2022 World VR Industry Conference will be held in Nanchang, Jiangxi this weekend. This is the first conference to set up the Metaverse venue. At that time, global VR leading companies such as Huawei , Baidu, Microsoft will participate. We will see the latest technological achievements of virtual reality -related companies, which will be a grand technology feast.
The concept of "meta universe" has become popular, triggering the virtual reality industry. Judging from the industry chain , VR is in the middle of the meta universe. The metaverse can be simply understood as a virtual world parallel to reality, in which people can do anything they can do in reality. As a recognized entrance to the metaverse, the development of the two industries will complement each other and achieve each other.
Feijing Investment Research wants to analyze the VR industry from three aspects: favorable policies, VR industry chain, and VR leading companies, and find investment opportunities in the next 5 to 10 years.
1. There are constant favorable policies and clear VR industry development goals
Previously, many documents supporting the implementation of Web3.0 ( decentralized Internet running on blockchain technology ), metaverse, and AR/VR industry industries have been issued, but they are all actions of local governments.
On November 1, five departments announced the "Action Plan for the Integration of Virtual Reality and Industry Applications (2022-2026)", pointing out the development goals of the VR industry. By 2026, the overall scale of my country's virtual reality industry will exceed 350 billion yuan, and the sales of virtual reality terminals will exceed 25 million units, and 100 backbone enterprises with strong innovation capabilities and industry influence will be cultivated. The biggest difference between
and the previous one is that this is jointly released by five departments: the Ministry of Industry and Information Technology, the Ministry of Education, the Ministry of Culture and Tourism, the State Administration of Radio and Television, and the State Administration of Sports , and the State Administration of Sports . This "Plan" may be the action guide for the VR industry in the next few years.
In fact, these five departments are also the main application scenarios of VR, such as industrial production, cultural tourism, integrated media, education and training, sports and health, performing arts and entertainment, safety and emergency response, smart cities and other fields.
First of all, we know that the country supports the VR industry. What we need to do next is to figure out how much growth space there is for the upstream and downstream industrial chain of in the VR industry, and what investment opportunities there are.
A brief introduction to VR/AR
VR/AR refers to the products and services involved in building immersive experiences with immersive experiences such as near-eye display, perceptual interaction, rendering processing, network transmission and content production. It involves a large number of disciplines, a wide range of applications, and a wide variety of systems.
Specifically:
VR (virtual reality) technology blocks all the user's sight and creates a complete virtual environment. Through the VR headset, you can experience 3D virtual immersion. The key elements are immersion, interaction, and imaginaryness. Virtual scenes need to be designed and created, and users can interact in real time with content in the virtual scene.
AR ( augmented reality ) technology combines virtual objects with the real world by superimposing images and holographic images in the real world. Simply put, it is to supplement the real scene, but not completely replace the real scene. Through the integration of virtual and real, it is to enhance users' understanding and feelings of the real environment. The key elements are sense of scene, enhancement and relevance.
In summary, we can understand it as follows: AR is the next generation mobile computer platform that can replace smartphones; VR is an immersive space that isolates the environment.
(Source: Huawei AR Insights and Application Practice White Paper)
2. VR industry: Global VR headset shipments exceed 10 million units. IT giants rely on platforms to seize the market. Introduction to the
VR industry, we mainly focus on three aspects: industrial chain, market space, and competitive landscape.
1, the VR/AR industry chain is mainly divided into four parts: hardware, software, content, and application scenarios.
VR/AR industry chain upstream includes hardware and software.
Hardware industry chain includes parts, perceptual interaction, terminals, supporting peripherals, etc.
2022 World VR Industry Conference will be held in Nanchang, Jiangxi this weekend. This is the first conference to set up the Metaverse venue. At that time, global VR leading companies such as Huawei , Baidu, Microsoft will participate. We will see the latest technological achievements of virtual reality -related companies, which will be a grand technology feast.
The concept of "meta universe" has become popular, triggering the virtual reality industry. Judging from the industry chain , VR is in the middle of the meta universe. The metaverse can be simply understood as a virtual world parallel to reality, in which people can do anything they can do in reality. As a recognized entrance to the metaverse, the development of the two industries will complement each other and achieve each other.
