Web 3.0 Market Size, Share, and Industry Analysis, By Technology (Blockchain, Artificial Intelligence (AI) and Machine Learning (ML), Internet of Things (IoT), and Others), By Application (Decentralized Applications (DApps), Decentralized Finance (DeFi), Decentralized Autonomous Organizations (DAOs), Smart Contracts, and Others), By Industry Vertical (BFSI, Retail & E-Commerce, Healthcare, Media & Entertainment, Real Estate, Government, and Others), and Regional Forecast, 2025-2032

Web3 refers to the next generation of the internet that intends to develop a more open, decentralized, and user-centric web. The building blocks of Web 3.0 include blockchain, digital assets, smart contracts, Decentralized Applications (DApps), and Decentralized Autonomous Organizations (DAOs), among others.

The market is growing at an accelerated pace, majorly due to the blockchain technology. In addition, the inclination of end users toward NFTs, decentralized solutions and technologies, and smart contracts is driving the Web 3.0 market. Moreover, clear regulatory frameworks and increasing investments related to the market promise a healthy future for the Web 3.0 ecosystem.

The below chart represents the investments raised by web3 startups as of the first quarter of 2023.

As per Metaverse Post, over 108 web3 startups secured over USD 814 million in funding during the first quarter of 2023. These investments indicate that investors believe that investing in web3 can help them profit with heavy returns. The above chart showcases that environment-based web3 startups secured the highest (USD 45 Million) funding during the first quarter of 2023. Conversely, the AR/VR-based web3 startups secured over USD 6.5 million in funding.

Along with all the driving aspects, factors such as lack of appropriate regulation, limited user experience, and security concerns might hinder the market growth. However, as these obstacles are removed, the market is expected to grow at an accelerated pace in the coming years.

During the COVID years, the market was still emerging, and several research projects and initiatives were rising across the globe. The pandemic posed a positive impact on the market, driven by an accelerated focus on digital transformation, increasing inclination of end users toward decentralized platforms, and a dedicated focus on data privacy and security concerns.

Impact of Generative AI on the Web 3.0 Market

Generative AI has positively impacted the market, which is majorly driven by innovation and increased productivity across several industry verticals. Technology has become important for Web 3.0 as it enables unique forms of creativity, innovation, and expression on the decentralized web. For instance, gen AI is capable of developing user-centric digital assets, such as NFTs; gen AI can also be used to improve customer experience and engagement of Web3 use cases by providing dynamic and interactive content. These applications are reshaping the Web 3.0 market, and as the technology progresses, the Web 3.0 market is expected to transform remarkably in the coming years.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Impact of Generative AI on the Global Web 3.0 Market


• Consolidated SWOT Analysis of Key Players

Analysis by Technology

The Web 3.0 market by technology is classified into blockchain, Artificial Intelligence (AI) and Machine Learning (ML), Internet of Things (IoT), and others. The others segment includes edge computing. In 2023, blockchain technology dominated the market due to an increasing number of blockchain-based web 3.0 solutions and investments related to the market. In addition, using blockchain technology increases security through cryptographic principles. This factor has increased the level of investments in the market in recent years. The following instances indicate a promising future for the technology in the market.

• May 2024: HTX completed its strategic collaboration with Astar Network, a blockchain that intends to be Polkadot's "smart contract hub." Astar is also known to be a parachain for Polkadot for its TGE Catalyst Grant. With this collaboration, the companies mark a major step toward revolutionizing the blockchain industry, especially via the Astar zkEVM platform.


• August 2023: Huawei Cloud introduced various Web 3.0 technologies and services during the TechWave Web 3.0 Special Day. This gathering was co-organized by the Institute of Web 3.0 Hong Kong, Techub News, and Cyberport Hong Kong.

Regional Analysis

The global Web 3.0 market is divided into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. In 2023, North America dominated the market due to the prominent presence of hubs for blockchain innovation across countries, such as the U.S. and Canada. In addition, strong regulatory support and rising investments related to the market are driving the regional presence. Furthermore, the European Web 3.0 market ranks second in terms of generating revenue for the market. Strong regulatory support, the presence of innovation hubs for NFTs and blockchain-based projects, and the increasing inclination of research projects related to Web 3.0 drive regional growth.

In the coming years, the Asia Pacific region is expected to grow at the highest CAGR due to factors such as Southeast Asia leading in blockchain wallet adoption level, China and Japan leading in fintech sector, and Korea leading in web3 gaming. The rising engagement of emerging economies, the growing technological prominence of the region, and the increasing number of Web 3.0 startups are expected to propel regional growth during the forecast period.

Conversely, the Middle East & Africa and South American regions showcase a slower pace of growth than other regions across the globe. Factors, such as a lack of appropriate infrastructure, regulatory uncertainties, and a limited skilled workforce hinder market growth. However, increasing initiatives related to implementing blockchain’s potential, rising investments associated with developing the web 3.0 infrastructure, and growing interest in decentralized finance and smart contracts solutions are expected to promise a healthy future for regional growth.

The distribution of the global Web 3.0 market by regional division is as follows:

• North America – 39%


• South America – 8%


• Europe – 27%


• Middle East & Africa – 5%


• Asia Pacific – 21%

Key Players Covered

The key players in this market include Chainlink, Filecoin, Synthetix, Curve, Helium, Huawei Cloud Computing Technologies Co., Ltd., Web3 Foundation, Intel Corporation, Terra, and Fujitsu.

Key Industry Developments

• April 2024: Paymentology completed its strategic partnership with Rain, a spend management platform, with the objective of introducing a new payment tool dedicated to digital asset firms across LATAM and the Caribbean. Rain was founded in 2021 and was introduced as a platform focused on Web3 entities.


• February 2023: At an event in Hyderabad, the Department of Information Technology, Telangana government, introduced its first cohort of Web3 Regulatory Sandbox in the past week. This new launch is expected to provide a supporting environment for innovation, especially in new-age technologies, such as blockchain and Web 3.0.