Two of the biggest tech companies published an article for the Industrial IoT Consortium (IIC). It discussed the machine economy, a brand-new area of IoT digital transformation that, per PwC, will account for 70% of the world’s Gross Domestic Product (GDP) over the course of the following seven years.
According to a PwC report, the machine economy could boost the global economy by $15 trillion by 2030 if artificial intelligence and blockchain technology are combined.
IoTeX and Siemens conducted research to determine how the machine economy will expand and how IoT and distributed ledger technology (DLT) like blockchain will present new opportunities for IoT manufacturers and end users.
Additionally, the report discusses some of the business models that are reshaping the sector and provides examples of their application. The machine economy, according to a Next Big Thing AG study cited in the article, is a collection of intelligent, interconnected, and economically independent machines and devices that function as self-sufficient market participants and manage financial transactions and other duties with little to no assistance from people.
This definition demonstrates how the machine economy alters how the Internet of Things functions, according to Fan, Baudry, and Sing.
The traditional methods used by the majority of businesses and industries to produce goods and conduct business are addressed on the one hand by the machine economy. On the other hand, it employs technologies that enable machine or device trading without assistance from humans, they claimed.
The Industrial Metaverse is one of the four most significant machine economies use cases, according to the authors of the IIC article. This is a contentious issue that will likely come up at the WEF in Davos in 2023.
Dr. Xinxin Fan of IoTeX and Steven Baudry and Sourabh Narayan Sing of Siemens wrote, “Industrial Metaverse is an emerging trend that targets combining immersiveness, real-time data, and digital twins to create new business models and accelerate digitalization.”
The metaverse grew significantly in 2022 even though the global economy was slowing down, and analysts predict that it will continue to do so. According to Deloitte, the global Metaverse market could reach a value of $1.5 trillion to $13 trillion.
WEF predicts $800 billion in sales in metaverse by 2024
WEF believes the metaverse market will be worth $800 billion by 2024. McKinsey said, “With its potential to generate up to $5 trillion in value by 2030, the metaverse is too big for companies to ignore.”
However, the metaverse will continue to expand exponentially over the coming few years, according to both conventional businesses and Web3 visionaries. According to ABiResearch, “There may be much more money to be made in the industrial metaverse,” according to a VentureBeat article.
The Industrial Metaverse will expand at least three times as quickly as the Consumer and Enterprise Metaverse.
Based on a piece in the MIT Technology Review, “Industrial Metaverse is an emerging trend that targets combining immersiveness, real-time data, and digital twins to create new business models and accelerate digitalization.”
Digital twins are one of the most significant applications of the industrial metaverse, as stated in an article by MIT. A digital twin is a virtual representation of a process or product that is used to forecast how the real one will function over the course of its life. A report from MIT shows that the growing buzz about digital twins is increasing people’s excitement about the industrial metaverse.
For instance, BMW built a digital replica of its Bavarian factory before constructing the actual one. Boeing uses a process known as “digital twin development” to construct its aircraft. As it is shown in the MIT analysis, the government created “Virtual Singapore,” a computerized representation of the Southeast Asian nation, to aid in the formulation of policy and the testing of new technological advancements.
However, as Drs. Fan, Baudry, and Singh pointed out: “One of the puzzle pieces of Industrial Metaverse will be connecting the edge devices and trusted data flow with the digital twins to create near real-time simulation and prediction for real-world situations.”
Allowing edge devices to participate directly in the incentive mechanism would increase the autonomy and efficiency of digitalization use cases.
In recent years, it has become possible to create Digital Twins that are even more complex thanks to the integration of AI, blockchain, cloud, edge, Internet of Things (IoT), 5G, computer vision, and augmented/virtual reality.
Referring to the IIC article, every advancement in these technologies propels the sector into the following phase of the digital revolution and brings the digital twins closer to their physical counterparts.
The introduction of blockchain and Web3, the third version of the internet, gives IoT businesses new ways to think about and grow their businesses by making the so-called “machine economy” a reality.
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