By Ravi Chamria
In an era where technology is advancing at a blistering pace, the terms ‘Metaverse’ and ‘Web 3.0’ have begun to permeate our collective consciousness. They are symbols of a shift towards a new digital reality, more immersive, decentralized, and user-controlled cyberspace. For India, these emerging technologies aren’t just another high-tech trend to follow; they represent a potential quantum leap into an exciting digital future. According to a recent report by international management consulting firm Arthur D Little, India’s Metaverse and Web 3.0 market could hit a staggering $200 billion by 2035.
Why India as a web3.0 and metaverse hub: A look at the present digital landscape
Around 11% of the global Web3 developer workforce hails from India, and this figure is set to skyrocket in the coming years. With such a rapidly growing talent pool, India is a formidable contender in the global Web3 tech arena. It’s like having an assembled Avengers team of tech enthusiasts ready to reshape the virtual world. With a thriving ecosystem of over 450 Web3 startups, including four unicorns, as confirmed by the 2022 NASSCOM report (which may have already exceeded 500), India showcases its momentum.
The imminent arrival of 5G could be a game-changer for Indian Web3 and Metaverse companies. With projections of 690 million 5G subscribers by 2028, India’s growth potential is staggering. This leap will propel the evolution of such technologies, enabling low latency, high-speed connectivity, and lifelike experiences sooner than the rest of the world. Industries across the board are eager to immerse themselves in this new frontier. The potential of the web3 and metaverse industry is projected to be worth billions of dollars by 2035, and there’s a whole gamut of sectors ready to drive this growth.
The two major sectors to drive over 50% of growth
First up is retail, eyeing the lion’s share of 37% of this growth. With the advent of Web3, retailers of all sizes are exploring new ways to bridge the gap between the physical and digital worlds. That shirt you’ve been eyeing? Now you can virtually try it on before you buy.
Switching to finance, contributing a solid 15% to the growth story, the finance sector is also turning heads towards Web3. Remember when net banking was the big thing? Well, think bigger now – metaverse banking is in the house. With the help of blockchain, NFTs, and smart contracts, banks are ready to offer a more personalized user experience.
Take, for instance, the Union Bank of India’s Metaverse Virtual Lounge. This new wave of finance promises faster trade finance settlements, Digital Currencies backed by Central Banks (CBDCs), NFT-based securities/bonds, tokenized KYC, fractional assets, and so much more. It’s a glimpse into a future where the word ‘limit’ may become obsolete!
Beyond the big two: 5 sectors power the remaining 48%
With Web3, peer-to-peer energy trading becomes more than just a concept; it’s a reality on the horizon. The transformation promises to enable better management of renewable energy sources, like solar and wind power, overcoming geographic and storage limitations. Expect an exponential increase in transactions as digital markets emerge for low-carbon products, such as sustainable aviation fuels or carbon credits. We envision a future where leapfrogging to a digital system might become the norm for emerging energy markets.
Next in line is telecom, also holding an 11% share. The Web3 restructure closely mirrors the changes happening in the telecom industry. Traditional telecom enterprises are unbundling their infrastructure assets, paving the way for a decentralized connectivity ecosystem. We’re talking about network interoperability across different service providers, made possible by Open RAN and open access initiatives. Telecoms are also set to play pivotal roles as sponsors and operators of blockchain infrastructure, ushering us into a future where the physical and digital worlds seamlessly intertwine. A prime example is Reliance Jio, which plans to bring its interactive AI technologies into the mix, changing the face of everything from entertainment to health and wellness services.
The media sector, owning 9%, is sprinting towards Web3 and the Metaverse. In a world where content is king, creators find new ways to monetize their work, bypassing traditional aggregators directly. Take T-Series, for instance; in collaboration with Hungama, they’ve launched HeftyVerse to facilitate the sale of music and art as NFT collectibles.
Automotive, with another 9%, is gearing up for a digital overhaul. Virtual showrooms are the new normal, where customers can touch, tour, and test-drive cars without leaving their living rooms. Finally, healthcare, holding 8%, is setting its sights on a future where the Metaverse facilitates everything from remote consultations to advancing medicine. Imagine “digital twins” in a virtual environment enabling individualized research and precision medicine. Companies like Apollo Hospitals are already using the Metaverse for patient consultations and staff training, setting a new standard for healthcare delivery.
The need for concerted efforts to achieve the number
To tap into the projected $200 billion Web3 and Metaverse industry by 2035, India needs to combine its abundant resources, skills, technology, and infrastructure, surmounting existing challenges in a united front. The government needs to support the Metaverse assertively, breaking down barriers such as the cost of AR and VR devices, and consider implementing a supportive policy environment with tax rebates, incentives, or subsidies, particularly for healthcare and education applications.
Startups, investors, and corporates must align, establishing dedicated teams, accelerator programs, and partnerships through Web3 and Metaverse sandboxes. Encouraging investments and considering hardware subsidies for AR and VR devices should be high on the regulatory agenda. The journey to the Metaverse isn’t just about joining a technological bandwagon but pioneering a future where digital and physical realities coalesce seamlessly. It isn’t merely a chance to participate it’s an opportunity to lead. The future is in our hands, full of infinite possibilities.
The author is founder, CEO, Zeeve