Metaverse, Thought It Was Just Around the Corner but Still a Distant Reality? [Next.Jjin]

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Mark Zuckerberg, CEO of Meta Platforms, the parent company of Facebook that declared the metaverse era, is reportedly focusing on developing the first augmented reality (AR) glasses with a target launch in 2024. According to IT media The Verge on the 18th (local time), Meta plans to release its first AR glasses two years from now as part of Project Nazare, followed by upgraded versions in 2026 and 2028. Meta is optimistic that AR glasses can grow into futuristic hardware like Apple's iPhone.

AR glasses are devices that add digital information based on reality using AR technology, allowing users to directly experience it through glasses, thereby creating a foundation for connecting and communicating with others. It is a core technology for expanding the metaverse. Currently, Apple is leading the fastest development, and Meta is working on it alongside Microsoft (MS). CEO Zuckerberg expects that using AR glasses will provide a more immersive experience than video calls.

However, contrary to his dreams, the general outlook is that AR glasses will not become mainstream immediately. There are still many issues to resolve such as battery life, price, and usable regions, so development will inevitably take more time. Meta is also reported to expect to sell only tens of thousands of the first AR glasses to be released in 2024. The Verge quoted a Meta official saying that it could take "decades" for AR glasses to fully establish themselves.

Heard of it but don’t know what it is... Instead of SNS? Well...

From this perspective, AR glasses are expected to grow alongside the metaverse. The metaverse was a buzzword that swept the world last year. Even people uninterested in IT industry news have heard of it at least once, as various sectors such as electronics and distribution brought up the term. Last year, domestic companies in Korea expanded the use of the metaverse for marketing or internal training. Since the global social networking service (SNS) Facebook changed its name to Meta and made the metaverse its core business, it is safe to say that tremendous interest poured in.

(Source=Gartner)

But do you really feel how the metaverse will come into our lives? Have you ever wondered what you would actually do with it? According to market research firm Gartner, a survey conducted in January among 324 U.S. consumers found that only 6% could accurately recognize and explain what the metaverse is. 35% of consumers said they had never heard of the metaverse, while 38% had heard of it but did not know the exact meaning, and 21% understood it but could not explain it.

These survey results imply that although people have heard of the metaverse as something new, it is difficult to understand how it actually works or how it affects their lives. Kyle Rees, a senior analyst at Gartner, warned, "Companies interested in the metaverse need to do a lot to change consumer attitudes," adding, "If companies do not create this complex and innovative new opportunity and business model in a way that general consumers can easily understand, they risk losing consumer interest."

So, what about the response of the youth, especially Generation Z, who are the most active adopters of this trend? If the metaverse is to be used as a new SNS, it must capture their hearts. According to a Generation Z research project by U.S. financial firm Piper Sandler, among about 7,100 American teenage respondents, nearly half said they have no plans to purchase devices to access the metaverse yet. 26% already owned metaverse devices, but only 5% of them said they accessed the metaverse daily. They said TikTok or games are more fun than the metaverse.

[Image source=Reuters Yonhap News]

$1 Trillion Market Metaverse... Accelerating Development of Infrastructure and Hardware

The many questions surrounding the metaverse likely stem from many blanks in its concrete applications. Ultimately, this means that related technology development and investment must be made to expand the underlying infrastructure and hardware that can realize the metaverse vision.

U.S. venture-focused market research firm CB Insights introduced that the metaverse could grow into a $1 trillion (about 1,233 trillion KRW) market by 2030, with many digital companies pouring efforts into it. The metaverse ecosystem is divided into six sectors: infrastructure, hardware, visualization, virtual worlds, payments, and experiences. Individual companies in each sector are building frameworks toward the metaverse vision.

(Source=CB Insights)

This includes infrastructure companies such as semiconductor firms like Samsung Electronics, TSMC, and Intel; companies making virtual reality (VR) and AR devices; payment companies like Visa and PayPal; and metaverse platforms such as Roblox and Decentraland. Since the market still has many gaps, it means there are many areas to expand.

CEO Zuckerberg dreams of a life where he can interact with acquaintances and work within the metaverse space. When changing the company name last October, he personally played a fencing game combined with the metaverse, saying that through AR, friends could play chess or basketball and fencing matches. This shows his intention to bring practical changes to daily life. With many people still unfamiliar even with the word metaverse, it will be interesting to see whether a new path can be successfully forged and how our lives will change.

Editor's Note[Next.Jjin] means 'looking ahead to the real next of business' and is a corner that delivers overseas news related to future businesses and startups such as metaverse, artificial intelligence (AI), and robots of major companies. We will uncover and explain not only the big issues in the spotlight but also small yet important hidden issues in an easy-to-understand way.

This content was produced with the assistance of AI translation services.