Feijing Investment Research wants to analyze the VR industry from three aspects: favorable policies, VR industry chain, and VR leading companies, and find investment opportunities in the next 5 to 10 years.
1. There are constant favorable policies and clear VR industry development goals
Previously, many documents supporting the implementation of Web3.0 ( decentralized Internet running on blockchain technology ), metaverse, and AR/VR industry industries have been issued, but they are all actions of local governments.
On November 1, five departments announced the "Action Plan for the Integration of Virtual Reality and Industry Applications (2022-2026)", pointing out the development goals of the VR industry. By 2026, the overall scale of my country's virtual reality industry will exceed 350 billion yuan, and the sales of virtual reality terminals will exceed 25 million units, and 100 backbone enterprises with strong innovation capabilities and industry influence will be cultivated. The biggest difference between
and the previous one is that this is jointly released by five departments: the Ministry of Industry and Information Technology, the Ministry of Education, the Ministry of Culture and Tourism, the State Administration of Radio and Television, and the State Administration of Sports , and the State Administration of Sports . This "Plan" may be the action guide for the VR industry in the next few years.
In fact, these five departments are also the main application scenarios of VR, such as industrial production, cultural tourism, integrated media, education and training, sports and health, performing arts and entertainment, safety and emergency response, smart cities and other fields.
First of all, we know that the country supports the VR industry. What we need to do next is to figure out how much growth space there is for the upstream and downstream industrial chain of in the VR industry, and what investment opportunities there are.
A brief introduction to VR/AR
VR/AR refers to the products and services involved in building immersive experiences with immersive experiences such as near-eye display, perceptual interaction, rendering processing, network transmission and content production. It involves a large number of disciplines, a wide range of applications, and a wide variety of systems.
Specifically:
VR (virtual reality) technology blocks all the user's sight and creates a complete virtual environment. Through the VR headset, you can experience 3D virtual immersion. The key elements are immersion, interaction, and imaginaryness. Virtual scenes need to be designed and created, and users can interact in real time with content in the virtual scene.
AR ( augmented reality ) technology combines virtual objects with the real world by superimposing images and holographic images in the real world. Simply put, it is to supplement the real scene, but not completely replace the real scene. Through the integration of virtual and real, it is to enhance users' understanding and feelings of the real environment. The key elements are sense of scene, enhancement and relevance.
In summary, we can understand it as follows: AR is the next generation mobile computer platform that can replace smartphones; VR is an immersive space that isolates the environment.
(Source: Huawei AR Insights and Application Practice White Paper)
2. VR industry: Global VR headset shipments exceed 10 million units. IT giants rely on platforms to seize the market. Introduction to the
VR industry, we mainly focus on three aspects: industrial chain, market space, and competitive landscape.
1, the VR/AR industry chain is mainly divided into four parts: hardware, software, content, and application scenarios.
VR/AR industry chain upstream includes hardware and software.
Hardware industry chain includes parts, perceptual interaction, terminals, supporting peripherals, etc.
Components include sensors, optical instruments, chips, display screens and other housing structural parts. Among them, processors, storage and optical display devices account for more than 80%. Currently, Qualcomm Snapdragon XR2 chip is the mainstream choice. In terms of
optical display, the Fast-LCD+Fresnel lens solution has been widely recognized by the industry, and related software development has become more mature. However, the latest news is that Pancake can reduce the thickness of VR glasses and improve the user's visual experience. Many institutions believe that Pancake will replace Fresnel lenses and become the mainstream VR optical solution, and TCL is one of the main domestic manufacturers to layout this technology.
terminal includes VR and AR, and the production methods are mainly ODM and OEM.
software part consists of information processing software and system platform software.
information processing part is responsible for information collection, encoding and decoding, rendering, and physical feedback; the system platform software includes operating system, SDK, API and other tool software.
midstream of the industry chain includes system integrators, content developers, content publishing platforms, technical supporters, etc.
mainly involves content production and distribution. Content production currently focuses on games, film and television, live broadcast and social networking; distribution and distribution of the produced content is distributed. The Steam platform is the earliest VR content platform.
downstream of the industrial chain is the specific application scenario of VR/AR.
is currently mainly used on the consumer side and enterprise side, with the consumer side mainly in entertainment, such as games and live broadcasts; the enterprise side is often used in medical, education, military security, industrial production and other industries.
