Opportunities and risks for a Western European metaverse – Data & figures – Electricity consumption & Renewable (iterative) solutions

The necessary conditions for this are not yet in place. One of the main reasons for this is the enormous energy requirement associated with the implementation of such metaverses.

🔋 Today, data centers already consume about 5 percent of global energy consumption, and experts estimate that this share could rise to as much as 30 percent in the coming years.

📊 There is no universally accepted, always up-to-date breakdown of global electricity consumption across different electronic devices and technologies.

💡 Energy consumption can change significantly over time and depends on various factors, including technological developments, population growth, energy efficiency, and usage patterns.

🌎 Nevertheless, it is possible to make a rough estimate of how global electricity consumption might be distributed across different categories:

1. Data centers

Approximately 5% of global electricity consumption could be attributed to data centers. These are crucial for data processing and information storage in the digital world.

2. Smartphones and mobile devices

Smartphones and mobile devices account for approximately 3% of global electricity consumption. These devices have become indispensable in modern life and contribute to networking and communication.

3. Computer

Computers, including desktop PCs, laptops, and servers, account for approximately 9% of global electricity consumption. They are the foundation for most digital activities.

4. Other electronic devices

This category is extremely diverse, but can account for approximately 20% of global electricity consumption. It includes, for example, household appliances, consumer electronics, and other everyday gadgets.

5. Industrial and commercial applications

Industrial applications and processes are the largest consumers of electricity, accounting for approximately 65% ​​of global consumption. This includes the energy requirements of factories, production facilities, and other commercial operations.

6. Private households

Energy consumption in private households is estimated at around 27%. This area covers the needs of millions of households worldwide.

⚡ It is important to note that power demand in these different areas can vary significantly depending on the scenario. The development of technologies such as artificial intelligence (AI), cloud systems, and the rollout of 5G and 6G private networks, particularly for the metaverse, will influence energy requirements in each area. For example, metaverses based on immersive technologies could lead to a significant increase in energy demand in data centers and for home users.

🌿 Overall, it is clear that implementing metaverses presents a complex challenge with regard to energy consumption. It requires not only technological advancements, but also a sustainable energy supply and a more conscious use of electronic devices to enable the long-term realization of such virtual worlds.

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🌍 Structure of global electricity consumption by sector in 2019

The structure of global electricity consumption in 2019 offers interesting insights into the distribution of electricity consumption across different sectors. This report shows that energy demand depends primarily on the type of use. Here is the key information:

1. Industrial sector (41.90%)

In 2019, the industrial sector was the world's largest consumer of electricity, accounting for an impressive 41.90% of total global electricity consumption. This reflects the intensive use of energy in production and manufacturing. Industry is a crucial driver of economic development, but at the same time, it is also a significant energy consumer.

2. Private households (26.60%)

Private households were the second largest sector consuming electrical energy, accounting for 26.60%. This illustrates the electricity demand for lighting, heating, cooling, and various electrical appliances in households worldwide.

3. Trade and public sector (21.20%)

The commercial and public sector, which includes offices, schools, hospitals, and government buildings, consumed 21.20% of global electricity. This underscores the importance of energy efficiency in these sectors to reduce consumption.

4. Transport (1.80%)

The transport sector consumed comparatively little electricity, only 1.80%. This shows that electromobility and energy-efficient transport systems were still relatively uncommon in most countries.

5. Other sectors (8.50%)

Other sectors not included in the categories mentioned above accounted for 8.50% of global electricity consumption. These include areas such as agriculture, mining, and leisure activities.

🇩🇪 Distribution of electricity consumption in Germany by consumer group 2022

Germany, as one of Europe's leading economies, has a unique electricity consumption structure. In 2022, this distribution was as follows:

1. Industry (approx. 50%)

Industry was the largest consumer of electricity in Germany in 2022. Almost half of total electricity consumption, equivalent to approximately 216 terawatt hours, came from this sector. This underscores the importance of German industry to the national economy.

2. Trade, commerce, services (approx. 25%)

The commercial sector, which includes shops, service companies, and trading businesses, consumed about a quarter of Germany's electricity. This illustrates the diversity of commercial electricity use.

3. Households (approx. 25%)

Households also accounted for about a quarter of total electricity consumption in Germany. This includes the energy needs of apartments and houses.

