Enthusiasts view the metaverse as the next generation of the internet, a virtual, networked reality that is seamlessly woven into our actual world.
Thanks to augmented reality (AR) and virtual reality (VR), the argument goes that real and virtual social, consumer, and business experiences will become intertwined. Gamers are already familiar with this notion, but games are only the beginning. Millions of users now gather at virtual 3D concerts, shop in virtual malls with virtual currencies, and own fully customized virtual homes.
The UAE has emerged as a global pioneer across numerous industries due to its innovative approach and futuristic advances. It has correspondingly jumped headfirst into the metaverse to assure its continued progression.
The Dubai Metaverse Strategy, which was recently announced, aims to raise the metaverse sector’s contribution to the emirate’s economy to $4 billion by 2030. The strategy anticipates that 42,000 jobs will be virtualized through the metaverse by 2030 while also improving resident surgeon performance by 230 percent and engineer productivity by 30 percent.
According to current predictions, business revenues from the metaverse might increase from $180 billion to $400 billion by 2025.
UAE companies are interested in the metaverse world
Dubai companies like Emirates, Damac, and others are already betting big on this world, and many more are expected to join the pack.
According to Faisal Hamady, Managing Director & Partner, Boston Consulting Group (BCG), Dubai has outlined its goals and is well on its way to becoming a key global metaverse hub.
As a result, businesses can catalyze on metaverse opportunities, combining advantages that decentralized finance (DeFi), GameFi, non-fungible token (NFTs) and decentralized autonomous organizations (DAOs) bring to the table with long-term value creation benefits.
“We at BCG recently examined the top seven major trends for blockchain and distributed ledger technologies from the point of view of global banks,” Hamady said.
“Technology, media, and telecom companies are projected to benefit directly by providing technological enablers, such as 5G, next-generation Wi-Fi or broadband networks, new operating systems, app stores and platforms to foster more content creation. In addition, AR and VR tools are being actively explored and used in industries ranging from health care to industrial goods,” he added to TRENDS.
Hamady said that to better understand what the future might look like, businesses should begin with a focused effort, selecting use cases from the category or categories most likely to deliver business value.
They can then enable relevant parts of the organization to move into the virtual world, trying out small tests, measuring value, and expanding as their understanding and capabilities grow.
Finally, they can decide whether to become part of building this new infrastructure, monetize content and virtual assets, create B2B or B2C content, or even inward-facing experiences such as customer showrooms, virtual conferences and remote collaboration solutions or attract relevant audiences, both existing customers and prospects of interest such as Gen Z consumers.
“As they move into the virtual world, companies should also make sure to experience it,” he said.
Hamady suggested the following methods for experimenting with and familiarizing the organization with metaverse. Buy headsets and organize demo sessions to gain internal traction.
Bring together experienced and passionate people in loose teams that meet regularly. Collect use cases and create formats for brainstorming and capturing potential sources of value.
Invest in prototypes and hire talent, including those with extended reality (XR) interest and experience in relevant metaverse fields.
Make your interest public, communicate externally that the metaverse is on your radar and share what you are doing.
Build partnerships, the metaverse will be an ecosystem and there is longer-term value in starting to build connections now.
Metaverse’s business and consumer opportunities
Tibor Merey, Managing Director & Partner, Boston Consulting Group (BCG), told TRENDS that they anticipate a $250 billion to $400 billion industry for the metaverse by 2025. It will consist of four primary components.
The Virtual-Asset Economy
As the metaverse grows in popularity, virtual assets will gain in economic value, and a growing number will be created by individual users and exchanged between users and companies. These assets will be owned either in Web3 decentralized infrastructures or in ‘walled gardens’.
The former represented about 40 percent of the virtual-asset economy in 2021, the latter 60 percent. Because of the underlying volatility of these assets, we project that their transaction value will range between $150 billion and $300 billion by 2025.
AR/VR/MR Hardware and Software
As the installed base grows, so will sales of AR and VR hardware, software, applications and content such as media.
Near-term developments promise integration of eye-tracking inside the headset, which will allow computing power to be focused exactly where the user is looking, saving on power at the periphery of vision.
By 2025, this almost $50 billion market will be equally split between consumer and enterprise buyers, reflecting the productivity benefits stemming from AR/VR augmentation.
Network and Cloud Infrastructure
AR and VR experiences will require a powerful cloud infrastructure. For example, Meta is building a supercomputer that is estimated to be 20 times faster than its current machines.
Meta Quest 2 features approximately 2K resolution per eye and Apple’s headset is expected to reach 4K. But to match the human vision, the technology will eventually have to reach 20K resolution.
This will drive significant network requirements, both fixed (fiber and Wi-Fi) and mobile (5G and 6G). The metaverse may be what gives 5G a compelling value proposition.
Existing Information and Communications Infrastructure
The metaverse will be accessed through hybrid 2D screens (on mobile phones, tablets, and PC browsers) and AR and VR hardware. Web3 will continue to require a network of mining nodes to power the blockchain.
As for the consumers, he pointed out plenty of motivations for entering the metaverse that extends well beyond gaming. These offer consumer-facing companies the opportunity to provide new ways to shop, such as virtual storefronts, with virtual try-on for both virtual and physical products.
Physical-virtual experiences or exclusive access to a brand’s events or concerts. New ways to participate in m-worlds, such as co-creating assets and experiences, exchanging goods, or earning money. New ways to interact with others, in communities built around particular interests or areas of exclusivity.