Metaverse Technology for Public Services in Smart Cities:
Opportunities and Challenges
Hajra Rasmita Ngemba
1,2 a
, Dian Indrayani Jambari
1b
and Kamsuriah Ahmad
1c
1
Faculty of Information Science and Technology, National University of Malaysia, 43600 Bangi, Selangor, Malaysia
2
Department of Information Technology, Faculty of Engineering, Tadulako University, Palu, Indonesia
Keywords: Metaverse, Smart Cities, Digital Public Services, Developed Countries, Developing Countries.
Abstract: This study investigates the viability of metaverse technology as a digital public service in smart cities and
explores the prospects and challenges of implementing it in developed and developing countries. This study
employs a conceptual exploration through a review of the contemporary literature concerning the deployment
of metaverse technology, the construction of smart cities, and the revolutionization of public services. The
analysis compares readiness factors of technology, infrastructure, and policy between developed and
developing countries. Metaverse provides immense value to smart cities, including improved accessibility of
public services, real-time interaction, and operational efficiency. However, key challenges in deploying such
networks include limited infrastructure in the developing world, issues with data privacy, and high energy
consumption in developed countries. Conceptual research needs further empirical studies focusing on
implementing metaverse technology in smart cities. This research is beneficial for policymakers when
designing smart-metaverse implementations.
1 INTRODUCTION
The smart city concept has evolved to address
urbanization challenges by improving citizens'
quality of life and public service efficiency, citizens'
participation, and improving government and
environmental communication sustainability (Din et
al., 2020). Implementing innovative technology is
one of the governance efforts in cities' development
to ensure citizens' welfare. Citizens are the lifeblood
of a city, where citizens' growing sustainability and
welfare are things to be maintained. The
sustainability of smart cities is defined by the
elements of Emerging and advanced technology
(Almeida et al., 2024). The use of technology is
significant, especially in the government's application
of public services in the context of smart cities. Public
services are services that the government directly or
indirectly provides to the community to fulfill
citizens' basic needs and rights. The government has
three roles in public service innovation: regulator,
promoter, and user of technological innovation in
a
https://orcid.org/0000-0001-8727-9267
b
https://orcid.org/0000-0001-6700-1815
c
https://orcid.org/0009-0000-0038-2262
public services. Governments commonly employ
IoT, AI, Blockchain, Big Data Analytics, and
Information and Information Communication
Technology (ICT) to provide additional integrated,
efficient and effective services. One of the new
technologies that has yet to be studied by researchers
is the metaverse.
Metaverse offers a new dimension in the
transformation of digital public services. Metaverse
enables a more interactive, immersive, and real-time
virtual environment to provide a more transparent and
inclusive public service experience (Senadheera et
al., 2024). Metaverse can enhance digital public
services in smart cities with many benefits, such as
increased efficiency of public services, wider
accessibility, transparency, and citizen engagement,
and can reduce carbon footprint (Green ICT). It also
supports the Green ICT agenda, contributing to the
sustainability of innovative city initiatives (Chen et
al., 2024). Metaverse supports public services more
broadly (e.g., telemedicine as part of a city's health
Ngemba, H. R., Jambari, D. I. and Ahmad, K.
Metaverse Technology for Public Services in Smart Cities: Opportunities and Challenges.
DOI: 10.5220/0013432400003953
Paper published under CC license (CC BY-NC-ND 4.0)
In Proceedings of the 14th International Conference on Smart Cities and Green ICT Systems (SMARTGREENS 2025), pages 155-162
ISBN: 978-989-758-751-1; ISSN: 2184-4968
Proceedings Copyright © 2025 by SCITEPRESS Science and Technology Publications, Lda.
155
services or virtual classrooms as part of a smart city
initiative).
However, there is a disparity between developed
and developing countries adopting digital public
service technologies. Developed countries have made
significant progress in e-government, virtual services,
and smart cities, while broader development
challenges hinder the maturity of developing nations.
