Potential 2035 economic impact of metaverse in India is $79 to 148 billion per year, says Deloitte

A recent analysis performed by Deloitte estimated that

The impact of the metaverse to GDP in Asia could be between $0.8 and 1.4 trillion per year by 2035, which is roughly 1.3% to 2.4% of overall GDP, as per a recent analysis by Deloitte.

It also suggests that the potential 2035 economic impact of the metaverse in India is $79 to 148 billion per year.

Deloitte, however, added that this may come to fruition over the long-term should there be sustained technology investments made in the next five to ten years.

How much is realised, and how quickly, depends on the unique strategies the underlying economies may take to accelerate economic benefits of the metaverse, as per it.

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 - and highlights the strategies that these economies are adopting to reap the rewards of the metaverse.  

Deloitte in its analysis said that early metaverse platforms are already being used by millions in Asia.

Awareness of the metaverse in Asia is high, and early metaverse platforms are already being used by millions of people in the region – 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.

The metaverse will have a transformational impact on Asian economies, as per it.

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 is challenging to forecast and will depend on a wide set of socio-economic factors and enablers.

Nevertheless, the metaverse is envisioned to create 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 4 billion people who live, work, and play in the region.

From software to hardware, regulators to entrepreneurs, cultural to digital talent, Asian economies are leaning in from many directions in all things metaverse. Some key highlights of the region are:

• Asia dominates the hardware supply chain in terms of raw materials and the manufacture of electronics and semiconductors. 
• The region has over 1 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, Philippines, are key sources of global tech talent.

The India Story

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

The key sectors to watch are:

Digital payments: Digital payments will be a crucial component of the metaverse to trade digital assets. India could feature strongly in this development, as she 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.

“Beyond its obvious demographic advantage, attitudes of its population towards the metaverse are more optimistic than the rest of the world. The metaverse could open up exciting opportunities for tech talent in India,” said Jehil Thakkar, Partner, Media and Entertainment sector leader, Deloitte India.

Link to the full report: https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/about-deloitte/sea-about-deloitte-c4e-the-metaverse-in-asia-nov2022.pdf

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