The future of the application software industry will be shaped by a range of disruptive themes, with metaverse being one of the themes that will have a significant impact on application software companies. A detailed analysis of the theme, insights into the leading companies, and their thematic and valuation scorecards are included in GlobalData’s thematic research report,Metaverse – Thematic Research. Buy the report here.
The metaverse is a virtual world where users share experiences and interact in real-time within simulated scenarios. It is still largely conceptual but could transform how people work, shop, communicate and consume content.
The metaverse is an emerging mega-theme involving companies from all technology sectors, including semiconductors, component makers and importantly for this report; application software.
The metaverse brings together a range of next-generation technologies from cloud computing to artificial intelligence (AI), blockchain, cryptocurrencies, cybersecurity, the internet of things (IoT), virtual reality (VR), augmented reality (AR), digital twins, and adtech. By 2030, the metaverse will be a $13tn opportunity, according to Citi Global Insights. The metaverse will make digital media experiences more immersive, inclusive, and accessible than today. But it will raise social concerns ranging from data privacy to other forms of online harm.
However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position.
Insights from top ranked companies
Microsoft entered the metaverse in March 2021 with Mesh, an enterprise collaboration platform. It is integrating Mesh into Teams for enterprise users to access the platform across AR headsets, VR headsets, personal computers, and smartphones. Microsoft aims to merge the physical and digital worlds using the metaverse and transform and improve enterprise operations. It is also using its gaming abilities to focus on the consumer metaverse. In January 2022, Microsoft announced a $67.8bn bid to acquire Activision Blizzard, calling it a building block for the metaverse
Google is quietly developing its metaverse capabilities to enter the theme shortly. Its AR headset, codenamed Project Iris, is estimated to be launched in 2024, featuring a custom chipset and a dedicated operating system. In May 2022, Google acquired Raxium, a micro-LED displays provider for AR headsets, indicating its focus on AR for the metaverse. Google is strong in the metaverse due to its AR services like ARCore (also called Google Play Services for AR), Chrome AR (WebAR platform), Cloud Anchors (AR cloud platform), and Scene Viewer (a tool that allows users to view 3D models of products on websites). In addition, its AI-based voice platform Assistant, image recognition tool Google Lens, and immersive display technology Project Starline are a natural fit into its metaverse portfolio. In January 2022, Google Cloud launched an initiative to focus on blockchain-like transaction history for cryptocurrencies such as Bitcoin, Ethereum and Bitcoin Cash. It is also exploring enabling cryptocurrency payments for its customers in the future. Google is a leader in several segments of the metaverse value chain and is well-positioned to benefit from the development of the theme in the long run.
To further understand the key themes and technologies disrupting the technology industry, access GlobalData’s latest thematic research report on Metaverse.
- Software AG
- Open Text
- TIBCO Software
- Cadence Design Systems
- New Relic
- Dassault Systemes
- Progress Software