The VR industry will finally usher in the inflection point, the giants will enter the market, and the comprehensive strength will become the key to victory and defeat

Since the unveiling of the Oculus Rift in 2012, the outside world has been full of expectations for consumer VR products, and the concept of "VR First Year" has also appeared for the first time.

However, over the years, despite the efforts of giants such as Facebook, Sony, and Microsoft, the VR industry has never been able to form a scale, and the "first year" seems to be always the next year.

Of course, these years of ups and downs for the VR industry is not a good thing, the long shuffle eliminated the hype chasing the outlet, the market environment gradually returned to rationality. After several years of deep cultivation, the VR industry finally has signs of an outbreak today.

According to IDC statistics, in 2021, the global VR headset shipments reached 10.95 million units, and it is expected to further rise to 15.73 million units in 2022, and the inflection point of the industry has arrived.

Technology is the spear, supply chain is the shield

The VR industry can usher in new vitality, largely due to the popularity of ultra-short throw technology, which solves a major problem in the VR industry: the product body is too large, the weight is too heavy, and the wearing is uncomfortable.

At present, the more mature and mainstream optical display in the industry adopts Fresnel lens solutions, which are adopted by VR industry giants such as Meta, Sony and HTC. However, the problem with this scheme is that the equipment is large, the weight is generally more than 500g, the user is inconvenient to use, and the popularization potential is relatively limited.

To solve this problem, the Pancake ultra-short throw solution came into being. This scheme introduces a translucent, semi-polarizer system that folds its travel path during light focusing, thereby significantly reducing the volume and weight of the device.

Correspondingly, the Pancake solution also has problems such as small FOV, high requirements for screen brightness, and high difficulty in coating processing, so it is a test of the brand's accumulation of technology in the field of display.

In the past two years, domestic VR manufacturers have also launched an "arms race" for the Pancake program. Taking Skyworth Digital as an example, they adopted a 2-chip Pancake scheme with higher image quality and fewer ghosts, and the chromatic aberration range was controlled to within 2 pixels, and the transformation of optical distortion could also be controlled within 1.5%. Up to now, Skyworth VR has applied for 200 patents. In Pancake technology, Skyworth has applied for 8 patents. The actions that follow are also worth paying attention to.

In addition, the past two years have had a common problem for the entire technology industry: supply chain management. If the ability to develop technology is the spear that allows companies to expand their territory in the market, then a stable supply chain is a shield that can help enterprises survive in complex environments.

In the context of the outbreak of the epidemic and the frequent shortage of core components, who can ensure the stability of the supply chain will have a better chance to seize an advantageous position in the market. During this special time, no one wants to repeatedly stop production and backorder deliveries.

On the whole, today's VR market environment has full potential, and the pattern is still far from being determined, so it has attracted cross-border entry from head Internet manufacturers and hardware terminal giants, and Huawei, Xiaomi, and Skyworth are typical of them. Compared with start-ups and VR-focused companies, such manufacturers undoubtedly have greater advantages in technology accumulation, capital reserves and supply chain control.

Skyworth Digital VR New Reuters Map

Based on the B-end market, the C-end is fully developed

At present, most of the mining of VR by domestic and foreign enterprises is concentrated on the C-end. However, the maturity of existing to C products is generally low, and more importantly, it does not make consumers have the concept of "it must be". On the B side, customers have a stronger ability to pay, a higher acceptance of new technologies, and a wider range of customization needs. Therefore, many institutions, including IDC, are more optimistic about the application prospects of VR in the B-end industry.

Some companies with a keen sense of smell have recognized this, such as Skyworth Digital.

At the Winter Olympics in February, Skyworth's self-developed ultra-short throw VR products were very popular. Under the 5G network, users can wear VR glasses to freely choose the perspective of the game, get an immersive viewing experience, and feel the charm of the "Science and Technology Winter Olympics".

The reason why Skyworth Digital's products can win the favor of B-end and even government customers is naturally inseparable from its deep technical accumulation.

In addition to the advanced Pancake design scheme, Skyworth VR's position tracking technology is also commendable.

The current mainstream of the VR industry is 6DOF tracking, which can track the rotation of the user's head and the overall position movement, allowing the user to walk in the VR scene.

Skyworth VR's 6DOF technology adopts the self-developed SLAM scheme to achieve fast and stable tracking and positioning through four global shutter cameras and high-frequency IMU data. At the same time, by fusing different sensors and posture prediction technology, Skyworth VR also reduces the delay and image distortion in motion.

Relying on excellent display effects and stable quality, Skyworth VR has formed a deep binding with B-end users including education, communication operators, medical and other fields, and can develop mature and customized solutions - which is also the most important ability of B-end customers. Therefore, Skyworth VR products not only have strong competitiveness in China, but also export to the United States, Japan and other developed countries.

At the same time, Skyworth Digital is also ready to make full efforts in the C-end market, and if you want to do this, the stability of the supply chain is indispensable.

At present, Skyworth Digital's VR products have all realized their own research and development design, manufacturing and production in their own factories. In the current special environment, this is undoubtedly the most effective mode to ensure production capacity.

In June 2022, Skyworth will release the first Pancake VR all-in-one machine in the domestic market, the weight of the whole machine is only 300 grams, combined with Skyworth's advantages in the core level of optical path technology, this product is expected to set off a new boom in the VR market. This "B first C" strategy also has high reference value for the industry.

In overseas markets, Skyworth Digital also has production bases in Germany, Indonesia and other places, forming a perfect international production capacity, so it can reduce the supply chain links and effectively meet the needs of the two major markets in Europe and Southeast Asia, so as to put itself in a more active position in the international market.

With the release of the "Double Gigabit" Network Coordinated Development Action Plan (2021-2023)", the "Sail" Action Plan for 5G Applications (2021-2023)" and the "14th Five-Year Plan" Information and Communication Industry Development Plan, the popularization of gigabit networks, 5G and other technologies will be greatly accelerated. At the same time, with the explosion of the concept of "meta-universe", the VR market has also entered a period of recovery. This is undoubtedly an extremely favorable signal for the development of Skyworth VR.

The accumulation of technology is deep, the east wind of the industry has arrived, and Skyworth Digital, which has been deeply cultivated for many years, will undoubtedly become a force to be reckoned with in the VR industry.