China as a market for virtual reality and augmented reality is expected to grow multi-fold over the next four years, so much so that by 2022 for every $5 spent on the AR/VR market, China will take in $1.
According to Digi-Capital, within five years’ time, China and the rest of Asia could control about half of all global revenue for the AR and VR market.
In the report, it states…
“The US could take around 1/5 of global VR revenue by 2022, making it slightly larger than China. But while the US could win the VR battle, it might be a small victory. Combining China with other countries in the region (particularly Japan and South Korea), Asia could deliver just under half of global VR revenue in 5 years – over twice North America. Europe (led by UK, Germany, France) could also deliver, but the European region combined might only be slightly larger than either the US or China individually.”
The report also indicates that the dynamics of augmented reality looks vastly different to the VR outlook, with the mobile sector contributing greatly to the overall future growth of AR.
The report is drawing a lot of its forecast from the current day trends in the mobile market, where China drives 40% of all global eCommerce thanks to its massive share of the mobile market, where the payments through smart devices is 11 times higher than that of the U.S.
That’s not to mention that Chinese iOS developers accrue about 25% of all iOS app store revenues.
Digi-Capital is of the mind that China will dominate the VR/AR scene by 2022, while receiving some help from other Southeast Asian territories. I imagine if companies like Illusion keep producing titles like VR Kanojo, it could definitely help with the VR adoption rates in Asia.
However, if China keeps hitting roadblocks from Western SJWs – like what happened when their highly popular sexy VR assistant app from iQiyi was pulled from the market following complaints from Western SJW journalists – it could hamper the potential growth and adoption rates for VR/AR hardware in the region. Chinese companies will have to overcome the censorious roadblocks of the West if they truly want to dominate the emerging technology market.