Why metaverse technology is still important for businesses
Although the vision of a rapid gestation of fully-realized virtual worlds where humans work, shop and socialize from the comfort of their couches has dimmed, the metaverse isn't dead. Components of it are gaining traction as graphics and capabilities for virtual and augmented reality, bolstered by AI, rapidly improve. The development of new technology such as eye tracking, which uses sensors to monitor and record eye movements, promises to make visual experiences more engaging.
In the area known as the industrial metaverse, epitomized by the Nvidia Omniverse platform, companies are building digital twins to design and monitor physical objects. Businesses are also using virtual reality (VR) to train employees and applying augmented reality (AR) to overlay information on real-world objects, helping their employees work better.
The Enduring Importance of Metaverse Technology
While the metaverse may not have lived up to its initial hype, the technology behind it is still gaining traction and has significant importance for businesses. The development of virtual and augmented reality, fueled by advancements in graphics and AI, is improving rapidly. New technologies like eye tracking are enhancing visual experiences, making them more engaging and immersive.
The industrial metaverse, exemplified by platforms like Nvidia Omniverse, is a prime example of how metaverse technology is being applied in practical and meaningful ways. Companies are using digital twins to design and monitor physical objects, streamlining processes and improving efficiency. Virtual reality is being used to train employees, reducing costs and improving knowledge retention. Augmented reality is being applied to overlay information on real-world objects, enhancing employee productivity and decision-making.
These applications of metaverse technology demonstrate its potential to drive business value and improve operations. As the technology continues to evolve, we can expect to see even more innovative uses of metaverse technology in various industries.
Note: The metaverse may not have become the fully-realized virtual world that was initially envisioned, but its underlying technology is still having a significant impact on businesses and industries. By focusing on practical applications and use cases, companies can harness the power of metaverse technology to drive innovation and improvement.
In e-commerce, customers are clamoring for virtual products that "tie back to the physical world," according to a June 2023 McKinsey report, which stated that the market for metaverse commerce alone -- "from home and food to fitness and apparel" -- could drive "$5 trillion in value creation by 2030." A report from data-gathering company Statista pegs the metaverse market at $74.4 billion in 2024 and predicts that by 2030, at an annual growth of rate of 38%, it will reach $507.8 billion with over 2.6 billion users.
The Metaverse Commerce Opportunity
The metaverse is expected to have a significant impact on e-commerce, with customers increasingly seeking virtual products that are connected to the physical world. According to a McKinsey report, the market for metaverse commerce could drive $5 trillion in value creation by 2030, spanning categories such as home, food, fitness, and apparel.
The metaverse market is already substantial, with a projected value of $74.4 billion in 2024, according to Statista. Moreover, the market is expected to experience rapid growth, with a predicted annual growth rate of 38% leading to a value of $507.8 billion by 2030. This growth will be accompanied by an increase in user base, with over 2.6 billion users expected by 2030.
The opportunity for businesses to capitalize on the metaverse commerce trend is significant, with potential applications in areas such as virtual try-on, immersive product experiences, and social commerce. As the metaverse continues to evolve, it will be essential for companies to develop strategies that leverage this technology to enhance customer engagement, drive sales, and create new revenue streams.
Note: The metaverse commerce market is poised for rapid growth, driven by increasing demand for virtual products and experiences that tie back to the physical world. Businesses that invest in metaverse technology and develop innovative commerce strategies will be well-positioned to capitalize on this trend and drive long-term growth.
A metaverse guide for the enterprise
What are companies to make of a technology phenomenon that's hot one day, cold the next and in the throes of rebranding itself? TechTarget's guide to the metaverse breaks down where this rapidly evolving set of technologies stands today and where it's headed.
Topics covered include the various technologies and platforms that support the metaverse, ongoing challenges, real-world use cases and the metaverse's impact on the future of work. Readers can follow the hyperlinks to other TechTarget articles for deeper dives into these and other topics, as well as to our in-depth definitions of key metaverse terms and novel techniques such as digital threads and Gaussian splatting.
Navigating the Metaverse for Enterprises
The metaverse is a rapidly evolving technology phenomenon that can be challenging for companies to navigate. TechTarget's guide to the metaverse provides a comprehensive overview of the current state of the technology, its challenges, and its potential impact on the future of work.
The guide covers various topics, including:
Readers can use the guide as a starting point to learn more about the metaverse and its potential applications for their organization. The hyperlinks to other TechTarget articles provide additional resources for those who want to dive deeper into specific topics, such as digital threads and Gaussian splatting.
Note: The metaverse is a complex and rapidly evolving technology, and companies need to stay informed about its developments and potential applications. TechTarget's guide provides a valuable resource for enterprises looking to navigate the metaverse and understand its potential impact on their business.
Four years in, Meta has burned through $45 billion chasing its metaverse dream
Bottom line: More than four years after Mark Zuckerberg rebranded Facebook as Meta to chase his metaverse vision, the company has poured tens of billions into the effort – with little to show for it. The ongoing losses have raised serious doubts about the strategy and its long-term viability.
Insiders say the metaverse project has become a financial sinkhole, consuming $45 billion by early 2025. That's nearly equal to the combined market caps of social media rivals Snap and Pinterest – or the amount Elon Musk paid to acquire Twitter. Worse, Zuckerberg warned in last year's earnings report that losses would continue to "increase meaningfully," whatever that means.
Meta's Metaverse Investment: A Financial Sinkhole
Meta's pursuit of the metaverse has been a costly endeavor, with the company burning through $45 billion in just four years. This massive investment has yielded little in terms of tangible results, raising serious doubts about the strategy's long-term viability.
The financial losses are staggering, equivalent to the combined market capitalization of Snap and Pinterest, or the amount Elon Musk paid to acquire Twitter. Mark Zuckerberg's warning that losses will continue to "increase meaningfully" is a concerning sign, suggesting that the company's metaverse project has become a financial sinkhole.
Insiders' concerns about the project's viability are valid, given the lack of significant progress and the enormous financial burden it has placed on the company. The metaverse vision, once hailed as a revolutionary concept, now seems to be a costly experiment that may not yield the expected returns.
As the company continues to pour billions into the metaverse, it remains to be seen whether this investment will ultimately pay off or become a cautionary tale of a failed experiment.
Note: Meta's metaverse investment has been a significant financial burden, and the company's ability to turn this around will be closely watched by investors and industry observers. The outcome will have significant implications for the future of the metaverse and the company's overall strategy.