Analysts at JPMorgan say that metaverse games are about to become very popular in China. Institutions that want to get into this new market have looked into the metaverse and the market that has grown out of this new industry trend. Even though it’s a market with a loose structure and few rules, some people think it has real growth potential. Analysts at JPMorgan think that this sector is likely to explode in China, even though the country’s current crypto laws aren’t very flexible.
JPMorgan has figured out which industries would benefit the most from a growth in China’s manufacturing sector. Tencent, a group of companies that offers online games and AI services, and Netease, another huge gaming company in the country, are two of them. JPMorgan also talks about two other companies: Agora and China Mobile.
The suggestions are based on how well these companies are doing with social media and games. A report that came out on September 7th says,
The evolution of mobile internet and AI over the last 5–10 years suggests that a company’s competitive advantage in one part of the tech ecosystem is often more important for creating long-term value for shareholders than the part of the ecosystem in which the company operates.
From $44 billion to $131 billion, the value of the metaverse gaming market, which many traditional gaming companies are already trying to get into, is expected to nearly triple.
Tasks and Businesses Are Being Digitized
Most of these predictions are based on the idea that the metaverse will change the way people act and do business in the future. The average amount of time people spend online today, which is 6.6 hours, is expected to double, says the financial institution.
Businesses and services will likely play a big part in the growth of China’s market. The market for services related to the metaverse will be $27 billion, and the digitalization of physical activities will add even more, giving companies willing to change their business model to go digital a $4 trillion market.
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