Huafu Securities: The potential application scenarios downstream are extensive, and brain-computer interfaces are expected to welcome new opportunities

According to the Zhitong Finance APP, Huafu Securities has released a research report stating that with the development of brain science, artificial intelligence, medicine, cognitive neuroscience, and psychology, the connotation and extension of Brain-Computer Interface (BCI) are continuously enriching. China has multiple advantages in developing the BCI industry. Currently, the BCI industry has formed a complete industrial chain, covering multiple links including upstream (materials, chips, electrodes, etc.), midstream (signal acquisition, perception processing, etc.), and downstream (medical health, consumer life, industrial production, etc.). According to precedence research, the global BCI market size is expected to be approximately USD 2.62 billion in 2024, reaching USD 2.94 billion by 2025, and is projected to grow to USD 12.4 billion by 2034.

The main points of Huafu Securities are as follows:

Directly "communicating" between the brain and external devices, the BCI industry is rapidly developing

"Brain-Computer Interface" (BCI; also known as Brain-Machine Interface, BMI) can establish a new communication and control channel directly between the brain and external devices, bypassing peripheral nerves and muscles. With the development of brain science, artificial intelligence, medicine, cognitive neuroscience, and psychology, the connotation and extension of BCI are continuously enriching.

China has multiple advantages in developing the BCI industry. From a technological perspective, China is in a leading position in non-invasive BCI and other fields. From an industrial foundation perspective, China has formed a preliminary chain from core components to terminal applications, with a number of specialized and innovative enterprises rapidly growing. From a market demand perspective, the aging population in China brings medical rehabilitation needs and industrial intelligent upgrades, providing a broad space for technology implementation. Currently, innovative achievements in China's BCI field are continuously emerging, the industry is accelerating its growth, and it is nurturing disruptive breakthroughs, becoming an important area for the deep integration of technological innovation and industrial innovation.

Continuous technological breakthroughs, three major paths developing in parallel

The BCI technology process involves four core steps: neural signal acquisition, signal processing and feature extraction, decoding and machine learning, and feedback and control. First, electrodes collect brain electrical signals from within the brain. After analog-to-digital conversion, signal preprocessing, and feature collection, these signals are simplified into a series of features. These features are input into machine learning models for training, forming a set of brain electrical-behavior mapping systems used to control the actions of external devices. Finally, the operator or user evaluates the accuracy of the control results as feedback to help the system further improve accuracy.

From the perspective of technological implementation paths, BCIs are mainly divided into three categories: invasive (capable of collecting more precise neural signals and directly obtaining internal brain information), semi-invasive (seeking a balance between signal quality and safety), and non-invasive (no surgery required, more easily accepted by the public).

Wide potential application scenarios downstream, market space expected to grow rapidly

The BCI industry has formed a complete industrial chain, covering multiple links including upstream (materials, chips, electrodes, etc.), midstream (signal acquisition, perception processing, etc.), and downstream (medical health, consumer life, industrial production, etc.). In recent years, with the rapid development of artificial intelligence, neuroscience, and computer science, BCI technology is gradually moving from the laboratory to clinical and commercial applications, and the global BCI market size is continuously expanding According to Precedence Research, the global brain-computer interface market size is approximately USD 2.62 billion in 2024, expected to reach USD 2.94 billion in 2025, and is projected to grow to USD 12.4 billion by 2034.

Target Aspects

It is recommended to pay attention to: Yanshan Technology (002195.SZ), Hanwei Technology (300007.SZ), Sanbo Neuroscience (301293.SZ), Innovation Medical (002173.SZ), OIMEC (002819.SZ), Xiangyu Medical (688626.SH), Entropy Technology (301330.SZ), Chengyitong (300430.SZ), VISHEE (688580.SH), Mailande (688273.SH), APON (300753.SZ), and Beiyikang (920199.BJ), etc.

Risk Warning

Risks include intensified market competition, policy support falling short of expectations, unfavorable technology research and development and new product development, and injuries caused to patients by brain-computer products