September 25, 2022

Finance & Economy

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Metaverse to add $3tr to global economy as Nigeria, others get $40b | The Guardian Nigeria News

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While estimates about the economic impact of the metaverse are already part of the public discourse, the Analysis Group report, The Potential Global Economic Impact of the Metaverse, has utilised analytical and quantitative methods to further the discussion about how the metaverse can expand economic opportunities.

According to the new report, the metaverse has the potential to add an estimated $3 trillion to the global economy in a decade if adoption and growth are similar to mobile technology. It estimates that the metaverse could add in sub-Saharan Africa 1.8 per cent contribution to regional GDP, or $40 billion.

“We can contextualise our results against existing projections of the economic potential of the metaverse by assuming that the metaverse existed today and calculating the contribution to GDP after 10 years in dollars.

“Our model implies that if metaverse adoption were to begin in 2022, then the metaverse’s total contribution to global GDP in 2031 would be $3.01 trillion (measured in 2015 U.S. dollars), one third of which, or $1.04 trillion, is attributable to APAC. Additionally, contributions to Canada, Europe, India, LATAM, MENAT, SSA, and the United States GDP are $0.02, $0.44, $0.24, $0.32, $0.36, $0.04, and $0.56 trillion, respectively,” the report stated.

According to the 47-page report, the global estimate lies within the range of existing projections, adding that industry analysts and observers have offered a wide range of estimates for the potential valuation or addressable market size of the metaverse.

It disclosed that near-term estimates range from about $800 billion to upwards of $2 trillion over the next few years. Long-term estimates range from approximately $3 trillion to $30 trillion by the time the metaverse reaches widespread adoption, with the most optimistic estimate being over $80 trillion.

According to the report, a number of sources project that a mature metaverse could be a multitrillion-dollar industry, though they do not estimate the amount of time needed for the metaverse to reach maturity.

The metaverse, as conceived today, is considered by many as a ‘successor’ of the Internet. While there is no agreed definition of the metaverse, it can be seen as an expansive network of digital spaces, including immersive 3D experiences in augmented, virtual, and mixed reality, that are interconnected and interoperable so that there can be ease of movement between them, and in which one can create and explore with other people who aren’t in the same physical space as one.

Some have referred to the metaverse as an “embodied Internet” in, which individuals will feel as if they are actually “present” in experiences and not simply looking at experiences through their screens.

According to the report, an anticipated benefit of the metaverse is the creation of new markets and broader economic and social impacts. It explained that as with the Internet and other technologies, the form and shape of the metaverse will materialise slowly at first, and only after a critical mass of adoption is achieved, will its full potential begin to take more concrete shape.

It explained that in the United States, metaverse technologies are currently expanding access to sports, helping combat biases via simulations, and merging physical and virtual worlds in gaming.

In Africa, the report revealed that Africarare, which is referred to as “the first South African metaverse,”launched in October 2021. Africarare represents a digital land, Ubuntuland, and offers immersive VR experiences including a marketplace for art.

Already, Africa’s largest mobile network operator, MTN Group, announced in February 2022 that it had purchased 144 plots of virtual land in Ubuntuland and that MTN was the first African company to invest in the metaverse.