The new internet is here, Metaverse and Web 3.0 to change the way we do business: Barnik Chitran Maitra

Metaverse and Web 3.0 will shape business and lifestyle choices with future generations likely spending more time in the virtual world than the physical realm, said Barnik Chitran Maitra, Managing Partner, Arthur D. Little India & South Asia. He was speaking at Business Today’s Tech Today Congress held on Friday in Bengaluru.  

Maitra said that the internet has undergone significant innovation since its inception in the early 1990s, though its fundamental architecture has remained largely unchanged. Two major changes, according to Maitra, have occurred since the pandemic which are shaping the way the internet is organised: the emergence of the Metaverse and the advent of Web 3.0.  

Maitra explained the Metaverse, as a convergence of virtual reality, augmented reality, and real-world experiences, is enabling social interactions, gaming, and educational activities. He said that the concept moves beyond virtual selves and avatars, facilitating immersive experiences. Further, Web 3.0, he said, aims to democratise the internet by decentralising control from Big Tech platforms to content creators and users, leveraging technologies such as cryptocurrency and tokenisation.  

He noticed these two trends intersecting to form the "new internet". On one axis, there is a shift towards immersive experiences in the Metaverse, exemplified by platforms like Roblox. On the other axis, he said, Web 3.0 represents the decentralised internet, with applications ranging from decentralised finance to autonomous organisations.  

The growing number of users participating in the Metaverse and using crypto and decentralised technologies demonstrates the increasing adoption of these trends, he said. “The y axis is the move towards immersive experiences, which is the metaverse currently mostly Roblox and if you see companies that for significant investments are being made. Even in India, you have examples like flippers, you have examples like the recent Bangalore T two airport, which was converted into a Metaverse experience by polygon where you're seeing a lot of immersive experiences. On the other scale, you have the entire decentralized internet, which is web 3.2, where you're beginning to see players like, like Coinbase offering crypto solutions, but more importantly, a lot of use cases,” he said.  

Maitra said that the software stack is supporting the new internet and has matured over the past few years, accompanied by advancements in hardware, such as upcoming headsets from companies like Apple.  

 “There is a huge movement on users, which is dramatically accelerated since the pandemic number two is the entire software stack which is far matured in the last three years,” he said.

Maitra said that there is a substantial global opportunity presented by the new internet. The addressable market for the Metaverse, he said, is estimated to be between $5 trillion and $30 trillion by 2030, with a significant portion attributed to Metaverse-specific services.

Similarly, the Web 3.0 market is projected to reach $4 to $10 trillion, with substantial revenue potential.  

Investments from companies like Meta and Microsoft highlight the significance of these trends.

For India, Maitra highlighted, the opportunity is immense.  

A bottom-up analysis suggests a potential market size of $200 billion within ten years. The distinction between “Digital India” and “Digital Bharat” highlights different internet consumption patterns, with Digital India focused on convenience services and Digital Bharat showing potential as producers in the internet economy, he said.

“To capitalise on this opportunity, the ecosystem in India is evolving across app development, enablers, and funding. Enablers, working on human-machine interfaces and tools for the Metaverse and Web 3.0 experiences, offer an area where India can take a leadership position,” he said.  

Over the past 18 months, over a billion dollars of funding has flowed into the space, with increasing interest in enabler startups, he said.  

He pointed out that the use cases in India showcase both consumer and enterprise applications in the Metaverse and Web 3.0 domains, ranging from virtual conferences and showrooms to training and collaboration within companies.

“India is around 130 million users who roughly occupy $1.2 trillion are for GDP. This means their per capita income is around roughly 10,000 to $15,000. On the other side, you actually have digital products, which is the remaining of the population which is nearly 1.3 billion people on an average per capita income of dollars, which is again remarkably one six to the rest of India or Digital India, and they are spending differently,” he said.

He cited metaverse use cases such as Flipkart with flippers that are virtual conferences and exhibitions organized by companies like BMW, Maruti Suzuki recently launched a virtual showroom.  Apollo is using Metaverse to do training, training and collaboration are big use cases for such applications.  

Maitra concluded that the new internet is already here, and active participation is crucial to avoid being left behind. Embracing this opportunity can empower Bharat and unlock a potential $200 billion market, he said.