The key trends shaping major metaverse projects

In the last few years, the metaverse has been frequently discussed in the media. Metaverse projects have also been incorporated into corporate strategic plans across various industries. It is a virtual space where people, through their avatars, spend their free time. Indeed, they can play video games, work, develop relationships and do whatever they do in real life.

The metaverse is a place where firms may conduct business and it is changing the way brands interact with customers.

But what is the situation today and what is the outlook for the future?

The metaverse

Of course, before discussing some current metaverse projects, we need to define what we mean by the word ‘metaverse’.

The term ‘metaverse’ actually first appeared in the science fiction book Snow Crash in 1992. It refers to a 3D virtual environment where software agents and avatars of people can interact.

A metaverse involves various elements such as virtual reality (VR), augmented reality, mixed reality, gaming, cryptocurrencies and social media.

Essentially, all real-life activities are moved into a virtual 3D space where avatars can socialize, spend money and play games. They can also conduct real-world business and these different opportunities are being harnessed as part of different metaverse projects.

Metaverse technologies allow people to replicate or enhance their physical activities. They do this either by transporting or extending physical activities to a virtual world, or by transforming the physical ones.

Moreover, through virtual reality peripherals like VR headsets, consumers can access the metaverse. They therefore bridge the gap between the virtual and physical worlds, meaning that metaverse projects offer many exciting prospects. For example, you could watch concerts or peruse the aisles of a grocery store without ever leaving your (physical) home. In fact, you could even visit the doctor, go to work or play games in a virtual reality setting.

According to Gartner, 25% of people will spend at least one hour each day in the metaverse by 2026.

The inception of the metaverse: Second Life

On 23 June 2003, the American company Linden Lab debuted Second Life, an online virtual world. What’s more, this innovation can be seen as the origin of numerous metaverse projects being developed today. This new media computer platform combined synchronous and asynchronous communication capabilities. It was employed by creative industries such as entertainment, art, education, music, film, role-playing games, architecture, computing and business.

Reaching a peak in 2013 of one million regular users, the growth of active metaverse users then levelled off. In 2017, metaverse users decreased to between 800,000 and 900,000.

The metaverse today

As can be seen from the range of metaverse projects being developed, the metaverse is getting significant attention today. This was particularly the case when Facebook redefined itself as a metaverse platform. Facebook’s decision appeared to assume that the next generation of social media will involve immersive environments. Alternatively, perhaps it was based on the metaverse being seen as the 3D internet, which will become pervasive over time.

Meanwhile, some companies have provided platforms for designing and running generic metaverse environments, like Roblox. Others have created platforms designed for specific types of metaverse, for example, gaming, the organization of events and e-collaboration. Notably, The Sandbox is one of the metaverse projects targeting the gaming industry.

More and more companies have now built, or are experimenting with, their own metaverse for business purposes. Of course, the goal is to find more innovative ways to interact with customers and do business online.

According to Marty Resnick (VP analyst at research firm Gartner), organizations are harnessing metaverse technologies in numerous practical ways. Examples of these include employee onboarding, sales enablement, higher education, medical and military training and immersive shopping experiences.

Metaverse projects

It is true to say that metaverse adoption varies a lot depending on the industry. As a general rule, metaverse projects are having more impact in the gaming, fashion and luxury industries.

Gaming

The gaming industry has adopted the metaverse as a platform where games are played. On the whole, gamers are more prone to investing in accessories like headsets and innovative games. 3D environments have also been popular among players for many years.

Among the metaverse-based games, Decentraland, Axie Infinity, Illuvium and Star Atlas are known to the public.

Moreover, the underlying Web3 technologies allow crypto and NFTs to be exploited. This enables the platform to be a place for investment and a source of revenue.

Fashion

Metaverse projects are being funded by many firms in the inherently ‘visual’ fashion sector.

For example, Nikeland is a virtual reality experience that Roblox and Nike have developed together. Users get access to Nike arenas, fields and buildings in Nikeland. In Nikeland, users can dress up their avatars in Nike apparel and footwear and play games.

Like Nikeland and other metaverse projects, the Givenchy metaverse (Givenchy Beauty House) also uses the platform Roblox. This is a metaverse where customers can experience products, interact with other customers and play and win prizes.