Limited bandwidth further delays smart city adoption
in these regions. This study offers three key
contributions: (1) it compares metaverse adoption in
public services between developed and developing
countries based on technological readiness,
infrastructure, and policy frameworks; (2) it
integrates governance and public service perspectives
with technology, highlighting opportunities and
challenges in smart city development; and (3) it
provides policy recommendations to support digital
transformation through metaverse implementation,
particularly for developing countries facing
infrastructure and regulatory constraints. These
insights enrich the literature and assist policymakers
in advancing smart city initiatives through emerging
technologies.
2 LITERATURE REVIEW
2.1 Smart Cities and Digital Public
Service
In the digital era, technology plays a vital role in
shaping smart cities that aim to improve urban
services and the community's quality of life. Smart
cities integrate various domains such as
transportation, energy, and public services through a
smart city environment. One of the key components
of smart cities is digital public service, which refers
to the use of digital technology to enhance the
efficiency, accessibility, and inclusivity of public
services. These services encompass e-government
platforms, digital healthcare, smart transportation,
and other essential public services designed to
improve citizen engagement and service delivery.
Despite offering many benefits, smart cities also face
significant challenges, primarily related to the digital
divide that most impacts people with disabilities
(Sabri & Witte, 2023).
Smart cities utilize IoT-based digital
technologies, artificial intelligence (AI), big data, and
cloud computing to improve the efficiency of
government services (e-government), healthcare, and
response to community needs. AI and Big Data also
play an important role in city planning, national
service management, and improving the security and
speed of public services. For instance, in the health
sector, this technology supports preventive planning,
predictive analysis, epidemiology, and pandemic
management through surveillance, contact tracing,
and remote consultation (Naik et al., 2022). However,
the main challenges in implementing smart cities are
data integration issues, privacy security, and
differences in digital readiness in various countries.
Research shows differences in the approach to smart
cities between developed and developing countries.
Developed countries focus more on sustainable
production and supply chain emission reduction
while developing countries focus more on education
and human rights (Kvasničková Stanislavská et al.,
2023).
The increased efficiency of government through
digitalization is more pronounced in developed
countries. However, both developed and developing
countries face challenges in building smart cities.
Developed countries also face challenges in
implementing smart cities, primarily concerning data
privacy, cybersecurity risks, and the ethical use of AI
in public services. Meanwhile, developing countries
experience problems such as low internet
connectivity, inadequate infrastructure, and the
digital divide. In addition, rapid urbanization often
leads to institutional weaknesses and a lack of
resources. Before moving to the stage of urban
innovation, it is necessary to fulfill basic needs and
increase community capacity (Fefta et al., 2023). The
main obstacle to adopting Industry 4.0 in both
countries is the lack of a clear digital strategy.
Developed countries have formulated national
strategies and policies to incentivize Industry 4.0
technologies, while developing countries have
adopted Industry 4.0 technologies at the enterprise
level, relying on individual enterprise initiatives
rather than national and coordinated policies (Raj et
al., 2020).
During the COVID-19 pandemic, digital
technology has been invaluable in monitoring the
outbreak's spread, predicting trends, and managing
health institutions. As an example of digital
technology adoption in smart cities, digital health
services have played a crucial role in enhancing
healthcare accessibility and efficiency. However, the
gap remains, especially in developing countries.
Limited infrastructure remain substantial obstacles to
the equal distribution of digital health services across
various regions (Naik et al., 2022).
Smart cities offer a sustainable solution for future
city development. However, to ensure its success, a
citizen-centric approach must be implemented. This
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strategy must be aligned with the community's needs
and preferences so that the presented innovations can
benefit all city residents. In supporting digital public
services, various advanced digital technologies have
been integrated into smart cities. One emerging
digital technology increasingly adopted in digital
public services is the metaverse. This technology
enables immersive virtual environments that facilitate
citizen engagement, digital governance, and remote
public service interactions. By leveraging extended
reality (XR), AI, and blockchain, the metaverse has
the potential to transform how public services are
delivered, making them more interactive, accessible,
and efficient (Yaqoob et al., 2023). Although
challenges remain, some developing countries have
successfully implemented innovative public service
solutions to address existing constraints.
