China's Metaverse Gaming Market Is Estimated At Over USD 100 Billion

China's Metaverse Gaming Market Is Estimated At Over USD 100 Billion

The metaverse gaming market potential in China, despite the prevailing state of regulation that hinders adoption, can grow exponentially, say analysts at JPMorgan. Companies like Tencent, Netease, and Bilibili have the advantage of surpassing USD 100 billion in this sector.

JPMorgan Analysts Believe Metaverse Gaming Is Set to Boom in China

The metaverse market study by different institutions is the new trend emerging in the sector, with companies interested in entering this newfound market. The market is yet to be properly structured and defined, but many believe there are real growth opportunities. Analysts from JPMorgan believe there is a tremendous possibility in the gaming sector, even with the prevailing limitations imposed by crypto legislation in China.

JPMorgan has selected the top industries that would benefit from a boom in this sector in China. Among these are Tencent, a conglomerate that offers Internet gaming and artificial intelligence services, and Netease, another gaming giant in the country. Other companies mentioned by JPMorgan are Agora and China Mobile.

The recommendations are based on criteria for the development of these companies regarding social media and gaming.

"Development of mobile internet and AI in the past 5-10 years suggests that a company’s competitive advantage in one part of the tech ecosystem is often more important in determining long-term value creation to shareholders than the ecosystem the company operates in."

The metaverse gaming market that many traditional gaming companies are trying to enter is estimated to grow from USD 44 billion to USD 131 billion, almost tripling its value.

Digitalizing Tasks and Businesses

These estimations are largely based on the premise that the metaverse will change how people conduct their actions and businesses in the future. Time spent by people online is expected to double the average today, which is estimated at 6.6 hours by the financial institution.

Businesses and services will presumably also be a big part of the growth of the market in China. The market for the services related to the metaverse will be worth USD 27 billion, and the digitalization of physical activities will contribute, even more, opening a market of USD 4 trillion to companies ready to change their business model to go digital.