A recent analysis performed by Deloitte estimated that the impact of the metaverse on GDP in Asia could be between $0.8-1.4 trillion per year by 2035, which is roughly 1.3-2.4 percent of overall GDP. This analysis, consolidated into a report titled, ‘The Metaverse In Asia – Strategies For Accelerating Economic Impact,’ showcases the potential impact of the metaverse in 12 Asian economies — Hong Kong, India, Indonesia, Japan, Mainland China, Pakistan, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

The report highlights the strategies that these economies are adopting to reap the rewards of the metaverse. Each economy featured in this report is approaching the metaverse from its own unique direction, which makes the region an interesting one to watch.

Millions of early users

The report shows that awareness of the metaverse in Asia is high, and early metaverse platforms are already being used by millions of people in the region — for gaming, socialising, creating digital twins, attending concerts, and purchasing items. For example, South Korean app Zepeto has over 300 million registered users worldwide. However, a fully-immersive metaverse with smooth real-time rendering of visually rich worlds for millions of simultaneous users is still years away.

Transformational impact

While early estimates suggest that the potential growth and contribution of the metaverse can be significant globally, the timing and size of the economic impact are challenging to forecast and will depend on a wide set of socioeconomic factors and enablers.

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Nevertheless, the metaverse is envisioned to create a new market, business and employment opportunities as well as improve the way we work, consume and collaborate. If these developments are fully scaled, it will be transformational for the more than four billion people who live, work, and play in the region.

Interesting region

From software to hardware, regulators to entrepreneurs, cultural to digital talent, Asian economies are leaning from many directions into all things metaverse.

Some key highlights of the region include:

Asia dominates the hardware supply chain in terms of raw materials and the manufacture of electronics and semiconductors.

The region has over a billion mobile gamers, the biggest mobile player base worldwide.

South Korea was the first major economy to articulate a comprehensive blueprint to foster its metaverse industry.

On the regulatory front, Singapore, Hong Kong, India and others are creating positive business environments and instituting clear regulatory guardrails, ensuring businesses and consumers alike can engage with the metaverse safely.

Indonesia, Thailand and Vietnam are pioneering new business models, especially among small- and medium-sized enterprises and innovating with web3 and blockchain technologies.

The region has rich and diverse cultural legacies to tap into to develop compelling content and experiences. For example, Japan is leveraging its heritage as a pioneer of the video game industry to create new metaverse industries.

India, the Philippines, are key sources of global tech talent.

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The India story

Deloitte’s analysis suggests that the potential 2035 economic impact of the metaverse in India is $79-148 billion per year, or 1.3-2.4 percent of the overall GDP.

Set to become the third largest economy by 2030, India has a population that is young, digitally connected, and ready for the metaverse. With over half of its population under the age of 30, the country produces the highest number of science, technology, engineering, and mathematics (STEM) graduates globally. It is demographically well-positioned to contribute digital labour to the metaverse, especially since it is already a go-to destination for IT offshoring globally. Key enablers for India include high social acceptance, strong digital skills and more robust security and privacy laws.

Key sectors to watch

Digital payments: Digital payments will be a crucial component of the metaverse to trade digital assets. India could feature strongly in this development, as it has the highest rates of real-time digital payments in the world.

Gaming and entertainment: India is the world’s largest mobile gaming market in terms of app downloads — a promising development as games are a vital entry point into the metaverse.

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(Edited by : Shoma Bhattacharjee)

First Published:Nov 15, 2022 6:43 PM IST