Shared virtual environments which people can access via the internet, known as the metaverse, could be a boon for businesses in terms of engagement with new generations, new types of media, and adding value to goods and services for online consumers, said consultancy McKinsey & Company.
Metaverse made headlines late last month when Facebook announced its focus on this virtual environment technology and changed its name to "Meta" to reflect this objective.
"The value proposition of metaverse for firms could be substantial, including greater touchpoints for connecting with new generations of consumers," Harry Seip, partner at McKinsey & Company's Bangkok office and leader of the company's digital and analytics practice in Thailand, told the Bangkok Post.
He also indicated metaverse could usher in greater value, goods and services that consumers can access from the virtual world and opportunities for new types of media.
"The metaverse trend is real and even though it might seem overhyped right now, it has the potential to grow further, especially by building on technologies that already exist in several spaces, such as gaming, education and social media," said Mr Seip.
He said a global survey in October 2021 showed searches for "gaming metaverse" surged by 4,500% from 24 months earlier.
According to him, the metaverse still requires multiple different technologies to be integrated.
There are various trends that could push the metaverse for long-term growth, such as further penetration of e-commerce, virtual worlds becoming more mainstream, adoption of decentralised technologies and involvement by financial players.
Mr Seip said it was still premature to determine how the metaverse will evolve.
"The early impacts we are seeing now are investments by tech players for virtual storefronts to sell virtual goods in gaming; branded experiences and purchase of licensing rights in sports entertainment; and advertisements and internal economy of virtual or digital items in social networks," he said, noting limited activities are still seen in the financial sphere.
He said countries and companies in Thailand should study and keep updated on the relevant regulatory and industry announcements so as to identify their strategic moves in advance.
According to Mr Seip, access to the metaverse needs high-speed connections and Thailand has now adopted 5G ultra-fast mobile connections with rising numbers of users.
"To support a virtual world, the right data needs to be collected from physical systems. Cloud and edge computing will also be important 'plumbing' for metaverse rollout," he said.
Mr Seip said a study showed Thailand's cloud computing market was projected to reach US$700 million by 2026.
He said companies needed to take into account three issues before considering where and when to invest in new technology trends in Thailand, including the metaverse. They encompass the scale of the impact of the trend, technical maturity, and the organisational fit of the technology.
