Core Insights - Qingdao's virtual reality industry has achieved over 80% of the international market share in high-end VR display devices, with a continuous revenue growth rate exceeding 20% for three consecutive years [1] - The city has established itself as a national digital economy innovation hub, with over 140 companies in the VR industry and more than 70% of the country's research capabilities concentrated there, leading to a total industry scale surpassing 15 billion [1][7] - The integration of artificial intelligence and virtual reality is expected to create a trillion-dollar market opportunity, with companies like GoerTek focusing on AI glasses as the next significant terminal that may partially replace smartphones in the next 5 to 8 years [2][4] Industry Development - Qingdao's VR industry is characterized by a full-chain layout, open scenarios, and comprehensive services, aiming to become "China's Virtual Reality Capital" [1][8] - The establishment of the "Global R&D Center + Terminal Production Base" and the National Virtual Reality Innovation Center in Qingdao has strengthened the local VR ecosystem [2][3] - The city has introduced various support policies and established a 2,100-acre specialized industrial park, along with a 2.5 billion fund to enhance the VR industry ecosystem [7][6] Technological Integration - The convergence of virtual reality with AI, 5G, and spatial computing is accelerating, leading to new terminal products and applications across various sectors such as industrial manufacturing, healthcare, and urban governance [4][8] - Companies in Qingdao are focusing on developing AR+AI glasses and enhancing their technological capabilities to create a more integrated industry ecosystem [3][9] Challenges and Recommendations - The industry faces challenges in high-end core components and foundational development tools, necessitating a focus on self-sufficiency in technology [9][10] - Recommendations include strengthening technological breakthroughs, creating typical application scenarios, and fostering a collaborative innovation mechanism that integrates market demands with enterprise needs [9][10] Future Outlook - Qingdao aims to transition from a manufacturing base to an innovation hub by 2025, with the VR industry cluster expected to be recognized as a key digital industry cluster in Shandong Province [7][6] - The city is committed to maintaining strategic focus on innovation and technology development to ensure sustainable growth in the VR sector [11]