Why Are Investments Pouring Into the Metaverse?
Investments are pouring into the metaverse these days. And it’s not just tech companies but government bodies as well. Now, why are billions of dollars pouring into metaverse funds and projects? Let’s take a close look at the exciting investment landscape of the metaverse.
First of all, the metaverse concept has been introduced previously. And if you’re a gamer, you would agree. Virtual worlds already existed a long time back, like 20 years ago. And the “metaverse” was limited to a two-dimensional screen old technology for the longest time.
However, today, it is much like the internet of the early 1990s or the smartphone of the early 2000s. Many think it will be big, and will disrupt daily life. But we have yet to determine precisely how, or how huge the shift will be.
Metaverse Investments: Going Slow and Steady
McKinsey predicted the metaverse could generate up to $5 trillion in value by 2030, but it’s unclear which business sectors will benefit fastest. Plus, looking back, compared to other technology sectors, we see the interest metaverse peaking as the most popular in trend.
We’ve seen the interest is piquing for good reason. The metaverse is an immersive virtual world built on established gaming, virtual reality (VR) and augmented reality (AR) elements.
Gartner analysts saw metaverse emerging over the next four to five years. As forbes report, over 40% of large organizations worldwide would use a combination of Web3, spatial computing, and digital twins in metaverse-based projects to increase revenue by 2027.
Moreover, Gartner researchers advised businesses to explore opportunities where metaverse technologies “could optimize digital business or create new products and services.” Hence, by connecting the physical and virtual worlds, organizations can get ahead in the near future.
Metaverse Investments in Middle East
It seems like countries in Asia are more open to the concept of metaverse. Middle Eastern cities like Abu Dhabi and Dubai has announced their fair share in support and investments for local metaverse developments.
Last February, Abu Dhabi’s technology ecosystem, Hub71, allocated about $2 billion capital for metaverse startups. This new initiative is called “Hub71+ Digital Assets”. The initiative aspires to provide Web3 startups with access to a range of programs, as well as, corporate, government, and investment partners in both global markets and the UAE.
Dubai is earlier in the metaverse move as it launched its “metaverse strategy” last November 2022. By connecting the physical and virtual worlds, organizations can get ahead in the future.
Then, we have KPMG launching a co-investment fund for metaverse use-cases in Saudi Arabia recently in alignment to the countries commercialization of the new technology goals.
Metaverse Investments in East Asia
Meanwhile in the east, South Korea is ahead in the game with the launch of its Metaverse Seoul last January — a metaverse replicating capital city of Seoul.
In Japan, big companies across sectors are teaming up to build “Ryugukoku”, an open metaverse to propel the nation’s Web3 strategy. The alliance’s goal — formed by companies like Fujitsu, Mizuho bank, and Mitsubishi — is to build a metaverse connecting different Web3 services created by companies and government agencies.
Last but not least, China’s titan company Huawei is partnering with multiple blockchain companies to launch its metaverse and Web3 Alliance project. The initiative aims to facilitate these technologies’ speedy adoption and proliferation in East Asia and beyond.
