The distance between China’s and global VR market – Daxue Talks 95

We invited Eloi Gerard from CrowsNest to introduce China’s VR market from these perspectives: maturity of the VR industry in China, competitive landscape, main technologies and industries which use VR technology.

Full transcript: 00:04welcome to Daxue talks00:06a show powered by Daxue consulting a00:08china-based strategic market research00:10company founded in 2010.00:12my name is i’m in china for eight years00:15and00:15i now have a company dedicated to vr and00:18ar00:19uh based in shanghai for uh five years00:22now00:23so uh i had the chance to work with00:25several clients you know based around00:27asia it gives me i guess a good overview00:31of what’s happening in00:33virtual reality and now augmented00:36reality that becomes00:37from this year something00:40my clients are a travel business so i00:43have people like00:44club med like hyatt hotel uh00:48cars like pojo citroen i have like a00:51supermarket like the metro supermarket00:53and logitech in technology it’s quite00:56fast it goes00:57all around usually based here in01:00shanghai but also in hong kong01:02sometimes in korea sometimes a bit01:04around01:05which travel a bit around asia can you01:07provide a few figures that can help to01:09understand how developed the vr market01:12in china is how many vr headsets do we01:16have in the world01:17it’s not that much no so we know that01:21for example on steam steam is the main01:24platform for gamers01:25so on steam you have um so you can01:28you have steamvr so steam is a major01:30platform and has01:32hundreds of millions of users i think so01:34and we know that on steam because they01:36do survey every month01:38so every month we follow that we know01:40that there are two million01:41uh of uh monthly active users of vr on01:44steam01:45two million is it a lot i mean yeah01:47let’s01:48let’s start doing a lot just for steam01:50so on steam it means that it’s people01:52having quite big computers because01:54it’s really for hardcore gamer uh vr01:58on the computer uh requires this kind of02:00computer02:01hardcore big computer so so uh02:05it’s it’s quite not so accessible then02:08we know that there are02:08at least 5 million of playstation vr02:12being sold so again not so much in china02:15because playstation02:17in china is not allowed to really sell a02:20lot of games so there is not a lot of02:22license02:23for games so it’s it’s difficult to for02:25playstation to actually02:27sell seriously in china but in the world02:29a few months ago it was still 5 million02:32and we can imagine that there are also a02:35few millions on the02:36oculus ecosystem of the strength with s02:39and oculus quest02:40um we can imagine that maybe not between02:43two and five million so02:44maybe in in total right now we have uh02:4820 million the 30 million02:52max vr monthly vr02:55users is not that big you know and02:59out of that we know that only steam is03:03accessible in china so uh03:06how many users do we really have in03:08china we don’t know you know in china03:10you need to have a vpn to really access03:11the cool thing03:13so there is a lot of barriers you know03:15to to make it existing03:17so maybe a few million maybe one two03:20million uh we don’t know you know so i03:22just guess i’ll try to guess03:23and then in professional usage the main03:27vr headset is still oculus so it means03:29that oculus doesn’t have03:30a real presence in china you cannot have03:32because it belongs to facebook03:34so you don’t have like a real you know a03:37real03:38subsidiary of oculus here even if the03:40demand would be gigantic03:42you know it would be great for them to03:44be here03:45so it’s like it’s probably quite small03:47you know probably quite small what’s03:49happening in china compared to the rest03:50of the world03:51uh because uh because of the great03:54firewall03:55and many other factors who are the main03:57vr players in the chinese market04:01the main players in the world are oculus04:04which belongs to04:05facebook you have sunni04:08with the playstation which is japanese04:11and04:11in china you have different players that04:14try to exist04:17one of the most known one being htc04:19maybe you’ve heard about htc04:22is a taiwanese-based company but very04:25implemented04:26in china because they are taiwanese04:29so they have a strong presence in04:30beijing and they04:32uh they try to sell vr headsets and04:36and sell a vr ecosystem in china which04:39is04:40china based and it’s built on the other04:43side of the firewall04:45vr we have to deal with the firewall04:47like many things04:48so um this company tried to build an04:51ecosystem which is uh dedicated for04:53china04:54it’s not working very well uh but04:56they’re trying very hard you have other04:58brands04:59uh like uh pico in beijing there’s also05:02a vr headset maker05:04uh more successful than htc where they05:06are05:07building a lot of standalone vr headsets05:10so standalone means that you don’t have05:11any wire you just have the headset you05:14don’t have to plug it to a computer05:15necessarily05:16and you can enjoy your vr experience or05:19game05:19like