China: 2020 AR/VR Industry Report
According to the “IDC Global Augmented and Virtual Reality Spending Guide 2020”, the Chinese market’s spending on AR/VR-related products and services will increase significantly in 2020 compared to before the pandemic.
The overall market size will reach approximately $6.6 billion USD by the end of 2020, a year-on-year increase of 72.1% compared with 2019. With this achievement, the Chinese AR/VR industry will account for 55% of the global market, and the growth rate of 72.1% will exceed the U.S. market to rank first in the world’s major markets.
At the same time, IDC predicts that within the next 5 years (2020–2024), the average growth rate of the Chinese AR/VR industry can reach 47.1%, which indicates that the Chinese market will continue to maintain the “world’s largest scale” of the AR/VR industry.
The AR/VR product and service market can be divided into two types: commercial and consumer.
In contrast to the “commercial AR/VR market” being affected by the epidemic, “consumer products” almost ushered in a “large-scale growth” in the global market.
In this regard, the industry believes that there are two main causes:
Home isolation has expanded the at-home value of AR/VR products, including scenarios such as online teaching, home entertainment, health testing, and remote office, improving various household needs. Among them, the gaming industry is developing rapidly, and games worldwide have accounted for 22% of AR/VR consumption and applications.
The expected output benefits of the AR/VR-related industry chain in 2020 should reach a market scale of nearly $6 billion USD. Among them, consumer products account for 52%-this will be the second consecutive year where it exceeds the consumption scale of the smart projection home market: it is expected that the domestic smart projection market will be around $1.2 — $1.5 billion USD in 2020.