The Metaverse: Germany Explores Real-World Applications in Public Management and Industry
Once hailed as the next frontier of human interaction, the Metaverse seems to have lost momentum after the initial burst of excitement. Vague promises, unclear financial benefits, and expensive hardware have hindered its widespread adoption. But in Germany, a second wave of interest is brewing. State governments and research institutions see the potential of Metaverse technology to revolutionize entertainment, social interaction, public management, and industrial processes.
The Metaverse is an emerging virtual space built on blockchain, virtual reality (VR), augmented reality (AR), the Internet of Things (IoT), artificial intelligence (AI), big data, spatial computing, and digital twin technologies. It promises to create new connections and an era of innovation in many fields, bridging the gap between the physical and digital realms.
Will this time be different? By focusing on practical applications in public services and industry, Germany aims to understand the true potential of the Metaverse.
Can the Metaverse Change Government Services?
Günter Wenzel, head of the Building Culture Innovation Research Group at the Fraunhofer Institute for Industrial Engineering IAO, believes that public management and government can benefit from the Metaverse and its integrated services. The group is currently exploring the potential of the Metaverse in various areas, especially in public management.
“We understand the Metaverse as the next stage of the internet and the overlay of real and virtual spaces, where citizens can have open but secure data exchange and communication with authorities through the connection to public management services in various Metaverse ecosystems (business, leisure, work, mobility, etc.),” Wenzel said.
Citizens will be able to access these services from anywhere through smartphones, desktop computers, VR, or AR glasses, using encryption to protect transactions, operations, access rights, and role configurations. In this scenario, government agencies will communicate with citizens through virtual space and be able to provide the vast majority of services regardless of their location.
To manage real estate and infrastructure for municipal authorities or cities, the government can create digital twins of buildings for AI-assisted processes, for monitoring and maintenance, as well as for demolition, refurbishment, and new construction.
Testing VR and XR in Public Management
For Wenzel, it is still difficult to say whether this will make government services more efficient, as it depends on the use case. However, a cooperative initiative in Lower Saxony involving the Department of the Interior and Sport, the University of Münster, and PricewaterhouseCoopers (PwC) has already demonstrated the advantages of using immersive technology in public management.
In a series of multi-day events in 2022, managers and stakeholders formulated quarterly strategies, with 11% of participants expressing greater satisfaction with the results of the workshops, 16% finding improved communication, and 58% feeling a stronger sense of camaraderie among colleagues.
In addition to the virtual reality collaboration room, the Lower Saxony state government is also conducting another project to test immersive technology. This new project, called “Extended Reality,” aims to explore the potential of extended reality (XR) technology in public management services. Lower Saxony also plans to conduct further scientific research to provide information on the additional value of virtual reality and mixed reality (MR) collaboration in project work and communication with citizens.
These projects are inspired by the “Web4 and Virtual World Strategy” adopted by the European Commission on July 11, 2023, which aims to “lead the next technological transformation and ensure that European citizens, businesses, and public management have an open, secure, trusted, fair, and inclusive digital environment.”
A spokesperson for the Lower Saxony Department of the Interior and Sport told Cointelegraph that the results of the upcoming extended reality project will serve as the basis for determining the future performance requirements of headsets. In 2024 and 2025, Lower Saxony will continue to focus on pilot projects using these technologies, as market development is very rapid and there is a special need to first clarify conditions such as full compliance with GDPR.
Risks and Challenges of the Metaverse
Despite the positive signs, there are still uncertainties in the use of immersive technology in Lower Saxony’s public management departments. As the spokesperson pointed out, it is necessary not only to recognize the potential of these technologies but also to be aware of their limitations and risks, and to integrate them into planning processes with careful and detailed approaches.
Internal risks need special attention. Robust network security and data protection are required for the implementation of necessary hardware and software. The state government also aims to evaluate the impact of this technology on employee health and data handling practices.
The availability and suitability of headsets also pose further challenges. Although the market offers a variety of solutions, not all of them meet administrative requirements, mainly due to concerns about security and data.
Finally, educating employees and citizens and providing them with the necessary skills for long-term and sustainable use of immersive technology are the basis for successfully harnessing the potential of the Metaverse. However, this is also not a simple task.
“Public management departments will have to learn which application areas are most suitable for immersive technology. Based on this, the government can also support technological developments to ensure an open, secure, trusted, fair, and inclusive digital environment for citizens, businesses, and public management,” said Wenzel.
Regional Initiatives Drive Innovation
Lower Saxony and other German state governments are experimenting with Metaverse technology. In 2023, the Fraunhofer Institute for Information and Automation IAO and the Fraunhofer Institute for Production Engineering and Automation IPA, in cooperation with the Virtual Dimension Center (VDC) in Baden-Württemberg, launched a large Metaverse project called CyberLänd, funded by the Baden-Württemberg Ministry of Economic Affairs, Labor, and Tourism. The project aims to explore the political, industrial, and social potential of the Metaverse for this southern German state.
Most importantly, the project team hopes to make a contribution to a deeper understanding of this complex topic: What role will the Metaverse play in Baden-Württemberg? What actions should the government and industry take? How can public participation be promoted?
According to CyberLänd, the Metaverse is an important opportunity for Germany to maintain its position as a technological leader. In the future, virtualization of 3D content, software solutions for extended reality, industrial business processes, and public services, and decentralized, interoperable data platforms will play a crucial role.
However, building a robust ecosystem requires better cooperation between the German industry and its digital technologies.
Another successful regional initiative that utilizes Metaverse and artificial intelligence technology for pilot projects is the AI Innovation Park in Heilbronn. The planned Metaverse laboratory will provide various educational opportunities and practical examples for individuals and companies to learn and experience the Metaverse.
Big Companies Invest in Industrial Metaverse
The German industrial sector is also recognizing the benefits of the Metaverse for development and production. Siemens Energy has already used the Metaverse to model power plants, predict maintenance needs, and save operators $1.7 billion annually by minimizing downtime. In 2023, Siemens also invested over $1.1 billion in Germany, half of which was invested in a new campus in Erlangen. The campus will serve as a global development and manufacturing center, as well as a hub for technological activities related to the industrial virtual world.
In 2024, Siemens also partnered with Sony to create another solution for the industrial Metaverse, combining Siemens’ Xcelerator industrial software portfolio with a new system for creating spatial content. The new solution will enable designers and engineers to create and explore design concepts in an immersive workspace.
Similarly, BMW is developing a digital factory supported by the Nvidia Omniverse platform, where physical construction will only begin after extensive design and validation of digital models.
The Metaverse is Dead – Long Live the Metaverse?
The Metaverse offers a wide range of valuable applications. Germany is experiencing a second wave of interest, driven by a shift towards exploring its practical applications in public management and industry. Public management departments see the potential to improve citizen engagement, service delivery, and collaboration among employees, as evidenced by early initiatives such as the VR collaboration room in Lower Saxony and the CyberLänd project in Baden-Württemberg. Similarly, industry giants like Siemens and BMW are leveraging the Metaverse to enhance design, testing, and production processes.
Of course, challenges such as data security, legal uncertainties, and hardware limitations still exist and need careful consideration. Wenzel of Fraunhofer-IAO emphasizes that planning, employee training, and cooperation between government, industry, and researchers are crucial for successfully overcoming these barriers and adds: “Strictly speaking, the Metaverse is still a promise for the future, as not all necessary sub-technologies have reached the required maturity. However, sub-technologies and business models are already available in smaller bundles and should always be developed and implemented from the perspective of use cases.”
