The concept of the Metaverse, a collective, three-dimensional, virtual shared space where users interact through avatars, is gaining momentum across Asia, with users engaging in virtual worlds, gaming, and digital twins of physical cities. While interest in the Metaverse waned in some Western markets as pandemic restrictions eased, it continues to thrive in Asia.
Virtual Social Interaction:
Many Asians are embracing the Metaverse for social interaction and escapism. Users spend their evenings in virtual platforms like VRChat, where they interact with friends from around the world through avatars. This provides a sense of togetherness and helps with loneliness.
Investor Interest:
While some Western investors have become wary of Metaverse-related companies following the disappointing performance of Meta (formerly Facebook), Asia remains a stronghold of Metaverse interest. Asia accounted for approximately 40% of The Sandbox’s business, a company offering tools to build virtual worlds using blockchain.
Metaverse Projects in Asia:
Asian countries are actively developing Metaverse projects, creating digital twins of cities and even entire nations. For example, Metaverse Seoul offers public administrative services in virtual reality and counseling services for minors. Osaka has a virtual counterpart featuring tourist spots, while the Pacific island nation of Tuvalu aims to create a digitized version of itself as a response to rising sea levels.
Metaverse as a Source of Income:
Some users in Asia have found opportunities to earn a living through the Metaverse. In the Philippines, a game called Axie Infinity gained popularity during the pandemic, allowing players to own and trade virtual property and earn in-game cryptocurrency. While the market experienced fluctuations, some users made a substantial income through such games.
Future Potential:
Despite challenges, including the volatility of cryptocurrencies and the immaturity of Metaverse technologies, the Metaverse’s long-term potential is significant. It’s believed that a combination of blockchain technology, cryptocurrency, and NFTs could lead to a 3D virtual “web 3.0.” Deloitte estimated that the Metaverse could contribute up to $1.4 trillion to Asia’s GDP by 2035.
Asian Markets and the Metaverse:
Asia’s strong presence in the Metaverse is attributed to its large population of mobile gamers and technological advancements. The widespread adoption of 5G, particularly in China and South Korea, provides the necessary bandwidth for immersive 3D environments.
Entertainment and Metaverse:
Entertainment industries in Asia, such as K-pop, have shown great interest in the Metaverse. K-pop labels are exploring Metaverse concerts, fan meets, and music releases on Metaverse platforms, offering new ways for fans to interact with their favorite artists.
Asia’s engagement with the Metaverse underscores its potential to revolutionize the way people interact, work, and entertain themselves, making it a critical area of interest for businesses and individuals alike.
