According to a new report from analytics firm ABI Research.
Commenting on his resultsABI Principal Analyst Michael Inouye told TelecomTV that metaverse-related developments in streaming video, social media, gaming and digital advertising will be the foundation of the Total Addressable Market (TAM) for the mainstream metaverse, playing a key role in development. of the immersive virtual world.
He argued that the metaverse is underpinned by established trends in digital content rather than the notorious rebranding from facebook to meta and, therefore, the growth of these markets will be the basis of the metaverse.
And, if trends within these well-established markets continue, the metaverse should generate significant gains in the consumer space, according to the analyst.
“As more areas of our lives traverse these virtual ecosystems, more of our spending on media and entertainment, spending on advertising, etc. will be classifiable as a metaverse opportunity,” he said. -he explains.
Therefore, many of the problems faced by companies in these areas will also be faced by the metaverse in the future, he suggested. These include economic and political factors, as well as internal market perception issues and data privacy concerns.
For example, Inouye pointed out that consumers dismiss the concept of non-fungible tokens (NFTs) – seen as intrinsically tied to the future metaverse – as “an area that could slow the progress of the metaverse.” Similarly, the banning of cryptocurrencies in some countries and regulations restricting certain elements of Web3 could also hamper the growth of the metaverse. “There are definitely a lot of things to sort out before we get to a unified metaverse,” Inouye explained.
According to him, regulation and policy will be key in laying the groundwork for standardization, interoperability and consumer education. And this is where organizations and platforms, such as the Metaverse Standards Forum and NVIDIA Omniverse Platformwill come into play as they push for standardization and interoperability efforts.
The watershed moment to bring “the most transformative changes” to the metaverse and the digital services realm in general will come with the arrival and spread of consumer smart glasses, the analyst predicted.
“It will happen in consumer and enterprise markets, maybe not on the same scale (or as broadly) as smartphones, but these devices will start to unlock the full potential of the metaverse, especially when it comes to spaces This will also provide a better transition point for mobile markets into the metaverse,” Inouye noted. These headsets are expected to be widely available by the 2030s.
Finally, according to the findings of ABI Research, consumer education will also be essential for the development of the virtual space, with major players Meta, Google, Microsoft, Tencent, Epic Games and Apple expected to play a key role in content distribution. and services.
The compute and infrastructure companies, such as Intel, Qualcomm and Nokia, that will enable these experiences will also play an important role in the metaverse.
“While the opportunity is certainly there, as so much needs to happen between now and a full future metaverse, at the moment I have more conservative expectations (and classifications) of what is directly driven by the metaverse relative to pre-existing evolutionary changes in markets,” Inouye notes. “If, however, the pieces fall into place faster and better than expected, that could certainly accelerate the curve” and could mean that revenue of 2 billion dollars is reached by the end of the decade.
Much of this could be up for grabs for some of the telecom operators, who are eager to explore (and have already invested in such efforts) new service opportunities in the virtual world – see Will mobile operators jump on the metaverse bandwagon?
– Yanitsa Boyadzhieva, Deputy Editor-in-Chief, TelecomTV