that you have other brands05:23called for example dpvr which is started05:26from shanghai05:28big now uh which is also trying to05:31exist in this uh super little market05:35in china doing a headset they are a bit05:37less successful than pico05:39uh and finally i would say that you have05:41uh 3d glasses05:43uh which is also uh which is also a05:46player here05:47that i i actually never tried we’re05:49talking about very very small companies05:51you know05:52because in china the vr market is05:54actually not very big05:55uh it means that even for me for my05:57clients we are05:59still mainly use oculus which is the06:02american brand uh06:04it’s even if it’s not connected uh even06:07if you cannot really access it uh06:09from here in china uh it is probably the06:11most used uh06:12headset in china where many people are06:14using vpn to06:15uh to access the content from from the06:18us06:19and uh and enjoy it so yes the the06:22ecosystem here is06:24super small i mean if it’s really china06:26based because uh06:28uh because the the main the great vr06:31headset are still06:32foreign headsets and and this is how06:36what we what we use from here what is06:38the main vr technology used in china06:42we so it’s pretty now standardized so we06:45are using06:47all the main vr headsets are06:51what we call six degree of freedom so06:54what does it mean six degree of freedom06:55it means that when you wear the headset06:57and if you are doing06:58a movement laterally for example or07:01translation07:02within this vr world you will also move07:06left or right you know or you will move07:09in07:11literally if you have a three degree of07:14freedom07:14a vr headset you cannot do this movement07:18you will always you will only do a07:20movement around07:22an axis and you will only move your head07:24into07:26into just pivoting okay07:30so now the all the main vr headsets are07:32uh07:33six degree of freedom so even oculus07:36abandoned07:36the the idea to produce a three degree07:39of freedom07:40but in china you still have because07:43because the market didn’t really start07:44yet07:45you still have a lot of brands trying to07:47uh to arrive with three degree of07:49freedom07:50uh vr headset uh we can take the example07:53of uh07:54far away so huawei is now releasing a07:56new super small07:58vr headset which is three degree of07:59freedom which looks very outdated for08:01the west because08:02uh nobody would sell that anymore but08:04but in china it’s maybe the beginning of08:06something new and uh and you can plug it08:09to your phone08:10so they are uh imagining that08:13using 5g of the phone you will be able08:16to have a great content coming in this08:17way08:19so um we have more and more little vr08:22headsets08:23that will be released so which you know08:25the size almost the size of regular08:27glasses now08:28uh but it it’s really um lacking the08:31main08:32the main um concept of moving all around08:36so this is um where we are at uh08:39in china so we are a bit like i mean i08:42would say like08:43three years of delay compared to the08:45rest of the world08:47uh on that on that fence you know the08:48hardware maker are doing something which08:51was existing in the west three years ago08 :55in which sectors is vr technology most08:57utilized in china09:00i think now i see uh the architecture09:03and construction09:04being the most important but we can talk09:08about healthcare09:09uh we can talk about uh especially09:11education in healthcare09:14because so you understand that vr is a09:17sensitive topic because it is09:19a content concept so uh it suffer from09:22the firewall it suffer from censorship09:24uh so the game uh the game in china do09:27not receive a number of license09:29uh to actually being released on the on09:31the chinese market so09:32everything which is very consumer09:34doesn’t work very well okay09:35but when you are thinking about b2b09:37application uh like09:38uh education uh or learning uh09:42this can work so and and i think that09:44you have many startups09:46now uh trying to uh09:50to to to dominate this market and to09:53sell vr headsets to universities and to09:57to sell like a platform an ecosystem and09:59uh10:00to that and with cloth um10:04in healthcare we see several startups10:06around the world and in china10:08doing uh yes classroom formers i can10:11imagine also education for10:12a private for companies where you know10:16engineers who needs to do a specific10:18movement like in the nuclear plant you10:20know something very dangerous10:22and they need to to do maintenance10:24operation10:25uh and they do it once in a year you10:27know so they have to be trained to10:29do this specific operation uh very well10:32so you have10:33this kind of thing very well10:36you have that that kind of thing so yeah10:39i see education10:40starting a little bit application in10:43healthcare10:44i think construction yes design yeah10:47all this kind of thing any questions we10:50will find an10:50expert to answer them drop your10:52questions in the comments or send us an10:54email10:55dx way consulting dot comEnglish (auto-generated)

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