VR/AR investment is not reduced to build a complete ecosystem to wait for the outbreak

Recently, the investment agency Digi-Capital issued a report. According to the report, the AR/VR announced investment and financing totaled 300 million U.S. dollars in Q3 2017, bringing the total amount in the first three quarters to 1.8 billion U.S. dollars. With the entry of funds and the maturity of technology, the VR/AR ecosystem has been increasingly shaped and contains tremendous opportunities.

By 2020, the global VR industry market will reach US$30 billion

In 2016, known as the "VR first year," many companies are concerned about the value of VR technology, and began to enter their own areas of expertise, such as games, entertainment, live, medical, etc., trying to open up new markets with VR. According to the investigation report of the investment agency Digi-Capital, in 2016, all investment companies and other commercial organizations have invested more than 1 billion U.S. dollars in AR and VR technology companies, and the total investment in the first three quarters of this year reached 1.8 billion U.S. dollars. Not reduced.

The successive entry of Google, Sony, HTC, Microsoft, Facebook and other international giants has accelerated the pace of development of the industry. Each giant has built its own VR ecosystem. After Skycloud acquired Oculus, Facebook began to acquire VR-related technology companies, and focused on building application platforms, forming hardware (Oculus Rift) + content (various content providers, Oculus Store) + social networking (Facebook) as The core of the ecological closed-loop. Giant companies such as Sony, Microsoft, Google, and Samsung are also building and deploying VR ecosystems in similar ways.

While the domestic VR market is still in its infancy, the overall size of the market scale is relatively small, but the growth rate has great potential for acceleration. The "China Virtual Reality (VR) Industry Research Report - Market Data" released by iResearch and Greenlight Insights in 2017 shows that the scale of China's VR market in 2016 was 3.46 billion yuan, although the current scale is still at a relatively small level. However, the market growth rate is very fast. It is expected that China's VR market will exceed 10 billion yuan by 2018. In the next five years, the compound annual growth rate of the VR market will exceed 80%. It is estimated that by 2021, China will become the largest VR market in the world, and the overall scale of the industry will reach 79.02 billion yuan.

At present, AR/VR heads-up, video, solutions, services, advertising, marketing, games, and applications have all acquired a lot of major investments, and the ecosystem is increasingly shaped. According to a new research report released by Digitimes Research, a research company of Digitimes, Taiwan, the global shipments of AR/VR head-mounted displays will maintain a 41.6% compound annual growth rate for the next five years. The independent head-mounted display device will be the main growth driver for AR/VR in the two years from 2018 to 2019. With the launch of various products including the Oculus Rift, HTC Vive and Sony PS VR, Digi-Capital predicts that by 2020, the market will enter a relatively mature period, and the global VR industry will reach a market size of US$30 billion.

Domestic benign VR industry ecosystem has been initially established

At this stage, the development of China's VR industry is being jointly promoted by users, technology, hardware, content, developers, channels, capital, etc. A benign VR industry ecosystem has been initially established and is currently forming a set of tools and equipment, industry applications, and content. The entire industry chain including production and distribution platforms and related services.

According to Digi-Capital's statistics, in the first three quarters of 2017, VR/AR's 27 investment segments accounted for the highest total investment in technology sector accounting for 40% of VR/AR, while games, video, etc. accounted for 10% of total investment. According to the emerging technology maturity curve announced by Gartner in 2017, VR will fully erupt in games, video, and live broadcast in the next two years.

Currently, games are an important scene for VR technology applications. VR game content can give players an immersive experience. For example, you can feel the guns as close as you can to the real world, and you feel as if you are in the world. The VR game experience will even make you forget that you are actually in front of a game console. At present, many of the oldest game companies in China have entered the VR industry with their own game IP resources to provide players with a diverse gaming experience.

On November 4, 2015, Youzu.com started investing in the VR industry by investing in Waking APP, a pioneering AR/VR platform company in Israel. It is understood that the Youzu Network has set up a VR business group to deploy on the upstream and downstream of the industry chain through investment. The self-built team helps domestic VR content distributors to distribute products, and develops online and offline content distribution platforms to import users. To the platform for content distribution. It is worth noting that the Youzu Network VR business group has two teams in Beijing and Shanghai. The Beijing team mainly focuses on distribution and the Shanghai team focuses on content.

On March 7, 2016, Sanchi Entertainment invested US$316.67 million in Canadian VR game content provider Archiact Interactive Ltd. Formally enter the VR field. Relying on Archiact, Sanchi Entertainment entered a new field of VR game development and VR game agency. According to reports, in addition to the investment and R&D methods for VR games, 37 games have made strategic layouts in VR social, video, and VR broadcasts.

On the other hand, VR technology will have more application scenarios on the live broadcast, such as the live broadcast of the party and the live broadcast of the conference. Many large-scale conferences of the country have experienced VR live broadcasts this year, and Leying’s network investment in Lexicon products appeared on CCTV Spring 2017 evenings. It is understood that the 2017 CCTV Spring Festival Evening News for the first time into the VR live technology, Spring Festival Evening lively public service advertising products is from Lexiang Technology (Da Peng VR) benchmarking product - Big Brother VR machine.

For video VR technology application scenarios, the secondary development of video IP and concert content have become common application scenarios of video VR technology. For example, the domestic video distribution platform iQiyi has produced VR content such as Infernal Affairs and Ghost Blowing Lamps with its own IP, which is deeply loved by users; Wanda's cinema AMC launches VR application “AMC VR” to provide “The Walking Dead” and “In-depth” "Evil soil" and other popular American dramas.

It took about three years from the emergence to the popularity of smart phones, and it is believed that the value of VR will gradually be accepted by people. Its indispensable role will also make VR devices an indispensable part of people's lives. Orient Securities research report shows that with the improvement of hardware layout, gradual release of production capacity, mature related technologies, and rich application content, AR/VR will become a rare high-growth product in the ICT market. Huang Tanwei, president of Global Sources Electronics Group, stated at the 3rd VR/AR/MR Eco-Circle Summit that “Everyone is now in research and development, waiting for the day of the outbreak. We speculate that the third and fourth quarters of next year will be An inflection point. Now we are constantly investing, not the present, but the future of two years and five years."

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