As the Crypto sector has evolved in recent years, one market segment that has continued to attract interest from retail and institutional individuals is the Metaverse.
(Photo by julien Tromeur on Unsplash)
In Short
Certain developer-centric limitations still impede the adoption of VR and the Metaverse.
The quality of VR hardware has increased considerably in recent years.
Is Virtual Reality destined to drive the growth of the Metaverse?
Conservative estimates suggest that the Metaverse ecosystem is poised to scale to $824.53 billion by 2030 - valued at just $27 billion in 2020 - growing at a CAGR of 39.1%. In essence, the Metaverse represents a 3D version of the Internet designed to mimic real life within a virtual environment.
It uses many immersive technologies, and Virtual Reality (VR) represents the ultimate experience offered by this paradigm. However, as things stand, the VR infrastructure we have today lacks some key elements that may be necessary for the growth of both markets in short to medium term.
Where is the link between Virtual Reality and the Metaverse?
The experience of having your senses absorbed in a virtual world is unrivaled. Many experts see VR going hand in hand with the Metaverse. In this regard, both technologies have the backing of several visionaries, such as Mark Zuckerberg. He recently revealed that people who want to access the vast digital ecosystem of the Metaverse would be able to do so much more easily using Oculus VR headsets rather than traditional media and interfaces.
Mary Spio, founder and CEO of the platform CEEK, believes that the true power of the Metaverse can only exist when combined with VR technology. In her opinion, a growing list of metaverse projects is starting to focus on VR elements. VR offers complete immersion and helps establish a sense of presence, genuine emotions, and memories that are no different from being in a place in real time.
The Metaverse requires certain aspects of VR and non-VR technologies for mass adoption because most current VR projects (including blockchain gaming) lack critical parts. Components such as a blockchain framework, incentive program, or a well-designed economic setup significantly limit their commercial reach and popularity.
Finally, we cannot ignore that there are still certain developer-centric limitations that impede the adoption of VR and the Metaverse. While Oculus, HTC, and a few other companies have addressed these issues to a large extent, primarily by creating headsets that are not only highly affordable but also portable - there are still connectivity and on-site navigation issues that they need to resolve.
Will Virtual Reality drive the Metaverse growth?
One of the hottest questions on the minds of most technology enthusiasts today is the effect VR can have on the Metaverse. Simply put, VR-based technology is essential for the Metaverse to function and realize its true potential. The Metaverse requires users to access a virtual universe that is highly dynamic and therefore relies on a means of interaction that puts people at the center of the action.
Moreover, over time, it is logical that the demand for high-quality VR software will continue to increase, as it is necessary not only to program the online world inhabited by the Metaverse but also to communicate with the VR headsets worn by users.
In this regard, the modern VR industry has come a long way in recent months, with an increasing number of mainstream entities entering the field in the last couple of years. For example, tech giant Apple recently unveiled a teaser of its VR headset, a move mimicked by other companies such as Microsoft, Virion, etc.
Finally, the quality of VR equipment has increased significantly in recent years. In contrast, production costs have decreased, making more and more people buy the equipment needed to have a holistic and complete experience of the Metaverse.
The future of the Metaverse
VR and metaverse-related use cases continue to filter into new areas. Fashion, education, healthcare, and manufacturing will expand rapidly. Studies show that the Metaverse will contribute $3 trillion to the global Gross Domestic Product (GDP) over the next decade.
Finally, researchers have found that Metaverse+VR-enabled platforms could add $0.44 billion and $1.04 billion to the European and Asian economies over the next ten years. So, as decentralized technologies continue to attract more people every day, it will be intriguing to see how the future of this space unfolds.
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