💡 Electricity prices for industry and households

Electricity prices in Germany are a significant factor influencing energy consumption. In recent years, electricity prices have risen steadily for both industry and households. This could be attributed to various factors, including the cost of electricity generation, grid fees, and taxes. Although some alternative providers offer lower prices than the default suppliers, both industrial and residential providers increase their rates year after year.

🌐 Biggest electricity consumers compared

In a global comparison, China was the largest electricity consumer in 2019, followed by the USA. These two countries dominate the global energy market due to their enormous populations and economic activity. In Europe, the Scandinavian countries, particularly Norway, showed high per capita electricity consumption. Norway consumed more than three times as much electricity per capita as Germany. This could be attributed to the high demand for electricity to power households, industry, and electric vehicles.

📊 Distribution of electricity consumption in Germany by consumer group in 2021 and 2022

It is interesting to see how the distribution of electricity consumption in Germany changes from year to year. In 2021 and 2022, the differences between consumer groups were slight, but still noteworthy:

Distribution of electricity consumption in Germany by consumer group in 2021

• Industry: 44%
• Households: 26%
• Commerce, trade, services: 27%
• Traffic: 2%

Distribution of electricity consumption in Germany by consumer group in 2022

• Industry: 44%
• Households: 27%
• Commerce, trade, services: 26%
• Traffic: 3%

💡 The slight shift from one year to the next reflects changes in the economy, the transport sector, and consumer habits. This underscores the importance of energy distribution data for energy policy and energy infrastructure planning.

🌿The structure of electricity consumption worldwide and in Germany shows how important it is to promote energy efficiency and renewable energies to meet increasing electricity demand while minimizing environmental impact. Optimizing energy consumption across various sectors is crucial to fostering sustainable energy solutions.

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📜 The Metaverse, a term that has recently received a lot of attention, raises many questions, especially regarding its need for and added value on a European scale.

🔍 1. Demand on a European scale

The need for a European-scale metaverse is not yet clearly evident. Compared to Asia, where the development of the consumer metaverse is already well advanced, Europe is still in its infancy. However, there is a need to lay the groundwork to assume a leading global role in the technological development of the metaverse.

🤔 2. Unclear added value

Despite the enthusiasm for the metaverse, a clear understanding of its undeniable added value is still lacking. This is a challenge facing proponents of the metaverse strategy. There is a need to define the added value and concrete benefits for society and the economy.

🚀 3. Group dynamics and early entry

The metaverse is heavily influenced by group dynamics. Companies and organizations that invest in this technology early and participate in its development may gain a competitive advantage. Similar to the introduction of smartphones, which were initially considered unnecessary by some, early entry is often crucial to avoid later oversights.

🌐 4. Development of “smaller” metaverse solutions

Alongside the large metaverse platforms, smaller solutions are also emerging. The success of such solutions depends on interest, education, and the provision of information. When the added value and the need are recognized, demands arise that these solutions aim to meet. This can lead to an economic cycle that generates funding and profit.

🌍 5. Interest and need in different regions

Interest in and demand for the metaverse are developing differently in various regions. In Asia, particularly among young people, the metaverse is being driven by gamification and entertainment. This region is home to approximately 60% of the world's youth population, representing enormous potential. In the Western world, however, the metaverse is being advanced by the concept of Industry 4.0, which is leading to its application in industrial production and professional life.

🌟 The metaverse holds great promise, but many questions remain unanswered. The need for and added value on a European scale are not yet clearly defined, and the challenge lies in clarifying these aspects to fully realize the potential of this technology. It is important to monitor the development of the metaverse on a global scale and identify opportunities for innovation and economic growth.

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• Asia's dynamic rise in the metaverse – The West and the Industrial Metaverse

The European Commission has recognized the transition to the metaverse as a significant development offering new societal and economic opportunities for Europe. This transition involves the efficient interaction between humans and machines in various EU industrial ecosystems through the use of so-called digital twins. However, alongside the opportunities, certain legal, environmental, and economic risks must also be considered.

🔒 Data protection and cybersecurity in the metaverse

One of the biggest challenges is ensuring fundamental rights, privacy, and cybersecurity in the metaverse. Because the metaverse is a virtual environment where people actively interact, data protection and security issues can arise. The European Commission recognizes these concerns and is working to develop appropriate measures and regulations to minimize these risks.