2.2 Digital Technologies for Developed
versus Developing Countries
Significant differences in the adoption of digital
technologies between developed and developing
countries, as shown in Table 1, highlight structural
and policy imbalances in implementing technologies.
In advanced economies, mature digital infrastructure
and connectivity (e.g., 5G) strengthen their digital
transformation (Raj et al., 2020). On the other hand,
development can meet significant constraints in terms
of infrastructure and catch up with global technical
development. It demonstrates how the global digital
divide is not a question of access alone but a mirror
of global economic and political inequalities that
shape development priorities. Then, in the Smart city
approach that leads to citizen focus, it is very
important to gain insight into what services are most
important from the citizen's perspective and which
transaction channels are preferred (Wirtz et al., 2021).
Moreover, this highlights their generally stronger
economic position by facilitating technology
investments as opposed to developing nations that
tend to rely on international grants or external support
(Tukur et al., 2023). This condition implies that this
dependency would drive an unequal and
asymmetrical relationship that thwarts developing
countries' independence in developing their
technologies. Developed countries with structured
data privacy policies reflect better preparedness in
dealing with digital security risks through policies
and data security (Tukur et al., 2023). On the other
hand, policy inconsistencies in the developing world
not only erode public trust but also affect all
technologies introduced(Hadavi & Alizadehsalehi,
2024)
.
Table 1: Comparison of Digital Technologies.
Aspects
Developed
Countries
Developing
Countries
Infrastructure
Digital
infrastructure
is already
establishe
d
Limited
infrastructure
and internet
access
Implementation
Cost
It is more
straightforward
to finance
technology
investments
Implementation
costs are high
and depend on
international
g
rants
Citizen
Participation
High-tech
literacy, active
engagement
Low digital
literacy and
technology
Data Security
Well-
established
data privacy
p
olic
y
Challenges in
maintaining
data privacy
and securit
y
Digital Policy
Data privacy
regulations and
technology
policies are
maturing
Policies are
inconsistent
and less
integrated
Based on Table 1, developed countries have
mature digital infrastructure, stable funding
resources, and integrated regulatory policies between
data security and technology regulation. In contrast,
developing countries lack internet network
infrastructure, have high implementation costs and
dependency on external funding, and have a long-
standing digital literacy gap that hinders increased
public participation. Therefore, differences in digital
policies and regulations, such as public services,
make data protection and regulation less harmonious.
Table 2: Comparative Analysis of Digital Public Services
in Smart Cities between Developed and Developing
Countries.
Evaluation
Criteria
Developed
Countries
Developing
Countries
Service
Coverage
Comprehensive
digital services
Basic
services
Accessibility
24/7 access via
multiple
platforms (web,
mobile apps)
Limited to
office hours
with in-
person
verification
Technology
Utilization
Use of IoT, AI,
blockchain, and
di
g
ital twins
Basic web
portals, SMS
services
System
Interoperability
Integrated
systems across
sectors (health,
finance)
Fragmented
systems with
limited cross-
secto
r
Metaverse Technology for Public Services in Smart Cities: Opportunities and Challenges
157
Table 2: Comparative Analysis of Digital Public Services
in Smart Cities between Developed and Developing
Countries (cont.).
Evaluation
Criteria
Developed
Countries
Developing
Countries
Evaluation
Criteria
Developed
Countries
Developing
Countries
Data Utilization
Big Data for
Policymaking
Limited data
usage in
g
overnance
Security and
Privacy
Robust
cybersecurity
frameworks
Vulnerable to
cyberattacks
Administrative
Efficiency
Automation of
administrative
processes
reduces service
time and costs
Some
processes are
still manual
2.3 Metaverse in Digital Public Service
The metaverse concept has evolved significantly
since its inception, with research interest increasing
rapidly in recent years. 2021 is often considered the
beginning of the "Metaverse Era," marked by a surge
in scientific publications and technological
advancements (Shen et al., 2023). The metaverse
introduces a new paradigm in digital public services
by offering immersive, real-time virtual interactions.
