VR industry investment is gradually stable, and will break through in the future

Although the VR industry has entered a downturn, it still cannot stop the investment of major manufacturers. Maybe they don't understand what VR is, but the powerful sense of capital tells them that this may be a new track. They began to invest in real money in this industry with a market value of 100 billion. The entrepreneurs who saw the enthusiasm also began to frantically influx. The listed companies that did not want to be only the squadrons began to compete for VR projects earlier, trying Create the next investment for LPs with ten or even hundreds of returns.

As of the third quarter of 2017, the AR/VR investment in the past 12 months was as high as $1.8 billion, and AR/VR investment in the last quarter was as high as $300 million. Both the investor and the user's attitude indicate that the domestic VR industry has returned to rationality from the initial excessive fanaticism.

The reality presented to the user in front of the user is an artificial world containing images and sounds created by the computer, and the content is subject to influence from the user. Its basic characteristics are described as "immersion-interaction-conception".

VR industry investment is gradually stable, and will break through in the future

The augmented reality is to superimpose the virtual environment formed by digital information into the real environment through technical means, so that the user can confirm from the sensory effect through the device that the virtual environment is an integral part of the real environment around it. Both can look at a technology in the adult machine interface.

The VR industry passed a roller coaster in 2016, and it was hot and cold. In the final analysis, the value presented by the entire VR industry did not conquer the early users. The reason why the VR industry is now experiencing the so-called "cold winter" is because the products presented by the entire industry have not yet conquered the early user base. In other words, the technology maturity, service system, price, and user experience of hardware and content introduced by the VR industry are far from promoting the positive development of the entire industry.

Fortunately, the problems facing VR are gradually improving. Global companies such as Google, Microsoft, Samsung, and Qualcomm have successively entered the VR industry, and have achieved certain results in establishing standards for the VR industry. At the same time, it also attracted a large number of mobile phone manufacturers to enter the VR industry, driving the development of the entire industry chain.

In the first half of 2017, VR investment tends to soften, and VR and corporate investors are actively looking for investment opportunities in mobile AR. According to Digi-Capital's latest "AR/VR Report" and the Deal Database's data for the fourth quarter of 2017, in the past 12 months, investment in the technology sector for every $10 investment has reached $4. In addition, for every $10 investment, the investment in the game field has reached $1, of course, as well as photos and videos.

In the first half of the year, how did the VR industry continue to fall into the bottom? Any enterprise needs an industry closed loop. When there are good hardware and good content, it can attract more users. With more users, it can bring more revenue, including user payment and advertising mode. Etc.; considerable revenue will drive more developers to develop better hardware and content, and eventually form a positive loop. As this loop grows larger, the industry will mature and capital will begin to enter.

According to public information, the scale of China's VR market is growing rapidly. It is expected that China's VR market will exceed 10 billion yuan in 2018. In the next five years, the VR market will grow at a compound annual growth rate of more than 80%. It is estimated that by 2021, China will become the world's largest VR market, and the overall size of the industry will reach 79.02 billion yuan.

Although VR investment was relatively small in the first half of 2017, investment in the mobile AR field began to increase. Experts say it is unclear whether investors interested in mobile AR will help smart glasses, VR or mobile VR startups.

By the end of 2018, ARKit, ARCore, and Camera Effects will have more than 900 million users installed. It may take up to 12 months for mobile AR startups to see revenue. This means that investors and VR will need some patience for the early AR market, while new portfolio companies will dominate.

Future AR/VR technology has a very broad use prospect. Every day, there is a new idea and the ensuing solution to upgrade our modern life. Unprecedented whimsy is coming from the digital world in all directions. The human experience is free to cross the virtual cyberspace and physical world with AR/VR technology. The boundaries between the virtual and physical worlds will become increasingly blurred.

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