[Editor's Note] The growth potential of the 'head mounted display (HMD)' industry that implements virtual reality (VR) and augmented reality (AR) is still in its infancy compared to the global distribution level of smartphones. However, considering the speed of industrial and technological development, it is expected that wearable devices will be the next-generation smart device king. As HMD products equipped with numerous semiconductor components such as cameras, sensors, and displays, i.e. VR and AR devices, are expected to lead the growth of the semiconductor industry, we explored the trends of the evolving VR industry and technology with the recent release of the VR device PICO4.

▲A scene from the Innovation Focus

hello. This is reporter Kwon Shin-hyeok's Innovation Focus.

Have you ever heard the term HMD? It is an abbreviation for Head Mounted Display. Simply put, you can think of it as a VR/AR device. As wearable devices worn on the body are gaining attention as next-generation smart products, the Head Mounted Display market is growing.

According to market research firm MarketSandMarkets, the global virtual reality market size is expected to reach USD 36.5 billion (KRW 50 trillion) by 2026, a field that is expected to grow at a remarkable average of 46% per year.

By item, it is expected to reach $11 billion in software and $97 million in hardware by 2025, and in particular, hardware such as VR devices are expected to increase fivefold compared to 2020, growing at an average annual rate of about 37%.

In terms of market growth by component in the VR market, displays and projectors are expected to account for the largest share and record the highest annual growth rate of 38.2%, followed by cameras, semiconductor components, and sensors.

The maker that currently holds the overwhelming number one spot in the VR device market is Meta's Oculus Quest, famous for Facebook. There is one brand that is expanding its territory by taking advantage of the gap in the VR market that Meta has over 70% of.

It's PICO.

PICO, which has been gradually expanding its share of the global XR market, achieved 11% of the global market share in the second quarter, recording an increase of nearly four times compared to the first quarter of 2021.

Recently, a new next-generation VR headset, PICO4, was released, so I think some of you may be curious about the new product. We explored the current state of VR technology by experiencing the recently released PICO4 firsthand.

First, if you look at the specs, it uses the Qualcomm Snapdragon XR2 processor. It has an octa-core processor and an Adreno 650 graphics core. It has a relatively low price of around 400,000 won based on 8GB of RAM and 128GB of storage.

Compared to its predecessor, the Pico Neo 3 Link, you can see improvements in RAM capacity, display resolution, and viewing angle. The biggest difference is that they successfully optimized the form factor by adopting a pancake lens.

One of the key factors in wearable devices is ‘lightness.’ The next-generation wearable device’s competitiveness is how light and comfortable it is to wear.

You can feel the difference if you compare it to the competitor Meta's Oculus Quest 2. There is not much difference in total weight including the strap and other items compared to the Quest 2, but the chronic drawback of the Quest 2 is the front-end friction. Since the entire center of gravity, including the battery, is concentrated on the face, the weight is pushed forward, causing a lot of discomfort in the face.

▲ New PICO4 product (Photo-PICO)

There were also some sad ways for consumers to use it, such as by attaching auxiliary batteries or coins to the back to balance it out.

On the other hand, the Pico 4 separates the battery from the main body and places it at the back as you can see here. This is noteworthy in that it distributes the center of gravity and provides a more comfortable fit. This is a significant advantage for active gaming.

VR devices incorporate a variety of semiconductor technologies. In the case of PICO4, four slam cameras on the side map the surrounding environment, and a single 16-megapixel camera module in the center serves as a pass-through function.

I think this pass-through feature, along with the virtual border feature that sets the play area, is a good feature that increases the safety of play in narrow living spaces. The full color and high resolution are advantages, but the subtle mismatch in depth and field of view distortion cause motion sickness, so these areas seem to need improvement.

The main body display and two controllers each have a 6-axis gyro sensor to measure motion. Equipped with WIFI6 and Bluetooth 5.1 communication chips, it enables wireless connection with external devices and firmware updates.

What I felt while experiencing PICO4 this time was that the VR market has significant market potential when innovation is supported in parts and materials such as camera modules, sensors, and displays. The differentiation of content that can be enjoyed through VR devices was clear, and the immersion was particularly significant in fitness apps, sports games, and FPS games.

To this end, next-generation products will likely need technologies that address issues such as precision sensing to increase the accuracy of motion recognition, 3D motion sickness, and weight reduction and power consumption.

In addition, content competitiveness will be an important competitive edge in VR device sales.

PICO is focusing on building a content ecosystem by introducing exclusive IP content, such as announcing the launch of JUST DANCE as an exclusive in 2023, and attracting popular IPs to the store.

Although some are raising concerns about the incomplete content ecosystem as a latecomer, the lack of VR tracking, and resolution issues, PICO4 is being evaluated by the market as a worthy rival to META in terms of growth potential, given its excellent cost-effectiveness and current development speed.

So far, we have looked at the trends in the VR market and have had time to learn about the current state of VR technology through the new product, PICO4.

This was Kwon Shin-hyeok, reporter for Ideal Innovation Focus. Thank you.