2, VR new products are frequently released, with the market size in 2022 reaching 58.9 billion yuan, and VR headset devices exceeding 10 million
VR/AR As an emerging industry, the market size is in a period of rapid growth. With the advent of the 5G era, the development of the VR/AR industry has ushered in a new round of craze. The application scope of VR and AR has accelerated penetration into vertical fields such as industry, medical care, and education.
China Business Industry Research Institute data shows that in 2018, China's VR/AR market size was 8.01 billion yuan, and it is estimated that China's VR/AR market size will reach 58.6 billion yuan in 2022
(Data source: compiled by China Business Industry Research Institute)
VR products mainly include VR headsets and AR glasses . With the advancement of technology, products are being updated and iterated quickly, and new products are frequently released. Meta and Picohtml will release new VR products within 4 years. Apple expects to release new XR products on 23H1, and the number of new AR/VR products in 22 years has exceeded 20.
Global VR headset devices have reached tens of millions of units. Data shows that the global VR headset shipments in 2020 were 6.7 million units, and increased by 71.79% year-on-year compared with . In 2021, the global VR headset shipments increased by 463.4% year-on-year to 10.95 million units, and the annual shipment volume exceeded 10 million units, which is an important turning point in the industry. It is expected that shipments will exceed 15 million units in 2022 and will maintain a high growth trend in the next few years.
The domestic VR market is also growing rapidly, and the release of Pico's new product is expected to further promote the scale of the domestic market. Domestic manufacturers such as iQiyi, Huawei, and Dapeng have successively released VR headset products, and shipments have gradually increased. Wellsenn data shows that as of Q2 2022, domestic VR shipments reached 297,000 units.
Global AR glasses shipments in 2020 are 400,000 units, and are expected to reach 700,000 units in 2021.
At present, the core components of the AR industry chain are still in the critical stage, and the product form, cost and price have not yet reached the consumer level, and 80% of the applications come from the B-end market. Therefore, the shipment of AR glasses is quite different from that of VR headsets.
(Data source: Northeast Securities )
3. In terms of competitive landscape, IT giants rely on platforms to seize most of the market
Global: Meta is the absolute leader in the VR market, with a market share of about 80% in 2021
VR products mainly include (Facebook), Dapeng VR (DPVR), HTC, etc. under ByteDance, Lexiang Technology .
At this stage, Meta relies on a mature social platform to create a closed loop of supply of virtualized games, social and videos from hardware adaptation to content production. Its VR headset device Oculus shipped 8.8 million units in 2021, with a market share of nearly 80%.
Dapeng VR and Pico both have 4%, which is a big gap.
(Data source: IDC)
China: Pico shipments are the second largest in the world, accounting for 70% of the market share of
All-in-one machine is the current mainstream form of terminal hardware. The domestic PicoNeo3 integrated system is comparable to mainstream overseas products in terms of various parameters such as optical, display, and interaction.
According to VR gyroscope statistics, in the second quarter of 2022, nearly 80% of the VR headset market was seized by Oculus. The domestic brand Pico shipped 260,000 units, ranking second in the world, with a global market share of 11.16% and a domestic market share of 70%; iQiyi shipped 17,000 units, ranking fifth.
Although domestic VR brands still have a gap compared with overseas market, with the increase in market share, the gap is gradually narrowing. In the future, we still need to continue to innovate and seize the market
Through the above analysis, we know that the VR industry has a lot of room for growth in the future, and the increase in application scenarios drives the rapid growth of shipments. VR-related companies will also usher in new opportunities. Feijing Investment Research believes that there are several domestic companies worth paying attention to.
3. Key VR industry company
At present, the main problems of AR/VR are inconvenience, display interaction ability and price that cannot reach the balance point. The development of the industry faces technical difficulties such as low computing power performance, difficulty in carrying, and slow progress in near-eye display technology. Whoever can overcome these difficulties will have hope of getting a big cake.
1, VR OEM leader, Goertek
Goertek 02 days ago due to a production suspension notice. Goertek is not only a world-leading provider of sound, photoelectric products and solutions, but also a core VR OEM manufacturer such as Meta and Pico, with a VR OEM market share of up to 70%.
