China’s Metaverse Economy Potentially a Trillion Market
China is expected to benefit massively from increased adoption of the metaverse. With opportunities in gaming, advertising and e-commerce, the country’s metaverse economy could see a boom.
According to a new JPMorgan research report, the new digital world where virtual reality (VR), augmented reality (AR) and the internet come together, will have “profound implications”. User experiences across a wide range of businesses will improve, boosting user penetration and revenues, the report said.
JPMorgan said that in the long term, “the metaverse could digitalize everything,” expecting China’s to grow towards a $4 trillion total addressable (metaverse) market, made possible by a shift from offline consumption across physical goods and services.
An example highlighted by the bank is China’s online-gaming market, which could grow triple its current size of $44 billion to $131 billion.
Furthermore, the new reality could “help internet companies tap into business services and potentially double the internet time spent,” with an estimated market of $27 billion in China for business services and software in the metaverse.
The metaverse will also push the entire technology, media and telecom (TMT) ecosystem in the country, with leading companies Tencent, NetEase, Bilibili, Sea and Krafton, to benefit.
There are some potential barriers to a metaverse adoption, JPMorgan analysts note. They include regulatory risk related to data security, and the technological preparedness and affordability of VR and AR devices, the network environment and AI.
China is well aware of the potential a metaverse transition brings, and is investing big in the space. Business capital Shanghai has already moved all-in and plans to significantly boost its metaverse and tech industry by injecting billions of dollars.
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Source: igaming
