Long Live the Metaverse: How It Could Disrupt Markets and What Comes Next

Why It Matters

The metaverse is more than just a tech buzzword — it has the potential to revolutionise industries, from retail to finance. But will it live up to the hype?

Key Takeaways:

• The Metaverse is still in its early stages, with ongoing advancements in hardware, software, and telecommunications driving its potential.
• Consumer, commercial, industrial, and healthcare applications present significant opportunities but face technical and market challenges.
• Successful Metaverse adoption depends on scalable business models, improved accessibility, and interdisciplinary collaboration to overcome technological and social barriers.

The Evolution of the Metaverse
The Metaverse is not a single entity but a collection of virtual environments where people interact, work, and socialise. Despite initial excitement and heavy investments from major tech firms like Meta, Microsoft, and Apple, the Metaverse has yet to achieve mainstream adoption. The technology follows a familiar pattern seen in past innovations, including the internet and smartphones – early enthusiasm, a slowdown, and eventual breakthroughs driven by sustained advancements.

A primary barrier is the cost and complexity of hardware such as virtual reality (VR) and augmented reality (AR) headsets. Without affordable and user-friendly devices, widespread adoption remains limited. However, as technology improves, the Metaverse could become more accessible and impactful.

The growing integration of artificial intelligence is also expected to enhance the Metaverse experience. AI-powered avatars, automated virtual assistants, and natural language processing will allow for more seamless interactions, making digital environments more intuitive and responsive. These developments, coupled with cloud computing and decentralized systems like blockchain, will shape the next iteration of the Metaverse.

Opportunities and Challenges Across Sectors
The Metaverse offers distinct possibilities in four key markets:

• Consumer Metaverse: Gaming, entertainment, and social experiences are leading the way. Platforms like Fortnite and Roblox demonstrate how immersive virtual worlds can drive engagement and revenue. However, challenges such as data privacy, security risks, and hardware costs remain significant. Moreover, ensuring user safety in virtual spaces is critical as concerns over digital identity theft, online harassment, and mental health implications grow.
• Commercial Metaverse: Businesses are exploring virtual shopping experiences, digital marketing, and workplace collaboration. Virtual reality meetings and retail experiences enhance customer interaction, but integration with existing business models is complex. Companies must also consider digital asset ownership and monetization strategies, such as non-fungible tokens (NFTs) and blockchain-based transactions, to create sustainable revenue streams.
• Industrial Metaverse: Manufacturing, logistics, and engineering industries leverage the Metaverse for simulations and digital twins, enabling real-time monitoring and predictive maintenance. However, interoperability and cybersecurity concerns hinder widespread adoption. Establishing standardized frameworks and security protocols will be essential to ensuring seamless operations across industries.
• Healthcare Metaverse: Medical training, virtual therapy, and telemedicine are promising applications. The ability to create immersive learning environments for surgeons or support remote patient care can revolutionize healthcare. Yet, regulatory and ethical considerations must be addressed. Ensuring data privacy and compliance with medical regulations, such as HIPAA and GDPR, is crucial to fostering trust in virtual healthcare solutions.

The Future of the Metaverse: Evolution, Not Extinction
Despite current setbacks, the Metaverse is not disappearing – it is evolving. Just as artificial intelligence has gone through multiple cycles of development before reaching mainstream adoption, the Metaverse requires continued investment in infrastructure, business models, and user experience improvements.

Companies must focus on solving existing challenges rather than abandoning the concept entirely. Collaboration across industries, combined with AI-driven advancements, will help refine Metaverse applications and make them more viable.

One of the biggest opportunities lies in the convergence of the Metaverse with other emerging technologies. The integration of AI, blockchain, and IoT (Internet of Things) will create more dynamic, intelligent, and autonomous virtual ecosystems. The expansion of 5G and upcoming 6G networks will also play a crucial role in enabling high-speed, low-latency experiences that enhance virtual interactions.

As organisations and policymakers work together to shape governance frameworks, ethical considerations such as inclusivity, accessibility, and environmental impact must be taken into account. Ensuring the Metaverse is designed with ethical guidelines will determine its long-term sustainability and adoption.

Business Implications
For businesses, the Metaverse presents opportunities for innovation, enhanced customer engagement, and operational efficiency. However, success depends on overcoming technical and regulatory challenges while ensuring user adoption. Companies that strategically invest in scalable solutions and user-friendly applications will be well-positioned for the Metaverse’s next phase of growth.

As AI-powered tools and digital assets continue to evolve, businesses must rethink their strategies for marketing, user engagement, and e-commerce. Creating personalized, immersive experiences that blend digital and physical realities will be key to unlocking the full potential of the Metaverse.

Authors and Source

Authors: Paul Benjamin Lowry (Pamplin College of Business), Wai Fong Boh (Nanyang Technological University), Stacie Petter (Wake Forest University), and Jan Marco Leimeister (University of St. Gallen) 

Article Link: https://doi.org/10.1080/07421222.2025.2455770