Brain-Computer Interface Industry Alliance Established, Future Market Scale to Reach Tens of Trillions

     Recently, the Brain-Computer Interface (BCI) Industry Alliance (hereinafter referred to as the "Alliance") held its inaugural meeting at the China Academy of Information and Communications Technology (CAICT). Attendees included Academician Zhang Ping of the Chinese Academy of Engineering, Ren Aiguang, Deputy Director-General of the Department of Science and Technology at the Ministry of Industry and Information Technology, Yu Xiaohui, President of CAICT, and representatives from Alliance founding members. In his speech, Ren Aiguang emphasized that BCI is a critical component of future industries. Building and nurturing the BCI technology ecosystem, promoting applications, and fostering new competitive advantages are key priorities. The Alliance will play a vital role in advancing technology commercialization, expanding application scenarios, strengthening supply chains, setting technical standards, cultivating talent, and facilitating investment.

BCI Technology: A Future-Oriented Frontier with Growing Tech Giant Involvement

      BCI technology establishes communication and control channels between the brain and external devices, enabling direct manipulation of devices via neural signals or modulation of brain activity through external stimuli. This technology enhances, improves, and extends brain functionality.

     Recent advancements in integrated microelectronics, AI, big data, and neuroscience—spanning molecular biology, critical components, software/hardware development, and instrumentation—have accelerated BCI commercialization. China’s 14th Five-Year Plan (2021–2025) for the first time identified BCI as a key technology, emphasizing brain-machine fusion as a priority. Regions like Shanghai and Hangzhou are actively supporting non-invasive BCI development.

According to Guosen Securities, over 200 global companies currently offer BCI products, primarily in the U.S. and China. Tech giants such as Neuralink (Elon Musk), Google, Microsoft, and Meta are investing in foundational technologies. Domestically, Alibaba, Baidu, and iFlytek have entered the field through investments and AI-driven "brain projects."

Expansive Market Potential: BCI Scale Projected to Hit Tens of Trillions

     Initially seen as a tool for medical rehabilitation, BCI applications now extend to virtual reality ("metaverse"), smart vehicles, emotion recognition, and gaming. Though still in early stages, BCI holds immense commercial promise. McKinsey forecasts the global BCI market to reach $70–200 billion by 2030–2040.

     Hua’an Securities estimates China’s current BCI market at approximately RMB 1 billion, driven primarily by research equipment. By 2040, the domestic market is projected to exceed RMB 120 billion (CAGR 26%), with direct device sales surpassing RMB 50 billion. Long-term potential is vast: China has over 24 million individuals with limb disabilities, 18 million with visual impairments, and 27 million with hearing impairments. Neurological disorders, including dementia (6% prevalence) and mental health conditions (7% prevalence), are rising with an aging population.

CAICT’s BCI Vision and Key Technologies Report (2022) predicts that neural remodeling, substitution, and modulation technologies will unlock a market worth tens of trillions.

Policy and Market Synergy Accelerate BCI Industry Growth

     Guosen Securities notes a surge in BCI companies globally, with over 200 active players. Post-2014, technological maturity and market acceptance spurred over 10 new entrants annually.

     Policy support further fuels growth. China’s 14th Five-Year Plan and 2035 Vision prioritize AI and brain science as national strategic technologies, urging breakthroughs in cutting-edge fields. Local governments are also rolling out brain science initiatives.

While BCI remains nascent, its applications in consumer electronics, healthcare, and rehabilitation are poised to flourish. Key opportunities include:

1.  Core Technologies: Chips, sensors, signal processing algorithms, and AI-driven data analytics.

2.  Application-Driven Sectors: VR/AR, metaverse-enabled consumer electronics, health monitoring, neurorehabilitation, and brain science R&D.

     Leading players in BCI hardware include Texas Instruments (U.S.), Intan Technologies, and domestic innovators like Kingsense (Kingsense Electronics). Downstream, emerging companies such as Neuralink, BrainCo, BrainAccess, Tom Cat, and Zhongke Information are pioneering device integration.