Study shows metaverse may account for 2.4 percent of US GDP by 2035

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According to Meta platforms, the metaverse could metaverse could contribute more than $700 billion in 2035

A new study commissioned by Meta Platform suggests that the Metaverse could contribute as much as $760 billion, or about 2.4 percent of the US GDP by 2035. The Deloitte report highlights the potential economic gains from using Metaverse technologies in industries such as defense, medical, manufacturing, and entertainment.

However, some investors are skeptical about Meta’s investments in its Metaverse project, particularly during a downturn in the advertising sector, which has pressured the company’s revenue growth. Despite this, the report suggests that the Metaverse still has enormous potential to drive economic growth and generate significant returns in the long term.

In a separate report, Meta said that the European Union may see an increased economic opportunity of up to €489 billion ($538.29 billion) in annual GDP by 2035 or about 1.3 – 2.4 percent of its total GDP. The report further reveals that the Metaverse could contribute between C$45.3 billion ($33.88 billion) and C$85.5 billion to Canada’s annual GDP by 2035.

These regional projections follow a global economic impact report that Meta commissioned to consulting firm Analysis Group last year. The report estimated that Metaverse adoption would contribute $3.01 trillion by 2031.

The Metaverse became a household word when Facebook rebranded its corporate identity to Meta in October 2021 and announced plans to invest at least $10 billion in the concept that year. The company had forecasted that the tech would eventually replace mobile as the main computing platform.

However, despite betting heavily on the technology, Meta reported a loss of $13.7 billion in 2022 in its Metaverse division. Since then, the company has cut down on its metaverse ambitions and is now more focused on generative AI. 

Photo Credit: Dima Solomin (Unsplash)