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China’s Metaverse Gaming Market Could Hit $100 Billion, Says JPMorgan

JPMorgan analysts predict the metaverse gaming sector might grow in China even with the current level of regulation, which offers significant challenges for adoption. JPMorgan recommends investing in businesses like Netease, Tencent, and Bilibili to capitalise on this expansion, which may reach over $100 billion in market value.

Metaverse gaming is predicted to explode in China

Numerous businesses and academic organisations have been researching the metaverse and its attendant market as a means of breaking into the rapidly expanding sector.

Even though it is not a very well-defined market, some see promising expansion opportunities. Even though Chinese crypto regulations put limits on the industry, analysts at JPMorgan think there is a huge chance for this sector to grow quickly in China.

JPMorgan has identified the most promising subsectors in China that stand to gain from this development. Tencent, a multinational corporation that specialises in online entertainment and artificial intelligence, and Netease, another gaming behemoth based in the country, are two examples. JPMorgan also named China Mobile and Agora among the other firms.

The value of the gaming market in the metaverse is predicted to increase from $46 billion in 2015 to $131 billion in 2020, an increase of almost three times its size from where it is now.

Bringing Work and Commerce Online

These projections are predicated on the expectation that people’s behaviour and economic practises would shift in the wake of the advent of the metaverse. According to the bank, the current daily average of 6.6 hours spent online will more than treble.

The expansion of the Chinese market is expected to be driven in large part by the introduction of new goods and services. There will be a $27 billion market for metaverse-related services, and the digitization of physical activities will add much more, giving businesses willing to make the shift to digital access to a $4 trillion market.