Citi’s View on the ‘Metaverse and Money’ Suggests the Virtual Ecosystem Could Expand to Cover 5 Billion Users
Citi has published a new report forecasting that the Metaverse could grow to a total addressable market (TAM) of up to $13 trillion in the coming years.
In the Global Perspectives & Solutions (GPS) report released Thursday, the bank’s analysts say rising interest in the Metaverse has the potential to drive a virtual economy worth more than ten trillion dollars within the next seven years or possibly beyond.
Metaverse ‘not tied to a single device’
Described as the next iteration of the internet, the Metaverse will blend physical and digital realities. Immersive experiences will not be limited to virtual reality alone but will be “not tied to a single device.” According to the GPS report, that model allows access across a wide range of devices, including smartphones, PCs, and gaming consoles.
The report notes that a Metaverse built this way could scale rapidly and reach as many as five billion users.
“Based on our definition, we estimate the TAM for the Metaverse economy could grow to between $8 trillion and $13 trillion by 2030,” the bank states in the report.
Several challenges remain
The Metaverse concept is not entirely new, although meaningful interest surged last year following the NFT boom. Meta Platforms (formerly Facebook) and other major technology companies stepping into the space have further amplified global attention.
By 2022, developments in virtual environments advanced toward convergence with Web3. Use cases gaining momentum span areas such as art, media, and commerce.
While Citi’s analysts view the Metaverse as a “new iteration of the internet,” they also identify a range of issues that will likely need to be addressed to enable sustained innovation and growth.
Regulatory scrutiny from governments and oversight bodies around the world is expected to increase, and the bank warns that participants in the Metaverse should prepare to tackle challenges related to money laundering, ownership rights, and the use of digital assets and decentralized finance (DeFi).