In our latest Future Sign we look at how dematerialization is emerging as a significant new direction for consumer culture. One of the most interesting things about the move from the Real to the Virtual is how it reflects a real change in attitudes towards what we value and desire. The accumulation of possessions no longer holds the same cachet in a world where, friends, experiences and info-bites are the new status symbols.

We are seeing a gradual change in attitudes to ownership. As media, music and film go “on-demand” we will continue to see a decline in the status and value of collections. People will shift from wanting to own to wanting to have ubiquitous access and enjoy at their pleasure. What is evolving is a new form of digital minimalism, which sees more of what we own and value becoming liberated from the physical world. While it currently represents the aspiration rather than the reality, many people recognise that dematerialization offers a solution to many of the common ‘problems of modern life’. Some economists even see the move towards dematerialism as providing the next step in human and economic evolution, as well as a solution to the issue of sustainability and growth.

The cloud computing revolution is still in its infancy but it will fundamentally affect attitudes towards the value and desire of material objects. There is a shift in the balance of power from the material object to the digital cloud or ‘global data field’. The transition from the ‘material world’ of devices, to the ‘virtual world’ of cloud computing is already revolutionising the mobile device category.

This is transforming the way people use the technology, freeing them from the constraints and limitations of specific devices or locations. Music streaming will likely eclipse mp3 purchases in popularity. Kindle sales are already outselling hardback books on Amazon. The service economy is adapting to the fresh demand of the dematerialised world. There has been growth in ‘Dematerialisation services’ such as ‘ipodmeister’, which will digitize your record collection, enabling you increased access and freeing up physical space in the home.

For many ownership of too many physical objects is being seen as burden.

More people, not just the super rich are placing greater value on memories and life experiences over material possessions. Dematerialism is also seen as way to increase happiness levels across developed economies by reducing our obsession with acquiring material possessions. The current growth in philanthropy (Bill Gates, Paul Allan, Warren Buffett) has, in its own way, become the new way of gaining status and admiration. Austrian millionaire Mr Rabeder who after acquiring a lifetime of luxury possession realised that he ‘wasn’t living a real life’ and had become a ‘slave to his possessions.’ Other examples like Kelly Sutton’s ‘Cult of Less’ shows that dematerialising your life can be both liberating and aspirational.

Everywhere you look you can see the expansion of virtual platforms. The amount of time and money spent visiting and investing in virtual worlds is increasing. From facebook to flickr people are growing used to their connections and precious memories existing in virtual spaces. Back-up services and remote storage will witness huge growth. Mirroring the success of online apps, there has also been a huge rise in virtual goods, either through online games or through addictive applications that convert hard currency into ‘virtual goods’. Facebook has introduced it own credit system of ‘facebook credits’ and is in the process of revamping its virtual gift site.

As our most valuable possession disappear from the tangible world into in the virtual realm (photos, books, movies, memories, music, art…) we need virtual storage. People are beginning to think about what happens if you loose you ‘dematerialised’ possessions. Hard drives will become super-valued. The increase in dematerialised possessions is likely to fuel a growing demand for back up and management services. Some insurers like UK’s ‘More Than’ already cover digital downloads but expect to see insurance and digital reclamation as a growth sector as consumers seek to protect and recovery precious files.

Welcome to the Dematerialised Future. You have been warned.