Metaverse applications are ready to take over the world

Currently, the world is still figuring out what the metaverse is. However, the industry, especially the participating brands, believe that the metaverse is the future. Like cell phones, the metaverse can change the way we communicate. Many brands are getting involved in the evolution of the metaverse because they don’t want to be left behind. For this reason, there are already a few metaverse apps on the market. According to a recent report by TrendForce, the 5G market is expanding and will reach $14.5 billion by 2023. Furthermore, projections show that the market size will reach $37 billion by 2026 with a compound annual growth rate of 11.0%.

Source: Fortune

The report claims that the main reason for the strong growth is metaverse applications. These applications increase the demand for 5G networks. According to the report, 5G applications are working in various areas. They work primarily in technology, but also in manufacturing, energy, healthcare, smart cars, public transportation, and even consumer electronics.

The report also made a financial breakdown based on manufacturing at $37 billion in 2026. Using this value, industrial manufacturing would account for 32% of the app’s total manufacturing value. Medical applications will represent 15%, while smart cars as well as public transportation will represent 25% of total production. As for consumer electronics, it will make up 10% of total production.

Metaverse still has a long way to go

According to TrendForce, Metaverse is a new application service. At present, most brands in the game are still in the early stages of development. Furthermore, technologies such as AR/VR and detection operations still need time to develop. Also, the industry does not know exactly the needs of the metaverse application, but the development is fast. There are projections that growth in the metaverse in the next 2-3 years will be explosive. In fact, the metaverse is taking over the world. Metaverse advancements focus on community, multiplayer gaming, education, simulation training, construction, virtual meetings, and more.

Metaverse

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Telecom brands also see business opportunities in the metaverse. Right now, major telecommunications brands around the world are taking a subtle interest in the metaverse. Companies such as Nokia, Ericsson and Huawei are currently investing in the metaverse. Since 5G has ties to the metaverse, it’s no surprise that these brands are investing. Huawei, Ericsson and Nokia are the major players in the development of 5G network equipment. Thus, the metaverse will mean good business for these brands.

Shanghai announces first batch of major Metaverse apps

The Shanghai Municipal Commission of Economy and Information Technology (SMCEIT) recently issued a “Notice on the Release of Major Application Scenarios for Shanghai Metaverse 2022” (hereinafter referred to as the “Notice”). The “Announcement” points out that in order to implement the “Shanghai City Action Plan to Cultivate the New Track ‘Metaverse’ (2022-2025)”, SMCEIT launched the main application scenario standard City metaverse. This standard reveals the list of what the most important applications must have.

SMCEIT said that after public solicitation, expert testing and needs assessment, it has formed an excellent breeding center around business operations, classroom teaching, cultural tourism, branded entertainment, smart manufacturing, medical health and digital cities. In 2022, Shanghai’s first batch of the metaverse’s list of key requirements for use cases arrived. The list is now public to request solutions from major domestic and foreign brands, colleges and universities, and scientific research institutes. This is good for promoting the correlation between supply and demand.

From the attached notice, the first batch of major application scenarios for Metaverse in Shanghai in 2022 includes seven scenario categories. They include medical health, digital city, classroom education, commercial operations, branded entertainment, cultural tourism and smart manufacturing.

India will become the third largest 5G market in the world by the end of 2023

India is one of the largest technology markets in the world. In terms of mobile phones, it is the second largest market, after China. Although this market is large, it is not a flagship market, that is, it is not a market where the flagship product thrives. Thus, the adoption of 5G networks in this region has been quite slow. Nevertheless, it is already a few months after the public adoption of 5G in India. Omdia’s latest report highlights that the global economic slowdown will cause problems in the telecommunications market. However, demand for telecom services will remain high, which will help cushion the impact on the industry. Global mobile services revenue growth is expected to slow to 2.54% in 2023 from 3.78% in 2021.

Metaverse

Omdia said the next wave of 5G services will come from low-income markets. Many of the upcoming 5G networks will be in low-income markets in Africa, Central and South Asia, and Latin America. By the end of 2023, India is expected to become the world’s third largest 5G market by number of users.

The report also claims that the telecom market will usher in a new wave of collaboration. Telecom brands are likely to pool their resources to achieve a mutually beneficial outcome. With modest revenue growth and high network costs, many in the industry believe that mergers and acquisitions are critical to success.

At the same time, the operators will tighten their business orientation. Many brands will refine their business orientation, which may lead them to divest non-strategic assets and businesses. Some brands may consider selling or bringing in relevant investors.

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