Right now, the world is still trying to figure out what the metaverse is. However, the industry, especially the participating brands, believe that the metaverse is the future. Just like cell phones, the metaverse can change the way we communicate. Many brands are involved in the development of the metaverse because they don’t want to be left behind. For this reason, there are already quite a few metaverse apps on the market. According to a recent report by TrendForce, the 5G market is booming and will reach USD 14.5 billion in 2023. Furthermore, projections reveal that the market size will reach USD 37 billion by 2026 with a growth rate annual compound of 11.0%.
The report states 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 different areas. They work primarily in technology, but also in manufacturing, energy, healthcare, smart cars, public transportation, and even consumer electronics.
The report also did a financial breakdown based on production of $37 billion in 2026. Using this value, industrial production will account for 32% of the app’s overall production value. Medical applications will account for 15% while smart cars, as well as public transport, will account for 25% of total production. As for consumer electronics, it will account for 10% of total production.
Metaverse still has a long way to go
According to TrendForce, the Metaverse is an emerging application service. At the moment, most of the brands in the game are still in the early stages of development. Also, technologies like AR/VR and sensing operations still need time to develop. In addition, the industry does not know exactly the needs of the application of the metaverse, but the development is rapid. There are projections that in the next 2-3 years the growth of the metaverse will be explosive. Indeed, the metaverse is about to take over the world. Metaverse advances focus on community, multiplayer gaming, education, simulation training, construction, virtual gatherings, and more.
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Telecom brands also see business opportunities in the metaverse. Right now, major telecom brands from around the world are subtly taking an interest in the metaverse. Companies like Nokia, Ericsson and Huawei are currently investing in the metaverse. With 5G having ties to the metaverse, it’s no surprise these brands are investing. Huawei, Ericsson and Nokia are major players in the development of 5G network equipment. Therefore, the metaverse will mean good business for these brands.
Shanghai announces first batch of major metaverse apps
The Shanghai Municipal Information Economy and Technology Commission (SMCEIT) recently issued a “Notice on the Release of Shanghai Metaverse 2022 Major Application Scenarios” (hereinafter referred to as the “Notification”). The “Notice” points out that in order to implement the “Shanghai City Action Plan to cultivate the new binary ‘Metaverse’ (2022-2025)”, SMCEIT launched the main scenario of the City metaverse standard application. This standard reveals the list of what major applications must have.
SMCEIT said that after public solicitation, expert testing and needs clarification, it has formed an excellent breeding center around business operations, classroom teaching, cultural tourism, brand entertainment, smart manufacturing, medical health and digital cities. In 2022, the first Shanghai batch of the metaverse application scenario key requirement list kicked off. The list is now public to solicit solutions from major domestic and foreign brands, colleges and universities, and scientific research institutes. This is useful for promoting the link between supply and demand.
From the attached notice, the first batch of major application scenarios for Metaverse in Shanghai in 2022 includes seven categories of scenarios. They include medical health, digital city, classroom education, business 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. While this market is large, it is not a flagship market, i.e. it is not a market where the flagship product thrives. Therefore, the adoption of 5G network in this region has been quite slow. However, just a few months after the public adoption of 5G in India, it is already doing very well. Omdia’s latest report highlights that the global economic downturn will cause problems in the telecommunications market. However, the 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.
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 said that the telecommunications market will usher in a new wave of cooperation. Telecom brands are likely to pool their resources to achieve a common useful result. With modest revenue growth and high network spend, many in the industry believe mergers and acquisition deals are essential to success.
At the same time, operators will strengthen their business orientation. Many brands will sharpen their business focus, which may lead them to divest non-strategic assets and businesses. Some brands may consider selling or engaging relevant investors.