What Is The Future Development Of AR / VR Industry?

Market news

Since the fourth quarter of 2020, many VR content and hardware companies have completed large amount financing. According to incomplete statistics, in June 2021 alone, there were 22 investment and financing cases in VR field worldwide, with a total amount of US $267 million. This round of investment and financing boom not only promotes the development of VR industry in the application fields such as games, sports and medical treatment, but also promotes the in-depth development of VR terminal product prices, games and content applications.

Involving multiple application fields

With the commercial pace of 5g and ecological maturity, AR / VR will usher in an "explosive period" in the future. According to the prediction of CCID think tank, the scale of China's virtual reality market will reach 430 billion yuan by 2023. It is not difficult to foresee that with the continuous empowerment of 5g, VR / AR applications are integrated with many fields and industries, which can redefine product attributes and bring better application experience.

In terms of "cloud tourism", due to the impact of epidemic prevention and control and other factors, the "cloud tourism" with AR / VR technology comes to the fore. Both the popular 5g + VR "cloud cherry viewing" during the epidemic in Wuhan and the popularity of Quangjing China website highlight people's further maturity of VR / AR technology and give people a novel experience of "traveling" all over the country at home.

In the field of education, people have high hopes for VR / AR immersive teaching. Relying on the full integration of 5g and VR technologies, the boundaries of teaching space and time are broken, creating a "borderless classroom" of online and offline, virtual and reality, so that students can better feel the integration of theory and practice. For example, Sichuan Telecom and local schools jointly launched "5g + smart campus", which is a specific case of promoting the development of vocational education.

In the field of medicine, doctors use computers to simulate human tissues and organs in the virtual space, so that students can carry out simulation operations in it, and also let students feel the feeling of the scalpel cutting into human muscle tissue and touching bones, which can improve students' self-operation ability and quickly master the essentials of surgery. Before the operation, the chief surgeons can not only establish a virtual model of the patient's body, but also conduct an operation rehearsal in the virtual space, which can greatly improve the success rate of the operation and make more patients recover.

In fact, VR / AR is also widely used in military training in addition to the well-known fields such as games, education and medical treatment. China's first military VR training system "strong army" is the first cross platform multi person virtual reality simulation confrontation training system applied in the whole army. At present, it undertakes extracurricular training tasks of military subjects such as "light weapons shooting", "tactics" in the University of national defense science and technology.

CETC 28 once released the "virtual reality (VR) training system for smart commandos", which is a unit level immersive simulation training system. It constructs a virtual parallel battlefield space, which can truly simulate all kinds of battlefield environments, provide micro situation display support, red and blue virtual and real AI confrontation, post-war resumption, multi person immersive collaborative training, and realize three-end coordination of guidance, command and operation, to help the troops to verify their tactical methods of operation through training and quickly improve their actual combat capability.

Earlier, the U.S. Army signed a $480 million contract with Microsoft to use 100000 customized hololens head displays for battlefield training. The U.S. Department of defense has also publicly solicited information on existing solutions for virtual training and test platforms for U.S. defense combat forces to operate in battlefield nuclear warfare (BNW) environments, or to perform radiological threat object finding and interception operations.

The strategic focus has shifted to the consumer market

Looking at the domestic market, in the 14th five year plan, VR, as a key technology sector focused by the government, will vigorously promote technical support and investment in relevant fields, including promoting the construction of new network infrastructure, developing AR / VR commercial and consumer application scenarios, deepening international cooperation and establishing a global supply chain.

IDC predicts that China's AR / VR market will begin to grow significantly from 2021, and the compound growth rate of AR / VR market will reach 77.2% in the next five years. Zhao Siquan, analyst of IDC China terminal system research, said that the competition pattern of domestic VR head display manufacturers has changed significantly this year. In the past, they have been paying attention to the commercial market with education and training as a typical scenario for a long time. At the beginning of this year, with the advent of low-cost all-in-one machine products, many manufacturers have shifted their strategic focus to the consumer market. Different manufacturers have made new strategic choices at the new air outlet according to their own characteristics and product positioning, which will bring new changes to the competition pattern. Zhao Siquan also stressed that at present, supporting games and content applications are gradually enriched, and the demand outside music games needs to be released.

In the consumer market, in addition to games and entertainment, whether VR can develop new needs outside games and videos according to its own immersion experience and interaction advantages, such as fitness and virtual social networking, is also a new attraction for consumer VR products in the future.

There is no doubt that the VR / AR industry will be an incremental industry with rapid growth of market scale in the next few years, and a number of growth potential stocks will emerge.