Sci-Tech

The joys and sorrows behind the billion dollar scale of the VR industry

2025-11-27   

The distance between humans and the moon can be as close as just a pair of glasses. Recently, the 2025 World VR Industry Conference was held in Jiangxi. At the National Virtual Reality Innovation Center in Nanchang VR Science and Technology Innovation City, a reporter from Science and Technology Daily experienced the interactive project "China Lunar Exploration Project". Wearing virtual reality (VR) glasses, the reporter not only witnessed the rocket's ignition and launch from a first person perspective, but also experienced the entire process of landing on the surface of the moon. Not only on the moon, but with the help of VR devices, people can instantly get closer to many things. After recent years of development, the scale of China's VR industry has reached the level of billions, and the operating revenue of VR and related industries in Jiangxi Province alone has exceeded 110 billion yuan in 2024. However, behind the booming development, this industry still faces bottlenecks such as being controlled by people and poor user experience in electronic components. The market application is still in its developmental stage, and it will take time to drive the effect and reduce production costs. There is still a long way to go before it is fully promoted and applied, "said Sun Qimin, Deputy General Manager of the National Virtual Reality Innovation Center. The industry is in a critical climbing period. In 2016, known as the "first year of consumer VR", consumer products such as Oculus Rift, HTC Vive, PlayStation VR, etc. were successively launched. Since then, the VR industry has become a highland for global research and patent competition. Through the synchronous integration of vision, interaction, and sensory perception, VR technology allows people to step into a three-dimensional virtual world, changing the way people perceive the world. At present, the VR industry is in a critical climbing period, showing a development trend of technological breakthroughs, industry application expansion, and increased capital investment. According to statistics, Europe is the world's largest VR market, accounting for 27% of global VR market revenue, followed closely by the United States and China. In China, the VR industry not only enriches the Internet industry, but also has great potential in enabling the real economy. According to relevant data, the compound annual growth rate of China's VR market is expected to reach 43.8% from 2022 to 2025, ranking first in the world. According to Tianyancha Professional Edition data, there are over 35000 VR related enterprises in China. Among them, more than 2400 newly registered related enterprises will be added in 2025. From the trend of enterprise registration in the past 5 years, the number of VR related companies has been increasing year by year. In the "Top 50 Chinese VR Enterprises in 2025" released at the World VR Industry Conference, over 60% of the companies achieved revenue exceeding 100 million yuan. The VR industry has taken root in many parts of the country. Beijing, Jiangxi, Guangdong, and the Yangtze River Delta region together constitute the core area of the VR industry, and the VR industry has gradually formed a regional layout of "research and development manufacturing application" hierarchical development. The rapid growth of the number of enterprises is due to the strong guidance of policies. In 2022, the Ministry of Industry and Information Technology, the Ministry of Education and other five departments jointly issued the "Action Plan for the Integration and Development of Virtual Reality and Industry Applications (2022-2026)", which clearly stated that by 2026, the overall scale of China's virtual reality industry will exceed 350 billion yuan. Policy leverage has reduced the cost of trial and error in the industry. A virtuous cycle of "government capital market" tripartite resonance is gradually being constructed, promoting the steady development of the VR industry. Li Liang witnessed this process. In 2015, he founded Nanchang Xiaowalnut Technology Co., Ltd., focusing on the research and development of VR content and systems. It has been proven that Li Liang's sense of smell is very accurate. In the first few years, the company developed rapidly and obtained over a hundred intellectual property rights and multiple national and provincial achievement certifications. However, a few years later, Li Liang found that many competitors or partners had faded out of sight, and the development of the industry slowed down. On the one hand, ecological construction is slow and hardware iteration is not as expected; on the other hand, the integration of technology and industry is still not deep enough, "said Li Liang." After experiencing a development cycle of VR, our greatest success is that we are still 'alive' at present. ”Industry insiders say that the development of VR from "scene based applications" to "all-weather companionship" is destined to be a "protracted battle". The movie "Ready Player One" depicts a virtual world called "Oasis" that needs improvement in user experience. In the 'Oasis', players can experience an infinite approximation to reality. The key to entering the 'oasis' is a VR device. Viewers who have walked out of the cinema may have asked in their hearts: How far away is the 'oasis'? Experience is the key to solving problems. Only by improving user experience can we create devices with product power and bring people closer to the "oasis" from the consumer side. However, users' "noise" from VR devices is not uncommon. At a recent VR equipment exhibition, a user who took off their headset said, "It weighs several pounds and is bulky to wear." "The good 360 degree panoramic visual experience is actually making people spin around in place." Dizziness, eye fatigue, blurry images, and stiff interaction are the most common problems that users encounter when using VR devices: low resolution may cause blurry or grainy images, low refresh rate or high latency can easily cause VR dizziness, insufficient data transmission can cause stuttering or blurring of images, and heavy headsets can easily compress the head and neck. Behind the poor experience is a reflection of technical shortcomings. An exhibitor revealed to reporters: "Currently, most VR hardware manufacturers are still 'making do' with existing technology, resulting in a relatively average user experience. ”Mainstream devices are still too heavy, too big, and too expensive. ”Sun Wei, Chairman of Shenzhen Sai Aining Technology and Culture Co., Ltd., stated that the slow iteration speed of equipment has limited the pace of industrial development. Sun Qimin pointed out the core bottleneck that restricts the industry from a cost perspective: "Currently, the VR industry is mainly applied to the enterprise end. If we want to apply it to consumers on a large scale, we still need to go through the path of cost reduction and mass production. ”Taking VR glasses as an example, these mid to high end products are generally priced above 3000 yuan, which is not attractive to ordinary consumers. The quality of content is also an important factor related to user experience. Experts say that in today's VR arena, 'content is king' still works. However, the entire industry is currently facing common challenges, and