According to predictions from the Zhongyan Puhua Industry Research Institute, the market size of China's brain-computer interface (BCI) sector reached approximately 1 billion RMB in 2022, with a compound annual growth rate of about 21%, indicating immense market development potential. Recently, a series of BCI-related policies have been intensively implemented. From a technological pathway perspective, non-invasive technology, characterized by its "high safety, low cost, and ease of popularization," is rapidly transitioning from laboratories to the market, promoting gradual implementation in medical rehabilitation and consumer scenarios. In contrast, invasive/semi-invasive technologies leverage their advantage in high-precision signal acquisition to deeply cultivate high-value medical applications, achieving preliminary motor function reconstruction in patients with spinal cord injuries and strokes, with clinical progress steadily advancing.

The BCI industry is developing rapidly, with domestic manufacturers accelerating their strategic layouts. Based on forecasts by the Zhongyan Puhua Industry Research Institute, China's BCI market was valued at around 1 billion RMB in 2022, boasting a compound annual growth rate of approximately 21% and significant potential for expansion. In terms of technological pathways, non-invasive methods hold the largest market share due to relatively lower technical difficulty and faster commercialization; semi-invasive technologies occupy a middle share, while invasive technologies, facing higher technical barriers, remain in the technology-to-clinic transition phase and thus have a relatively smaller market share. From an industrial chain perspective, the upstream segment involves core hardware and software (electrodes, chips, algorithms), which presents the highest technical barriers. The midstream consists of manufacturers integrating these into complete devices and solutions, serving as the critical hub for industrialization. The downstream encompasses diverse application scenarios (medical rehabilitation, consumer health, industrial, etc.) that drive demand, with medical and consumer applications taking the lead in implementation, prompting domestic companies to hasten their related industrial deployments.

Policy guidance, combined with technological breakthroughs, makes BCI commercialization highly promising. A flurry of BCI-related policies has been rolled out: the joint release of the "Implementation Opinions on Promoting Innovative Development of the Brain-Computer Interface Industry" by seven departments establishes a strategic blueprint and development path for the sector; the National Healthcare Security Administration and various local authorities have successively clarified pricing standards for projects, addressing the core issue of "how to charge" for products; and the National Medical Products Administration has included "implantable BCI medical devices" in its priority review catalog, shortening product time-to-market. This combination of policy measures effectively unlocks key chains in product commercialization. Focusing on technological pathways, non-invasive technology, with its attributes of high safety, low cost, and easy adoption, is swiftly moving from labs to markets, facilitating the gradual rollout of medical rehabilitation and consumer applications. Meanwhile, invasive/semi-invasive technologies, capitalizing on their superior signal acquisition accuracy, are deepening their focus on high-value medical applications, having achieved initial motor function restoration in patients with conditions like spinal cord injuries and strokes, with clinical advancements steadily progressing. The synergy of policy leadership and technological breakthroughs is driving rapid industry growth and accelerating the commercialization process for BCI.

Regarding investment recommendations, Huajin Securities believes the BCI industry is entering a pivotal first year for commercial implementation, propelled by the combined forces of policy guidance, technological iteration, and clinical breakthroughs, which are fostering rapid sector development. In the short term, non-invasive downstream applications are expected to scale up first, while invasive technologies accelerate their breakthroughs. Priority should be given to布局 non-invasive rehabilitation equipment and consumer-grade applications. It is advisable to closely monitor companies with product approvals that are beginning to generate revenue, such as Xiangyu Medical (688626.SH), Mainland (688273.SH), Ways Medical (688580.SH), Innovation Medical (002173.SZ), and BrainCo. Simultaneously, close tracking of invasive technology R&D and clinical progress is recommended, with attention on Botuo Bio (688767.SH), HeartCare-B (06609), BrainRotor, and Ladder Medical.

Potential risks include policy uncertainty, uncertainties regarding the market launch of products under development, and risks of R&D progress falling short of expectations.