Core View

 

Sales of VR headsets are growing exponentially

 

In Q4 of 2020, Oculus Quest2 was released, and the sales volume has exceeded 5 million units so far, and the sales volume of VR headset hardware has increased exponentially

 

VR users exceed 10 million, and the singularity will come in 2022

 

According to Zuckerberg, the founder of Facebook, when the number of VR users exceeds 10 million, the VR content and ecosystem will achieve leapfrog development. Judging from the current sales volume of quest2, the VR industry will explode from the second half of 2021 to 2022 around the year

 

Apple, Huawei and other giants enter the game, 5G commercialization accelerates, and VR goes out of the circle

 

Apple will release its VR hardware equipment in 2022, and Huawei has recently updated its VR glasses equipment. With the acceleration of 5G commercial use and the entry of giants, VR will go out of the circle and be accepted by more ordinary consumers

 

The popularization of VR equipment has detonated the demand for content, and the flywheel effect has begun to appear

 

With the continuous popularization of VR devices, consumers' demand for content continues to rise, which stimulates the continuous growth of content production platforms and content distribution platforms. The flywheel effect of the industry begins to appear, and a virtuous circle begins

 

With the continuous popularization of VR equipment to ordinary consumers, compared with games with higher thresholds, VR film and television will usher in a faster growth rate, and the market scale will continue to expand

 

 

 

 

 

 

 

 

After a period of adjustment, the global VR market continues to expand, with a growth rate of over 40%.

 

After the industry trough and adjustments from 2017 to 2019, the global VR market is gaining momentum. It will reach a market size of US$30 billion in 2020 and is expected to reach US$44 billion in 2021, with a growth rate of more than 40%.

 

In the VR market, in addition to VR hardware, games, film and television constitute the largest market share. Among them, the consumer side is mainly based on games and film and television, showing a parallel trend of online and offline

 

 

Global VR hardware shipments are on the rise and are expected to reach nearly 50 million by 2025

 

 

Due to the launch of Oculus Quest2, global VR shipments will reach about 14.63 million units in 2022, breaking through 10 million units, and achieving a fundamental leap in user experience

 

 

Facebook has a 40% market share in the global VR hardware market, and Oculus Quest2 has achieved an important turning point in the popularization of VR headsets

 

 

Hardware shipments in China's VR market are rising steadily, with a growth rate of 40% or more in 2021

 

 

In the Chinese market, VR hardware manufacturers compete with each other. Among them, Pico Xiaoniaokan Technology has the largest market share in the domestic market with its Neo series, accounting for about 32%, and Dapeng ranks second, accounting for about 25%.

 

 

iQIYI has an independent product brand "iQIYI VR", which can be adapted to a variety of VR equipment manufacturers. iQIYI has also launched its own VR hardware device "Qi Yu VR", which currently accounts for about 9% of the Chinese market

 

 

Facebook hardware sales have rapidly surpassed the total sales of previous generations since the release of Quest2

 

 

With the official release of Neo2 and Neo3, Pico hardware sales have grown rapidly

 

 

 

Global technology giants have strengthened their layout in VR through investment, mergers and acquisitions/self-research, etc.

 

ech giants step up VR acquisitions to gain competitive edge

 

In June 2020, Facebook acquired Readyat Dawn, the development company of the VR game "Lone Echo", which will use Oculus' latest VR technology to continue to develop more innovative games In May 2020, Apple acquired NextVR Inc. to strengthen Apple's VR capabilities in entertainment and sports

 

Technology giants strengthen their own investment in VR

 

According to Theinformation, Facebook’s AR/VR department will have more than 10,000 people in 2021, accounting for nearly 20% of the total number of employees, compared with only 1,000 in 2017.

