An Insight Into Web3 and It's Market Size

By Suffescom Solutions

November 16, 2022

Web 3 is the most recent technology that is consistently spreading its roots in the IT industry. It forms the basis of decentralized apps and blockchain technology. This innovative technology's main objective is to smoothen the workflow and make space for seamless marketplace services.

Web3 has become a catchy term amongst everyone, whether for the users or the developers. The ultimate advantage is giving the authority back to the users, known as the "ownership of the digital assets."It has paved the way for the new internet era that can overcome every challenge.

The previous versions, like web1 and web2, are controlled by a central authority and are applicable for either read-only or read-write. At the same time, web3 provides both read-write options. The fundamental aspects of web3 are focussed on the following things;

Decentralization: The biggest concern is to remove the control from the centralized organizations and give the control back to the ones who have developed it.

Permissionless: No permission is required to perform any activity in the network. The transactions take place without involving any party.

Trustworthy: There is no involvement of any intermediary or third party. Third parties often result in data leakage of sensitive information.

Advancements in technology like machine learning, big data, and decentralized ledgers are anticipated to amplify industry growth. There are three stages that the internet has gone through in its evolution.

In the initial stages of content generation, the users had less opportunity to interact with the applications. The development of Web 3 allows users to save data on the public blockchain ledger underpinned by artificial intelligence and blockchain technology.

The Web 3.0 industry is anticipated to increase in various business applications, like smart contracts, digital identification, documentation, and exchanges.  The web uses Self-Sovereign Identity (SSI) for digital identification. The biggest advantage of SSI is that the users have complete control over the information they want to disclose. Complete privacy protection is provided to the users where the personal information is kept intact.

This industry is growing due to the adoption of Web 3 cryptocurrencies that automate transactions over the internet. Web 3.0 cryptocurrency trading provides top advantages that include decentralization and expansion potential. Moreover, there is no need to take approval from the higher authorities. 

Read More:Leading Web3 Development Company in USA

Global Web 3.0 Market Size 

There is a strong demand for web 3 in the market. This is because data privacy has become the priority of users. This can only be provided through the decentralized structure of web 3. The popularity of virtual assets with 5G/6G technologies can positively impact the digital market industry. There is a growing desire for devices and equipment compatible with the latest web3 technology.

Technologies like machine language, decentralized ledgers, and big data are the top picks of the developers and the various enterprises that are ready to adopt such technological networks that can bring improvements in the current industry by creating space for opportunities.


As per Emergen Research, in the year 2021, the Global Web 3.0 Market Size was around $3.2 billion, and it is anticipated that the annual compound growth rate will be around  43.7 %.

Report Highlights

  • AI serves countless perks and has the potential to provide the same in the future. The devices used in web3 are smart machines that can differentiate between fake and real reviews and ratings. AI can decode the data in a fraction of a second without hassle.

 

  • The fastest revenue growth is expected from the cryptocurrency segment. Cryptocurrency transactions are the storage system for the records available in the upcoming version of the public blockchain network. A great dependency on cryptocurrencies allows users to get offers and rewards to enhance or govern upcoming projects.    

 

  • There is a massive demand for Web3 systems in the Asia-Pacific region, which is predicted to have the fastest growth rate annually. It is because of its utilization in healthcare, finance, retail, and e-commerce. Some companies are Helium, Binance, Alchemy Insights, Ripple, etc.

The web3 market size can be well understood based on various categories or types that are mentioned below; 

Report Particulars

Web 3 Value

Global market size (2021)

US$ 5.7 Billion

Web 3.0 revenue 2022 to 2029

US$ 64.38 Bn 

Web 3.0 market size

USD 81.5 Billion

CAGR (2021–2030)

43.7%

Country wise scope

U.S., Canada, Mexico, Germany, U.K., France, Spain, BENELUX, Rest of Europe, China, India, Japan, South Korea, Rest of APAC, Brazil, Rest of LATAM, Saudi Arabia, UAE, Israel, and Rest of MEA

Web 3 Market Size Insights Segregation

Blockchain Type Outlook

The blockchain network is mainly Public, private, or hybrid. In a public blockchain, the users can join the network where they can read, write and even participate. They provide high-tech security with transparency and decentralization. The hybrid one is a combination of both public and private. 

Such type is both permissioned and permissionless systems, as some part of it is controlled by the organization while the rest is made available to the users to perform transactions. The public segment corresponded to about 56.0% in 2021 in the case of the largest revenue share.

End-Use Outlook

In 2021, the BFSI segment's revenue share was the highest, i.e., 33%. One of the main factors influencing the market's growth is the rising demand for Web 3 blockchain in the banking and finance industry for its scalability, faster transaction speeds, and lower processing costs. Web 3.0 blockchain transactions do not require third-party payment gateways, enabling faster transactional procedures. This helps insurance businesses to store decentralized data that reduces the risk of cybercrime.

 It is anticipated that the retail & e-commerce industry will grow the fastest during the projected period. The retail and e-commerce sectors can benefit from several features of Web 3. These advantages play a key role in the segment's growth, including swift payments, lower prices, transparency, and upgraded security. Distributed ledger technology is another Web 3 that allows retail businesses to work with supply chain partners like retailers, importers, and distributors without hassle.

Regional Type Outlook

In 2021, North America dominated the market and contributed to more than 37% of worldwide revenue. The biggest factor that leads to the expansion of the regional industry is the increasing acceptance of Web3 in various operating systems, including blockchain-based systems. 


Application Type Outlook

The revenue share of the cryptocurrency segment in 2021 was approx. 25%. Enterprises nowadays are focussed on the high-performance transactional services that top-grade blockchain solutions in cryptocurrency can achieve. The important element that has contributed to the speedy growth is smart contracts. 

These smart contracts developed by web3 technology are responsible for a well-performing environment. These characteristics of smart contracts are inclined to expand, eventually resulting in much faster and more secure transactions. 


Web3 Market Opportunities In Gaming

Web 3.0 is thriving in all mainstream sectors and is expected to expand in the upcoming years. The biggest business opportunity is seen in the gaming field. The eye-catching visuals make the whole playing experience supremely exciting and develop an engaging audience for a longer period.web 3 gaming has successfully created premium gaming content in addition to the virtual characters. 

 Web 3 has the power of literally expanding the gaming framework with a focal point on offering opportunities. the 3D gaming model will be a huge hit as it enables players to play in extremely immersive three-dimensional virtual venues. A lot of entreprenuers are looking forward to building a platform like this that will give complete freedom to the creators and will enjoy tremendous support from gaming enthusiasts.  All the elements related to the metaverse world creation, acquiring lands, gadgets upgradation, and character enhancement are seen on the decentralized records. 

Read More:Hire The Best Web3 Gaming Development Company

 Conclusion 

Web3 has created a vast transformation because of the use of futuristic technologies. Decentralization remains the focal point that has garnered investors' attention. There are a lot of challenges that need to be faced for better implementation. It is more tech-savvy, showing that such technology will be quite easy. Privacy and security are the major concerns that are well-handled in the execution. More than anything else, it is liable to bring a seamless user experience.

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