At the moment, the world is still figuring out what the metaverse is. However, the industry, especially the participating brands, believe that the metaverse is the future. Like cell phones, the metaverse could change the way we communicate. Many brands are getting involved in the development of the metaverse because they don’t want to be left behind. For this reason, there are already several metaverse apps on the market. According to a recent report by TrendForce, the 5G market is expanding and will reach $14.5 billion in 2023. Moreover, forecasts show that the market size will reach $37 billion by 2026 with an annual growth rate of consisting of 11.0%.
The report claims 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 work 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 made a financial breakdown based on production of $37 billion in 2026. Using this value, industrial production will account for 32% of the overall application production value. Medical applications will represent 15% while smart cars, as well as public transport, will represent 25% of total production. As for consumer electronics, it will represent 10% of total production.
The Metaverse still has a long way to go
According to TrendForce, Metaverse is an emerging application service. Currently, most of the brands in the game are still in the early stages of development. Additionally, technologies such as AR/VR and reconnaissance operations still need time to develop. Moreover, the industry does not exactly know the needs of the metaverse application but the development is fast. There are predictions that in the next 2-3 years the growth of the metaverse will be explosive. In fact, the metaverse is about to take over the world. Metaverse’s advancements focus on community, multiplayer gaming, education, simulation training, building, virtual dating, and more.
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Telecom brands also see business opportunities in the metaverse. Right now, major telecom brands around the world are taking a subtle 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 wonder these brands are investing. Huawei, Ericsson and Nokia are the main players in the development of 5G network equipment. Thus, the metaverse means good business for these brands.
Shanghai Announces First Batch of Metaverse Core Apps
The Shanghai Municipal Commission of Economy and Information Technology (SMCEIT) recently issued a “Announcement of the release of the Shanghai 2022 Metaverse Major Application Scenarios » (hereinafter referred to as the “Notice”). The “Notice” states that in order to implement the “Shanghai City Action Plan to Cultivate the New Metaverse Road (2022-2025)”, SMCEIT launched metaverse the city’s main application scenario standard. This standard reveals the list of what core applications must have.
SMCEIT said that after public demand, expert testing and clarification needs, 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, Shanghai’s first set of metaverse list of key application scenario requirements hit the road. The list is now public to seek solutions from leading domestic and foreign brands, colleges and universities and research institutes. This is good for promoting the link between supply and demand.
From the announcement attachment, the first set of key application scenarios for Metaverse in Shanghai in 2022 includes seven categories of scenarios. They include medical health, digital city, classroom education, commercial operation, 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. Although this market is large, it is not a flagship market, that is, it is not a market where the main product thrives. Thus, the adoption of 5G network in this region has been quite slow. However, a few months after the public adoption of 5G in India, it is already doing very well. The latest Omdia report states that the global economic downturn will cause problems in the telecommunications market. However, demand for telecommunications services will remain high, which will help cushion the impact on the industry. Global mobile service 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 future 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 third largest 5G market in the world in terms of number of users.
The report also claims that the telecommunications market will usher in a new wave of collaboration. Telecom brands are likely to pool their resources to achieve a mutually beneficial outcome. With modest revenue growth and high network expenses, many in the industry believe that mergers and acquisitions are critical to success.
At the same time, operators will strengthen their business orientation. Many brands will improve their business orientation, which may lead them to divest non-strategic assets and businesses. Some brands may consider selling or bringing in relevant investors.