bottlenecks in terms of natural interaction and content production efficiency cannot be ignored. Tan Yiguo, President of the Shenzhen Virtual Reality Industry Federation, said: "Currently, phenomenal consumer content in the VR field is scarce, and there is a problem of 'strong customization and low reuse rate' in industry application content. ”The imbalance between supply and demand and insufficient innovation have become key bottlenecks in VR content production. There is an urgent need to break through the technological gap between content growth and hardware production, in order to promote the healthy development of the VR industry. Tan Yiguo bluntly stated, "This industry is constrained by both technology and user experience. The development of key technologies is particularly difficult. Tan Yiguo pointed out that on the one hand, the technical pain points behind the problems of bulky equipment and dizziness caused by long-term wearing urgently need to be overcome. On the other hand, high-end components such as ultra high definition micro OLED screens, lightweight optical solutions, and low-power dedicated chips still rely on imports, and core components still have a high degree of external dependence. Hu Chunmin, Deputy Secretary General of the Virtual Reality Special Committee of the China Computer Industry Association, added that in the research and development of VR technology, the problem of insufficient cross domain ecological collaboration is very obvious, and the efficiency of hardware and content adaptation, as well as the standardization level of different industry applications, also need to be improved. Zhao Qinping, an academician of the CAE Member, said that the main reason for the lack of high-quality virtual reality content and the imperfection of industrial ecology was the insufficient investment in basic technology research and development. Currently, VR is evolving from the 1.0 to 2.0 stage, requiring stronger technological innovations such as intelligence, interoperability, and evolution. This requires China to continue researching and innovating virtual reality, leading the development and application of virtual reality and hybrid augmented intelligence. ”Zhao Qinping said. The structure of virtual reality machines and their key components is complex, and the processing and assembly are difficult. ”Liu Ning, Deputy Director of the National Virtual Reality Innovation Center (Qingdao), added that "small and medium-sized terminal brands generally lack the ability to inspect, test, and prove their capabilities, and technology research and development can easily deviate from market and actual needs, leading to 'working behind closed doors'." "China's VR industry needs to transform from leading in scale to leading in ecology, and form an independent and controllable technology system in core areas such as engines, chips, and operating systems, truly achieving a leap from' Made in China 'to' Created in China '. ”Tan Yiguo said. Despite the current weakness in the consumer grade headset market, the entire industry still looks forward to the "turning point" of explosive growth like smartphones coming soon. Recently, Shenzhen Nad Optics Co., Ltd. announced plans to invest 300 million yuan to build a production base in Nanchang, expanding the manufacturing and application scenarios of head display equipment. The CEO of the company, Peng Huajun, judged that "it will take at least 5 years to reach the billion level scale of smartphones." He proposed a new path for industry collaboration, stating that "technology is the foundation, content is the core, and ecology is the key. ”Industry insiders have stated in interviews that China's VR industry is currently in a critical stage of transitioning from the "technology germination period" to the "expectation inflation period". Not long ago, a smart glasses completed pilot testing and went offline on the pilot platform built by the National Virtual Reality Innovation Center (Qingdao), taking a crucial step towards large-scale production. With lightweight design, affordable pricing, and multimodal interaction capabilities such as voice control and object recognition, smart glasses are expected to become the "sensory center" of the next generation of human-computer interaction after smartphones. Since the beginning of this year, including Google Meta、 Major manufacturers such as Xiaomi have entered the market one after another, and the competition in the field of smart glasses is becoming increasingly fierce. Li Wen, co-founder of Aiweier Starry Sky (Beijing) Technology Co., Ltd., told reporters that VR devices are developing towards "lighter, clearer, and more durable" direction. The increasingly lighter device weight, higher display clarity, and stronger battery life have become mainstream iterative trends. At the same time, the continuous progress of spatial positioning and algorithm technology will also give rise to more application scenarios, "said Li Wen. Sun Wei further outlined the path of technological evolution. He believes that from the products released in recent years, lightweighting of head mounted devices has become an inevitable trend. In the future, VR large space experiences are expected to break through fixed venue limitations and achieve seamless panoramic interaction with the help of lightweight smart glasses. In the research and development area of Nanchang Shihonggao Pan Asia Technology Co., Ltd., staff are intensively conducting research. The team uses VR engine lightweighting and algorithm optimization to highly restore the texture and feel of museum exhibits online, while reducing device resource utilization to industry-leading levels. The general manager of the company, Tu Yucong, introduced that traditional scanning and editing of a cultural relic takes 1-2 days. Now, with the help of new technology, a 1:1 digital twin replica can be completed in 2-3 hours, completely bidding farewell to the cumbersome process of relying on manual modeling in the past. Behind it is the efforts made by VR companies to improve content quality. We need to collaborate with high-quality content teams to build a diverse content ecosystem covering film and television, fitness, education, and social media, and create 'high-frequency essential' applications that users can't do without, "said Tan Yiguo. In 2023, the immersive virtual reality VR experience project for "The Vanishing Pharaoh" landed in Shanghai and garnered 110000 viewers in just 11 months, with box office revenue exceeding 20 million yuan. In 2024, under the backdrop of "The Vanishing Pharaoh", a VR space craze swept across China, with new experiential projects emerging one after another. Experts believe that there is reason to believe that both VR space and VR games can have representative works like "Black Myth: Wukong". The most obvious problem in the VR industry is' difficult to break through '- if the public does not have a deep experience, it is difficult to appreciate its technological charm. ”Tan Yiguo summarized. Tan Yiguo suggests setting up experience points widely in shopping malls, communities, and schools in major cities across the country to break the stereotype that "VR is just playing games" and "VR can cause dizziness"

Edit:Momo Responsible editor:Chen zhaozhao

Source:Science and Technology Daily

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