Metaverse could pump $1.4 trillion a year into Asia’s GDP: Deloitte

The impact of the metaverse on GDP in Asia could be between $0.8 and 1.4 trillion per year by 2035, says a new Deloitte report.

Weiquan Lin | Moment | Getty Images

map‘s big bet in the metaverse that may have placed the company in a difficult situationBut a new Deloitte report suggests that virtual reality could have a “transformational effect” on Asian economies.

Metaverse contribution to gross domestic product in Asia it could be between $800 billion and $1.4 trillion per year by 2035, the consulting firm said.

That would be about 1.3% to 2.4% of overall GDP, he added, assuming there are “continuing technology investments to be made in the next five to ten years.”

The Metaverse can be loosely defined as the virtual world where people live, work and play. With cryptocurrency, users can buy and develop virtual land or dress their own avatars.

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Deloitte’s new reporttitled “The Metaverse in Asia: Strategies for Accelerating Economic Impact,” examines the potential impact of the metaverse on 12 Asian economies.

Duleesha Kulasooriya, Deloitte Center for Managing Edge director in Southeast Asia, attributed the forecast impact size to the “demographic gravity” of the region.

“If you look at the youth … they are the people who interact and participate in the metaverse today, and 60% of the world’s youth live in Asia,” he said.

In addition, there are 1.3 billion mobile gamers in Asia, which makes up the largest player base in the world, according to the report.

“Metaverse is no longer science fiction. The initial metaverse platform has been used by millions,” he wrote.

Games are “one of the early ways” in which one is introduced to the metaverse, Kulasooriya added.

“Those segments and their expectations will drive a lot of behavior in how the internet progresses next.”

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“If you think about integrated circuit manufacturing and all the stuff that makes technology possible, 75% of integrated circuits are made in Asia,” Kulasooriya said.

“That’s a huge production capacity.”

Taiwan, for example, retain more than 90% of the manufacturing capacity for the world’s most advanced semiconductors, according to the 2021 Boston Consulting Group report.

country-specific strategies

The potential impact of the high Asian economy of the metaverse by 2035

CountryEconomic impact per year
CHINESE$456-862 billion
JAPANESE$87-165 billion
India$79 -148 billion
South Korea$ 36-67 billion
Indonesia$28-52 billion

Source: Deloitte

For example, China has determine the trajectory for the development of the metaverse and “build on their strength” as a manufacturing hub, said Khoo.

In August, Beijing announced a two-year metaverse innovation and development planaimed at developing infrastructure and promoting its use.

Shanghai is also included in the metaverse the latest five-year development plan at the end of last year.

That’s it, South Korea has a “strategic image,” said Deloitte, to foster the metaverse industry, with an initial investment of $177.1 million for the business.

“Metaverse is inevitable. Developing stacks of technology, human capital and regulatory frameworks to realize the potential of Asia’s trillion-dollar metaverse will benefit various industries and economic activities,” said Kulasooriya.

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Although the Deloitte report shows that China could be the biggest beneficiary in terms of GDP, the country is still facing weight regulation challenges in the development of the metaverse.

For example, cryptocurrencies are banned inside the country, JPMorgan analysts said in a September report.

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