Revenue Growth for Earth Based Metaverse projects utilising Augmented and Virtual Reality.
The metaverse, a term coined by Neal Stephenson in his novel Snow Crash, refers to a shared virtual space where users can interact with a computer-generated environment and other users in real-time. As technology advances, not unsurprisingly the metaverse is becoming increasingly more immersive and realistic, thanks due to the impact of Augmented Reality (AR) and Virtual Reality (VR).
Most people would associate the term metaverse with virtual gaming worlds (Sandbox, Decentraland), but nowadays there are a number of metaverses based on a version of Earth (see https://www.earthbasedworld.com) overlaid virtual plots of land (Next Earth, Superworld, OverTheReality). In these Earth based worlds, users can interact with virtual objects, buildings, streets, open spaces and people in a way that mimics real life. Imagine walking down a street, looking at virtual advertisements and storefronts, and meeting up with friends who are located halfway across the world.
AR and VR technologies are having a profound impact on earth based metaverse and enabling design and development of multiple reality scenarios.
AR, for example, can be used to overlay digital information onto the physical world, creating a seamless integration between the real and virtual environments. Allowing users to interact with virtual objects and characters while still maintaining a connection to the physical world around them. For instance, users could see digital overlays of traffic signals, buildings, and other important landmarks while navigating the digital landscape.
VR, on the other hand, provides a fully immersive experience that transports users to a completely digital world. By wearing a VR headset, users interact with digital objects and characters in a way that feels incredibly realistic. This allows for new forms of entertainment, such as fully immersive video games and social platforms.
By bringing together AR and VR, one of the most significant effects of the metaverse is the potential for new forms of social interaction. In a digital world, users now can create avatars that represent themselves, allowing them to interact with others in ways that are impossible in the physical world. For instance, users could create avatars that reflect their idealised selves or create entirely new identities, maybe an alter-ego, that differs from their actual physical appearance.
Additionally, the use of AR and VR in the metaverse has significant economic implications. In a digital world where real estate is entirely virtual, users can buy and sell digital virtual plots of land, creating a new form of virtual real estate market. Users can also create and sell virtual goods, such as clothing and accessories for their avatars, in effect creating a new form of virtual commerce.
Another potential area where AR/VR can have a significant impact on the metaverse is the potential for new forms of education and training, whereby users can learn and train in immersive environments that mimic real-life situations, providing safe and controlled environments for learning. For example, medical or dental students could practice surgery in a virtual operating room, or pilots could practice flying in a virtual cockpit or firemen could practice unusual rescue scenarios.
Despite the potential benefits of AR and VR in the metaverse, there are also topics to be considered, such as the impact that these technologies could have on society. For example, the use of AR and VR could further exacerbate social isolation, disconnection, and insecurity, as users become more invested in their digital identities than their physical ones. Additionally, the use of AR and VR can have negative impacts on mental health, as users become more immersed in a digital world and disconnect from reality.
It is difficult to predict, over the next few years, whether AR or VR will be more widely adopted and consequently generate more revenue for Earth based metaverses. However, several tech companies have provided their perspectives on this question.
Meta CEO, Mark Zuckerberg, has been a strong proponent of the potential of VR to create immersive social experiences in the metaverse using their VR Oculus headset. In his view, VR will be the dominant technology in the metaverse in the coming years. In an interview with The Verge in 2021, he stated, “I think VR and AR are going to be huge… I think VR is going to be the biggest medium of the next generation.”
On the other hand, Apple, which has not yet released any direct VR or AR headset, has been more focused on AR as the dominant technology in the metaverse. Apple’s CEO, Tim Cook stated that he sees AR as a more accessible technology that can enhance the real world, whereas VR is more focused on providing immersive experiences that take users out of the real world. In a 2021 interview with The New York Times, he said, “I’m excited about AR because I think it amplifies human performance instead of isolating humans.”
It’s also worth noting that some companies are exploring hybrid solutions that combine both AR and VR. For example, Microsoft’s HoloLens is an AR headset that can also create virtual environments, while Meta has announced plans to release a mixed reality headset that combines elements of VR and AR.
In terms of revenue, it’s difficult to predict which technology will generate more metaverse growth by 2030. According to a report by Grand View Research, the global virtual reality market is expected to reach $62.1 billion by 2027, while the AR market is projected to reach $340.16 billion by 2028. This would suggest that AR will become more widely adopted (5 times) and lead market share, however, these all still projections which are highly likely to change based on technological advancements, market competition, and consumer preferences going forward.
In conclusion, the impact of AR and VR on the metaverse is significant today and will be far-reaching in the future. These technologies have the potential to create entirely new forms of social interaction, commerce, and education.
So as Earth based metaverses continue to evolve and grow capability, capacity and content, how much of the AR/VR predicted explosive growth will Earth based metaverses eventually benefit from?