Press release -
The economic and social impact of immersive technologies: The results of Politecnico di Milano’s study for Meta
Milan, 21 May 2024 - Immersive technologies are the new frontiers of innovation: they can significantly shape future growth and drive strategic investments in various sectors of the Italian economy, as well as offer new opportunities in learning and digital skills development and lead to the creation of new jobs. This is the picture that emerges from the independent academic study conducted by Politecnico di Milano, chosen by Meta to analyse the economic weight and social value of immersive technologies and their impact on people, society and the Italian economy.
The predictive model
The research assessed the economic impact of immersive technologies on Italian GDP over the next 5 years, drawing parallels with the path for the adoption of mobile technologies in Italy from 2007 to 2019[1]. Mobile technology has been chosen as a reference model because it reflects the potential development path of the metaverse which, thanks to Augmented Reality (AR) and Virtual Reality (VR), creates riveting and immersive experiences that transcend physical limits. Second, the success of mobile technology, as with immersive technologies, has been influenced by the development of a large ecosystem of hardware manufacturers, service providers, app developers and content creators who have fuelled a self-sustaining growth model. Finally, both of these technologies depend on rapid technological advances, on both the hardware and the software side.
The predictive model also considered potential individual and societal barriers to the adoption of immersive technologies, outlining different scenarios ranging from the most promising to the most unfavourable.
The expected results
According to the indicators considered, it is estimated that in 2029 the impact of immersive technologies on the Italian economy could be around €18.8 billion (or 0.8% of GDP) in the worst-case scenario and €25.7 billion (or 1.09% of GDP) in the most promising scenario.
The study also predicts that between 2024 and 2029, immersive technologies will contribute a total of approximately €34.6 - 47.2 billion to the economy (in the worst-case scenario) and €47.2 billion (in the most promising scenario).
Challenges and opportunities
The development of immersive technologies lays the foundation for the growth of the Italian economy through the creation of new jobs and the increase in demand for digital skills supported by the development of training programmes. Indeed, a substantial improvement in digital skills would allow Italy to climb the DESI (Digital Economy and Society Index) rankings. Today only 46% of the Italian population seems to have at least basic digital skills, compared to an EU average of 54%.
In order to achieve these results, it is crucial for these technologies to become an integral part of people's daily lives. For this to happen, a number of barriers must be overcome that are both psychological and functional. On the psychological front, one has to deal with the challenges related to the changes in culture and work routines that each innovation entails, while on the functional front those, one has to deal with the challenges related to the usability of immersive technologies, the cost of purchasing AR/VR devices and privacy concerns. In this context, however, individual and societal elements must also be taken into account which positively influence the propensity to use: the ease of use, the entertainment dimension, the collaboration potential in the work environment, the ability to overcome geographical limitations and a greater perception of social presence. By considering all these elements in the various scenarios envisaged by the predictive model, it is possible to fully understand the potential of these technologies and work to optimise their use while also improving the user experience.
On the business side, however, companies are already implementing AR/VR solutions, especially in the fashion, media and entertainment spheres, which account for more than half of the initiatives in the metaverse. Brands are investing in these technologies for marketing activities, product presentations and new distribution channels, with the aim of repositioning themselves and finding new forms of engagement. Immersive technologies are also used to visualise and interact with digital twins, i.e., virtual models of a physical object, to target new generations, while offering a complementary way of learning within the company.
However, the use of AR/VR in the Business-to-Consumersector is lower than in Business-to-Business, where IT & Tech, Telco, Healthcare, Automotive and Energy have been identified as the most active sectors. In these areas, the metaverse is used for a variety of applications, including process optimisation, training and product development. For example, in the healthcare sector, certain immersive technology applications emerge that support the performance of surgical operations, as well as the training of medical personnel.
The analysis emphasises that in the immersive technology adoption path, it is crucial to simultaneously involve companies - which must shift from a product-centric to a user-centric vision - end-users and institutions since the adoption of these tools is also strongly linked to the political and regulatory scenarioin which they are used. The chance to help shape this new technology is a unique opportunity that also requires strategic alignment between developers and companies to balance technological advances with user expectations, ensuring the creation of virtual experiences that offer long-term value and secure, versatile platforms.
“Immersive technologies are changing the way people connect and companies grow, creating opportunities for value, new business models and strong potential also for the future of work. We are faced with a significant opportunity: technology is moving fast and we have the opportunity to accompany its responsible development by collaborating with companies, both large and small, as well as universities and institutions. The actual impact of these technologies on Italy's GDP will depend greatly on the ability to develop skills, a dynamic business ecosystem and a regulatory framework that promotes innovation and progress”, Angelo Mazzetti, Meta's Head of Institutional Affairs in Italy, comments.
‘Immersive technologies have the potential to significantly influence human behaviour and society as a whole by greatly facilitating interaction and collaboration between individuals. These technologies are gaining increasing popularity due to their immediate usefulness, the motivation for their adoption and their ease of use, making them accessible to a wide audience. In Italy, the use of these technologies in strategic sectors such as automotive and fashion proves their potential to change business processes and improve users’ experience. In the long term, the effect of the metaverse on the national Gross Domestic Product will depend on factors such as infrastructure development and a progressive evolution of the current regulatory framework,' said Giuliano Noci, Full Professor of Strategy and Marketing at Politecnico di Milano and scientific director of the study.
[1] The World Bank's World Development Indicator (WDI), data from the International Telecommunication Union (ITU) and the S&P Global Report were used as references for developing the predictive model.
Topics
Categories
Politecnico di Milano is a scientific-technological university which trains engineers, architects and industrial designers.
The University has always focused on the quality and innovation of its teaching and research, developing a fruitful relationship with business and productive world by means of experimental research and technological transfer.
Research has always been linked to didactics and it is a priority commitment which has allowed Politecnico Milano to achieve high quality results at an international level as to join the university to the business world. Research constitutes a parallel path to that formed by cooperation and alliances with the industrial system.
Knowing the world in which you are going to work is a vital requirement for training students. By referring back to the needs of the industrial world and public administration, research is facilitated in following new paths and dealing with the need for constant and rapid innovation. The alliance with the industrial world, in many cases favored by Fondazione Politecnico and by consortiums to which Politecnico belong, allows the university to follow the vocation of the territories in which it operates and to be a stimulus for their development.
The challenge which is being met today projects this tradition which is strongly rooted in the territory beyond the borders of the country, in a relationship which is developing first of all at the European level with the objective of contributing to the creation of a single professional training market. Politecnico takes part in several research, sites and training projects collaborating with the most qualified European universities. Politecnico's contribution is increasingly being extended to other countries: from North America to Southeast Asia to Eastern Europe. Today the drive to internationalization sees Politecnico Milano taking part into the European and world network of leading technical universities and it offers several courses beside many which are entirely taught in English.
