Sustained investments into technology over the next five to 10 years could make the impact of metaverse on the GDP of Asian countries reach around $0.8 to $1.4 trillion per year by 2035, according to a Deloitte report.
The potential 2035 economic impact of the metaverse in India is around $79 to $148 billion per year, or 1.3 to 2.4 percent of the overall GDP, the report added.
The actual figures would vary depending on the unique strategies these economies would adopt to incentivise and accelerate the benefits of the metaverse.
According to the report titled ‘The Metaverse in Asia -Strategies for Accelerating Economic Impact’, the fastest-growing sectors that would help strengthen the impact of metaverse in India are digital payments, gaming, and entertainment.
Notably, with over half of its population under the age of 30, the country produces the highest number of STEM graduates globally. Further, high social acceptance, strong digital skills, and more robust security and privacy laws are the key enablers of metaverse in the country.
Jehil Thakkar, Partner, Media and Entertainment sector leader, Deloitte India said, “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.”
With high awareness of futuristic technologies like metaverse and early usecases and developments around the technology already available to the people, Asia stands to gain big time. Some of the key usecases include gaming, socialising, creating digital twins, attending concerts, and purchasing items. For instance, a prime example of its successful usecase is South Korean app Zepeto, which 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 report said.
Asia is also uniquely positioned in terms of the availability of hardware, software, and positive regulatory environments.
“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,” the Deloitte report stated.
Indonesia, Thailand, and Vietnam are pioneering new business models, especially among small- and medium-sized enterprises, and innovating with web3 and blockchain technologies. Meanwhile, India and the Philippines are key sources of global tech talent.
Having rich and diverse cultural legacies also help these economies 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.