Citi’s ‘Metaverse and Money’ outlook suggests the virtual world ecosystem could grow to encompass 5 billion users.
Citi has published a new report predicting that the Metaverse could reach a total addressable marketplace (TAM), of as high as $13 trillion within the next few decades.
Global Perspectives & Solutions, (GPS) report released on Thursday, the bank’s analysts say the spike in interest in the Metaverse has the potential to push the virtual world’s economy to more than ten trillion dollars in the next seven or so years.
A ‘device-agnostic’ Metaverse
The next generation of the internet will be called the Metaverse. It will merge both digital and physical world realities. The immersive experiences will not be purely Virtual Reality-targeted, but one that’s “device-agnostic.” Per the GPS report, this will allow access via various devices, including smartphones, PCs, and game consoles.
According to the report, such a Metaverse could quickly expand and reach five billion users.
“Based on our definition, we estimate the total addressable market for the Metaverse economy could grow to between $8 trillion and $13 trillion by 2030,” the bank said in the report.
These are some of the issues that need to be addressed
The concept of the Metaverse is not entirely new, although ‘real’ interest in it only began to take root last year following the explosion of non-fungible tokens (NFTs). Meta Platforms (formerly Facebook) and other Big Tech companies’ entry into the ecosystem only served to jump the interest across the world.
The virtual world space is moving towards a point where many are integrating into Web3. The areas of commerce, art, media and media are some examples of use cases that are gaining momentum.
But while Citi analysts see the Metaverse as “the new iteration of the internet,” they believe there are issues that might need addressing to aid further innovation and growth.
This will likely be driven in part by increased attention from governments and other global regulators to the ecosystem. The bank believes that players within the Metaverse space must be prepared to address money laundering, property rights, the use of digital assets, and decentralised financing (DeFi) issues.