AR VR technology will impact the entire process of manufacturing and distribution of automotive, such as design and construction, production, and sales & marketing. The growth of AR VR in Automotive Market Ecosystem is mainly driven by the increasing adoption of AR VR by various leading automotive companies.
In September 2018, Porsche and Hyundai led a Series C funding for WayRay, a Swiss technology company that is developing holographic AR technologies for connected cars. WayRay raised a total of US$ 80 million from key investors like Porsche, Hyundai, Alibaba, and China Merchants Capital, amongst others.
One of the most important applications of AR VR in Automotive Market ecosystem will be for maintenance/monitoring. In March 2018, Volkswagen, one of the major players in the automotive industry, announced its plans of testing a new pilot program that will use AR to assist service and maintenance of its commercial vehicles. For this purpose, the company is using AR glasses from Realwear, by using which experts will be able to send precise visual instructions remotely to the field technicians working at the commercial vehicle center. The remote assistance provided will greatly help reduce service times and thereby costs as well.
|Raw Material||Components||Products, Parts, and Devices||Services & Solutions||Application|
|Silicon||Sensors||Head-Up Displays||Documentation||3D modeling/ design|
|Glass||IMU||Smart Glass||3D Modelling||Monitoring/ Maintenance|
Training application also accounts for a significant share in the AR VR in automotive market ecosystem. AR VR immersive training enables car manufacturers to improve the quality of the training process while reducing the time required, which leads to increased productivity. Due to this, various leading car manufacturers are adopting VR for providing training. For instance, in 2018, Volkswagen announced that it will train 10,000 of its employees using VR for various purposes such as training of new members, customer service, and vehicle assembly for employees of SEAT, Audi, Volkswagen and ŠKODA.
In the products, parts and devices segment, handheld devices accounted for a majority share in AR VR in automotive market ecosystem. Handheld devices can be effectively used for training and marketing purposes and hence, they are expected to hold the highest share in the market. In 2017, BMW conducted a pilot study for using 3D AR to enable customers to interact with its i3 and i8 vehicles via Tango-powered mobile devices.
The Global AR VR in automotive market ecosystem was valued at US$ 195.7 million in 2018 and is expected to reach US$ 1,216.0Mn by the year 2023, growing at a CAGR of 41.8%. AR VR is being increasingly used by automotive manufacturers for designing and virtual prototyping. Companies such as Daimler AG, Volkswagen, etc., are already using AR VR for designing of their new car models.
US is leading the market in terms of AR VR adoption in the automotive sector. The presence of leading car manufacturers in the country and the high adoption rate of AR VR are some of the factors for the dominance of the country. China, Germany, and UK are also expected to grow at a high CAGR during the forecast period, owing to rising investments and adoption of AR VR technology by automotive companies in these countries.
There are many trends that are having an impact on the market forecast. These, when evaluated from a company’s perspective, can drive growth. Our numerous consulting projects have generated sizeable synergies across all regions and all sizes of companies.
|Company||Ecosystem Positioning||Total Revenue - 2018||Industry||Region|
|Products, Parts, and Devices||US$ 136.81 bn||AR VR||Global|
|Products, Parts, and Devices||US$ 55.83 bn||AR VR||Global|
|Microsoft Corporation||Products, Parts, and Devices||US$ 110.36 bn||AR VR||Global|
|Volkswagen Group||End-user||US$ 262.05 bn||Automotive||Global|
|HTC Corporation||Products, Parts, and Devices||US$ 0.73 bn||AR VR||Global|
Very few markets have interconnectivity with other markets like AR VR. Our Interconnectivity module focuses on the key nodes of heterogeneous markets in detail. Artificial Intelligence, Industrial Internet of Things, Autonomous Vehicles, 5G technology, and 3D printing markets are some of our key researched markets.
|Trends||Components||Products, Parts and Devices||Application||Impact|
|Increasing adoption of gesture recognition in VR automotive products will drive the proximity, motion, and image sensors market.||Sensors||1.87%|
|Head up displays are used by car manufacturers to make the driving experience better. It displays the real-time data to drivers and hence, enables them to easily focus on passenger safety and convenience.||Head up displays||2.60%|
|Virtual prototyping is used for designing vehicle used by manufacturers for continuous reviews, testing, and improvement.||3D modelling/ design||0.89%|
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