 

In June 2020, Facebook acquired Readyat Dawn, the development company of the VR game "Lone Echo", which will continue to develop more innovative games using Oculus' latest VR technology .In May 2020, Apple acquired NextVR Inc. to strengthen Apple's VR Strength in Entertainment and Sports

 

 

VR hardware devices drive improved experience, and future technological development will break through the bottleneck of VR device experience

 

From Quest to Quest2, hardware upgrade drives improved experience

 

Comfort: Supports wireless use; 10% lighter, 503 families; Perspective mode to prevent collisions

 

Clarity: Supports refresh rates of 90Hz~120Hz, Quest only provides 72Hz; Pixel 50% higher than Quest, with monocular resolution approaching 2K; Customized pupil distance for maximum clarity experience

 

Range: 4 times the battery life of the controller

 

Delay: By upgrading computing power and using Phase Sync frame time management technology, the application delay is significantly reduced, which is expected to increase immersion and reduce dizziness

 

 

 

 

Interpretation of important future node information, the singularity of hardware shipments in the global VR market is approaching

 

Important nodes for predicting future VR equipment shipments

 

It is expected that overall VR experience will improve, prices will decrease, and consumer-grade C-segment products will drive overall VR sales

 

It is expected that the singularity of the VR industry will come (10 million units)

 

It is expected that the content ecology TO C will be further enriched, and the application scenarios TO B will be more diversified

 

Dominant platforms are expected to emerge (20 million units)

 

Portable, lightweight, and better-experience VR products are expected to emerge

 

The platform is expected to have a complete ecosystem and gradually become a PC-level product (50 million units)

 

Zuckerberg of Facebook believes that about 10 million people need to use and purchase VR content on a platform to enable developers to continue to develop and make profits, and once this threshold is exceeded, the content and ecosystem will achieve leapfrog development

 

According to the budget for global VR shipments and Facebook’s Oculus Quest 2 budget, Singularity is expected to arrive in Q3-Q4 of 2021

 

After the arrival of the singularity of 10 million, the VR content and ecosystem are expected to develop by leaps and bounds, driving the ecological reconstruction of the global VR industry chain

 

 

With the continuous popularity of VR devices, VR content will become the next stage of development

 

 

2021~2030 Global VR Market Composition Forecast, VR Film and Television Share Expansion Rapidly

 

The composition of the global VR market in 2021 is dominated by VR hardware. The current growth period of hardware ownership is about to usher in the singularity of sales of 10 million head-mounted hardware devices, which is expected to account for 40% of the market composition in 2030.

 

VR games, VR film and television, and hardware are three pillars. At present, the proportion of VR games is twice that of VR film and television. It is expected that in 2030, the proportion of VR film and television will continue to grow to 17%.

 

Good market utilization helps to concentrate and integrate resources such as capital, technology, and talents, continuously supply blood for VR film and television, promote the prosperity of VR film and television market, and then increase the proportion of VR industry

 

 

VR games and film and television technologies have high maturity and application value, and have strong commercial monetization capabilities

 

The maturity of VR game and film and television technology, high application value, strong commercial realization potential in the past five years, and considerable short-term investment returns

 

Other industries, such as shopping, live streaming, and entertainment technology, although there is a big gap between the maturity of the technology and the price of the application, but as the downstream application industry of VR matures, its commercial value and monetization ability will also increase accordingly.

 

 

Summary of VR Industry Research

 

Sales of VR headsets are growing exponentially

 

In Q4 of 2020, Oculus Quest2 was released, and the sales volume has exceeded 5 million units so far, and the sales volume of VR headset hardware has increased exponentially

 

VR users exceed 10 million, and the singularity will come in 2022

 

According to Zuckerberg, the founder of Facebook, when the number of VR users exceeds 10 million, the VR content and ecosystem will achieve leapfrog development. Judging from the current sales volume of quest2, the VR industry will explode from the second half of 2021 to 2022 around the year

 

Apple, Huawei and other giants enter the game, 5G commercialization accelerates, and VR goes out of the circle

 

Apple will release its VR hardware equipment in 2022, and Huawei has recently updated its VR glasses equipment. With the acceleration of 5G commercial use and the entry of giants, VR will go out of the circle and be accepted by more ordinary consumers

 

The popularization of VR equipment has detonated the demand for content, and the flywheel effect has begun to appear

 

With the continuous popularization of VR devices, consumers' demand for content continues to rise, which stimulates the continuous growth of content production platforms and content distribution platforms. The flywheel effect of the industry begins to appear, and a virtuous circle begins.

 

With the continuous popularization of VR equipment to ordinary consumers, compared with games with higher thresholds, VR film and television will usher in a faster growth rate, and the market scale will continue to expand