables and opened virtual stores.
However, the hype around the technology was short-lived. Privacy and security concerns marred the user’s excitement. Moreover, the expensive hardware costs, volatility in the cryptocurrency market, and the rise of generative AI tools raised questions over the Metaverse’s future prospects.
Why the Metaverse could still make a big comeback
Despite the Metaverse’s diminishing hype, advocates of the technology argue that it is just in a rebranding phase and will soon make a comeback with a more solid foundation. Below are some reasons why the Metaverse could still make a big comeback.
Gaming
Gaming was the primary driver behind the Metaverse’s initial hype, and is likely to remain a driver of future demand. Metaverse gaming projects offers immersive experiences and new avenues of social interaction to users. The Metaverse gaming market is
estimated to hit $168.4 billion by 2030, according to Fortune.
Several
popular games, like Fortnite and Roblox, have already added Metaverse elements, allowing players to interact with other players and participate in digital economies. Furthermore, platforms like Decentraland and Sandbox are leading examples of futuristic Metaverse gaming projects.
Entertainment and media
As virtual experiences get more immersive and interactive, the Metaverse will transform how media and entertainment are created and consumed. Technologies like Metaverse AR and VR would allow developers to come up with more forms of entertainment, such as virtual concerts, digital campaigns, immersive storytelling, and more.
Frito-Lay’s 2022 FIFA World Cup
campaign, for example, used the Metaverse to give users a chance to join the Pass the Ball Challenge.
Moreover, the growth of the Metaverse will also support the development of interactive and collaborative content, even allowing users to co-create experiences by taking part in the storytelling process.
Retail and e-commerce
Metaverse has the potential to revolutionize retail and e-commerce by offering new ways to engage customers and drive sales. With offerings like 3D product visualization and virtual try-ons, Metaverse platforms allow retailers to offer more personalized and engaging shopping experiences.
Furthermore, virtual goods, personalized avatars, and NFTs could create new revenue streams for retailers beyond the usual walk-ins and online sales. Metaverse can also help retailers expand their geographical presence and reach a broader customer base.
Nike, for instance, launched NIKELAND in 2021 to enable users to explore, play games, and buy digital goods in the virtual environment.
Healthcare
With technologies like VR and AR, the Metaverse also has the potential to revolutionize patient care, medical education, and research. The VR and AR integration can help patients easily access virtual consultations, therapy, and rehabilitation programs even if they cannot physically visit a healthcare facility.
Moreover, virtual experiences can also help treat patients with anxiety disorders and phobias. For example, Dubai healthcare provider Medcare recently inaugurated its first hospital in the Metaverse, allowing patients to experience its services.
For medical professionals and researchers, the technology can help in creating a realistic and immersive training experience, where they can easily practice complex procedures.
Real estate
Just like traditional real estate, properties can be easily constructed, purchased, and sold on Metaverse platforms. Owners of virtual properties can also rent them out to brands for advertising, events, or other purposes.
With such real-world applications, the virtual real estate market is
estimated to grow by almost 40% from 2024 to 2030.
Several big companies have already invested in Metaverse real estate, including JP Morgan, which has opened a virtual branch called Onyx Lounge, allowing users to visit and attend events and explore services
Finance
Similarly, financial institutions are providing users with personalized experiences and virtual branches to help them interact virtually, and even carry out transactions in a new virtual world.
More recently, several fintech firms have explored using the metaverse to facilitate digital assets like NFTs, blockchain-based financial transactions, and even digital wallets. In fact, Metaverse platforms like Decentraland already allow users to purchase virtual land and assets using the MANA coin, a
Metaverse-based crypto token.
Why the Metaverse could still fail
While the Metaverse does hold immense potential, there are still a few reasons why it could fail to make an impact.
- No daily use: Several AR and VR gadgets are already on the market, but they haven’t garnered mass appeal. Reasons for this include extortionate cost, and a lack of real-world, daily applications for the average person.
- Unmet expectations: Many companies have previously made audacious promises about using Metaverses that haven’t been realized yet. Such unrealistic expectations have disappointed end users and widened the gap between the technology and the market.
- Lack of tech infrastructure: Easy to use hardware and interfaces, as well as regular upgrades in software, will be required to lure mass audiences to Metaverse projects. Several experts are of the view that tech companies may not be able to provide the needed infrastructure for the Metaverse to succeed.
- User reluctance: A fully-virtual world is a futuristic concept, and thus, users might be reluctant to enter it, especially if it means compromising their real-life social interactions. Furthermore, a lack of clear knowledge about the Metaverse’s social and psychological effectscan also deter potential users.
- Drawbacks of XR: Like with everything else, extended reality (XR) also has its own drawbacks that can push away users. For instance, the growth of the Metaverse may lead to a reduction in autonomy, as well as give users the ability to interfere in other people’s lives. Additionally, it may result in new forms of harassment and bullying.
The bottom line
The Metaverse is not a failure; rather, it just needs more time to be future-ready. Meta CEO Mark Zuckerberg acknowledged this during the firm’s 2022 earnings call, saying it could take years, or even generations, for the Metaverse to go mainstream.
The Internet was also dismissed initially as a passing fad, but technological advancements made it an integral part of everyday life. Similarly, the Metaverse, in combination with AI, has the potential to revolutionize the way humans interact with the rest of the world.
FAQs
Is the Metaverse failing?
Metaverse hasn’t lived up to the initial hype, but it has not failed outright. The technology is still evolving, and many experts are of the view that it, along with AI (Artificial Intelligence), has the potential to revolutionize the way how we interact with the world in the future.
What will Metaverse be in 5 years?
The Metaverse is expected to get more immersive and evolve beyond just virtual gaming and social platforms in the next five years. We can expect to see the Metaverse making an impact in work spaces, entertainment and e-commerce going ahead. Moreover, the number of users in the virtual market is expected to reach 2.6 billion, according to the data from Statista.
What will the Metaverse look like in 2025?
Metaverse in 2025 continues to expand into various aspects of our life, such as education, and social interaction, driven primarily by advancements in VR and AR. The Metaverse is projected to hit a market value of $103.6 billion and 700 million monthly active users in 2025, according to data from Statista.
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