The Rise of the Industrial Metaverse and Its Economic Impact

At the Economist Metaverse Summit, Mike Geyer (NVIDIA ) and Ian Fisher (Siemens) spoke about the emergent industrial metaverse , projected to reach a market value of $100 billion by 2030. By combining the capabilities of Siemens Xcelerator and NVIDIA’s Omniverse the companies pave the way for an era of interoperability and open standards in the industrial sector.

Geyer and Fisher — both key players in the development of the industrial metaverse — share their perspectives on:??

• the future of the industrial metaverse??
• how it’s being implemented??
• its potential real-world effects.??

When we discuss the metaverse, we often focus on its consumer and enterprise uses. However, a significant aspect is the industrial metaverse. Ian, how would you define this digital world? What is the industrial metaverse???

Ian Fisher: The industrial metaverse is essentially the next step in the evolution of the digital twin, representing the convergence of the virtual and physical realms, reshaping industrial practices. Industrials process vast amounts of data, petabytes of information coming in every day.. The industrial metaverse allows for immersive interactions with the digital twin. It’s about leveraging the digital twin for real-time collaboration and simulation and create one comprehensive experience. Essentially, it’s about extracting value and connecting people to the digital twin.??

Mike, does this align with Nvidia’s perspective, and how does your collaboration work???

Mike Geyer: What Ian described is exactly right, which is why our partnership with Siemens is vital. We bring our high-power computing, AI, and platform capabilities to collaborate with Siemens, a leader in the industrial space. We focus on heavy industry, manufacturing, production. Maybe there is not as much glitz and glam like in fashion (laughs). But we can make a big difference here, ranging from health and safety of workers to environmental and sustainability issues. That's why we are so excited to be working on it together.??

Speaking of collaboration, you have been working on creating an industrial metaverse solution for Freyr batteries – how did that turn out???

Ian Fisher: Freyr is rapidly building gigafactories due to the high demand in the automotive and consumer sectors. They need to construct and simultaneously sell and optimize these factories. The digital twin is crucial for collaborating and working with partners on building, simulating, optimizing, and even training personnel for these factories. We bring our leading industrial software and industry experience, while Nvidia adds computational power and AI capabilities, creating a comprehensive environment for Freyr to manage these complex tasks.??

Mike, this concept goes beyond just battery factories, doesn’t it???

Mike Geyer: Certainly. We’re witnessing significant changes at the macro level. For example, the shift to electric vehicles in the automotive industry requires new manufacturing facilities, as EVs typically can’t be produced in the same plants as gas combustion engines. Nvidia’s vision is that everything moving will soon incorporate AI and robotic capabilities, which must be trained in a physically accurate virtual world – the metaverse. The digital twin, in many metaverse applications, serves as a simulation of a car, a factory, or any complex mechanical system, providing an accurate training ground for AI to enhance efficiency in traditionally inefficient processes.??

Considering the software solutions you’re developing for your clients, which industry segments are most eager to adopt these technologies???

Ian Fisher: The industrial metaverse has universal appeal. It’s making waves across various industries, including automotive, aerospace, consumer products, electronics, and even clothing. It spans the entire lifecycle of products, from design and planning to factory operations and, finally, recycling or reuse. The key is connecting people to digital twins, making data more personal and manageable. This is where immersive experiences, high-quality graphics, and AI become crucial. The sheer volume of information can be overwhelming, so making it comprehensible is vital. Virtually every industry has potential applications for these technologies, but we’re being selective in our approach due to the overwhelming demand.??

Let’s look more into the crucial question of return on investment. Mike, you mentioned aspects like sustainability, safety, and training. Which benefits do you see here???

Mike Geyer: We’re seeing concrete, tangible business outcomes from these initiatives. For instance, in the automotive industry, there’s a reported 20% increase in energy efficiency in paint shops by using AI to optimize processes. We’re also seeing a 30% improvement in the efficiency of planners developing new factories. Considering that a new factory typically takes 60 months to build, even cutting down four months can lead to significant revenue gains, not to mention the additional benefits these OEMs are experiencing. This is achieved by virtually constructing and troubleshooting in the digital world before laying the actual foundation.??

Ian Fisher: Absolutely, and it’s important to note the high return on investment during the building and design phases. By optimizing in the virtual world through accurate simulations and real-time data, we’re creating a true digital twin of the construction and operation processes. Even minor optimizations can lead to substantial savings.??

So, for companies still undecided, what should they be doing now to prepare for what seems to be an inevitable shift???

Mike Geyer: Companies, particularly those in the venture space, should focus on businesses and start-ups that enable the industrial metaverse and digitization. Despite today’s advanced technology, many companies producing physical goods still rely on outdated processes. Encouraging digitization and virtual operation is essential for helping these industries transition and transform.??

Ian Fisher: Agreed. To leverage the industrial metaverse, having a solid digital foundation is crucial. Start by improving specific areas where you can either cut costs or enhance performance. Developing your IT infrastructure in these areas and gradually expanding is more manageable than attempting everything at once. Partnering with the right people and companies is also key, as this journey requires collaboration.??

Regarding ABI research’s $100 billion estimate, what are the main obstacles to achieving this growth, and are we addressing these impediments effectively???

Mike Geyer: The challenge ties back to digitization and the ability to integrate disconnected processes and data formats. That’s where partnerships with companies like Siemens and Nvidia come into play. Our Omniverse platform, for example, uses USD and other open-source formats to enable different systems modeling complex entities like factories to communicate and share data efficiently. It’s about digitization and collaboration.??

Ian Fisher: I would second that. Additionally, managing expectations and focusing on people are also vital. A successful transformation requires making sure that these changes are improving lives and making jobs easier, not more challenging. Successful implementation means keeping people involved and seeing the value in every step.??

Find out more about the partnership of Siemens with NVIDIA

More on this?

• Watch the recording of the Economist Metaverse Summit (YouTube)??
• Our Industrial Metaverse Glossary?
• What you need to know about the Industrial Metaverse
• Artificial Intelligence at Siemens