‘Metaversum’ is the latest buzzword capturing the imagination of the tech industry and also making the fashion industry sit up and take notice of the potential for creating tremendous growth opportunities. Not to mention that it enables brands and retailers to offer their customers advanced immersive and interactive digital experiences.
According to the study by the market research company Global Industry Analysts Inc. (GIA) “Metaverse – Global Market Trajectory & Analytics” the answer to the question posed in the title is ‘yes’, since the worldwide metaverse market will reach 194.4 billion in 2022 US dollars (almost 172 billion euros). By 2026, it is expected to grow to an impressive 758.6 billion US dollars (almost 671 billion euros) with an average growth rate of more than 37 percent.
What is the metaverse?
Simply put, the metaverse is the integration of an immersive presence in a virtually interactive, self-sufficient ecosystem of mobile networks, augmented reality, social media, gaming, virtual reality, e-commerce, cryptocurrencies, and diverse workspaces.
It is seen as the future of the internet as it brings together augmented reality (AR), virtual reality (VR) and physical worlds in a common digital space. Evidence of this is the booming NFTs and online events that are also gaining traction in the fashion industry, creating a number of opportunities for the metaverse and related technologies.
“With the pandemic providing a much-needed impetus to a changed global perspective on interaction and immersive socialization, the conversation about the metaverse has resurfaced, and with the likes of Meta, Google and Microsoft joining it, the Dialogue is intensifying and is heading towards realization in the form of rising interest in funding projects, a growing reach of technology collaborations, a paradigm shift in the marketplace and an overwhelming response from users,” GIA predicts in the report.
But, there must be no sleeping, because the competition for market dominance has already begun, even if the technology is still in the development stage. However, various companies are already investing in several Metaverse projects, acquiring companies that can help them move forward, and engaging in research projects.
What opportunities does the metaverse offer for the fashion industry?
On the design side, the Metaversum offers designers the freedom to leave the two-dimensionality of the physical product and develop in three or more dimensions. On the user side, the need for digital identities that can be dressed in a variety of trendy ways will grow.
For brands and retailers, the Metaversum offers the opportunity to also be present in the virtual world and to expand this presence constantly and in a contemporary way through immersive experiences, thus further retaining customers.
In addition, NFTs and virtual designs offer possibilities in terms of storage, delivery and logistics that physical products can only dream of. Not to mention custom-made products for customers, which can be done digitally much more easily and without any problems.
Which countries are currently ahead?
The US Metaversum market was valued at $58.5 billion in 2021, accounting for 41.2 percent of the global market, the current leader. According to the study, China should reach an estimated market size of 103.1 billion US dollars (more than 91 billion euros) in 2026 with annual growth of over 38 percent.
“Other notable geographic markets include Japan and Canada, which are forecast to grow 31.3 percent and 29.6 percent, respectively, over the analysis period. Within Europe, average annual growth of around 36.8 percent is forecast for Germany, while the rest of the European market (as defined in the study) will reach US$ 59.5 billion by the end of the analysis period,” summarizes GIA in the study.