Axios Pro Exclusive Content

Study: Metaverse-related investments to reach $120B in 2022

headshot
Jun 16, 2022
Value of metaverse-related investments
Data: McKinsey & Company's Value Creation in the Metaverse; Chart: Jared Whalen/Axios

The amount of investment being poured into the metaverse has already reached $120 billion through the first half of 2022, according to a new report from consulting firm McKinsey & Company.

Why it matters: The metaverse has yet to be truly defined, but that has not stopped the money flow. It will be a few years before we know whether this was a smart bet on the future or throwing cash into a digital black hole.

  • Even McKinsey had trouble defining it: "The metaverse seems to be whatever people's imaginations dream it to be. But today the metaverse remains difficult to define."
  • For the purposes of this report, McKinsey defined the metaverse as "the next iteration of the internet that seamlessly combines our digital and physical lives."

The big picture: Total spending on the metaverse could reach $5 trillion in 2030 — that would be the size of Japan's economy.

By the numbers: The amount of metaverse-related investment from VC and private equity firms is on pace to double last year, with as much as $8 billion through the first five months of 2022.

  • M&A activity, which makes up the lion's share of investment, has already doubled 2021.
  • Internal corporate investment was between $15-$20 billion so far this year.
Go deeper