A report on the “Web 3” sector forecasts an increase in the size of the metaverse market to $3.4 trillion by 2027, driven by practical use cases and rapid advancements in the field of artificial intelligence, alongside the global decentralized finance market growing from $13.6 billion in 2022 to $600 billion by 2032, propelled by increasing demand for accessible and low-fee financial services.
The report, issued by the Dubai Multi Commodities Centre (DMCC) as a special edition of its “Future of Trade” series on the “Web 3” sector, addresses the key growth drivers, innovations, and digital decentralization in various technological trends.
It also provides market forecasts and opportunities related to “Web 3” trends associated with blockchain-based digital infrastructure, including cryptocurrencies, decentralized finance, and the metaverse.
Titled “Digital Decentralization: Cryptocurrencies, Decentralized Finance, and the Metaverse,” the report assesses recent challenges facing these sectors and offers predictions on the time it will take for these technologies to reach maturity.
Moreover, the report anticipates the cryptocurrency market to stabilize after a period of volatility, highlighting the renewed interest of the sector and its institutions in leveraging stable and value-added services.
According to the report, all data depend on the regulatory path taken by regulatory bodies and their ability to balance innovation with consumer protection and fraud reduction.
Governmental Initiatives
The report also discusses governmental initiatives in several regions, particularly in the Middle East, North Africa, Asia, Europe, and the United States.
It highlights the establishment of innovation hubs in some countries such as the United Arab Emirates, which successfully attracted $25 billion worth of cryptocurrency assets in 2022 and seeks to attract more investments by facilitating applicable regulatory controls.
Ahmed Bin Sulayem, the Executive Chairman and CEO of DMCC, stated, “The latest edition of the Future of Trade report sheds light on the expected exceptional growth in the ‘Web 3’ sector, cryptocurrencies, decentralized finance, artificial intelligence, and the metaverse. It projects that the global metaverse market will exceed $3.4 trillion by 2027, especially due to recent technological advancements in augmented and virtual reality, paving the way for new opportunities in gaming, e-commerce, real estate, retail, education, and healthcare sectors.”
He added, “Digital decentralization may be the most impactful trend in the technology age, and the ideas and insights presented in the report highlight Dubai’s and the UAE’s role in supporting its growth by applying an investor-friendly approach capable of balancing innovation and consumer protection needs. I am confident in the ability of DMCC to support the new wave of global ‘Web 3’ companies to fully benefit from the rich opportunities available in this vast field.”
Bilal Jassemah, Director of Business Systems at DMCC, said, “The report highlights Dubai’s position as a key hub for ‘Web 3’ companies through its positive and advanced methodology in developing regulations and systems, its active role with leading companies in the market, and the abundant opportunities it provides to enhance innovation and achieve growth. DMCC’s Crypto Center secures a supportive business ecosystem that is considered the best in the world for companies operating in this sector, hosting over 600 companies that can benefit from specialized services and prominent partners.”
Future of Trade
The Future of Trade report emphasized several prominent regulatory and business recommendations to assist in developing the “Web 3” sector and outlining its next growth phase. These include using principle-based regulations, where governments can develop a principle-based regulatory framework to protect consumers, support innovation, and increase private and public sector participation.
Thus, it is essential to facilitate regular and fruitful involvement of all relevant parties to swiftly and effectively address market challenges and developments.
Moreover, improving public awareness and understanding of risks is crucial.
The report stressed the importance of driving innovation in the “Web 3” sector by combining the efforts of relevant companies, prioritizing education and employing the best talents as essential elements for the development of the “Web 3” sector.
Furthermore, the relevant entities need to provide sustainable long-term investments and take immediate action to promote the adoption and expansion of “Web 3” technologies.
Companies must take immediate steps to adopt “Web 3” technologies through investment, training, and expanded strategies, as any delay in these efforts exposes companies to significant risks that weaken their competitiveness.