The main components of the metaverse are hardware,
software, and content. The two most common are VR
and AR metaverse driving technologies (Yaqoob et
al., 2023). Built upon technologies like virtual and
augmented reality, AI, and blockchain, the metaverse
has the potential to support various smart city
initiatives. By enabling more interactive and
engaging public services, it can enhance citizen
participation, improve government transparency, and
streamline digital transactions. The metaverse
enables avatars, which allow users to interact in an
immersive, synchronous, and continuous
environment (Al-Ghaili et al., 2022). At the same
time, it provides solutions for many sectors, including
government administration, security, transportation,
health, education, tourism, and social services.
(Koohang et al., 2023). The metaverse is imagined to
be the convergence of physical and digital worlds,
defined by five features: digitally mediated,
spatiality, immersion, and real-time operations.
However, scalability, interoperability, privacy,
and ethical considerations remain. The metaverse
provides the opportunity to revolutionize public
services. A metaverse can benefit citizen service and
engagement in government, especially for younger
generations (Kshetri et al., 2024). However,
challenges encompass privacy issues, possible abuse,
and the disparate need for its careful implementation.
The impact of the metaverse spans all kinds of
industries, such as tourism and entertainment,
providing fresh means for interaction and problem-
solving (Koohang et al., 2023). Metaverse, an
ethereal smart city representation, has the potential
for environmental, economic, and social
sustainability goals (Allam et al., 2022).
3 METHODOLOGY
This study employs a qualitative and exploratory
approach to examine the potential of metaverse
technology in enhancing digital public services
within smart cities. Using a conceptual framework
based on recent literature, it explores opportunities
and challenges in developed and developing
countries.Data collection involved document analysis
of journals, conference proceedings, government
papers, and policy documents on smart cities and
digital transformation. Sources were retrieved from
IEEE, Scopus, and Web of Science using keywords
like Metaverse in Smart Cities, Digital Public
Services, and Metaverse Governance. Government
reports from organizations such as the OECD were
also considered. Of the 96 papers initially found, 30
were selected based on relevance to public service
applications. The inclusion criteria were: (1) peer-
reviewed journal articles or conference proceedings,
(2) studies on metaverse applications in digital public
services within smart cities, (3) discussions on
opportunities and challenges in government-related
services, and (4) empirical studies or comparative
analyses of developed and developing countries. Data
analysis involved content and comparative analysis.
Content analysis identified key themes, including
benefits, challenges, and potential applications of the
metaverse in public services. Comparative analysis
examined differences in technological readiness,
infrastructure, and policy frameworks between
developed and developing countries.
4 FINDINGS
The findings are categorized into two main aspects:
(1) Opportunities of the Metaverse, which highlights
its potential in enhancing digital public services, and
(2) Challenges in the Metaverse, which examines the
barriers that must be addressed to maximize its
benefits.
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Table 3: Comparison of Opportunities and Challenges in
Developed and Developing Countries.
Aspects Develop Country
Developing
Country
Opportunity
Mature
Infrastructure
Supportive
Innovation
Ecosystem
Cross-Sector
Collaboration
Focus on
Quality of Life
Leader in
Technology
Digital
Transformation
Huge Market
Potential
Focus on Local
Solutions
Leap Frogging
Effect
Development
Support
Challenges
Level of
regulatory
complexity
Ethics and
Social
Responsibility
Maintenance
Cost
High User
Expectations
Change
Resistance
Digital Divide
Inadequate
Infrastructure
Low Technology
Literacy
High Initial Cost
Reliance on
International Aid
Table 3 compares the opportunities and
challenges of metaverse deployment in developed
and developing countries. Developed nations benefit
from mature infrastructure, supportive innovation
ecosystems, and well-established regulations but
struggle with high costs and rising user expectations.
Meanwhile, developing countries view the metaverse
as a driver of digital transformation with vast market
potential but face barriers such as the digital divide,
inadequate infrastructure, and low technological
literacy. Despite these differences, the metaverse
presents opportunities for both to enhance public
services and foster digital innovation.
