Survey: High costs and technological immaturity are slowing down the metaverse in Germany

Many companies in Germany are skeptical about the metaverse. On the occasion of the release of the Apple Vision Pro in Germany, the digital association Bitkom conducted a metaverse survey in which 605 companies with 20 or more employees participated.

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The metaverse is still a dream of the future for many companies, partly because the technology is not exactly cheap. Nearly a third (37 percent) of companies surveyed believe that noticeable changes in the “economy and society” due to the metaverse will only happen in ten years – a quarter of survey participants think they will never come. In addition, 86 percent find metaverse developments difficult to follow. 60 percent said they have trouble imagining the metaverse.

“The initial excitement about the metaverse has subsided, but there is no reason for a swan song,” says Bitkom CEO Dr. Bernhard Rohleder. “On the contrary: Many applications are already in practical use, especially in the commercial sector. This also applies, among other things, to the industrial metaverse with digital twins in production.” Siemens already declared the age of the industrial metaverse at the beginning of the year.

The majority is undecided

The survey revealsthat many companies are still undecided about how to evaluate the metaverse. 43 percent of those surveyed are still undecided, while about a quarter are interested and open to the metaverse (23 percent) or critical and negative (24 percent). One in ten companies see their business model at risk. 15 percent think the metaverse threatens their existence. The majority, 83 percent of those surveyed, want to wait and observe the experiences of other companies.

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Although a fifth of respondents see the metaverse as an opportunity, there is also an almost equal group (17 percent) that sees it as a risk. In addition, 37 percent believe that the metaverse will have no impact on their company. According to the survey results, more work needs to be done in terms of standardization. Other barriers to market entry include the issue of data protection and IT security. This is also associated with a shortage of skilled workers.

Gaming industry, tourism, media and entertainment

43 percent see no benefit from the metaverse in their own business sector, but see it in other industries. Interest is particularly high in the gaming industry (74 percent), followed by tourism (60 percent), media and entertainment (54 percent) and the IT and technology industry (52 percent) – but also in sectors such as healthcare, logistics, sports and retail.

44 percent of those surveyed see “better collaboration within the company” as the biggest benefit. 43 percent are of the opinion that it makes it easier to develop new products or services. 39 percent see a new opportunity for customer communication.

Three-quarters of companies see the lack of practical applications as the main problem for the spread of the metaverse. In addition, many companies feel that the technology is not yet fully developed (73 percent) and complain about insufficient standardization (55 percent). Regulatory challenges, such as data protection requirements (67 percent), legal uncertainties (44 percent) and IT security requirements (36 percent), are further obstacles. Internally there is often a lack of knowledge (52 percent) and qualified personnel (46 percent).

However, according to Bitkom, companies want information on marketable metaverse applications, better legal and ethical evaluation support, and the availability of skilled workers. More than a third of those surveyed (37 percent) are interested in more intensive exchanges with universities and research institutions.

Despite the current reluctance, the survey shows that investments in the metaverse could grow in the coming years. While only 2 percent of companies have invested so far in 2023, 6 percent plan to invest in the metaverse this year, 9 percent by 2025, and even 22 percent of companies plan to invest after 2025.

Some of the world’s biggest companies are investing in the metaverse: Apple’s VR headset Vision Pro is technically successful, but too bulky and uncomfortable. Meta has been investing in its own metaverse for years, changing the company’s name for this reason and investing billions in research and development.

(Mac)