Two leading technology companies, in collaboration with the Industrial Internet of Things Consortium (IIC), have authored a paper on the Machine Economy. According to PricewaterhouseCooper (PwC), this new area of development in the Internet of Things sector can account for 70% of the global GDP in the next seven years.
According to Valx and quoted by CryptoSlate, the machine economy, which is the convergence point of the two fields of artificial intelligence and blockchain technology, can play a role of 15 trillion dollars in the global economy by 2030.
Research conducted by IoTeX and Siemens examines the role of the Internet of Things and distributed ledger technology (DLT) – such as blockchains – in the growth of the machine economy and explores some new opportunities in this area for manufacturers and users.
This report also opens up some of the disruptive business models that we are currently seeing in the industry and describes successful implementation examples. According to the report, the machine economy is “a network of autonomous devices and machines that exist as independent market participants and perform economic transactions, transactions, and other activities without human intervention.”
This definition well illustrates the “disruptive” factors of the machine economy for the IoT sector. On the one hand, the machine economy deals with traditional production and business processes in most companies and industries, and on the other hand, it benefits from technologies that enable independent transactions between devices and machines.
Among the four possible uses of the machine economy mentioned by the paper’s authors, the “industrial metaverse” is a hot topic that has even caught the attention of participants at the World Economic Forum (WEF) in Davos.
The industrial metaverse is an emerging trend that aims to combine features such as immersion (provided in virtual reality), simultaneous data and Digital twin (Digital Twin) is to create new business models and accelerate the digitization process.
Part of the said report, written by Xinxin Fan, Steven Baudry and Sourabh Narayan.
In 2022, the metaverse sector had a significant growth despite the global economic recession, and experts believe that it will continue to grow. Deloitte believes that the size of the global metaverse market could increase between $1.5 trillion and $13 trillion.
The World Economic Forum predicts that the Metaverse market will grow to $800 billion in 2024. The famous consulting company McKenzie says:
With the potential to generate $5 trillion in value by 2030, the metaverse is too big for any company to ignore.
Despite the general consensus on the potential boom of the metaverse, some estimate that the industrial metaverse is where most of the “money” is. The estimate of “VentureBeat” magazine indicates that the growth of the industrial metaverse will be three times that of the enterprise and general consumer metaverses.
While technologists are still imagining what the metaverse will bring to businesses and consumers, considering the industrial metaverse is changing the way industries design, build, and interact with physical entities.
One of the vital applications of the industrial metaverse is digital twins; A virtual copy of a product or process used to predict how its physical counterpart will perform during its life cycle. According to a report from MIT University in this area, the growing buzz about digital twins has increased the expectations of the industrial metaverse. In part of this report we read:
BMW, for example, created a digital twin before building its new factory in the state of Bavaria. Boeing Co. uses a digital co-development model to design its planes, and “Virtual Singapore” is a digital representation of the city-state of Singapore that the government has created to test new technologies and support its policies.
However, challenges remain:
One piece of the industrial metaverse puzzle is connecting distant devices with a reliable data stream for digital twins that can be used to simulate and predict real-time situations.
Empowering edge devices to directly participate in the incentive mechanism can bring double independence and new applications for digitization.
In the past few years, the convergence of artificial intelligence, blockchain, cloud computing, edge computing, IoT, 5G mobile internet connectivity, machine vision and augmented/virtual reality has allowed us to create even more sophisticated digital counterparts.
Advances in each of these technologies will make digital twins more similar to their real counterparts and bring us one step closer to the next digital revolution.
The emergence of blockchain and Web 3.0, by helping to realize the machine economy, provides a new growth opportunity for Internet businesses.
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