Recently, IDC, an international data analysis company, released the latest report, which pointed out that in 2021, the global volume of AR / VR head displays reached 11.23 million units, with a year-on-year increase of 92.1%. The AR and VR head display market continued to grow by leaps and bounds. Among them, the volume of VR head shows up to 10.95 million units, breaking through the important inflection point of the industry with an annual shipment of 10 million units. It is estimated that 15.73 million VR head displays will be shipped worldwide in 2022, with a year-on-year increase of 43.6%.
Citic Securities Company Limited(600030) pointed out that with the iteration of multiple VR products, the industry’s shipment in 2022 is expected to be + 80% to 20 million units year-on-year, of which meta, Sony and Pico are expected to reach 1500 / 100 / 1 million units respectively. In the medium-term dimension of 3-4 years, considering that VR devices will still be dominated by strong immersive application scenarios such as games, live broadcasting, video and vehicle mounted (we estimate that it accounts for nearly 90%), with reference to the shipment of game consoles and other devices, the equipment scale is expected to see 50 million + / year. In the long run, VR products are expected to be more used to improve work and life efficiency. It is expected that VR devices will break through the fields of TOC end social networking and fitness, as well as the application scenarios of Tob end office, education, engineering, medical treatment and military. In the future, the annual shipment will reach the level of more than 100 million.
The agency believes that the hardware upgrading trend of VR head display will continue to focus on solving the pain points of users’ core needs (including small field angle, lack of immersion, low resolution, unnatural interaction, insufficient scene rendering, poor streaming effect, insufficient comfort, short endurance time, etc.). The difficulty of upgrading lies in the trade-off and optimization between demand indicators. It is suggested to pay attention to 1) whole machine design and assembly in turn; 2) Component scheme (focusing on optics, display and interaction in turn); 3) Industry trends and investment opportunities in chip solutions (focusing on main chip, connection, audio and storage in turn).
Minsheng Securities believes that it is optimistic that the penetration rate of VR and AR equipment will continue to improve, driving the rapid expansion of the demand of the assembly, optics and display industries. It is suggested to pay active attention to Chinese listed companies that have deployed cutting-edge technologies in VR & AR industry and entered the supply chain of global VR & AR brand manufacturers, including Goertek Inc(002241) , Luxshare Precision Industry Co.Ltd(002475) , Zhejiang Crystal-Optech Co.Ltd(002273) , Zhejiang Lante Optics Co.Ltd(688127) , and other enterprises that provide complete machine solutions.
