Huaan: China's non-invasive brain-computer interface leads the world, with the potential for applications in various scenarios beyond medical use gradually being realized.

Huaan has released a research report stating that the brain-computer interface (BCI) industry has entered a period of rapid development. It is predicted that the global market size will reach $1.98 billion in 2023 and is expected to surpass $6 billion in 2028, with a compound annual growth rate of 25.22% over five years. China, with its non-invasive technology, has achieved a breakthrough in the industry, pioneering the "dual-loop" brain-computer interaction system and taking a leading position globally. The medical and health sector is currently the most mature track for BCI, and the technology is also penetrating into fields such as education, entertainment, and military. Huaan's main points are as follows: Policy guidance and technological breakthroughs have propelled the global BCI industry into a period of rapid development, and China is leading the way in non-invasive brain-computer interface technology. BCI is entering a stage of explosive growth. According to forecasts from the Prospective Industry Research Institute, the global market size will reach $1.98 billion in 2023 and is expected to exceed $6 billion in 2028, with a compound annual growth rate of 25.22% over five years. Although China started later, the country has shown significant support for the industry. The Ministry of Industry and Information Technology will include it in the "Top Ten Iconic Future Industries" by 2024, and cities like Beijing and Shanghai have set goals to achieve core technology independence and clinical applications by 2030. China's focus on non-invasive BCI technology has allowed it to leapfrog ahead, breaking traditional controls with the pioneering "dual-loop" brain-computer interaction system and overcoming time constraints in operation. The commercialization process in the medical and health sector is leading the way, with the potential for multi-scenario applications gradually being realized. Medical and health applications are currently the most mature track for BCI, covering the diagnosis of neurological diseases, rehabilitation therapy, and functional replacement. For example, invasive technologies have helped paralyzed patients control mechanical arms with their thoughts, and China's Tsinghua University and Xuanwu Hospital have made breakthroughs in clinical trials with semi-invasive interfaces. According to McKinsey, the potential market scale for BCI in serious medical applications globally ranges from $150 billion to $850 billion, while the potential scale for consumer medical applications ranges from $250 billion to $600 billion. In addition to medical applications, the technology is also penetrating into fields such as education, entertainment, and military. Non-invasive devices in applications such as idea interaction in VR games and attention monitoring in education have entered the trial stage. In the long run, BCI may become the core interactive gateway for the metaverse, driving innovation in smart homes, autonomous driving, and other scenarios. Technological differentiation and industrial chain integration are proceeding simultaneously, with breakthroughs still needed in basic research and product performance. In terms of technology pathways, the United States mainly focuses on invasive (Neuralink) and semi-invasive (Synchron) technologies, while China primarily focuses on non-invasive (BrainCo) technology, leading to differentiated competition. The core challenges facing the BCI industry in China include: 1) limitations in basic disciplines such as challenges in brain wave decoding and lack of theoretical support for brain-to-machine transmission; 2) technological bottlenecks and shortcomings in the industrial chain, including signal stability (non-invasive), trauma risks (invasive), and decoding algorithm efficiency, as well as reliance on imported high-precision sensors and dedicated chips in the upstream, inadequate coordination between equipment suppliers in the midstream, and downstream scenarios; 3) ethical and regulatory risks, including issues related to data privacy, hacking attacks, and security risks such as mind control. Although data security standards have been introduced recently in China, a globally unified regulatory framework has yet to be established. Risk warning: The brain-computer interface industry is still in its early stages, with risks such as immature basic research, product development falling short of expectations, and slow progress in commercialization. The industry faces a series of safety, compliance, and ethical risks, and privacy breaches could lead to legal risks.