Goertek has been in the field of optical many years ago and can provide customers with comprehensive VR/AR optical solutions including aspherical and Fresnel, VR optical modules such as Pancake, AR optical machines, optical waveguides and other types of AR optical devices.
has significant first-mover advantages in assembly of VR products, rich customer resources, and excellent integration capabilities from parts to whole machines. Goertek has a comprehensive layout, a large number of parts are self-supplied, and its cost advantage is significant. As the VR industry increases in volume, its performance will also rise to a higher level.
(Source: Goertek's official website, Everbright Securities Research Institute)
2. It has core technology, United Optoelectronics
United Optoelectronics focuses on the research and development and production of optical and optoelectronic products. Its competitive advantage in VR can be summarized into three points:
1) There is sufficient reserve of core technology . After years of technological precipitation, United Optoelectronics has a mature omni-tal insight solution, mastered the manufacturing process of core optical devices such as aspherical lenses and Fresnel lenses, and formed a complete industrial chain from design, processing to assembly.
2) has integrated assembly capabilities. Like Goertek, United Optoelectronics also has VR OEM business. Public information shows that United Optoelectronics does OEM for Dapeng, and the VR/AR shipments in 2021 are nearly 50,000 units, which is a cooperative relationship with many domestic VR/AR companies such as Xiaopai and Liangliang Vision.
3) Invest in leading domestic VR companies. United Optoelectronics has invested in Dapeng and Xiaopai before, and these two companies are currently the leading companies in the domestic VR industry.
3. Layout virtual people, Fengyuzhu
Fengyuzhu is one of the listed companies that have currently laid out virtual people. On December 20, 2021, Fengyuzhu's wholly-owned subsidiary , Fengyuzhou announced that it will work with Anhui Satellite TV to create the first digital virtual anchor "An Xiaotong" of Anhui Radio and Television.
Fengyuzhu has a number of patents and software copyrights related to VR/AR technology, and can create an immersive experience through digital multimedia technology such as VR/AR, holographic imaging, naked-eye 3D, virtual host, human-computer interaction, etc.
4, self-built production line, Weier Co., Ltd.
Weier Co., Ltd. is an enterprise engaged in semiconductor design and sales. Its products are widely used in consumer electronics , automobiles, medical care, VR/AR and other fields.
In the field of VR/AR, the dynamic vision sensor-related products it develops are at the industry-leading level and has obvious technical advantages. It has cooperated with customers to develop applications such as VR/AR gesture recognition and human tracking.
Ver also has a self-built 12-inch LCOS wafer-level LCD box automated packaging production line, with high LCOS chip production efficiency and yield. LCOS technology can meet the requirements of low power consumption and light weight of AR headset devices, and has been successfully applied to the VR/AR field.
Summary
Through analysis of three aspects of industrial policies, industry development status, and related enterprises, we know that although the VR industry is currently facing technical difficulties, as a state-supported industry and future technological development direction, Feijing Investment Research believes that this industry may provide investment opportunities in the next 5 to 10 years.
Of course, good companies also need good prices. Positive companies should follow up for a long time and enter the market at the right time, making it easier to achieve expected returns.
Feijing Investment Research long-term tracking special list: "Growth 50": Summary of stocks with growth potential in various hot industries. For more exciting things, please continue to pay attention to Feijing Investment Research.
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Source: Feijing Investment and Research
Dapeng VR and Pico both have 4%, which is a big gap.
(Data source: IDC)
China: Pico shipments are the second largest in the world, accounting for 70% of the market share of
All-in-one machine is the current mainstream form of terminal hardware. The domestic PicoNeo3 integrated system is comparable to mainstream overseas products in terms of various parameters such as optical, display, and interaction.
According to VR gyroscope statistics, in the second quarter of 2022, nearly 80% of the VR headset market was seized by Oculus. The domestic brand Pico shipped 260,000 units, ranking second in the world, with a global market share of 11.16% and a domestic market share of 70%; iQiyi shipped 17,000 units, ranking fifth.
