The Metaverse is all the rage right now. It presents countless opportunities for the economy of any nation to thrive. One of the biggest regions with a strong economy is Asia. If advances are maintained over the next five to ten years, the Metaverse may add from $0.8 trillion to $1.4 trillion annually to Asia’s GDP by 2035, as per a recent study from Deloitte.
Deloitte highlighted that millions of individuals in Asia already utilized the initial Metaverse platform for socializing, gaming, witnessing concerts, building digital twins, and making purchases. All these inferences were highlighted in the report, The Metaverse in Asia – Strategies to Accelerate Economic Impact. Let’s look at more details.
The Metaverse and Asia’s GDP
According to a report from Analysis Group, leading worldwide economic consultants, if Metaverse acceptance and impact develop equally to mobile technology, they might add 2.8% to the world’s GDP in the tenth year after adoption starts. Moreover, starting in 2022, the Metaverse’s acceptance during the following ten years could boost the world economy by $3 trillion by 2031.
Similar to mobile technology, it is anticipated that the Metaverse would have extensive uses and have the power to drastically revolutionize various industries, including education, medical services, industry, job training, networking, leisure, and retail.
According to Deloitte’s study, the South Korean application Zepto has more than 300 million active users globally. However, it would still be years before a highly engaging Metaverse with a real-time representation of a visually rich universe for thousands of concurrent users would be available.
Deloitte reported that the Metaverse would nonetheless have a significant effect on Asian economies. However, whether it will achieve its maximum potential or not will depend on various socioeconomic conditions and factors that will differ among countries.
It’s fascinating to follow Metaverse developments throughout Asia. The hardware supply chain is dominated by it, and nations like South Korea have indeed created a strategy for advancing their Metaverse industries.
Hong Kong, Singapore, India, and other countries are establishing favorable business conditions and fences on the regulatory front, guaranteeing that businesses and individuals can safely interact with the Metaverse.
Blockchain and web3 technologies are increasingly being leveraged by the main economies in Southeast Asia, such as Thailand, Indonesia, and Vietnam. These set the standard for innovative business models, particularly for small and medium-sized firms. Additionally, the territory offers a wealth of various cultural legacies that may be drawn upon to create fascinating experiences. Japan, for example, is utilizing its history as a video game industry leader to build innovative Metaverse enterprises.
A wide variety of industries and commercial sectors will benefit from the development of the technology stacks, human resources, and legal frameworks needed to realize Asia’s Metaverse prospects.
Duleesha Kulasooriya, managing director of Centre for the Edge at Deloitte Southeast Asia, said, “Action is required from everyone – from governments to individuals if the Metaverse is to have a prosperous future. While this technology is still developing, now is a fantastic time for companies and gamers to explore, find their competitive advantage in the Metaverse, and spot possibilities to expand these advantages.”
Final Thoughts
Singapore is a region with promising Metaverse possibilities in Asia. The potential for Singapore to develop into the next major Metaverse and crypto hub is huge. The pandemic has accelerated cryptocurrency and Metaverse acceptance in Singapore.
According to Deloitte’s study, by 2035, Singapore’s prospective economic impact from the Metaverse might amount to $9 billion to $17 billion annually or 1.3-2.4% of the nation’s GDP.
We are currently witnessing a rush of innovators impact the market. Singapore has established a regulatory sandbox for beginners to ease the strain on new businesses and give them time to launch without having to deal with regulatory concerns. Hence, it can be said that Singapore’s Metaverse and cryptocurrency industries have a promising future.
