The transformative power of the Metaverse is reverberating across industries worldwide, presenting a $13 billion opportunity on a global scale. According to a recent report by Arthur D. Little, a leading strategy and management consulting firm, India’s Metaverse and Web3 market is projected to reach a staggering $200 billion by 2035.
With the retail and financial services sectors poised to drive adoption, the country stands at the cusp of a paradigm shift.
Released on June 1, Arthur D. Little’s comprehensive report titled “Web3 & Metaverse – The Rise of the New Internet & the India Opportunity” delves into the potential of emerging technologies and their transformative impact on India’s digital landscape.
Through in-depth analysis and exploration of relevant use cases, the report uncovers how Web3 and the Metaverse will shape the next phase of the Internet and spearhead digital adoption across industries. Both markets are expected to experience an annual growth rate of approximately 40 percent.
To realise the full potential of the projected $200 billion Metaverse and Web3 market, collaboration between startups, investors, corporations, and the government is imperative, according to experts. This multifaceted effort will ensure that India capitalises on this transformative opportunity.
While the Metaverse is still in its early stages, its recent prominence has surged with Facebook’s rebranding as Meta. Similar to the rapid development of AI, the Metaverse has sparked debates surrounding regulatory oversight, privacy concerns, and user safety. The report emphasises the need for essential guardrails in India to foster mass adoption while safeguarding the interests of all stakeholders.
The report also underscores the potential growth of e-commerce penetration in India, further bolstered by the country’s leadership in digital payments adoption. This could pave the way for seamless integration of fintech solutions into the Web3 ecosystem. Moreover, it highlights key areas that various stakeholders should consider to participate in the boom of Web3 and the Metaverse.
To thrive in the Metaverse, the report proposes several recommendations. It suggests that investors establish dedicated teams and accelerator programmes to leverage the power of Web3 and the Metaverse. Corporations are encouraged to collaborate with startups through Web3 and Metaverse sandboxes.
Regulatory bodies should draft supportive policies, incentivise investments, and encourage governments to consider hardware subsidies for augmented reality (AR) and virtual reality (VR) devices.
As India embraces the limitless possibilities of the Metaverse, it is poised to carve a unique path in the global digital landscape. By fostering collaboration and implementing forward-thinking strategies, the nation can seize this extraordinary opportunity and solidify its position as a frontrunner in the emerging era of Web3 and the Metaverse.