Companies like Tencent, Netease, and Bilibili are JPMorgan's picks for capitalizing on this potential growth, which might reach $100 billion at best.
Different institutions interested in entering this novel market have examined the metaverse and the market derived from this new industrial trend. While it is a loosely organized and defined market, some believe it has considerable development potential. JPMorgan analysts feel there is a high likelihood of a boom in this industry in China, despite the country's existing crypto legislation restrictions.
JPMorgan has identified the top industries that might benefit from a boom in this sector in China. Among these are Tencent, a company that offers online gaming and artificial intelligence services, and Netease, another gaming behemoth in the country. JPMorgan also mentioned Agora and China Mobile.
The recommendations are based on criteria for these firms' progress in social media and gaming. About this, the report issued on Sept. 7th states:
“The growth of mobile internet and AI in the last 5-10 years shows that a company's competitive advantage in one section of the digital ecosystem. The creation of long-term value for shareholders is frequently more significant than which part of the ecosystem the company operates in.”
The metaverse gaming industry, which many traditional gaming businesses are already attempting to join, is expected to nearly triple in value from $44B to $131B.
These estimates are heavily based on the belief that the metaverse will alter how individuals conduct their actions and businesses in the future. According to the institution, people's online time is likely to double from today's average of 6.6 hours.
Businesses and services will allegedly play a significant role in the market's expansion in China. The market for these metaverse-related services will be $27 billion once the digitization of physical activities contributes more. It would further offer a $4 trillion opportunity to enterprises that are willing to shift their business model to go digital.
