Arthur D Little, a strategy and management consulting organisation, has released its latest industry report, “WEB3 & METAVERSE — THE RISE OF THE NEW INTERNET and THE INDIA OPPORTUNITY”. The report builds on an in-depth analysis of the Web3 and Metaverse possibilities for India with relevant use cases and delves into the potential impact in growth sectors. The report outlines the role of Web3 and Metaverse in building the next version of the Internet and leading the frontiers of the next wave of digital adoption for Indian industries. The report reveals that the Web3 and Metaverse market opportunity in India is expected to grow at an annual growth rate of nearly 40%, with the potential to become a US $200 billion industry by 2035.
Commenting on the report, Barnik Chitran Maitra, Managing Partner, Arthur D. Little India & South Asia said “The outlook for the Indian Web3 and Metaverse space is robust, with significant investments made in the sector. Content creators and gaming start-ups are leveraging Web3 to directly monetize users, bypassing intermediaries, and corporates are building metaverses to engage more meaningfully with their employees and customers. For India to realize its potential for a US $ 200 Bn Web3 and Metaverse industry by 2035, concerted action is needed by startups, investors, corporates, and the government.”
The report defines the Metaverse as ‘the future version of the Internet, blending the frontiers between reality and virtuality, at the convergence of immersive spaces, social and collaborative experiences, and the creator economy’. It is projected to become a US $13 trillion opportunity globally by 2030. It is estimated that about 8% of the $160 trillion global GDP by 2030 will come from Web3 and Metaverse.
The report also highlights how India’s e-commerce penetration is set to grow, presenting an opportunity for Web3 and Metaverse technologies to enhance the retail and finance sectors. Furthermore, India’s leadership in digital payments adoption could pave the way for the integration of fintech solutions in the Web3 ecosystem.
Investors, corporates, start-ups and the government need to work together to help India realize the US $ 200 Bn potential in Web3 and Metaverse. The report highlights imperatives for all the relevant stakeholders to capture the Web3 and Metaverse opportunities. Notably, investors could set up dedicated teams in Web3 and Metaverse and establish accelerator programs. Similarly, corporates could launch Web3 and Metaverse sandboxes and partner with start-ups. Startups could evangelize use cases, focus on building enabling products for local e-commerce and global customers and work with corporates on their Metaverse and Web3 programs. Finally, regulators could enact proactive supportive policies, incentivize infrastructure investments, and consider hardware subsidies for AR/VR devices.
Arthur D. Little’s report maybe useful for investors, corporates and start-ups interested in understanding the potential of Web3 and Metaverse technologies in India’s digital landscape.