The term ‘Metaverse’ has become synonymous with futuristic gaming realms and virtual social communities. But away from the consumer-driven buzz, there lies a burgeoning market that is arguably of even greater significance to business leaders: the Industrial Metaverse, says a new report by Arthur Little.
At its core, the Industrial Metaverse diverges from the general Metaverse hype. It is not just another digital extension of our reality but is better perceived as a “connected whole-system digital twin” – a mirror of an industrial system in the digital realm that is interactive and offers decision-makers a lens to retrospectively understand past processes and predictively navigate future scenarios.
Not to be mistaken with the discrete digital twins often associated with Industry 4.0 (e.g., a digital replica of a factory), the Industrial Metaverse broadens this scope. It captures an end-to-end industrial system that accounts for interplay between internal functions, assets, and even external environmental factors.
Potential and Market Forecast
This new dimension has grand implications for strategic decision-making, especially in dealing with today’s fast-paced and increasingly complex business landscapes. The ability to simulate entire ecosystems will be invaluable in charting sustainable growth paths.
While a holistic Industrial Metaverse, as envisioned, may still be half a decade away, there are already existent use cases. These encompass areas like operational optimization, training, design tools, and management tools.
The analysis by Arthur little pegs the current market value of the Industrial Metaverse between US $100-$150 billion. By 2030, even conservative projections estimate its worth at around $400 billion, with more optimistic evaluations surging past the $1 trillion mark.
Strategic Implications for Businesses
With potential gains in productivity reaching double-digit percentages, business leaders must view the Industrial Metaverse as a central pillar in their broader digitalization roadmaps.
Steps to harness its potential include:
- Review strategy: Understand and refine the overarching digitalization plan.
- Identify opportunities: Pinpoint avenues where the Industrial Metaverse adds value.
- Implement pilot projects: Embrace a proactive, iterative approach to deployment.
- Build and align the ecosystem: Collaborate with ecosystem partners to foster mutual growth.
Why It Matters More Than Ever
The Industrial Metaverse is not a mere incremental upgrade to Industry 4.0. Its unique strengths lie in:
- Facilitating projections into future scenarios.
- Augmenting comprehension of intricate industrial systems through AI and virtual reality.
- Optimizing management by connecting the physical system, its digital twin, and all stakeholders.
Such capabilities make the once elusive visible, positioning the Industrial Metaverse as a linchpin in the drive for sustainable growth. It holds the promise of playing a pivotal role in balancing economic growth with ecological responsibility.
The evidence is already present in Industry 4.0 deployments. Arthur D. Little’s data reveals benefits, including reductions in supply chain costs and maintenance costs, and boosts in production capacity utilization, all in the double-digit percentages.
Yet, businesses need to accelerate their digital maturity. Most are still in the early stages of this journey, with much room for growth and optimization. The Industrial Metaverse could very well be the game-changer that propels them into the future.
For executives keen on fortifying their competitive edge and spearheading sustainable growth, understanding and integrating the Industrial Metaverse into their strategies is not just wise, but imperative.
