Three years ago, the Metaverse had become a trending topic in the digital and business landscape. Many opinion-makers claimed that it would be the future of the web and that a revolution had begun. Indeed, few really understood it. Then the hype has faded and the Metaverse has taken a backseat, leaving room for artificial intelligence and ChatGPT, new icons of the technological future. In the end, has this revolution really died out or is it proceeding under the radar?
According to the data available today, serious investments by large companies in the Metaverse are keeping up and, indeed, are increasing. As in many situations, the media coverage of a topic does not always reflect its real reach. Two years ago, we were talking about it because in October 2021 Facebook had changed the name of the company, which became Meta, and basically revealed its interest in the Metaverse.
Nowadays, in Italy, singer Achille Lauro spoke about the Metaverse to university students and this topic was taken up by many online newspapers and in several posts on LinkedIn, some enthusiastic and others scandalized. Going beyond the words of a singer, real data tells us that development on the Metaverse is proceeding. Even if we talk less about it, it is going on.
The Metaverse from its beginnings to now
The idea of a shared virtual world dates back to the 90s with the novel “Snow Crash” by Neal Stephenson, where it is described as a three-dimensional digital universe, parallel to the physical one, in which people interact through avatars. Later, in 2003, Second Life gave birth to the first interactive virtual world, offering a unique social experience for its time, where users could create avatars, socialize, and trade.
The speed up came with the Covid-19 pandemic, which prompted companies to develop advanced digital solutions to bridge physical distances. From rudimentary 3D environments, we have moved to increasingly immersive virtual (VR) and augmented (AR) realities thanks to devices such as VR headsets, motion sensors, and blockchain platforms.
User interest in the Metaverse
Globally, the peak of interest in the Metaverse occurred between October 2021 and February 2022, after Meta (formerly Facebook) placed the term at the center of its branding strategy. This can be seen very well from the trend of Google searches which then saw a progressive decline, with the exception of new peaks in October of the following two years. This is a normal trend driven by media coverage that tries to exploit the effect of anniversaries.
Many users have been enthusiastic about the possibility of experiencing virtual worlds, especially when it comes to games and entertainment. For example, games like Roblox and Fortnite have created immersive experiences that can engage millions of global users, especially among the youngest. However, there has been growing skepticism among more mature users, who believe that the Metaverse is nothing more than a more sophisticated version of existing social networks, with no real impact on their daily lives. In particular, the debate often focuses on data ownership and privacy implications, raising questions about how companies could leverage the data they collect.
Metaverse searches have mainly interested users in East Asian countries, particularly China and South Korea. In Beijing, perception is strongly influenced by a strategic and industrial approach. The government has shown strong support for its integration, with significant investments in creating advanced digital ecosystems. With the “Action Plan for the Innovative Development of the Metaverse Industry”, it aims to grow the virtual industry to key technological milestones by 2025. In Seoul, on the other hand, companies such as Naver, with its Zepeto platform, have pushed the boundaries of shopping, involving global bands such as Gucci and Nike.
The Metaverse now and forecast for the future
Reality is different from what media coverage suggests. According to Statista’s projections made in March 2024, the global Metaverse market will reach a value of $74.4 billion by the end of the year. It is expected to grow at a compound annual growth rate (CAGR) of 37.73% through 2030, when the market could reach $507.8 billion.
The United States currently leads the metaverse market, with an estimated volume of $23 billion in 2024. The presence of advanced technology companies such as Meta, Microsoft and Nvidia contributes to the consolidation of their leadership role. However, countries such as China and Japan are quickly catching up, driven by significant investments in the research and development of immersive technologies and blockchain.
By 2030, the number of Metaverse users is expected to reach 2.63 billion, with a penetration of 39.7% compared to 14.6% in 2024. This means that almost 40% of the world’s population will be involved in some way within the next decade. In addition, the average value per user could be around $79.5, which is why companies’ interest in offering valuable and profitable experiences is growing.
Identikit of the user browsing the Metaverse
Now, the Metaverse mainly attracts younger generations, especially Gen Z (18-24 years old) and Millennials (25-40 years old). According to Wunderman Thompson’s March 2024 report, a good portion of users are involved for socialization, gaming, and entertainment purposes. These young people, who have grown up in a digital world, find it natural to interact with virtual environments, personalized avatars and immersive platforms.
However, the Metaverse is no longer an exclusively youthful phenomenon. Companies are looking to broaden its appeal to a more mature age group, offering solutions for vocational training, remote work, and even e-commerce. For example, many platforms are developing environments dedicated to corporate events, virtual showrooms and trade fairs, attracting professionals and entrepreneurs of various ages.
Will the Metaverse be a winning bet?
The most pressing question is not whether the Metaverse is a fad, but rather whether it can represent a profitable and sustainable platform in the long term. Numbers and trends tell us that the potential is there even if we talk about it much less than three years ago, but there is no shortage of uncertainties.
For those who will be able to anticipate trends and invest in immersive technologies, significant opportunities are opening up to redefine the relationship with consumers. However, the key to success will be the balance between innovation and accountability, ensuring that the experiences offered are safe, engaging, and most importantly, valuable.
In an ever-changing landscape, the Metaverse could become one of the most powerful tools for digital marketing, along with other amazing emerging technologies such as artificial intelligence and ChatGPT. It will not be an immediate revolution, but those who know how to position themselves today could find themselves at a clear advantage tomorrow.
