Analysts at JPMorgan see the metaverse gaming market in China as having the potential for explosive growth, even if the current state of regulation presents certain challenges to implementation; Tencent, Netease and Bilibili are JPMorgan’s picks to capitalize on this potential growth, which may exceed the $100 billion mark at best.
JPMorgan analysts believe that the Metaverse game will boom in China.
The metaverse and the markets derived from this new industry trend have been the subject of research by various institutions interested in entering this newfound market. A loosely structured and defined market that some believe has real growth potential, JP Morgan analystsbelieve that the potential for explosive growth in this sector is very great, evengiven the current restrictions imposed by crypto laws in China.
JPMorgan has selected the top industries that would benefit from a boom in this sector in China. Other companies mentioned by JP Morgan include Agora and China Mobile.
The recommendations are based on criteria for these companies to develop with regard to social media and gaming. In this regard, the report issued on September 7 states.
Developments in mobile internet and AI over the past 5-10 years suggest that competitive advantage in one part of the tech ecosystem is often more important in determining long-term value creation for shareholders than in which part of the tech ecosystem a company operates.
The metaverse gaming market, which many traditional gaming companies are already trying to enter, is estimated to grow from $44 billion to $131 billion, nearly tripling its value.
digitization of tasks and businesses
These estimates are largely based on the belief that the metaverse will change the way people behave and do business in the future. The amount of time people spend online is expected to double today’s average, which is estimated by financial institutions to be 6.6 hours.
Business and services will also ostensibly have a significant impact on market growth in China. The market for these services related to the metaverse will be $27 billion, and the digitization of physical activities will contribute even more, opening a $4 trillion market for companies ready to change their business models to digital.
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