Although domestic VR brands still have a gap compared with overseas market, with the increase in market share, the gap is gradually narrowing. In the future, we still need to continue to innovate and seize the market
Through the above analysis, we know that the VR industry has a lot of room for growth in the future, and the increase in application scenarios drives the rapid growth of shipments. VR-related companies will also usher in new opportunities. Feijing Investment Research believes that there are several domestic companies worth paying attention to.
3. Key VR industry company
At present, the main problems of AR/VR are inconvenience, display interaction ability and price that cannot reach the balance point. The development of the industry faces technical difficulties such as low computing power performance, difficulty in carrying, and slow progress in near-eye display technology. Whoever can overcome these difficulties will have hope of getting a big cake.
1, VR OEM leader, Goertek
Goertek 02 days ago due to a production suspension notice. Goertek is not only a world-leading provider of sound, photoelectric products and solutions, but also a core VR OEM manufacturer such as Meta and Pico, with a VR OEM market share of up to 70%.
Goertek has been in the field of optical many years ago and can provide customers with comprehensive VR/AR optical solutions including aspherical and Fresnel, VR optical modules such as Pancake, AR optical machines, optical waveguides and other types of AR optical devices.
has significant first-mover advantages in assembly of VR products, rich customer resources, and excellent integration capabilities from parts to whole machines. Goertek has a comprehensive layout, a large number of parts are self-supplied, and its cost advantage is significant. As the VR industry increases in volume, its performance will also rise to a higher level.
(Source: Goertek's official website, Everbright Securities Research Institute)
2. It has core technology, United Optoelectronics
United Optoelectronics focuses on the research and development and production of optical and optoelectronic products. Its competitive advantage in VR can be summarized into three points:
1) There is sufficient reserve of core technology . After years of technological precipitation, United Optoelectronics has a mature omni-tal insight solution, mastered the manufacturing process of core optical devices such as aspherical lenses and Fresnel lenses, and formed a complete industrial chain from design, processing to assembly.
2) has integrated assembly capabilities. Like Goertek, United Optoelectronics also has VR OEM business. Public information shows that United Optoelectronics does OEM for Dapeng, and the VR/AR shipments in 2021 are nearly 50,000 units, which is a cooperative relationship with many domestic VR/AR companies such as Xiaopai and Liangliang Vision.
3) Invest in leading domestic VR companies. United Optoelectronics has invested in Dapeng and Xiaopai before, and these two companies are currently the leading companies in the domestic VR industry.
3. Layout virtual people, Fengyuzhu
Fengyuzhu is one of the listed companies that have currently laid out virtual people. On December 20, 2021, Fengyuzhu's wholly-owned subsidiary , Fengyuzhou announced that it will work with Anhui Satellite TV to create the first digital virtual anchor "An Xiaotong" of Anhui Radio and Television.
Fengyuzhu has a number of patents and software copyrights related to VR/AR technology, and can create an immersive experience through digital multimedia technology such as VR/AR, holographic imaging, naked-eye 3D, virtual host, human-computer interaction, etc.
4, self-built production line, Weier Co., Ltd.
Weier Co., Ltd. is an enterprise engaged in semiconductor design and sales. Its products are widely used in consumer electronics , automobiles, medical care, VR/AR and other fields.
In the field of VR/AR, the dynamic vision sensor-related products it develops are at the industry-leading level and has obvious technical advantages. It has cooperated with customers to develop applications such as VR/AR gesture recognition and human tracking.
Ver also has a self-built 12-inch LCOS wafer-level LCD box automated packaging production line, with high LCOS chip production efficiency and yield. LCOS technology can meet the requirements of low power consumption and light weight of AR headset devices, and has been successfully applied to the VR/AR field.
Summary
Through analysis of three aspects of industrial policies, industry development status, and related enterprises, we know that although the VR industry is currently facing technical difficulties, as a state-supported industry and future technological development direction, Feijing Investment Research believes that this industry may provide investment opportunities in the next 5 to 10 years.
Of course, good companies also need good prices. Positive companies should follow up for a long time and enter the market at the right time, making it easier to achieve expected returns.
Feijing Investment Research long-term tracking special list: "Growth 50": Summary of stocks with growth potential in various hot industries. For more exciting things, please continue to pay attention to Feijing Investment Research.
Follow Feijing Investment Research, here are the investment reports you are most concerned about!
Source: Feijing Investment and Research
