China’s Metaverse Gaming Market Might Explode to Over $100 Billion According to JPMorgan

JPMorgan analysts believe that China's metaverse gaming market will explode, despite the current regulatory environment. This poses some challenges for adoption. JPMorgan recommends Bilibili, Netease and Tencent as potential winners of this growth that could exceed $100 billion.

Analysts at JPMorgan Believe Metaverse Gaming Will Boom in China

Different institutions have studied the metaverse and market that resulted from this emerging industry trend. Although it is not a well-structured and clearly defined market, there are potential growth opportunities. JPMorgan analysts believe that there is great potential for a boom in this sector in China, despite the limitations imposed by the crypto legislation.

JPMorgan selected the most lucrative industries in China that would be impacted by a boom in this industry. Tencent, an internet gaming conglomerate, and Netease are two examples. JPMorgan also mentions Agora, China Mobile and China Mobile.

These recommendations are based upon criteria for the development these companies in social media and gaming. The September 7th report contains these details:

The development of mobile internet and artificial intelligence over the last 5-10 years indicates that a company’s competitive advantage within one sector of the tech ecosystem is often greater in determining long term value creation for shareholders than the part it operates in.

Metaverse gaming is a market that many traditional gaming companies want to enter. Its value is expected to almost triple from $44 billion up to $131 billion.

Digitalizing Businesses and Tasks

These estimates are heavily based upon the belief that the metaverse would change how people conduct their business and actions in the future. The average amount of time people spend online will double, according to the financial institution.

The growth of China's market will be driven ostensibly by services and businesses. These services will account for $27 billion of the global market. The digitalization of physical activities will make it even more valuable, creating a $4 trillion market that will allow companies to transform their business models to become digital.

What are your thoughts on JPMorgan's latest metaverse report? Leave a comment below.

By: Sergio Goschenko
Title: China’s Metaverse Gaming Market Might Explode to Over $100 Billion According to JPMorgan
Sourced From:
Published Date: Wed, 14 Sep 2022 11:30:16 +0000

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