Market data shows that in 2022, AR / VR headgear will reach double-digit growth by 2026, when the global shipment of VR / AR headgear will exceed 50 million.
The smart glasses industry has become the focus of ODM. Because it is the most important access point of the future meta universe, and it is an ecological war that must be won.
According to the data of chaodian think tank, the global AR / VR market shipped 3.5 million units in Q1 2022, with a year-on-year increase of 230%. It is estimated that there will be more than 15.5 million units in 2022.
A Liang, head of the smart glasses Business Department of an ODM manufacturer, said that although the current market shipment volume is not large, everyone is closely arranged at present, because the market may soon explode on a large scale.
Another ODM executive in China (not his real name) said, "the competition in the industry is not only at the level of single products, but the full ecological coverage mode is more attractive to brand customers."
At present, except for Goethe, which leads the industry with the support of large orders from meta, other ODMs are basically on the same line. Among them, Longqi is the most promising and may take the lead in the new round of ecological war.

According to the understanding of chaodian think tank, Longqi has participated in the implementation and mass production of such product projects as adventure generation 1 VR integrated machine and metaoculus VR integrated machine, and accumulated rich VR project experience. The former is the world's first 4kvr all-in-one machine, and the latter is the world's first VR hardware product with a shipment of 1 million units.
Not only that, Longqi is one of the few ODM enterprises that can provide self-developed one-stop solutions and full stack services from product + R & D + manufacturing.
01
Capital is hot, VR / AR enterprises have raised more than 32 billion yuan in five months
"The end of the universe is the meta universe. The future of the meta universe is VR / AR, and its core competition will focus on optics, display, sensors and true digital infrastructure." Wang Huan, a think tank of chaodian, said that the rapid popularity of metauniverse is due to the irreversible demand of new Internet users for "virtual and real integration".
The new round of Internet reform has two major characteristics: first, the upgrading of the information dimension. The visual experience will be upgraded from a two-dimensional plane view to a three-dimensional panoramic view. The enhancement of VR / AR to the real world will bring convenience for users to move, thus generating huge space-time value. Second, the user experience will be more immersive, the human-computer interaction will be more natural, and the industrial ecology will be more open and diversified.
According to the feedback from the capital market, they are highly interested in the investment of enterprises or products with the concept of meta universe.
According to the statistics of chaodian think tank, the total financing amount of global VR / AR enterprises in the first five months of this year exceeded 32 billion yuan.
"In fact, the entire investment market does not know much about the metauniverse industry, but compared with other fields, the hot concept will increase the confidence of investors." Mr. Yuan, an executive of a venture capital institution, told chaodian think tank that people are more optimistic about the smart glasses and other terminals of yuancosmos, because they are similar to the smart car industry, it is inevitable that the hardware will come first.
Market data shows that in 2022, AR / VR headgear will reach double-digit growth by 2026, when the global shipment of VR / AR headgear will exceed 50 million. In the next 3-5 years, the market will rapidly approach 100 billion US dollars.
Therefore, it is not difficult to explain why, in addition to meta, consumer electronics and Internet giants such as apple, Sony, Google, Tencent, ByteDance and Pico compete to enter the XR smart glasses track.
A Liang and Wang Xing agreed that, like the original smart phones, with the cooperation of the brand and ODM, the product form of XR smart glasses is gradually standardized.
02
Ecological war, ODM wrestling XR smart glasses
Although the epidemic is not abating, Wang Xing is still frequently on business trips recently because he needs to negotiate with many brands face-to-face about the promotion of smart glasses projects.
"Now it's more about the input stage than the output stage." Neptune said that brand customers now have more comprehensive requirements for ODM, because Xiaomi, Huawei, including apple and other head ecological players are bound to enter the meta universe. If they do not preempt the card, the battle line is not long enough, and the subsequent order business of other brands may also be affected.
According to the understanding of chaodian think tank, at present, in addition to the traditional ODM camps such as goer, Longqi, Huaqin and Wentai, the major supply chain manufacturers such as oufiguang, sunny and Lansi have also started to implement the whole machine manufacturing plan of XR smart glasses terminals, becoming a new ODM force.
"Although these new entrants have experience in large-scale and automated production, they have insufficient control over the overall supply chain and insufficient cooperation with brand manufacturers." A Liang believes that for ODM, the smart glasses track is by no means simple from 0 to 1, which requires understanding and accumulation of the product system.
In this regard, goer has played a first mover advantage, and Longqi follows closely.
Goethe began to deploy VR as early as 2012, and ushered in an explosion in 2021. Last year, the company realized an operating income of 78.221 billion yuan, a year-on-year increase of 35.5%. Among them, the intelligent hardware business segment including vr virtual reality realized a revenue of 32.81 billion yuan, with a year-on-year increase of more than 80%, accounting for more than 40% of the total revenue, becoming the product line with the largest contribution to revenue in 2021.
Under the strategic guidance of "5g + aiot intelligent hardware platform", Longqi participated in the mass production project of adventure generation 1 VR integrated machine in 2017 and metaoculus VR integrated machine in 2018. In 2019, it cooperated with international luxury brands and international head technology companies to launch a series of IOT products such as VR, smart watches and smart speakers.
According to chaodian think tank, Longqi's new smart glasses based on Qualcomm Xiaolong XR2 will be mass produced and launched in October this year. The overall design of the product from optical solutions, environmental protection new materials, 4K ultra clean screen, power supply, etc. is completed by Longqi one-stop.
Combined with years of manufacturing accumulation and deposition of XR products such as metaoculus go VR and iqiyi VR, Longqi can now provide one-stop manufacturing solutions from product manufacturability design / customized automation and fixture design / process solutions & test solutions related to VR products / customized VR product quality control standards and intelligent manufacturing execution system;
In addition, considering the future labor cost, Longqi has been vigorously promoting automation and intellectualization. At present, it has realized unmanned material preparation through intelligent material racks and unmanned material distribution through intelligent handling vehicles (AGVS). It has accumulated rich experience in the test automation / assembly automation industry,; The company has its own automation and fixture development team. In the next three years, there will be more than 300 engineers. In addition to daily automation promotion, the company will further strive to promote the standardization and modularization of automation design.
Data is the foundation of the manufacturing industry. Longqi has been committed to promoting the Intelligent Manufacturing Execution System (MES). At present, it has realized multi-dimensional intelligence from warehouse management to product traceability / production control to quality warning / equipment management, including automatic sending of yield reports, analysis of yield data trends, early warning and regular sending of inventory data, real-time monitoring of key parameters and intelligent early warning, Equipment spare parts intelligent inventory management system, intelligent equipment maintenance system and other manufacturing fields promote intelligent data and data-based decision-making.
From this analysis, with the control of these key manufacturing technologies and relative competitive advantages, Longqi will win the XR glasses test.