4.1 Opportunities of Metaverse
The metaverse offers significant opportunities to
enhance digital public services, particularly in
accessibility and engagement. For example,
Metaverse Seoul enables citizens to access
administrative services virtually, eliminating the need
for physical visits. In healthcare, Cleveland Clinic is
utilizing metaverse-based training simulations to
provide immersive learning experiences for medical
professionals. In urban planning, Singapore's 3D
Virtual City Model enhances data visualization and
decision-making processes, while the UAE is
advancing its digital services through the Dubai
Metaverse Strategy. Japan is also embracing this shift
by developing Metaverse Economic Zones, a
consortium aimed at creating virtual spaces for its
citizens. Even smaller nations like Tuvalu recognize
the metaverse's potential. Through the Digital Nation
Initiative, Tuvalu is working to preserve its cultural
heritage in a digital space, ensuring its identity
remains intact despite the looming threats of climate
change, natural disasters, and human activity (Naqvi,
2023). These real-world implementations highlight
the transformative potential of metaverses in
improving service delivery and citizen engagement. It
can provide immersive simulations for government
interaction and offer broader inclusion of disabled
persons as a tool in content creation and art
production (Radanliev et al., 2024). Metaverse can
help create a learning environment for neurodivergent
types, such as people with autism spectrum disorders
(Hutson, 2022). In healthcare, metaverse wearables
can also enhance patient care and wear; they can help
reduce accessibility and improve medical education
content (Kim et al., 2023).
The technology also has the potential to redefine
urban planning and service delivery in cities. This
change can open new doors for individuals with
physical disabilities to partake in creative and social
activities (Radanliev et al., 2024). At the same time,
it can enhance introverts and Autism Spectrum
Disorder (ASD) in academic and professional
environments (Hutson, 2022). Metaverse can
facilitate virtual meetings, which expand
participation and diversity in conferences (Kim et al.,
2023). In healthcare, the metaverse can transform
medical practice, enhance diagnosis therapy and
patient satisfaction for the hospitality and metaverse,
co-create the future of the tourism industry, and create
transformative experiences and value (Buhalis et al.,
2023).
Metaverse offers significant potential to improve
digital public services, particularly regarding
accessibility and inclusivity. The metaverse enables
remote governance, enhances service delivery, and
increases transparency (Naqvi, 2023). However, not
all services are as appropriate for the metaverse as for
this space; Citizen empowerment and citizen
development-focused services have the most
promise. The metaverse can help promote the UN's
Sustainable Development Goals, especially in
developing countries. While it provides excellent
potential for public services decision-making and the
delivery of services, it is careful to be suitable for
specific needs. As governments explore metaverse
applications, they must navigate facilitators and
Metaverse Technology for Public Services in Smart Cities: Opportunities and Challenges
159
barriers, develop their presence, and consider the
transformations required to benefit from these
technologies entirely (Kshetri et al., 2024).
4.2 Challenges in Metaverse
The metaverse offers opportunities and challenges,
which vary significantly between developed and
developing countries. Infrastructure and connectivity
gaps are essential hindrances in rural settings (Raj et
al., 2020). Intermittent internet connections and
improper infrastructure are significant barriers to
metaverse adoption in developing countries (Raj et
al., 2020; Tukur et al., 2024). 5G network limitations
and high latency can hinder real-time interactions in
virtual environments. Privacy and security concerns
matter, of course, but we also need to know which
apps, and how many, will continue to serve us and
how they can please us with better features. To solve
privacy and security challenges, we must prioritize
digital literacy programs and infrastructure networks
and discuss privacy and security concerns (Khalil &
Jumani, 2024). Despite these obstacles, the metaverse
offers potential benefits to developing economies,
including opportunities for education and economic
participation (Khalil & Jumani, 2024).
