Emerging Trends in Web3
Web3 technologies are poised to revolutionize the existing internet landscape, ushering in a more equitable and inclusive environment for users and businesses. As venture capitalists start investing in Web3 companies, we can anticipate a surge in growth and groundbreaking advancements in this domain. No doubt, Web3 has become a catch-all term for the vision of a new, better internet. At its core, Web3 uses blockchains, cryptocurrencies, and NFTs to give power back to the users in the form of ownership
According to a white paper released at the 'Entrepreneur Web3 Summit' in 2023, the Indian Web3 market is projected to reach $1.1 billion by 2032, marking a substantial increase from $0.0049 billion in 2022. This growth is expected to occur at a compound annual growth rate (CAGR) of 57%. Since 2015, Web3 startups in India have experienced a six-fold growth, with a surge in investments since 2020. These startups employ blockchain technology creatively to address various issues across different sectors, particularly BFSI, enterprise tech, consumer tech, and edtech. They prioritize developing diverse Web3 solutions in finance, entertainment, and infrastructure, rather than focusing primarily on cryptocurrency trading.
Internationally, companies have begun exploring collaborations with prominent technology players in the metaverse to explore potential, business prospects, and trial initiatives. However, the metaverse ecosystem in India is still in its early stages. Businesses are gradually embracing the opportunities it offers, and technology companies are actively developing their solution portfolio. Currently, in India, the metaverse market stands at $2.4 billion, and reports suggest it is projected to exhibit a CAGR of a whooping 39.2% between 2022 and 2030, ultimately reaching $33.9 billion by 2030.
Blockchain-based non-fungible tokens (NFTs) have also found applications in various sectors such as fashion, art, gaming, exclusive event tickets, sports, and more. With the expansion of the metaverse, the applications of NFTs are expected to expand as well. The metaverse provides a unique opportunity to enhance the virtual experience of showcasing products to the audience, thus offering an added advantage to NFT utilization. The acceptance of non-fungible tokens (NFTs) has been steadily increasing, the number of users in the NFT market is expected to amount to 3,627k by 2027, while the user penetration is expected to be 0.2% in 2023 and is expected to hit 0.2% by 2027, according to Statista.
Presently, according to a Nasscom report, India houses 450 Web3 firms that have already achieved international traction, employing over 75,000 blockchain professionals, which accounts for 11% of the global Web3 talent pool. With adequate support and investment, India has the potential to become a major force in the Web3 ecosystem and actively shape the future of technology.