JOIN USMetaverse is here to stay; India may be a key player
An Indian couple from Tamil Nadu held the first metaverse wedding reception this month. And it was attended by 500 guests. This virtual event has created waves in the country and indicates the craze for metaverse. But the question pops up on the sustainability of metaverse as a new technology wave in coming years - whether it is a trend or just a fad. Though nobody knows the answer, applications of metaverse are rising with each passing day. Not only that, global technology giants, which usually sense the next technology wave before its wide spread adoption, are also investing heavily.
Such is the enthusiasm with regard to metaverse technology that Mark Zuckerberg recently changed his company’s name from Facebook to Meta. Apple is expected to announce a high-end headset that mixes virtual reality and augmented reality. Similarly, Google & Microsoft are also gearing up to launch metaverse products. Not only technology biggies, but gaming technology firms including Roblox, Unity, Epic Games among others are converging metaverse technologies for more immersive experience.
Convergence of technologies
As a concept, metaverse is not new. Science fiction writer Neal Stephenson coined the term in 1992, and application of virtual reality/ augmented reality (AR/VR) is a commonplace among video game companies. However, metaverse technology takes the virtual reality into the next level because it converges many technological applications under one umbrella. Artificial intelligence (AI), AR, VR, and blockchain have their role in development of metaverse technology. Advent of 5G will make these applications more interactive and immersive. Analysts feel metaverse as a technology is here to stay and grow due to such synthesis of various technologies, which has potential to solve many problem statements in coming years.
“Metaverse is witnessing its biggest application in gaming industry as of now. And, the use cases are growing. Global retail industry will see more use cases in coming days. Industry 4.0, introduction of NFTs (non-fungible tokens), and many more such applications have also started emerging. So, the movement towards metaverse is real,” said Pareekh Jain, an engineering services expert and Founder of Pareekh Consulting.
“Consumer behaviour has changed drastically during the Covid-19 pandemic period. Users are more comfortable with virtual world now. This behavioral change coupled with young generations’ faster adoption rate of virtual technologies will drive the growth in coming years,” he added.
Opportunities galore
All estimates of future growth seem bullish in metaverse space. According to Bloomberg Intelligence, the global metaverse revenue opportunity could approach $800 billion in 2024 as compared to around $500 billion in 2020. The primary market for online game makers and gaming hardware is pegged at $400 billion in 2024, while opportunities in live entertainment and social media can make up the rest. Given the growth estimates, all technology companies- IT & engineering services firms, AR/VR focussed tech startups & gaming technology companies among others- are likely to be the major beneficiaries of this uptrend.
Interestingly, India is likely to play a key role in the evolution and growth of metaverse technology. Because the country is home to a large user base of video games, social media networks, e-commerce apart from its engineering prowess. With 440 million gamers or 16% of the worldwide gamers base of 2.7 billion, the country is among the top five global markets in terms of user base.
“Given the opportunity, all big IT firms and engineering services companies are developing their metaverse suite. If the momentum continues, we may see Indian technology firms reporting separate metaverse numbers in coming years,” said Jain of Pareekh Consulting.
No wonder, Indian IT and engineering services companies including Tata Consultancy Services, Infosys, HCL Technologies, Wipro, Mindtree, L&T Technology Services and many more are developing various metaverse applications. Startups like Bolly Heroes, Internality, Cope Studio, OneRare, LOKA, and Zippy among others are also providing various metaverse solutions to users. Given the technology ecosystem in India, the country is likely to lead design, development and adoption of metaverse technology in coming years.
Challenges remain
However, any new technology wave goes through various phases and metaverse will be no exception. Currently, billions of dollars are flowing into metaverse space. But concerns over return on investment remain. Similarly, usual challenges of privacy and confidentiality also come up as metaverse pushes the mankind to more virtual space. Chances of cyberbreach, stealing of virtual identity, and shady financial transactions can’t be ruled out. Therefore, governments across the world are likely to face the challenges of appropriate regulations in coming years. No doubt, metaverse is real and is likely stay here. But only time will decide the form and context of its presence. Interestingly, India will play a larger role in deciding its fate.
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