Metaverse is gaining increasing prominence among brands as well as consumers in Australia

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Globally, the prominence of the metaverse is growing rapidly, with more and more brands and consumers showing their interest in emerging technology. From metaverse shopping platforms to playing games in the virtual world, businesses are looking to innovate in the space and are thus investing billions of dollars into the development of the technology. Furthermore, consumers, as well, have shown a growing interest in technology, with many expressing their interest to shop for clothes and other products in the virtual world.

Similar trends are visible in the Australian metaverse ecosystem, wherein an increasing number of brands as well as consumers have expressed their interest in the new-age technology. For instance,

• Several of the major banking institutions in Australia are looking at metaverse to reduce their carbon footprint. According to a TechInsight360’s Q3 Global Metaverse Survey, 61% of banks in the country plan to spend on metaverse related applications over the next eight quarters. As a result of this, a growing number of banking institutions have started to invest in technology. While these players believe that the metaverse energy requirements might hamper the environment, they also have plans to address the impact.

The metaverse can turn out to be a two-face advantage for the banking institutions in Australia. For once, it can help the banking players to become greener by decreasing their carbon footprint. Secondly, metaverse technology can help these institutions to enhance the customer experience which goes beyond traditional channels.

Notably, the metaverse can improve the customer experience significantly which is driving its prominence among customers in Australia. For instance,

• Over 45% of millennials are interested to visit a restaurant in the metaverse before trying that out in real life.
• Shopping in the metaverse is another use case where consumers have shown a growing interest in Australia. According to TechInsight360’s Global Metaverse Survey, about 57% of the consumers would be interested to shop in the metaverse.
• Also, over 86% of Australian professionals are willing to take part in work meetings in the metaverse.

All of these factors reflect consumer behavior and interest in the metaverse in Australia. TechInsight360 expects this to further increase over the next three to four years, as innovative use cases keep emerging in the Australian metaverse ecosystem. Furthermore, the metaverse landscape is projected to evolve at a rapid rate in the country over the next few years, amid the growing investment in the space by global and domestic players. For instance,

• In June 2022, Two Bulls, a domestic software developer firm, and Translucia Global Innovation, a Thailand-based metaverse startup, announced an investment of US$100 million in Australia. This investment will be used towards the setup of the Metaverse Research and Development Centre in the country. Notably, the US$100 million research and development center will support a range of metaverse projects, thereby accelerating innovation in the space over the next few years.
• Similarly, Animoca Brands, one of the leading Web3 investors globally and based in Australia, announced that it had raised US$110 million in September 2022. The firm is planning to use the investments towards the development of Open Metaverse. Notably, Animoca Brands has invested in over 300 startups as of September 2022, and the US$110 million fundraising round, will allow the firm to further expand its investment portfolio in the metaverse space.

Notably, the growing development in the Australian metaverse ecosystem has also attracted the eyes of the regulators in the country. For instance,

• In October 2022, the Australian Communications and Media Authority (ACMA), announced that the metaverse industry is included in its 2022-23 research program. This is part of the regulators’ attempt to keep a track of rapid developments in the digital communication space. The research from the regulators is projected to consider and review how digital platforms, operating in Australia, handle user complaints and harmful content. 

The metaverse ecosystem is growing rapidly in Australia and is projected to further expand over the next three to four years. The investment from leading brands, including banking institutions, is expected to drive innovation in the sector, whereas the growing prominence among consumers will also assist the industry growth from the short to medium-term perspective in the country.