India Metaverse Market: Current Analysis and Forecast (2024-2032)

Metaverse is a shared cyberspace space that combines physical and digital environments within which people work, communicate, and participate in business processes. It includes technologies such as virtual reality (VR), augmented reality (AR), and blockchain technologies all of which enable a synchronous, persistent reality shared online. Thereby, users can create avatars for themselves, go through virtual worlds and attend events, as well participate in various activities, starting with gaming and up to virtual commerce. The concept will allow for organic integration between real-life and digital social interactions and transform how people socialize, work, and consume content. As the Metaverse grows, which can change industries, create new forms of economic activity, and transform human interactions, it is an important field for developers of technologies, companies, and users.

The India Metaverse Market is expected to grow at a exponential rate of around 38.5% owing to the rising company mergers and acquisitions. For instance, in March 2024, OneVerse acquired Calling Station and BatBall11, expanding its gaming portfolio in India amid favorable M&A conditions. The acquisitions are a part of OneVerse's ongoing M&A strategy to solidify its position in the gaming market and advance its goal of becoming India's leading gaming entity. Moreover, increased internet penetration, growing government initiatives, and rapid digital transformation are anticipated to boost the Indian metaverse market.

Based on component, the Indian metaverse market is segmented into hardware, software, and services. The hardware segment acquired a significant share of the Indian metaverse market owing to the ongoing technological developments and urges to invest in fully immersed experiences. The driver for demand in high-performance hardware continues to grow as more consumers and enterprises want to interact with VR and AR environments such as VR headsets, AR glasses, input devices, and computing systems. The advancements being seen across these industries include making devices more affordable, lighter, and easier to use by users to improve their productivity as well as comfort. Further, the use of artificial intelligence and machine learning in hardware design is enhancing the general user experience, making simulations more real and functional. Thus, hardware held a significant share of the market in the year 2023.

Based on application, the Indian metaverse market is segmented into gaming, online shopping, education, media & entertainment, healthcare, aerospace & defense, and others. The gaming segment caters significant segment of the Indian metaverse market owing to the rising interest in creating realistic and engaging entertainment products. With gamers demanding better content, they want to explore the use of virtual reality (VR) and augmented reality (AR) which is fast changing the dynamics of gaming into a more complex and social world where such gamers can play and submit to various competitions in the game world at the same time. Large gaming companies are funding creative Metaverse environments, forming vast games with social networks where users can join groups and share casual and formative events. Also, with the growth of user-authored material, players can develop and make money on their games and experiences, and the marketplace is diverse. Due to the increasing legalization and embracement of esports or virtual events, the gaming segment is not only widening the market but is also integrating new technologies such as graphics, Artificial intelligence, and blockchain in the games which make the experience better. Thus, gaming held a significant share of the market in the year 2023.

For a better understanding of the market adoption of the Indian metaverse, the market is analyzed based on its state-wise presence in India such as North India, East India, West India, and South India. The metaverse market in South India is growing at a fast pace due to an innovative environment and more focus on technology. Several Indian cities including Bengaluru, Hyderabad, and Chennai have started being recognized as the centers for tech start-ups and enterprise-level organizations that are working on Metaverse, from gaming to virtual reality applications. Many educational institutions create opportunities for the development of research work, and qualified personnel allow for improving the results in the virtual reality, augmented reality, and blockchain fields. For instance, in September 2024, Hyderabad-based String Metaverse announced its successful merger with Bio Green Papers Limited, following approval from the National Company Law Tribunal (NCLT). Backed by Spacenet Enterprises, String Metaverse is set to become the first Web 3.0 company to be listed on the main board of the Bombay Stock Exchange (BSE) on October 5, 2024, with an initial share price of Rs 10. Thus, south India is growing at a significant rate in the Indian metaverse market.

Some of the major players operating in the market include Meta, Dhi Tattva Solutions Pvt. Ltd. (EDIIIE), TATA Consultancy Services Limited, Vegavid Technology, Tech Mahindra Limited, HCL Technologies Limited, LBM Solutions, Capgemini, Accenture, Infosys Limited.