Zone set to augment developing sector

The Xi'an High-Tech Industrial Development Zone, one of China's oldest and most successful national-level development parks, is expected to further fuel the development of China's augmented reality industry. Zhao Hongzhuan, Party chief of the high-tech zone, said its purpose is to monitor world-leading technologies and innovations and develop high-tech industries.

Augmented reality, commonly known as AR, is a live view of a physical, real-world environment, but it works differently to virtual reality. VR immerses users into virtual worlds, whereas AR puts virtual things, such as sound and graphics, into users' real worlds, augmenting them.

In the following three years, it is expected that AR technology will be deeply integrated with emerging industries such as e-commerce and new media advertising, and industry leaders anticipate fast growth. Tim Merel, managing director of the tech advisory firm Digi-Capital predicts that AR/VR revenues will hit $120 billion globally by 2020.

"It can be predicted that the AR industry is about to enter a period of rapid development," Zhao said.

In 2015, the zone successfully held the first Augmented World Expo (Asia), which attracted more than 2,000 officials and experts from all over the world.

Zhao said: "The expo held in China marked the all-around connection of China's AR industry to the international ecosystem."

China ARi Augmented Reality Innovation Contest 2016 was also hosted by the zone, further showcasing its strength in the AR industry.

"The two events held in the zone gave us a great opportunity to promote the internet-based emerging industries," Zhao said.

In August 2015, the State Council approved the zone's plan to build a national independent innovation demonstration area. The terms of the State Council's approval require the zone to develop into a metropolis of innovation along the Belt and Road, become a leader of China's innovation-driven growth through improving its environment for innovation and entrepreneurship, and pilot opening-up in western China.

In 2015, business revenue in the zone reached 1.270 tillion yuan ($194 billion), ranking it third among the 146 national development zones in the country, and the number of enterprises there topped 40,000, ranking it second nationwide.

Of the zone's total revenue, 160 billion yuan came from software and information services - the zone's pillar industries - increasing 21 percent from a year ago and accounting for more than 90 percent of the revenue of Xi'an's software and information services industries, according to Zhao.

Software and information services have become the leading industries in the zone and the driving force for upgrading local industries and building a national independent innovation demonstration zone.

Zhao said that the zone has drawn up specific plans to further promote the industries.

Under the terms of the plan, revenue of software and information services will reach 300 billion yuan by 2020, and exports are expected to surpass $1.3 billion.

Zhao added that AR as an internet-based emerging industry is leading to the upgrade of the local industrial structure, and that the zone will give further support to the industry by providing better services to enterprises.

"Our aim is to make the industry stronger and more powerful with partners from all over the world," Zhao said.

(China Daily 06/01/2016 page18)