Deployment of Metaverse Technologies by Ecosystem

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Jun 14

Few terms have risen and fallen as dramatically as ‘Metaverse’ At its peak in January 2022, the buzz surrounding the metaverse was almost deafening, promising to revolutionize how we interact with digital spaces. However, as with many hype cycles, the fervor has waned significantly—dropping to around 5% of its peak interest.

Why Has the Concept of the Metaverse Changed So Much?

Corporate Rebranding and Shifts in Strategy: One of the most notable events in the metaverse narrative was Facebook's rebranding to Meta in October 2021. This move was intended to signal a strategic pivot towards building the metaverse. While it initially generated immense interest and speculation, the actual implementation has faced numerous challenges. Meta's efforts have highlighted the difficulties in creating a fully immersive virtual world, causing many to reassess the feasibility and timeline of the metaverse vision.
Technological Hurdles and Adoption Rates: The technology required to fully realize the metaverse—such as high-quality VR and AR, advanced AI, and ubiquitous high-speed internet—has not yet reached the level of maturity and accessibility needed for widespread adoption. This has led to a slower-than-anticipated roll-out and integration into everyday life and industry, tempering the initial excitement.
Market Realities and Economic Pressures: The economic environment has also played a role in reshaping the metaverse conversation. Companies like Meta have had to balance ambitious metaverse projects with the need to generate revenue and manage investor expectations. As a result, there has been a strategic shift towards more immediate and practical applications of metaverse technologies rather than the all-encompassing virtual worlds initially envisioned.
Sector-Specific Focus: Early discussions about the metaverse often presented it as a one-size-fits-all solution. However, as industries have begun to explore and implement these technologies, it has become clear that the most impactful applications are highly sector-specific. For instance, the industrial metaverse focuses on enhancing manufacturing processes through digital twins and augmented reality, rather than creating social virtual worlds. This specialization has led to a more nuanced and realistic understanding of the metaverse’s potential.
Consumer and Enterprise Perceptions: There has been a divergence in how consumers and enterprises perceive the metaverse. While consumers might view it as an extension of gaming and social media, enterprises are looking at practical applications that can drive efficiency and innovation. This divergence has led to a shift in focus from the original, more consumer-centric vision of the metaverse to more practical, business-oriented applications.

But here’s the thing: just because the term "metaverse" has fallen out of favor doesn't mean the underlying concepts and innovations have lost their impact. The vision of interconnected virtual worlds, augmented reality (AR), and immersive experiences is still very much alive, reshaping industries from gaming and entertainment to remote work and education.

So, perhaps it’s time to rethink our terminology. The "metaverse" as a term may have faded, but its essence is thriving.

Rethinking the Industrial Metaverse

The Industrial Metaverse is the convergence of multiple technologies that together create an immersive three-dimensional virtual or a combination of virtual/physical industrial environment. As technology progresses, this metaverse will likely be accessible from any internet-connected device, including VR and AR devices, smartphones, tablets, laptops, and other equipment, from anywhere in the world.

Think of it this way: the industrial metaverse is not about escapism but rather about augmentation. It's about using advanced technologies to create a seamless blend of physical and digital realities that drive efficiency, innovation, and resilience in manufacturing and other industrial sectors. The best way to think about the Industrial Metaverse in 2024 is more like a Digital Twin on steroids that combines the interaction with people (employees, customers, suppliers, etc.) to provide a fully integrated experience.

In a report by Deloitte and the Manufacturing Leadership Council, the manufacturing industry is primed for the adoption of the industrial metaverse, given its ongoing digital transformation and progression towards the smart factory.

Industrial Metaverse Statistics

92% of executives stated their companies are experimenting with or implementing at least one metaverse-related use case. On average, companies are running more than six metaverse-related use cases.
Companies are generally implementing technologies like data analytics, cloud computing, AI, 5G, and IoT across multiple projects or are experimenting with individual projects. However, the current adoption of technologies like edge computing, wearables, extended and mixed reality, and blockchain is relatively low, which are crucial to take the next step in metaverse evolution.
Reduced cost was a primary benefit identified for all use cases.
Approximately 30% of the companies are identified as "pacesetters", which are ahead in metaverse implementation. On average, pacesetters are likely to invest in eight or more use cases and are committing 3.6 times larger investments to their metaverse initiatives.