Apps for augmented reality and virtual reality are expected to grow in popularity among consumers and companies, according to analysts. Over the next several years, China’s augmented reality and virtual reality industries will expand more quickly than those of any other significant country.
The AR and VR sector will increase at an average annual compound growth rate of 43.8 percent in China from 2022 to 2026, compared to 38.5 percent globally, predicts market research company International Data Corporation.
The world’s second-largest market for AR and VR is predicted to be China by 2026, when investment there would amount to $13.1 billion. Global expenditure at that time may increase to $74.7 billion in 2026.
According to IDC, VR accounts for 70% of China’s expenditure in the two technologies. Gaming accounts for around a third of VR use, with education and collaboration being the other two main user situations. These three segments could make up more than half of China’s VR market between 2022 and 2026.
The augmented reality market is growing as more consumer items become accessible. Consumer-focused goods are anticipated to make up around 40% of the AR and VR market by 2026. The sectors of education, healthcare, and professional services are predicted to employ immersive technology at a rate of more than 28%.
People nowadays would think that this figure is quite high, but Su said, “We sometimes underestimate the changes in technology or equipment in more than 10 years as well as in two to three years.” Repetition is overdone.
Neal claims that by December 2022, the Beijing-based company will have produced more than 100,000 AR glasses, making it the first manufacturer of AR hardware geared at consumers to accomplish that feat.
More than 70,000 AR glasses were supplied from Nreal in the fourth quarter of 2022, including sales in China, Japan, and the US.
Optical technology and 3D perception algorithms are the company’s technical strong points, according to Xu. It has established an optical manufacturing plant in Wuxi, Jiangsu province, to produce display modules. Over 60% of its employees are engaged in research and development, and about 25% of them have worked abroad.
According to David McQueen, executive director of Strategy Analytics, Nreal is dominating the consumer augmented reality market and has found a sweet spot for both affordability ($599) and capacity.
The company is stepping up its efforts to enhance AR content. It has partnered with electric vehicle manufacturer Nio, short video platform Kuaishou, video streaming platform iQiyi, Migu, and China Mobile’s digital content business to produce unique AR content.
For instance, Nio and Nreal have collaborated to create special glasses that can show a 201-inch effective screen at six meters in order to provide passengers with an immersive visual experience in its most recent SUV models.
While VR technology creates a completely immersive digital experience, AR technology places more emphasis on digital images than on the physical surroundings.
In general, the term “metaverse” alludes to a universe of boundless, interconnected virtual communities where individuals may interact, collaborate, and have fun while wearing devices like VR headsets and AR glasses. has a significant amount of technology.
Along with Pico, several Chinese AR and VR companies are attempting to increase their market share.