(Yicai Global) Feb. 6 -- China's augmented reality industry completed the most fundraisings last year since 2020 as the emerging industry got more mature driven by the metaverse trend, according to industry insiders.

AR firms finished 12 rounds of funding in 2022, gaining CNY1.7 billion (USD250.6 million), slightly lower than the total sum in 2021, Qianzhan Industrial Research Institute wrote in a report recently.

The industry's emerging direction is generally favored by investors but there is no unicorn in the area yet, Zhu Quanquan, a partner at Xian Xijiao 1896 Kechuang Investment Partnership, told Yicai Global.

The rising popularity of the metaverse since 2021, falling technology costs, and the maturing industry chain are driving prosperity in the sector, various firms and professionals told Yicai Global. Last year, almost 20 new products were launched, including consumer-facing items by phonemakers Huawei Technologies and Oppo Mobile Telecommunications.

Product prices are declining as fifth-generation networks and other technologies are becoming more common. Before this, AR products might cost up to CNY5,000 (USD737) but now many devices that track movements with a birdbath optical module cost around CNY2,000, said Lin Qiong, founder of Xvisio Technology.

Still, there is room for improvement. The existing AR glasses are just the first step as they do not present a real next-generation computing platform, many professionals said. It takes time to enhance the technology to make truly sophisticated mixed reality devices, Lin said, adding that the industry is in the early stages of a 10-year-long roadmap.

AR companies are taking small steps to perfect the display experience first to help consumers adopt the novel concept of wearables, Lin said, adding that vendors are making use of the time to polish their supply chains, which benefits the development of the whole industry.

Editors: Shi Yi, Emmi Lane, Xiao Yi