Metaverse will be 2.4 per cent of US GDP by 2035

The metaverse could contribute as much as US$760 billion or about 2.4 per cent to US annual gross domestic product (GDP) by 2035, according to a study commissioned by Facebook owner Meta Platforms.

The concept of the metaverse includes augmented and virtual reality technologies that allow users to immerse themselves in a virtual world or overlay information digitally on images of the real world, according to the report by consulting firm Deloitte.

Economic gains may come from the use of the technologies in the defence, medical and manufacturing sectors, plus entertainment use cases such as video games and communication, the report said.

Social media giant Meta, which pivoted its focus on building metaverse technologies in 2021, has forecast the tech would eventually replace mobile as the main computing platform.

Investors have questioned Meta’s large investments in its metaverse project, sceptical of the returns at a time when a downturn in the advertising sector pressured the company’s revenue growth.

In a separate report, Meta said the European Union may see an increased economic opportunity of up to 489 billion euros (US$538.29 billion) in annual GDP by 2035 or about 1.3 per cent – 2.4 per cent of its total GDP.

The metaverse could contribute between C$45.3 billion (US$33.88 billion) and C$85.5 billion to Canada’s annual GDP by 2035, Deloitte said.

The regional projections follow a global economic impact report that Meta commissioned to consulting firm Analysis Group last year, which estimated that metaverse adoption would contribute US$3.01 trillion by 2031. South China Morning Post