JPMorgan analysts believe the Chinese metaverse gaming market is poised to explode, despite the limitations of current regulation. This poses some difficulties in terms of adoption. Companies like Tencent, Netease, and Bilibili are JPMorgan’s picks when it comes to taking advantage of this potential growth, that at best, might pass the $100 billion mark.
Analysts from JPMorgan believe that Metaverse Gaming will boom in China
Different institutions have studied the metaverse as well as the new market that has been created by this industry trend. It is not a well-structured and clearly defined market but some believe there may be real growth opportunities. JPMorgan analysts believe that there’s a huge potential for a boom in this market in China, despite the limitations of crypto legislation.
JPMorgan selected the most lucrative industries in China that could benefit from this boom. Tencent, an internet gaming conglomerate, offers artificial intelligence and gaming services. Netease, another major gaming firm in China, is also included. JPMorgan has also mentioned Agora as well China Mobile.
Based on the criteria of social media development and gaming, these recommendations can be made. The September 7th report contains these details:
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 which part of the ecosystem the company operates in.
Metaverse gaming is a market that many gaming companies want to get into. Its value will almost triple from $44 billion up to $131 billion.
Digitizing Businesses and Tasks
These estimates are heavily based upon the assumption that the metaverse would change how people do business and conduct themselves in the future. The average amount of time people spend online will double, according to the financial institution.
Services and businesses will also play a significant role in the expansion of China’s market. This market will include services that are related to the metaverse. It will also be worth $27billion. Digitalization will further increase the market, with a potential $4trillion market available to those companies who want to shift their business model and go digital.
What do you think about JPMorgan’s newest metaverse report? Leave a comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. It does not constitute an offer, solicitation, or recommendation of products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.