Metaverse could add up to $1.4tn a year to Asia’s GDP

The metaverse could contribute between S$0.8tn and $1.4tn per year to Asia’s GDP by 2035 if investments in the technology are sustained in the next five to 10 years, according to new research by Deloitte.

In its new report, The metaverse in Asia – strategies for accelerating economic impact, Deloitte noted 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, it noted that the 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, it added.

Still, Deloitte noted that the metaverse will have a transformational impact on Asian economies but whether it will realise its full potential will depend on a wide set of socioeconomic factors and enablers that will vary across markets.

Asia is an interesting region to watch for metaverse developments. It dominates the hardware supply chain, and countries like South Korea have already developed a 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 largest economies in Southeast Asia, Indonesia, Thailand, and Vietnam, are also pioneering new business models especially among small and medium-sized enterprises and innovating with web3 and blockchain technologies.

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

“The metaverse is inevitable. Developing the technology stacks, human capital, and regulatory frameworks to realise Asia’s trillion-dollar metaverse potential will benefit a wide range of industries and economic activities,” said Duleesha Kulasooriya, managing director of Centre for the Edge at Deloitte Southeast Asia.

“The successful future of the metaverse calls for action not just by governments, but all ecosystem actors. While the metaverse is still in its early forms, it is now a good time for businesses and players to experiment, find their edge in the metaverse, and identify opportunities to scale these edges,” added Kulasooriya.