The Sandbox-based Gucci Vault Land is an experimental concept store that represents a careful curation of rare vintage Gucci pieces. What’s more, the ultimate goal is to educate the Web3 community on Gucci’s heritage via gamification. The Vault encompasses all of Gucci’s Web3 efforts including NFTs and the metaverse-based Gucci Garden.

In addition, Balenciaga, Prada and Thom Browne are active in the field of metaverse projects through a collaboration with Meta.

E-collaboration and smart working

Below are two examples from major tech companies:

The first example is the Omniverse platform, which was created by NVIDIA for virtual simulation and collaboration. It enables people and businesses from a variety of industries to handle the difficulties posed by complicated 3D workflows. Omniverse does this by connecting users with content production tools. The platform also facilitates the use of artificial intelligence (AI) across shared virtual worlds.

Microsoft has moved into the area of metaverse projects as well. Mesh is a platform designed to support Microsoft Teams. It will allow users to send messages, participate in virtual meetings and work together on shared documents. Furthermore, Mesh builds on features like ‘together mode’ and ‘presenter mode’ to enhance collaboration in meetings.

Metaverse projects: outlook and trends

The global metaverse market, according to Statista, is estimated to be worth $47.48 billion this year. It is predicted to grow to $678.8 billion by 2030 and other estimates are even higher.

Hence, a number of companies have appointed dedicated executives to head divisions focusing solely on metaverse projects. This suggests that there is a clear strategy behind the adoption of metaverse solutions.

Carol Hilsum (director of product innovation at Farfetch) says the metaverse will be the next big thing in luxury retail. This explains why fashion companies are establishing their digital footprint in the metaverse, thereby securing their future.

According to Marty Resnick, however, “widescale adoption of metaverse technologies is more than 10 years away”. Resnick recommends that we should “use this time for learning, exploring and preparing for a metaverse with limited implementation”.

Gartner has conducted research into the major trends shaping metaverse projects. This suggests that the biggest trends are related to digital humans, virtual spaces, shared experiences, tokenized assets and spatial computing.

Digital humans and advanced avatar technology

Digital twins, digital avatars, humanoid robots and conversational user interfaces are common examples of digital humans. They are AI-based systems that share some of the personality traits, knowledge and mindset of real people. 

Obviously, from a business perspective, digital humans will be employed within metaverse projects in customer-facing positions. These include customer service, support and sales roles.

In fact, avatars that represent us in the digital world will become more and more similar to us. This is thanks to photorealistic technology that will allow avatars to look almost exactly like people in the real world. Avatars will even adopt our own unique gestures and body language.

Web3 and tokenized assets

Another major trend impacting metaverse projects is the integration with Web3 technologies. Such technologies enable decentralization and asset tokenization and will foster the development of an economy within the metaverse.

The economy will be based on crypto and NFTs, which will be used to represent unique online goods and commodities. Moreover, blockchain technology will allow parties to safely manage both the ownership of digital assets and transactions. Blockchain is playing a crucial role in the development of various metaverse projects.

By 2027, apparently 25% of online retail companies will have finished at least one proof of concept in this area. This prediction has been made by Gartner and it relates to proof of concepts for tokenized assets leveraging metaverse technology.

Shared experiences and virtual spaces

As has been noted, the shared experiences trend is influencing a range of metaverse projects.

A shared experience connects a group of people within a virtual environment. The metaverse offers greater opportunities to meet, cooperate, interact, participate and otherwise share experiences across applications, consumer events and services. Indeed, the metaverse will become the main platform for social media applications. It will also be integral to activities that require people to meet, such as event organization. Education is yet another sector where such platforms will come into play.

Finally, we must consider the virtual spaces trend and how it will shape metaverse projects in the future. The virtualization of physical locations within the metaverse will allow people to enjoy experiences remotely without having to travel. The travel and tourism industry will be affected by this evolution as well as the enterprise e-collaboration platforms.

Conclusions

The word ‘metaverse’ has become a buzzword and this is not only in the hi-tech industry. Behind this hype, however, large companies are pursuing numerous metaverse projects. It seems that companies are investing in the metaverse, expecting it to become a key technology. Evidently, the metaverse has the potential to bring about new types of business and ways of interacting with customers. It also presents opportunities for employees to communicate differently with each other. Solutions such as these will not only affect our work lives but our social lives too.

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