India Metaverse Market Outlook to 2030

India Metaverse Market Overview

• India Metaverse Market reached a market size of USD 2 billion in 2023, driven primarily by advancements in immersive technologies like virtual reality (VR) and augmented reality (AR). This growth is bolstered by increased internet penetration and the rising adoption of digital platforms for gaming, social interaction, and virtual business.
• Key players in the India Metaverse Market include companies such as Reliance Jio, Infosys, TCS, and Tech Mahindra, which have been actively investing in metaverse technology to enhance digital user experiences. These companies focus on developing innovative metaverse platforms and leveraging their technological expertise to provide unique virtual experiences tailored to Indian consumers.
• In 2022, Reliance Industries Limited (RIL) has become the first Indian company to conduct earnings call in the metaverse. This innovative approach allows analysts to engage with the presentation through an immersive virtual environment without needing AR/VR headsets.
• Cities like Bengaluru, Hyderabad, and Mumbai dominate the India Metaverse market due to their strong tech infrastructure, thriving startup ecosystem, and high concentration of IT professionals. Bengaluru, often referred to as the Silicon Valley of India, has seen a surge in tech startups focusing on metaverse technologies, while Hyderabad and Mumbai benefit from a robust digital ecosystem and significant corporate investments in tech innovation.

India Metaverse Market Segmentation

The India Metaverse Market can be segmented based on several factors:

By Application: India Metaverse market is segmented by application into gaming, education, and healthcare. In 2023, gaming held the dominant market share under this segmentation, driven by the rapid adoption of VR and AR technologies in creating immersive gaming experiences. Companies like Tech Mahindra and Infosys have capitalized on this trend by developing innovative gaming platforms that offer unique interactive experiences. The increasing popularity of e-sports and online gaming tournaments also contributes significantly to the dominance of the gaming segment.

By Technology: India Metaverse market is segmented into virtual reality (VR), augmented reality (AR), and mixed reality (MR). In 2023, virtual reality (VR) dominated the market share within this segment due to its extensive application in gaming, training simulations, and virtual tours. VR's ability to provide fully immersive experiences has made it a preferred technology for many metaverse projects.

By Region: India Metaverse market is segmented by region into North, South, East, and West. In 2023, the South region, particularly Bengaluru and Hyderabad, dominated the market due to its concentration of IT companies and startups focusing on metaverse technologies. The South region's dominance is attributed to its strong educational infrastructure, which produces a steady stream of skilled professionals, and government policies that support tech innovation and investment.

India Metaverse Market Competitive Landscape

• Infosys': In 2022, Infosys launched its Metaverse Foundry, a service to help enterprises explore and accelerate their metaverse initiatives. The foundry converges Infosys' domain expertise, design capabilities, platforms, and digital accelerators with a rich creator-partner ecosystem. It allows enterprises to securely and efficiently create their own metaverse environments, deliver experiences in existing metaverses.
• Tech Mahindra: In 2022, Tech Mahindra launched TechMVerse, a metaverse practice aimed at creating immersive experiences for customers. This initiative will utilize advanced technologies such as AI, blockchain, 5G, AR, and VR to develop B2B use cases across various sectors. The company also plans to collaborate with Mahindra & Mahindra to offer exclusive digital collectibles.

India Metaverse Industry Analysis

Growth Drivers:

• Increased Adoption of Virtual Reality and Augmented Reality Technologies: Major tech companies are heavily investing in developing VR and AR technologies, further propelling the growth of the metaverse in India. Notable companies actively engaged in metaverse development include Tata Consultancy Services, Infosys, HCL Technologies, Tech Mahindra, and Reliance Industries, among others, highlighting the involvement of major players in the metaverse.
• Growth of the Digital Economy and Internet Penetration: The rapid increase in internet penetration, has created a vast user base for digital platforms, including the metaverse. As of 2024, India's internet penetration rate exceeded 52%, up from about 14% in 2014. This translates to over 800 million active internet users, making India the second-largest country in terms of active internet users globally. This has enabled more consumers to engage with metaverse platforms, driving market growth.
• Rising Investment in Metaverse Startups: India saw investment in metaverse-related startups, reflecting growing investor confidence in the market's potential. Over $120 billion was announced in metaverse-related private equity, venture capital funding, and enterprise spending, including mergers and acquisitions, in the first half of 2022 alone. This influx of capital is expected to drive innovation and expand the range of services offered in the Indian metaverse, catering to various sectors such as education, retail, and entertainment

Market Challenges:

• Data Privacy and Security Concerns: Data privacy and security are significant concerns in the India Metaverse market, particularly as users engage in more complex digital interactions that involve sensitive personal and financial information. These incidents have raised alarms about the potential risks associated with metaverse platforms, leading to increased scrutiny from regulatory bodies.
• Limited Digital Literacy and Accessibility: Despite the growing digital economy, a significant portion of the Indian population still lacks the digital literacy needed to fully engage with the metaverse. This digital divide presents a challenge for the widespread adoption of metaverse technologies, as many potential users do not possess the skills or tools to navigate complex virtual environments.

Government Initiatives:

• National Strategy on Blockchain: National Strategy on Blockchain introduced by the Ministry of Electronics and Information Technology (MeitY) of India aims to establish a robust framework for the adoption and implementation of blockchain technology across various sectors. Released in December 2021, this strategy is a significant step towards creating trusted digital platforms that enhance security and transparency in digital transactions, particularly in the context of e-Governance and decentralized applications within the metaverse.
• Animation, Visual Effects, Gaming and Comic (AVGC) Centre of Excellence: The government of India established a National Centre of Excellence (NCoE) for Animation, Visual Effects, Gaming, and Comics (AVGC) in in Karnataka was launched with a total project cost of $6 million. This initiative aims to enhance skill development and innovation in these sectors, which are critical for the burgeoning metaverse content creation industry.

India Metaverse Future Market Outlook

By 2028, India Metaverse Market is expected to see widespread adoption across various sectors, including education, healthcare, retail, and entertainment, as more companies and consumers embrace the potential of virtual environments.

Future Trends

• Expansion of Metaverse in Education and Training: India Metaverse market is expected to witness significant growth in the education and training sectors. Educational institutions and corporate organizations are likely to adopt metaverse platforms for virtual classrooms, training simulations, and interactive learning experiences. The ability to provide immersive, engaging, and personalized learning environments will drive demand for metaverse solutions in education and professional development.
• Integration of Artificial Intelligence and Machine Learning: Integration of artificial intelligence (AI) and machine learning (ML) into metaverse platforms is anticipated to enhance user experiences by offering more personalized and adaptive interactions. AI-powered avatars, virtual assistants, and content recommendation systems will become more sophisticated, enabling users to navigate virtual environments more intuitively.