💼 Responsibility and liability in the metaverse

Another aspect that needs to be considered is the uncertainty surrounding responsibility, liability, and contractual arrangements in the metaverse. When conflicts or damages occur in this virtual world, it is crucial to have clear rules for liability and contract enforcement. The European Commission plans to develop guidelines and recommendations in this area.

📶 Infrastructure and skilled workers

Significant investments are required to successfully establish the Metaverse in the EU. This includes, in particular, the expansion of 5G and 6G networks with low latency and high bandwidth. These networks are crucial for ensuring a smooth and immersive experience within the Metaverse. Edge computing also plays a vital role, as it enables real-time data processing and thus enhances interactivity within the Metaverse.

Besides infrastructure, a skilled workforce is also of great importance. The metaverse opens up new professional fields and requires specialists with knowledge of virtual reality, artificial intelligence, and other relevant technologies. The European Commission is working on initiatives to promote training and qualification in these areas to ensure that sufficient skilled workers are available.

📜 Regulation in the Metaverse: Flexibility and Ethics

It is important to emphasize that while the European Commission supports the development of the metaverse, it is not attempting to impose sweeping obligations through a "metaverse law." This makes sense for several reasons. First, the metaverse is a relatively new technology, and many of its applications and implications are not yet fully understood. Therefore, it is difficult to enact comprehensive regulations that might be inappropriate or overly restrictive.

Secondly, the metaverse is in a constant state of flux. New technologies and applications are being developed, and user interactions are constantly evolving. It is therefore advisable to remain flexible and respond to developments rather than enacting rigid laws that may be outdated before they even come into effect.

Third, there are many ethical and societal questions related to the metaverse that still need to be discussed and researched. These questions concern, for example, its impact on the real world, social interaction, content creation and protection, and economic consequences. It is important to address these questions through broad societal dialogue before enacting comprehensive legislation.

🤝 Participatory approach and potential of the metaverse

In this context, the European Commission has announced that it will pursue a participatory approach, involving various stakeholders, including the public, in the development of metaverse policies and regulations. This is intended to ensure that different perspectives and concerns are adequately addressed.

🌟 Metaverse opportunities in Europe

The opportunities that the metaverse offers for Europe are manifold. It can usher in a new era of digital collaboration and communication, increasing efficiency across various economic sectors. Companies can use digital twins to create realistic simulations of products and processes, improving product development and quality assurance. In education, immersive learning environments can be created that enhance students' understanding and motivation.

Furthermore, the metaverse opens up new opportunities for the cultural and creative industries. Virtual art galleries, concerts, and theater performances are becoming increasingly popular, and artists have the chance to perform in a global virtual arena. This can help promote European culture worldwide.

The metaverse also holds potential in healthcare. Telemedicine and virtual health consultations can be made more efficient, and patients can recover and rehabilitate in virtual environments. This can improve healthcare overall.

🌱 Ecological sustainability in the metaverse

However, it is important to consider the environmental impact of the metaverse. Operating data centers and using high-end graphics processors in virtual worlds requires significant amounts of energy. The European Commission will therefore also implement measures to promote energy efficiency and sustainability in the metaverse.

🚀 Opportunities and challenges in the Metaverse for Europe

The transition to the metaverse for Europe presents both opportunities and challenges. The European Commission recognizes the importance of this change and is working to maximize the benefits and minimize the risks. A participatory approach and regulatory flexibility are crucial to ensuring that the metaverse in Europe is developed successfully and responsibly.

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An iterative metaverse solution is an approach to developing and improving metaverse technologies through incremental iterations and adjustments. This approach involves deriving smaller, efficient solutions from comprehensive metaverse visions, building upon the experience and insights gained from previous development phases. The focus is on continuously improving and adapting the technologies to evolving requirements.

🔍 Here are some important aspects of an iterative metaverse solution

1. Smaller steps

Instead of developing large and complex metaverse systems from the outset, one starts with smaller, more manageable solutions. These can be developed and tested more quickly.

2. Experience-based

The development is based on user experiences and feedback from previous iterations. This allows for continuous improvement of usability and functionality.

3. Adaptability

The iterative approach allows for flexible responses to changes and new requirements. This enables the metaverse to be continuously adapted to the evolving needs of its users.

4. Interoperability

A key component is the ability to link different metaverse solutions and make them interoperable. This allows users to seamlessly switch between different metaverse environments.

5. Industry-specific applications

Iterative metaverse solutions can be industry-specific, such as in the consumer or industrial metaverse. These solutions are tailored to the specific requirements of a particular industry.

