The expansive network of digital spaces, Metaverse, has been projected to contribute no less than $40 billion to the Gross Domestic Products (GDP) of Sub-Saharan Africa in the next ten years.
This is according to a study by Analysis Group (AG) titled, “The potential global economic impact of the Metaverse.”
The study, which was commissioned by Meta (Facebook) reveals that the metaverse has the potential to add an estimated $3 trillion to the global economy in a decade if adoption and growth are similar to mobile technology.
What the researchers are saying
- The Analysis Group researchers in their report, said: “Our estimates are that the metaverse could add in Sub-Saharan Africa 1.8% contribution to regional GDP, or $40 billion.
- “Our empirical analysis provides an aggregate measure of the metaverse’s total potential contribution to GDP over a medium-term time horizon—suggesting that if the metaverse were to be adopted and grow in a similar way as mobile technology, then we would expect it to be associated with a 2.8% contribution to global GDP after 10 years.”
- The researchers, however, noted that the impacts of the metaverse are likely to be felt differently in different sectors of the economy, in different regions, at different points in time, and for different people.
- “Over time, if the metaverse is successful, it will likely displace some existing technologies and industries, as prior technologies have done before. A direction for future research is to quantify these heterogeneous impacts and measure the potential displacement of industries and restructuring of local economies that may accompany the growth of the metaverse,” they added.
What you should know
- The metaverse as conceived today is considered by many as a “successor” of the Internet.
- It is an expansive network of digital spaces, including immersive 3D experiences in augmented, virtual, and mixed reality, that are interconnected and interoperable so you can easily move between them, and in which you can create and explore with other people who aren’t in the same physical space as you.
- Some have also referred to the metaverse as an “embodied internet” in which individuals will feel as if they are actually “present” in experiences and not simply looking at experiences through their screens.
- This means that interacting with the Internet (and the devices that provide access to the internet) has the potential to be much more natural, incorporating modes of communication that include gesture and voice, such that individuals are not limited to typing or tapping.
- In addition, the metaverse is envisioned to be able to host almost all the activities we currently take part in (e.g., socializing, work, learning, entertainment, shopping, content creation, etc.) and make new types of activities possible as well.