Wednesday, 10 May 2023

Metaverse Could Contribute Up to 2.4 Percent of US GDP by 2035, Says Meta Study

The metaverse could contribute as much as $760 billion (roughly Rs. 62,36,088 crore) or about 2.4 percent to US annual gross domestic product (GDP) by 2035, according to a study commissioned by Facebook owner Meta Platforms.

The concept of the metaverse includes augmented and virtual reality technologies that allow users to immerse themselves in a virtual world or overlay information digitally on images of the real world, according to the report by consulting firm Deloitte.

Economic gains may come from the use of the technologies in the defense, medical and manufacturing sectors, plus entertainment use cases such as video games and communication, the report said.

Social media giant Meta, which pivoted its focus on building metaverse technologies in 2021, has forecast the tech would eventually replace mobile as the main computing platform.

Investors have questioned Meta's large investments in its metaverse project, skeptical of the returns at a time when a downturn in the advertising sector pressured the company's revenue growth.

In a separate report, Meta said the European Union may see an increased economic opportunity of up to 489 billion euros ($538.29 billion or roughly Rs. 4,417,799,858 crore) in annual GDP by 2035 or about 1.3 percent –2.4 percent of its total GDP.

The metaverse could contribute between C$45.3 billion ($33.88 billion or Rs. 2707 crore) and C$85.5 billion (roughly Rs. 523 crore) to Canada's annual GDP by 2035, Deloitte said.

The regional projections follow a global economic impact report that Meta commissioned to consulting firm Analysis Group last year, which estimated that metaverse adoption would contribute $3.01 trillion (roughly Rs. 24,619,500 crore) by 2031. 

© Thomson Reuters 2023


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