Metaverse: Strong early pick for Metaverse technology but widespread adoption may take 8-10 years: Nasscom report

Metaverse technology is seeing a strong early revival, though widespread adoption is likely 8-10 years away, according to a report from industry association Nasscom. Metaverse has many interpretations.

However, with a growing consensus around the key characteristics of this technology, Metaverse refers to a continuous and immersive virtual world experience with a digital-physical fusion that allows for interoperability and synchronization to enhance a user’s ability to meaningfully interact, transact, and move virtual identity, assets, and data from one realm to another.

“While widespread adoption of the Metaverse is likely 8-10 years away, with the majority implementation at the POC (Proof of Concept) or MVP (Minimum Viable Product) stage, the space is seeing strong early adoption,” said the report from National Association of Software and Services Companies (NASCOM) along with McKinsey and Company as Knowledge Partner.

The report looks at major trends in adoption, potential applications for the Metaverse, and opportunities for service providers to take an active role in this development.

The Enterprise Metaverse adoption maturity trends are similar to those for AI in 2017.

A survey by McKinsey and Company found that in 2022, 57 percent of implementation managers have Metaverse initiatives in the works, both long- and short-term.

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The Metaverse has come a long way with recent technological developments to become the next evolution of the internet. While the term “Metaverse” has been around for nearly two decades, the new internet avatar has seen exponential development driven by the technological revolution, consumer readiness, and the advent of consumer-led marketing.

“Significant private equity/venture capital investments and strong M&A commitments were announced in the first half of 2022, valued at more than US$120 billion (based on estimates between January and May 22),” Nasscom’s statement said.

Companies are starting to implement metaverse use cases across the value chain.

By 2030, sectors such as retail, manufacturing, media, healthcare, telecom, professional services, and banking are likely to be major spend drivers for Metaverse’s enterprise use cases.

Emerging use cases in customer engagement, omnichannel customer support, and real-time simulation of product design are gaining traction, Nasscom reports.

It is also expected to “mimic” the future of labor-workforce collaboration.

Several initiatives are under way such as re-imagining learning and development using learning suites based on AR/VR (Augmented Reality/Virtual Reality) with virtual trainers, creating immersive recruitment and employee training with avatar interaction and communication with employees at job fairs and imagining digital twin offices for employee collaboration and meetings .

However, the technology’s potential will be broadly determined by factors such as clarity about return on investment, technology and talent readiness, and the ability to address societal concerns.

According to an independent study by McKinsey and Company, 30-40 percent of CXOs surveyed report that uncertain returns on their Metaverse investments and initiatives remain experimental.

She said that the pool of emerging talents in the fields of 3D/technical artists, motion designers, graphics engineers, software engineers and AR/VR, etc. will be key to realizing large-scale Metaverse capacity building in the future.

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