The Metaverse: Technology trends – Verdict
The metaverse brings together a range of next-generation technologies from cloud computing to artificial intelligence (AI), blockchain, cryptocurrencies, cybersecurity, the internet of things (IoT), virtual reality (VR), augmented reality (AR), digital twins, and adtech.
Listed below are the particular key technology trends impacting the metaverse theme, as identified by GlobalData.
VR and AR
The metaverse is the next big theme in digital media, and VR and AR are crucial technologies driving its development. These two systems will make the metaverse immersive plus allow users to interact with virtual objects, people, and environments. Although both VR and AR are within nascent stages of development and the metaverse is still largely conceptual, AR will have edge over VR in the short run. This is due to AR’s accessibility through web browsers plus smartphones compared to bulky VR headsets.
Companies like Meta, Microsoft, and Lenovo are making heavy investments in developing metaverse-related VR and AR. In 2021, Meta invested $10bn in developing VR and AR hardware plus software to achieve its metaverse vision. In April 2022, Lenovo announced a five-year plan in order to invest $15bn in metaverse research focused on VR and cloud services.
On the consumer front, AR and VR metaverses are focused on gaming, ecommerce, social press, and live events. A fair share of the particular investments going into VR and AR over the next three years will be focused on developing metaverse experiences plus platforms.
AI is a vital tool for the metaverse, affecting all aspects of the value chain. It will support computing capabilities in semiconductors, process user data generated on devices, create virtual worlds and avatars within software platforms, and allow content creation plus interactivity within experiences, making the metaverse immersive and engaging.
Tech giants are investing in building AI to build their metaverse abilities. In March 2022, Qualcomm announced a $100m fund to assistance developers plus companies integrating AR and AI in their metaverse platforms plus experiences. Meta is also working on unified AI models that can understand multiple modalities, meaning they can read lips while listening for better speech recognition or identify policy-breaking social mass media posts simply by analysing text, image, and video simultaneously.
Game developers are using AI to improve the particular intelligence associated with non-playing characters, while social media firms use AI for content moderation, safety and privacy, and article marketing assistance.
The importance of AI will increase as technology such because AR plus VR mature, more customers signup in order to the metaverse, and new use cases emerge within the coming years. The enormous volumes of data produced on the metaverse will also require AI with regard to interpretation and analysis.
The particular immersive plus ubiquitous facets of the metaverse will increasingly demand impair computing tools to process, store, and analyse the data generated upon platforms. The metaverse platform will not succeed if it cannot deliver the seamless consumer experience or even struggles to scale. Within March 2022, Nvidia launched the Omniverse Cloud, a suite associated with cloud services that gives artists, creators, designers, plus developers access to Omniverse for 3D design collaboration and simulation.
Cloud solutions providers such as Amazon, Google, Microsoft, IBM, and Alibaba will benefit from the growing metaverse theme. They will record increased demand for their services through metaverse systems desperate to access on-demand compute, storage, and analytics providers. As the particular metaverse expands over the next three years, system owners will certainly also demand edge computing solutions.
Web3 is an ideology that relates in order to the underlying infrastructure of the metaverse. It will rely heavily on blockchain technologies and be designed and managed by communities. Web3 may provide solutions to some limitations of Web2, specifically related to issues with the ownership and control of content material and data. It will be a reaction to the walled ecosystems owned by Big Technology companies such as Meta, Alphabet, Amazon, and Alibaba, which do not allow users possession over articles or visibility into how their data is used.
Web3 plus the metaverse are often misinterpreted since the same because both integrate similar technologies like blockchain, AI, and cloud. As the result, despite their fundamental differences, the development of one can, by default, fuel the particular progress of the other.
Non-fungible tokens (NFTs)
Large companies from sectors including beverages, music, ecommerce, entertainment, sport, and tourism are usually also gravitating towards NFTs. These companies are bringing NFTs plus the metaverse to the attention associated with investors, media, and consumers. According to Dapper Labs, the particular NBA’s Top Shots, a marketplace to buy, sell, and collect NBA NFTs, has created over $700m in sales between 2019 and August 2021.
NFT sales amounted to $18. 5bn within 2021, posting a 570-fold increase through 2020, as avatars and digital art gained popularity, according in order to NFT information aggregator CryptoSlam. With forecasts suggesting that will the market for brand new NFTs will surpass $30bn in 2022, many brands view NFTs as a gateway into the metaverse and a new revenue stream.
This is an edited extract from the Metaverse – Thematic Research report produced by GlobalData Thematic Research.