Metaverse has become the buzzword for tech companies and startups across the globe over the last year. Despite the skepticism around this sector remaining high, some analysts think that it might turn into a $13 trillion industry by the end of this decade.
- As pointed out in the latest Bloomberg report, Citigroup analyst Andre Lin says that the metaverse industry will be valued at $8-13 trillion by 2030.
- This area includes firms developing educational, enterprise, gaming, manufacturing, entertainment, and healthcare services.
- In the first quarter, the number of companies mentioning the term “metaverse” in their filings increased by 40% year-year-over (via GlobalData).
- This sector, however, is still very risky for investments, considering that a lot of metaverse-related companies are now losing their capitalization. Meta shares have almost halved from their 2021 peak, with Roblox losing 76% of its previous peak market cap.
- “The metaverse will certainly become bigger than it is now, but whether it really takes over social media, and users start using the metaverse versions of Instagram or Facebook — as opposed to the current versions — that remains to be seen,” Morningstar Investment Service senior equity analyst Ali Mogharabi said.
- Despite the skepticism, analysts recommend investing in telco operators and equipment vendors like T-Mobile and Qualcomm, which “prove the pipes and gear that make the metaverse possible.”