Web3 is a hot topic in the technology world, but how far will Web3 bring positive changes to significant industries in the future? With the emergence of Web3, the face of the world is no longer the same.
The Global Web3 Market Report 2024, published by The Business Research Company, comprehensively overviews the Web3 market size, regional share, detailed segmentation, industry trends, and growth opportunities. Not long after, the Web3 Market Growth Prospects Evaluation from 2024 to 2028 was published.
This analysis provides a comprehensive perspective on the current market conditions and future projections, suitable for industry players who seek to thrive in the Web3 era.
What is the Web3 Market?
Web3 refers to the next generation of the World Wide Web, which is closely related to the evolution of the Internet. It delivers a smarter, decentralized, and user-centric web experience and has the potential to revolutionize the digital landscape.
There are four types of Web3, namely Public, Consortium, Private, and Hybrid. Meanwhile, the Main Applications of Web3 are Cryptocurrency, Smart Contracts, Conversational AI, Payments, Data Storage and Transactions.
The general requirements for Web3 applications are the ability to digest large-scale information and turn it into factual knowledge and execution that is useful for users. Thus, it can be said that these applications are still in their early stages, which means they have a lot of room for improvement and are far from how Web3 applications could potentially function.
A number of large companies that are building or have products that they have turned into Web3 applications, including Apple and Google. Based on the Report, there are 3 main players in the Global Web3 Market, namely Huawei Services Co Limited, Amazon Web Services (AWS), and International Business Machines (IBM).
Web3 Growth Drivers
There are four growth drivers of Web3: adoption of blockchain and cryptocurrency; need for data privacy and ownership; increasing integration of IoT (Internet of Things) and smart devices; and development of scalability solutions and tokenization technologies. From these factors, many believe that Web3 and crypto have great potential to transform major industries.
The evolution of IoT and smart devices is expected to drive the Web3 market. IoT consists of interconnected physical devices, while smart devices enhance functionality with computing capabilities. Combining IoT and smart devices through Web3 enhances connectivity and user experience.
In August 2022, Akamai Technologies projected that IoT connections will increase to US$23.3 billion by 2025. In March 2023, Cybercrew reported that smartphone usage in UK households reached 91.43% and is expected to increase to 93.8% by 2026. Therefore, the evolution of IoT and smart devices is driving the Web3 market.
Innovation and Acquisition
One of the Web3 Innovations is Shardeum. Shardeum is an EVM-based smart contract platform, with linear scalability that provides low gas fees forever while maintaining true decentralization and solid security through dynamic state sharding. Shardeum was launched by WazirX in February 2022 to address the scalability issue. Shardeum leverages Web3 technology to enhance data security and privacy.
One of the key benefits is that users get full ownership of their data. Its making Shardeum a promising platform to address scalability, decentralization, and security challenges while offering a developer-friendly environment.
Meanwhile, Web3 acquisitions are made by Orange Comet, a community and ecosystems builder in digital collectibles, Web3 gaming etc. In December 2022, Orange Comet acquired Mint State Labs, an entertainment technology company. The acquisition expands Orange Comet’s technical capabilities in blockchain.
Regions Driving Web3 Market Growth
North America is the largest region in the Web3 market in 2023. The regions covered in the Web3 market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa. Meanwhile, the Key countries reported to have adopted Web3 the most are Australia, Brazil, China, France, Germany, Indonesia, Japan, South Korea, the UK, the US, Canada, Italy, and Spain.
Web3 Market Growth Projection
The Web3 market is projected to grow from US$3.19 billion in 2023 to US$4.43 billion in 2024, with a CAGR (compound annual growth rate) of 38.8%. CAGR means the hypothetical growth rate when all changes occur evenly at the same rate in each period. Concerns over data ownership, interoperability, and the evolution of IoT drive this growth. The Web3 market is expected to experience significant growth, reaching US$16.3 billion by 2028 at a CAGR of 38.5%.
Web3 Potential
The Web3 market is projected to grow from US$3.19 billion in 2023 to US$16.3 billion by 2028 (CAGR of 38.8%). Key drivers include blockchain adoption, data privacy, IoT evolution, and tokenization. Trends such as token-based economies, edge computing, and cross-network collaboration are driving innovation.
Major players like Huawei, AWS, and IBM are leading the way, with North America and countries like Indonesia and China becoming hubs of adoption. Web3 promises to revolutionize industries and return control of data to users.