After announcing the ban on cryptocurrency in September 2021, China is now looking toward this space to build its economy in years to come.
China’s biggest city, with a population of over 24.84 million, Shanghai is now mulling entering the Metaverse space.
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The city government of Shanghai has developed a Metaverse Development plan that will attract various companies to China to further develop the technology. This action plan will help transform Shanghai into a metaverse powerhouse if the plan is implemented properly, the government believes.
Shanghai’s administration has created a series of regulations to aid in the city’s transformation into a metaverse power.
In order to build a $52 billion metaverse economy and encourage the formation of 10 cutting-edge enterprises in the area, the action plan details each technology that the municipality must prioritize.
As more towns and cities throughout the world show interest in employing metaverse technology, Shanghai, the most populous city in China, has just made a statement describing the city’s plan to become a major center for the growth and operation of metaverse-related businesses.
The Action plan
Under the action plan, the municipality will outline each technology that will help it create a $52 billion metaverse economy and how it will support the setting up of 10 cutting-edge businesses in the region.
In this business, over 100 companies, which are having experience in the metaverse sector, will be based.
In order to rope in all the companies, the plan chalks out various measures that include: the creation of virtual enterprises, the use of virtual reality for education, and setting up new companies that cater to the tourism and entertainment sector.
However, the plan had no mention of how much the state will invest, but the government said that they will be setting up a number of new funds that will solely support metaverse industries by offering them investment subsidies, discounts on interest, and other incentives as per the rules and regulations.
The plan also focuses on 5G technology and mentions a number of fundamental technologies, such as display and processing technology that need to be enhanced in order to build a better metaverse in the future.
Development in Metaverse elsewhere
As part of the ‘Digital New Deal’, a national initiative to modernize the nation, South Korea proposed a plan to invest $177 million into projects connected to the metaverse. Other nations have also shown interest in entering the metaverse.
Dubai is also taking steps for building its metaverse space so that the citizens don’t have to visit the office and will have a platform to interact with a virtual reality government.
Global Metaverse industry
Based on a Bloomberg study, the worldwide Metaverse revenue opportunity might reach $800 billion in 2024.
The metaverse is the next major technological platform for online game developers, social media giants, and other technology titans to seize a portion that is estimated to be a market opportunity worth close to $800 billion.
The metaverse, which uses real-time 3D software to create social, persistent, shared, virtual 3D environments, is the next evolution of the internet and social networks.
Leading social media and online entertainment organizations have the chance to take advantage of new revenue streams.
Of the $800 billion, artificial intelligence, gaming, and virtual reality command a $413 billion primary market.
According to Bloomberg’s estimate, the existing gaming software and services industry as well as the increasing sales of gaming gear make up the majority of the primary Metaverse revenue opportunity for video game developers.
About 70% of the overall market size in this primary market opportunity, which may reach $412.9 billion in 2024 from $274.9 billion in 2020, comes from software and services income and in-game advertising revenue.
