China is in a forward position in digital innovation, supported by its huge millennial population and consumer trends such as the sharing economy, augmented reality (AR) and virtual reality (VR), a UBS report said on Wednesday.
The report UBS sent to the Global Times listed nine disruptive technology trends, including AR, VR and artificial intelligence (AI), and it said China is leading the movement in many of the trends.
In China, the sector has cultivated 34 "unicorns" (private companies valued at $1 billion or more) worth a total of $176 billion, it said.
The report said a huge population of millennials will further push growth in technology spending. There are more than 415 million millennials in China, the largest group in Asia, with a total income of $2.4 trillion, while the US has 87 million millennials.
The e-commerce, entertainment and gaming industry will see revolutionary changes, affected by AR and VR technologies, reaching $9 billion in sales revenue by 2020, the UBS report said.
AI technologies will also disrupt traditional industries, such as agriculture, retail and manufacturing, with revenues expected to grow by 20 percent each year until 2020 and accelerate after that, UBS said.
While between 50 million and 75 million jobs could be affected, the AI industry, expected to be worth between $120 billion and $180 billion by 2020, will also create new opportunities, it added.
