The Metaverse, a shared virtual 3D world that is interactive and collaborative, facilitated by virtual and augmented reality, has gained significant attention in 2021, particularly since Facebook rebranded itself as Meta Platforms. This emerging market offers a substantial investment opportunity for the coming years, with companies from various industries joining the Meta bandwagon.
Market Growth and Opportunities
Bloomberg Intelligence expects the market opportunity for the Metaverse to reach $800 billion by 2024, with the primary market for online game makers and gaming hardware topping $400 billion in 2024. The global metaverse market size is predicted to attain $936.6 billion by 2030, with a CAGR of 41.6% from 2023 to 2030. Companies are clamoring for the metaverse edge, and enterprise investment into the space is growing. The total addressable metaverse market could reach up to an estimated five billion users and generate revenues of between US$8 trillion and US$13 trillion by 2030.
Investing in Metaverse-related Stocks and ETFs
Investing in metaverse-related stocks is unlocking new investment opportunities. ProShares Metaverse ETF (VERS) and Roundhill Ball Metaverse ETF (METV) are two ETFs gearing up to capitalize on the metaverse boom. Tech giants like Alphabet, Amazon, Linden Labs, Meta, and Microsoft are investing heavily in creating their own metaverse platforms, making them potential investment targets for those looking to enter the metaverse market.
Artificial Intelligence and the Metaverse
Artificial intelligence (AI) is key to the buildout and powering of the metaverse and is expanding in tandem with immersive technology. The technology’s potential lies in how it can aid industries, such as by using virtual reality (VR) to perfect fabrication plans more efficiently and collaboratively. New use cases for the metaverse were promoted and unveiled at this year’s CES, including VR experiences for rear-seat passengers and virtual showrooms.
Risks and Considerations
There are many risks associated with investing in the metaverse, both known and unknown. As with any emerging market, investors should be cautious and conduct thorough research before making any investment decisions. The metaverse’s primary use case so far has been gaming, but it can offer several other opportunities such as online business sessions, collaborative projects, and online shopping. As the metaverse continues to evolve, investors should stay informed and adapt their strategies accordingly.