Beyond the metaverse

How XR and other technologies are converging to improve the human experience

The metaverse is still a mystery to many, but its component parts are already revolutionizing the way we interact with the world around us. In PwC's survey of over 5,000 US consumers and 1,000 US business leaders, 50% of consumers call the metaverse exciting, and 66% of executives report that their companies are actively engaged. 

However, many consumers — and even business leaders — are still confused about what the metaverse actually is and how it will work. Some people see it as a new way to interact with the internet, while others believe it is a virtual world where people can live and work. The same survey found that while 45% of business leaders have a good understanding of the metaverse, only 19% of consumers do. A big stumbling block is terminology: There is no single definition of the metaverse.

No matter what you call it — the metaverse, spatial computing, the 3D web – when the metaverse is broken down into its component parts, more realistic applications emerge. One such component is extended reality (XR), a collective term that covers augmented reality (AR), virtual reality (VR), and mixed reality. XR can move the metaverse beyond the "gimmick" label to create valuable products and experiences.

Technologies (plural) will make the difference for widespread adoption

"We see it as being multiple technologies coming together, from augmented reality and immersive 2D to virtual and extended reality," said Roberto Hernandez, global metaverse leader and customer strategy & experience leader at PwC US. "We call it Metaverse Technologies for a reason."

You're going to be able to experience a 100-foot-tall movie screen from your living room. Roberto Hernandez, PwC

As emerging technologies mature, consumers will get more comfortable with generalized terms. "We've had the same debate with other technologies. Today, we don't talk about an 'HTML site' or a 'www site' — we just talk about 'websites'," Hernandez said. "We are coming to that point in the cycle of any emerging technology in which people are not going to be as attached as we were in the past to specific terminology."

XR has the potential to revolutionize the way we interact with the world around us. Immersive technologies can be used for education, training, entertainment, and even healthcare. For example, VR can be used to train surgeons on new procedures, augmented reality can be used to provide real-time information to workers in dangerous environments, and mixed reality can be used to create personalized educational experiences.

"From an entertainment standpoint, there's going to be a dramatic change," Hernandez said. "You're going to be able to experience a 100-foot-tall movie screen from your living room. It is going to allow you to experience sports in a way that was not possible before by allowing you to select the seat at the arena that you want to enjoy the experience from, or even being part of the action."

Training, monitoring, and e-commerce are all ripe for disruption by XR

"Training has evolved into more of a subject-matter-expert assistance," Joe Harrington, principal, PwC US, said. With augmented-reality devices and mixed -reality overlays, field technicians can perform more complicated tasks, from repairing newer HVAC models to complex motors and other mechanical instruments. "Technicians can use headsets to receive guidance from a copilot-like voice, and they can also quickly access information and resources from the cloud," Harrington added. "There are a lot of efficiency gains across the board."

One of the most promising areas is using XR in conjunction with other technologies, such as Internet of Things integration. "Sensors in smart buildings can be used to gather information, report on it, and take action," Harrington said. "For example, sensors can be used to monitor water temperature and alert staff if it is too high, which could help to prevent Legionnaires' disease. This is more efficient than having staff manually check taps on a weekly basis."

"We're also going to see next-generation e-commerce through these platforms," Hernandez said. Instead of going to a website and seeing a static picture of a product, consumers will be helped by a virtual assistant. "I'll be able to upload a high-fidelity digital twin and try on clothes that are going to look exactly as if I were wearing them in the physical world. This will change not just how we buy things, but also the amount of merchandise that gets returned."

It's not just retail; events that have traditionally relied on in-person participation are also embracing a combination of metaverse technologies. In February 2023, the Venice Carnival went virtual, allowing people from all over the world to participate in the festivities. The experience featured a variety of activities, including digital and highly-refined versions of the traditional Carnival masks as skins and wearables for the avatars created on Ready Player Me's platform, which could be used in over 2000 compatible environments. There was also an Instagram contest where users could show off their creative selfies by wearing special Venetian mask filters, as well as a variety of educational and cultural events, taking place in a specially designed virtual space, that taught users about the history and traditions of the Carnival.

The virtual Venice Carnival involved digital users from 19 countries, and the digital campaign reached over 6 million people. "Promoting the spirit and tradition of the Venice Carnival in the metaverse is an opportunity to attract new generations who are on the frontiers of digital communication," said Alberto Bozzo, sales and business development director at Ve.La S.p.A, which organizes the Carnival and worked with PwC on its virtual version of the experience for visitors.

The Venice Carnival is just one example of how metaverse technologies can create new ways for people to connect, learn, and experience the world. Companies that want to capitalize on these technologies should start by understanding these technologies and how they can be used to create new experiences and applications, Harrington said. In addition to XR, there are several other technologies that are evolving and converging to create the metaverse.

"Understand how generative AI can help with your metaverse strategy, or how hyper-connected networks, quantum computing, or neuromorphic computing can help with it," Harrington said. "Many of these technologies are converging, and I think some companies are good at identifying and understanding emerging trends."

To stay ahead of the trends — and to put them to work for your company — it will be more important than ever for businesses to have a perspective and strategy for utilizing emerging technologies.

To learn more about how PwC is creating value for enterprise and society in the metaverse and beyond, please visit www.pwc.com/metaverse.

This post was created by Insider Studios with PwC.

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. 

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.