The Immersive and interactive metaverse
individualized settings and learning experiences (Onu
et al., 2024), yet it also inevitably raises concerns
about digital privacy and security (Al-kfairy et al.,
2024; Tukur et al., 2023). Libraries can design
metaverses concerned with arts and cultural data meta
literacy skills that librarians and users use. However,
using metaverse technologies encounters hurdles like
high cost, intricacy of implementation, incorporation
of new technology, and ethical concerns (Tukur et al.,
2024). Different governance systems use other
architectures, making integration into a single
metaverse difficult. To fully utilize the potential of
the metaverse for digital education and information
flow, independent research, and training challenges,
insist on cooperation and appoint the agency of
institutes for inclusive and ethical development (Al-
kfairy et al., 2024; Onu et al., 2024).
Implementation challenges: High costs are
mainly involved, and some notable challenges and
technical complexity are present. Hardware and
software are significant adoption barriers (Tukur et
al., 2024). Metaverse requires servers with high
computing power to handle real-time interactions,
data storage, and graphics rendering. Furthermore,
the complexity of implementation and the need for
cutting-edge tech like VR, AR, AI, and blockchain
present additional challenges. Privacy, management,
security issues associated with data, and cybercrime
threats are serious issues that must be addressed
(Gupta et al., 2023; Tukur et al., 2023). Translation:
Cultural aspects and ignorance regarding metaverse
technologies also hold back large-scale acceptance.
The merger of the physical and solving challenges in
the digital world requires solving regulations,
interoperability, and ethical considerations (Hadavi &
Alizadehsalehi, 2024). This situation poses serious
challenges in the metaverse (data privacy and
cybersecurity). Key concerns include privacy threats,
data management problems, and the requirement for
strong security measures. Applying privacy
computing approaches to tackle the abovementioned
problems and using machine learning models to
strengthen security in the metaverse. A decentralized
general framework for Self-Sovereign Identity has
been suggested to safeguard personally identifiable
information (Fiaz et al., 2024). The future of these
systems is being modeled using Zero-Trust
Architecture for a potential solution (Gupta et al.,
2023). Legal challenges around intellectual property,
privacy, and jurisdiction in the metaverse need an
interdisciplinary angle.
Significant potential also exists in the metaverse
policy and governance challenges. Topics include
privacy concerns, threats to national security, and
data management. Ethics, including digital
splintering, social regulation, and identity
marshaling, require attention. Governments face
obstacles in deploying metaverse technologies,
demanding metamorphosis in their function (Kshetri
et al., 2024; OECD Digital Economy Outlook 2024,
2024), which poses challenges to intellectual property
protection and jurisdictional power over cyber
borders. Governance based on technical standards is
essential for aligning compatibility and security in
various phases of tannic. The multifaceted, multi-
dimensional nature of the metaverse requires an
interdisciplinary approach to tackle these challenges
better. Implementing a Zero-Trust Architecture
model can enhance security (Gupta et al., 2023).
Despite these challenges, the metaverse provides
prospective advantages in education, commerce, and
public sector services that demand ongoing research
and development (Al-Ghaili et al., 2022).
5 CONCLUSION
This study explores the potential of metaverse
technology in digital public services in smart cities by
comparing its adoption in developed and developing
countries. Metaverse can enhance citizen integration
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and participation in interactive virtual public services.
In developed countries, this technology supports
service efficiency, government transparency, and the
implementation of Green ICT. In developing
countries, the metaverse has the potential to be an
innovative strategy in public services that needs to be
pursued immediately to improve the quality of
services for its citizens. However, challenges remain,
such as privacy and ethics issues, high energy
consumption in developed countries, infrastructure
limitations, high implementation costs, and
technological literacy gaps in developing countries.
To address these challenges, recommended policies
include strengthening data privacy and security
regulations, adopting green data centers, and piloting
projects like virtual city halls. In developing
countries, the focus should be increasing investment
in digital infrastructure, technological literacy, and
budget-friendly devices. International collaboration
is also needed to support technology transfer,
funding, and the implementation of best practices.
Further research should focus on facilitating
metaverse implementation in public services and
smart cities. Efforts to improve accessibility and
inclusivity also be considered so that the community
can feel the benefits of the metaverse to support the
sustainable digital transformation of smart cities.
ACKNOWLEDGEMENTS
Thanks to the Indonesia Endowment Fund for
Education Agency (LPDP) for providing full
financial support for this research.
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