Organisation:
Deloitte
Resource Link:
Published in 2022, Link
My Key Takeaways
“While the metaverse is inevitable, a responsible metaverse is not.”
Here’s some of my takeaways from Deloitte’s comprehensive report on the metaverse’s potential impact on Asia.
The Ever-evolving Definition of the Metaverse
While there isn’t (yet) a universally accepted definition for the metaverse, figure 1 on page 12 is a great summary of its primary and supplementary features.
The Metaverse’s impact on Asia
Although nascent, the metaverse could impact between US$0.8T – US$1.4T per year by 2035, roughly 1.3 -2.4% of overall GDP per year by 2035!
To create digital content and support metaverse infrastructure, ADB estimates a 20% expansion in the digital sector, creating over 300 million new jobs in Asia over 5 years.
Asia already has one foot in the metaverse door (Pg 5)
Over 60% of the world’s youth (15 – 24 years old), live in Asia and Oceania.
The report’s 12 Asian economies exported 81% of the total value of cellphones and 75% of integrated circuits globally in 2021.
Asia has 1.3 billion mobile gamers, the biggest mobile player base worldwide. On average, gamers in China, Vietnam, India, and Indonesia spend more than 8h each week on gaming – time likely to be spent in the metaverse in the future (Pg 13).
In an IPSOS survey, these Asian economies also have an overwhelmingly positive view of the potential impact of AR/VR on their daily lives (China 78%, India 75%, South Korea 63%, Singapore 58%). (Pg 13)
➡️ Want a taste of early metaverse platforms? Pg 13 has an overview of promising ones and their user numbers (e.g. Decentraland, The Sandbox)
Just at the Tip of the Iceberg of the Metaverse’s Full Impact
Figure 3 in page 24 maps out how the metaverse will impact, over time, different sectors like retail & e-commerce, healthcare, manufacturing and professional services.
For example, in the short term, manufacturers can reduce costs through product modelling, and in the long run, move to complex operational issues (e.g., supply chain, process and workflow) to optimise production.
The Buzz and the Facts
Pages 14 and 15 map out current limitations in metaverse tech and required R&D.
For example, the full metaverse requires at least 6G (almost zero latency) whereas most Asian economies are in the early stages of deploying 5G, with few having made the latest WiFi 6E available.
➡️ See pages 27-30 for recommendations for public and private stakeholders to come together to shape the emerging metaverse for positive social/environmental outcomes in Asia.
For example, the metaverse will need more data storage, processing systems which could hamper decarbonisation efforts (over 70% of Asia’s energy sources remain coal-based), and worsen the rare-earth metals mining situation (China supplies 58% of the world market).
Which Asian country’s most ready for the metaverse (Pg 25)?
The report deep dives into 12 Asian economies’ macroeconomic determinants, tech fundamentals and ecosystem enablers to assess their potential to capture growth opportunities from the metaverse (Pg 34):
- Japan
- Hong Kong
- Indonesia
- India
- South Korea
- Mainland China
- Philippines
- Pakistan
- Singapore
- Taiwan
- Thailand
- Vietnam
➡️ Quick overview of metaverse developments for each country on pg 7
For example, Indonesia is expected to lead Asia in overall IT spending over the next 4 years, reaching US$6B by 2024 (Pg 50).
For Singapore, the hub is already ranked #1 for business environment (EIU) and Digital Readiness, and a whopping 59% of tech MNCs have their Asian regional HQs based in there.
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Some final food for thought for aspiring metaverse content creators.
Virtual influencers have almost tripled the engagement rate of real influencers. Some are so life-like that 42% of surveyed millennials and Gen Zs following a virtual Instagram influencer did not realize they were computer-generated.
China’s state news agency Xinhua introduced the world’s first AI news anchor back in 2018, working tirelessly round-the-clock.
Aespa, a Korean “cross-metaverse” band featuring four members with their own virtual counterparts was the fastest female K-pop act in history to enter the Billboard top 3.
Let’s all watch these trends closely to ensure that the communities we belong to do not end up on the wrong side of tech disruption! 🤔
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About Zhilin SIM
Having worked and lived in Singapore, the Nordics, China, Spain, UK, I’m now based in Paris.
I’m fluent in English, French and Mandarin, and I’m learning Arabic because it’s a beautiful and fascinating language.
My team creates and supports one-many initiatives connecting corporate and startup ecosystems in Europe to business and innovation opportunities in Singapore and Southeast Asia.
I’m passionate about horticulture, watercolour, startups/tech as well as French cuisine, Peranakan kueh techniques and other global cuisines.
Feel free to connect with me if you think my network in Europe and Asia could be of benefit to your business and innovation activities.