The iterative approach plays a key role in the development of a comprehensive and functional metaverse, as it makes it possible to address the challenges step by step and to fully exploit the potential of this emerging technology.

An iterative metaverse solution means developing "smaller" and efficient metaverse solutions from large metaverse visions, e.g. in the area of ​​consumer and industrial metaverse, from which a larger European metaverse can later develop interoperably.

🔄 Interoperability

Interoperability refers to the ability of different systems, technologies, or organizations to work together and exchange data. This enables seamless communication and coordination between these systems. Interoperability typically requires adherence to standards and protocols to ensure compatibility.

The development of the metaverse concept has attracted worldwide attention in recent years, and "small" metaverse solutions are also gaining ground in Germany. These specific applications offer industry- and topic-specific solutions that can influence diverse areas. In this article, we will examine these iterative metaverse solutions in more detail and explain their significance for Germany.

🏭 B2B application example: Hybrid trade fair and 3D product presentations

One of the first and perhaps most obvious applications is the use of metaverse technologies for hybrid trade fairs. Companies like Bürkle and Kautec are already using 3D visualizations at trade fairs, accessible via various devices and touchscreens. This eliminates the need for expensive exhibition stands and the transport of machinery, saving not only costs but also valuable resources. Given the current labor shortage and rising personnel costs, this represents an efficient solution.

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The transformation of analog brochures into 3D product presentations is another way in which small metaverse solutions are gaining a foothold in Germany. This allows companies to present their products in an immersive and engaging way, increasing customer loyalty and product understanding.

But small metaverse solutions are not limited to the commercial sector. They also have significant implications for the cultural and creative industries, as well as other areas:

🎨 1. Cultural and creative sectors

The Metaverse offers artists and creatives the opportunity to work in virtual worlds and present their work globally. Virtual art galleries are becoming increasingly popular, and artists can perform in a global virtual arena. This not only promotes cultural diversity in Germany but also opens up new income opportunities for artists.

📚 2. Education and learning environments

The metaverse opens up entirely new possibilities in the field of education. Virtual classrooms and immersive learning environments can be created, making learning more engaging and effective for pupils and students. This contributes to the improvement of the education system in Germany and ensures that educational content is more accessible.

🏥 3. Healthcare

Metaverse solutions can also make a crucial contribution to healthcare. Telemedicine and virtual health consultations are made more efficient through the use of metaverse technologies. Patients can recover and rehabilitate in virtual environments, which is particularly important during pandemics and times when remote treatment is needed.

🌱 Consider ecological impacts

However, it is important to consider the environmental impact of the metaverse. Operating data centers and the intensive use of high-end graphics processors in virtual worlds require significant amounts of energy. The European Union (EU) has recognized that measures to promote energy efficiency and sustainability in the metaverse are necessary to minimize environmental impacts. In Germany, a country that places great value on environmental protection, this is of particular importance.

🚀 Guidelines and Standards

Regulating the metaverse is another important aspect. The European Commission is working to develop guidelines and standards to ensure that metaverse development in Germany and across Europe is carried out responsibly. A balanced approach that fosters innovation while protecting societal interests is crucial.

🔗Iterative metaverse solutions have significant potential and are efficient

Small-scale metaverse solutions offer significant opportunities in Germany and Europe. They can stimulate the economy, improve the education system, promote cultural diversity, and make healthcare more efficient. The challenge lies in harnessing these opportunities while simultaneously ensuring ecological sustainability and responsible regulation.

German society and European institutions are called upon to embrace these challenges and successfully shape the transition to the metaverse. Germany has the opportunity to take a leading role in this emerging digital world and set the course for an innovative and sustainable future.

XR technology and the concept of the metaverse are still in their early stages of development, but their potential as an economic force is enormous. Businesses that can adapt and leverage these technologies are likely to gain a competitive advantage. At the same time, they offer consumers the opportunity to enter a new, immersive world that can transform everything from social interactions to professional tasks. As these technologies evolve, it is crucial to consider ethical and regulatory issues to ensure that the benefits of the metaverse and XR technology are realized as broadly as possible. Ultimately, the success of this digital ecosystem will depend on how well different stakeholders—governments, businesses, and civil society—can collaborate. This is an exciting time for the metaverse and XR technology, and we can look forward to the innovations and applications that the coming years will bring.

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• Metaverse development in Germany, EU, USA, China, Japan and worldwide

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