China Virtual Reality Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, Software, and Content), By Device Type (Head Mounted Display, VR Simulator, VR Glasses, Treadmills & Haptic Gloves, and Others), By Industry (Gaming, Entertainment, Automotive, Retail, Healthcare, Education, Aerospace & Defense, Manufacturing, and Others), 2023-2030

China virtual reality market size is projected to grow at a CAGR of 32.4% during the forecast period.

China has emphasized the VR industry as a central part of its innovation strategy. It aims to position itself as a global leader in technology innovation, deployment, and production. In addition, China has emerged as a critical player in the global market, driven partly by Chinese consumer enthusiasm for new technologies and increased government support for technological self-sufficiency. According to Bruegel, China is considered the second largest producer of R&D spending, accounting for about 20% of all R&D spending in the world. In addition, this investment is expected to grow and surpass that of the US and EU. China is one of the countries that significantly promotes the development of VR technology at the national level.

LATEST TRENDS

New Product Launches by Key Companies to Fuel the Market

Baidu Inc., Alibaba Group Holding Ltd, Tencent Holdings Ltd, and DPVR, China’s leading VR providers have introduced their own initiatives to further improve the technology for numerous applications, comprising mobile VR and online shopping, immersive video and gaming, and mobile VR. For instance,

• March 2022 - DPVR, a virtual reality device manufacturing and design company in Shanghai introduced the DPVR 4G/5G for its VR headsets. The new module allows healthcare, education, training, and conference sectors to incorporate VR headsets in remote working situations or mobile usage.

DRIVING FACTORS

Strong Government Support to Boost the Market Growth

The technology has already been used in various fields in China, including engineering, architecture, real estate, healthcare, and retail. VR can potentially replace all screens in life and increase the efficiency of all industries, leading to market growth. China's State Council spent USD 22 billion in 2020 to enlarge broadband network infrastructure in rural areas. This investment aims to provide better internet services to around 30 million households in the country, including approximately 50,000 villages. Increased investments by organizations and the government have led to China virtual reality market growth.

RESTRAINING FACTORS

Possibility of Progressive Escapism to Slow Down the Adoption of the VR

The probability of a progressive escape has become common among VR users in China. The use of this technology can have potential health and safety consequences, such as motion sickness, eyestrain, and headaches. The Chinese government has not yet established specific regulations for this technology, but companies operating in the space are advised to consider potential health and safety risk and take steps to mitigate them. This factor is expected to be a restraining factor for China’s market.

KEY INDUSTRY PLAYERS

In terms of the competitive landscape, the virtual reality market share depicts the presence of emerging and established companies. Baidu Inc., Alibaba Group Holding Ltd, Tencent Holdings Ltd, and DPVR dominated the U.S. market in 2022. In addition, the aim towards higher investments in these solutions and government support has enabled the companies to deliver better experiences.

LIST OF KEY COMPANIES PROFILED:

• Google LLC (Alphabet Inc.) (U.S.)
• Microsoft Corporation (U.S.)
• Baidu Inc. (China)
• Alibaba Group Holding Ltd. (China)
• Tencent Holdings Ltd. (China)
• DPVR (China)
• Sony Interactive Entertainment LLC (Japan)
• Samsung Electronics Co., Ltd. (South Korea)
• Qualcomm Incorporated (U.S.)
• Nvidia Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS: 

• October 2022 – TikTok owner ByteDance, introduced its new Pico 4 stand-alone VR device, which has received optimistic response in China.
• August 2021 – iQiyi, a Baidu-financed company, introduced the Qiyu 3, which operates on a 5G-enabled VR platform, Qualcomm’s Snapdragon XR2.

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The research on the China market includes key areas to get a better knowledge of the industry. Additionally, the research provides insights into the most recent market trends and analyses of technologies implemented worldwide. Further, it highlights the growth restrictions and elements, allowing the reader to understand the market.

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