The contribution to GDP in 2031 from the metaverse could be $3 trillion if adoption begins in 2022, according to economists from Analysis Group
BOSTON, May 16, 2022 /PRNewswire/ -- Economic experts at Analysis Group, one of the largest international economics consulting firms, released a report suggesting that if metaverse adoption and impact evolves similarly to mobile technology, it could contribute 2.8% to global gross domestic product (GDP) in the 10th year after adoption begins. If started in 2022, adoption of the metaverse over the next 10 years could lead to a $3-trillion contribution to global GDP in 2031. Like mobile technology, the metaverse is expected to have far-reaching applications, with the potential to transform a wide range of economic sectors such as education, health care, manufacturing, job training, communications, entertainment, and retail.
The analysis, https://www.analysisgroup.com/metaverse, adapts research on previous breakthrough technologies to draw inferences about the potential adoption process and economic impact of the metaverse. The metaverse, which is still in its formative stages, is envisioned to comprise an expansive network of digital spaces enabled by developing technologies such as augmented reality (AR), virtual reality (VR), and mixed reality (MR).
The analysis centers on measuring the potential economic impact of the metaverse if it were to evolve like prior successful technologies in terms of the rate of adoption by users and the impact on GDP. The researchers selected mobile technology as an appropriate analog because of similarities to the metaverse in the way it combined existing and nascent innovations to fundamentally alter global technological and economic landscapes.
The team drew from academic literature on the development cycles for innovative technologies and on publicly available data for the deployment and adoption of mobile technology over a number of years to assess direct, indirect, and catalytic or stimulative impacts. These factors are important for GDP, including job creation, business growth, and economic development.
Region | Metaverse's Share of 10th-Year GDP | Metaverse's Total Contribution to GDP in 2031 if |
Asia-Pacific (APAC) | 2.3% | $1.04 trillion |
United States | 2.3% | $560 billion |
Europe | 1.7% | $440 billion |
Middle East, North Africa, and Turkey (MENAT) | 6.2% | $360 billion |
Latin America (LATAM) | 5.0% | $320 billion |
India | 4.6% | $240 billion |
Sub-Saharan Africa (SSA) | 1.8% | $40 billion |
Canada | 0.9% | $20 billion |
Global Impact | 2.8% | $3.01 trillion |
The study was authored by Analysis Group Managing Principal Laurits Christensen and Manager Alex Robinson, who were supported by a team of economists. Funding was provided by Meta.
To learn more about Analysis Group's capabilities, visit AnalysisGroup.com.
About Analysis Group:
Analysis Group is one of the largest international economics consulting firms, with more than 1,000 professionals across 14 offices in North America, Europe, and Asia. Since 1981, we have provided expertise in economics, finance, health care analytics, and strategy to top law firms, Fortune Global 500 companies, and government agencies worldwide. Our internal experts, together with our network of affiliated experts from academia, industry, and government, offer our clients exceptional breadth and depth of expertise.
Contact:
Analysis Group
Eric Seymour, +1 978 273 6049
eric.seymour@analysisgroup.com
