A report published by Globaldata, a global consulting and data analytics firm, predicts that China will become a leading Metaverse technology country during 2023.
The firm believes that the development of other technologies such as artificial intelligence (AI), virtual reality (VR), augmented reality (AR) and 6G will enable China to shape itself as a hub for the Metaverse. All the information below.
China leading the Metaverse industry
While interest in the Metaverse seems to be waning globally, China is still pushing to become a leader in the industry.
According to a recent report prepared by consulting firm Globaldata, China is positioning itself to surpass the West in Metaverse technology as the country continues to invest in technologies related to this field.
The report states that China’s emphasis on these ancillary technologies will enable it to become a center for the Metaverse. In fact, the report states the following:
“The growing emphasis on VR, AR, AI, and 6G aims to overtake advances in the West and position China as a global hub for the metaverse.”
In addition, Globaldata believes there are signs that China will continue to invest in virtual reality and artificial intelligence with the goal of promoting the nation’s economic development.
Not surprisingly, several Chinese provinces and cities have already submitted plans to become Metaverse technology hubs, including Shanghai and Zhejiang.
VR technology and the Metaverse in industrial processes
Although the Metaverse is commonly associated with consumer-focused software and hardware, Globaldata’s report explains that China’s Metaverse will focus more on industry and the benefits it can gain from including Metaverse technology in its processes.
China’s Ministry of Industry and IT recently released a report on the application of VR and Metaverse technology in industrial processes, showing how they can be combined efficiently.
Globaldata predicts that the Metaverse will be more valued than other technologies because of the possibilities it presents. In fact, in regard to this he explained:
“Chinese investments in metaverse-related technology will highlight the value of the metaverse over existing one-off experiences such as social media, gaming or e-commerce.”
However, even with estimates that place the value of the metaverse industry at $376 billion by 2025, 2023 is described as a year when investment in the metaverse will experience a cool-down.
Specifically, a cooling down of interest, economic barriers and immaturity of enabling technologies, the report explains. As we know, the Metaverse has seen an explosion in mainstream popularity since Mark Zuckerberg renamed his company to Meta in 2021, marking the shift to a central focus of the Metaverse.
However, in 2022, $5.8 billion was invested globally in augmented reality and virtual reality in 1,910 deals, a decrease of more than half from the previous year, which saw a total of $18 billion invested in 2,109 deals.
Shanghai aims to grow the $52 billion Metaverse by 2025
As anticipated, the Metaverse is emerging as a technology that is attracting the interest of major countries and cities around the world. In this regard, Shanghai, China’s largest city by population, has issued a document presenting a plan to transform itself into a major center for this industry activities.
One of the main goals of this focus is to grow a $52 billion Metaverse cluster in the city. To this end, the city plans to host at least ten leading innovative Metaverse companies and 100 companies presenting Metaverse-related technologies, all with international reach.
The document proposes a series of tasks to achieve this goal, which includes adding a digital component to various activities and sectors, such as the existence of virtual enterprises, education with virtual reality, and tourism and entertainment with a virtual element.
Even though the issued document does not directly specify how much the city intends to invest to achieve the desired goal, it mentions that the government should establish a series of special funds to support industries in the Metaverse by offering investment subsidies, interest rebates and other incentives provided by laws and regulations to support research and technological development.
The document also mentions a number of technologies, including display and processor technology, as some of the basic technologies that should be advanced to achieve a better Metaverse in the future.
Similarly, data transmission technologies such as 5G and artificial intelligence are also mentioned in the plan. Other countries have also taken an interest in the Metaverse concept, including South Korea, which unveiled a plan to invest $177 million in Metaverse-related projects as part of the “Digital New Deal,” a national plan to modernize the country.
On the other hand, Dubai is also moving to make its government Metaverse ready, to give its citizens the opportunity to experience government in virtual reality.
Virtual Reality and Artificial Intelligence: changes in the work environment
When talking about Virtual Reality, Augmented Reality, and Artificial Intelligence, we see that these really affect and will affect all fronts of daily life and work, especially if we talk about AI.
For example, in the world of finance, these technologies have been used for a long time now to assess market performance. Or, in the transportation sector, they are used a lot for prediction in the delivery of goods (both in shipping and wheeling) and for calculating routes and positioning of parcels.
In pharmaceuticals, some AIs simulate the behavior of proteins and cells to create new and better drugs. Again, speaking of Virtual and Augmented Reality, we see that they are widely used especially in industry and education.
They are indeed very useful in increasing the speed of learning certain processes or in being able to study projects as if they were already done. Finally, in healthcare, they help doctors in operating rooms to visualize crucial information such as viewing an organ or injury as if it were live.
They also help in learning surgical techniques without taking risks. In other words, these are all technologies that are increasing the efficiency and effectiveness of certain processes in the workplace, medical and otherwise.