METAVERSE: A FUTURE OR A REALITY ALREADY IN 2025?

The metaverse is a fascinating combination of reality and science fiction fantasy that has revealed itself as an ever-evolving digital reality. This virtual space once thought to belong only to the realm of futuristic novels and films, has entered our daily lives with force, becoming a melting pot of possibilities. It invites us to explore, interact, and collaborate in ways that challenge our traditional notions of space and time, redefining what we mean by human experience.

In essence, the term “metaverse” refers to a simulated environment that emerges from converging different platforms and technologies to create mutual, immersive experiences. It is a realm where users can interact with digital artifacts and other users in real time, blurring the boundaries between the physical and digital worlds.

Within 5 years, hundreds of millions of virtual reality tools and platforms are expected to be in use by consumers and businesses around the world. By the end of this decade, these technologies could be more ubiquitous than phones. In 2024, the digital universe is experiencing significant technological advancements driving its growth and development. Two main ones are augmented and virtual reality (AR and VR) and innovations in user interface and interaction. However, other trends, such as interoperability between virtual environments and the use of artificial intelligence, are also driving changes and advancements in the Metaverse.

With the Metaverse rapidly evolving in 2024, major brands have realized the enormous potential this virtual space offers for marketing and consumer engagement. Virtual worlds are becoming a new arena for businesses where companies can not only sell their products but also create unique digital ecosystems that engage users more deeply. Industries including fashion, automotive, technology, and entertainment are embracing this new format. They are strengthening their presence through virtual stores where users can interact with products and services in a completely digital environment.

Brands are also hosting exclusive events such as virtual fashion shows, concerts, or product launches that are becoming major events in the Metaverse and helping them stand out from the competition. All of this is accompanied by the creation of unique brand experiences that increase brand recognition and strengthen customer loyalty. This transformation allows brands to significantly expand their reach and reach previously inaccessible audiences, including users from other countries and cultures, as well as those who are actively engaged in digital technologies and worlds.

Moreover, the Metaverse provides companies with the opportunity to experiment with forms of interaction that would not be possible in the physical world. For example, virtual spaces can offer interactive games, personalized quests, or organize participation in the creation of a product in real time. This opens up wide horizons for creativity and innovation, allowing brands to create deeper and more emotionally rich connections with consumers, which ultimately contributes to the formation of a new form of interaction between a business and its audience. In this new digital environment, brands are exploring various strategies to strengthen their relationships with users. By creating virtual stores, brands can offer products and services in an interactive and immersive way, allowing users to explore and experiment with their products in three dimensions.

These initiatives allow brands to strengthen their image and engage with their audience more effectively, using the unique characteristics of the Metaverse. By being present in this ever-evolving digital environment, brands can have a significant impact on users' digital lives, influencing their purchasing decisions and building long-term relationships.

The global metaverse market was valued at US$40 billion in 2021 and is estimated to exceed around US$1,607.12 billion by 2030. Furthermore, the report predicts that the e-commerce industry is likely to benefit the most, with an estimated market impact of US$2 trillion to US$2.6 trillion by 2030, followed by the academic virtual learning market (US$180 billion to US$270 billion), advertising (US$144 billion to US$206 billion), and gaming (US$108 billion to US$125 billion). With such market forecasts, geopolitical competition is inevitable. As the idea of ​​this technology becomes mainstream, more companies from the gaming industry to luxury fashion brands are entering the fray. Ultimately, however, the status quo remains the same: companies headquartered in the US and China are at the forefront of the race.

China has signaled that it is willing to embrace the metaverse, but has also issued several cautionary notes to remain rational “in understanding the current metaverse mania.” A new Chinese industry group, the Metaverse Industry Committee, has been created under the supervision of the state-run China Mobile Communications Association (CMCA) and may signal that China is ready to embrace the new digital world. Meanwhile, the city of Shanghai has decided to encourage the use of the metaverse in government services, business offices, and other areas.

Other countries are joining the “race,” with Barbados, South Korea, Dubai, and Spain making their announcements. Barbados plans to open the world’s first embassy in the Decentaland metaverse. The Barbados government is also finalizing deals with other online platforms to buy land, build virtual consulates and embassies, provide e-visas, and build a teleporter that will allow users to move their avatars between different metaverses. Meanwhile, South Korea is investing around US$177.1 million, with its capital Seoul planning to be the “first major city” to enter the metaverse.

Moreover, the Emirate of Dubai has announced the launch of the Metaverse Strategy, which aims to transform Dubai into one of the world’s digital economies and a global hub for the digital world community. The Spanish government has promised grants to small and medium-sized enterprises (SMEs) and independent contractors based in Spain or the European Union that are involved in research, development, and innovation projects that integrate Web3 and Metaverse technologies.

Margrethe Vestager, head of the antitrust bloc, said that the EU is analyzing the metaverse landscape before deciding how to regulate it and its potential impact. Accordingly, the European Parliament has commissioned a study examining the potential benefits and challenges of the metaverse, to help members and staff of the European Parliament as a backdrop to their parliamentary work. Despite the widespread debate in the United States, the government has remained resolutely silent. Discussion of the metaverse among policymakers is still in its early stages; a group of U.S. representatives has created the Congressional Virtual, Augmented, and Mixed Reality Task Force to educate lawmakers and their staffs on this emerging technology.