The automotive industry is witnessing rapid adoption of Virtual Reality (VR) that helps enhance the skills of engineers & technicians while directly leading to more operational efficiency & reduced errors at times of assembling, designing, or prototyping the vehicle. Nowadays, automakers are increasingly seeking this technology across different products & sales processes, including research, designing, manufacturing, marketing, etc.
According to MarkNtel Advisors, the Global Virtual Reality in Automotive Industry is projected to witness around 41.32% CAGR during the forecast period, i.e., 2022-27. It owes to the mounting need for digitalization in retail practices and soaring requirements for virtual reality in the automotive sector due to its benefits like reducing the overall R&D & manufacturing costs, improving marketing & sales strategies by creating virtual platforms like showrooms & training, and minimizing driving risks by adopting prototyping & test driving, all in the virtual environment.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, The UK, Germany, France, Spain, Italy and Others|
|Asia-Pacific: China, India, Japan, South Korea, Australia and Others|
|South America: Brazil|
|Middle East & Africa: GCC, South Africa|
|Key Companies Profiled||4Experience, Continental AG, Google LLC, HTC Corporation, Microsoft Corporation, NEXT/NOW, Oculus Rift (Facebook Inc.), OmniVirt, Onboard, Robert Bosch GmbH, Sensorama, Inc., Unity Technologies, Veative Labs Ltd., Visualise Creative Limited (VCL), ZeroLight Limited|
|Unit Denominations||USD Million/Billion|
In addition, the rapidly increasing adoption of virtual reality to train engineers & technicians using tools & solutions like Autodesk VRED, Audi Virtual training, Ford Virtual Reality, etc., shall also boost the market in the coming years. Leading automotive brands like Mercedes-Benz are actively participating in the market.
The company has recently introduced its partnership with Microsoft Corporation, adopting its HoloLens 2 VR goggles & Dynamics 365 Remote Assist, principally to enhance the customer experience and improve its overall sales. Hence, such partnerships are expected to bolster the demand for VR solutions across the global automotive industry in the coming years, further states the research report, “Global Virtual Reality in Automotive Industry Analysis, 2022.”
Impact of Covid-19 on the Global Virtual Reality in Automotive Industry
Based on the Application, the Global Virtual Reality in Automotive Industry segments into:
Of them all, the Design & Prototyping application is projected to attain the largest market share, owing principally to the capabilities of VR to reduce the production time & money by replacing the complicated process of building bulky physical prototypes with virtual prototyping. In addition, advantages like simplified research & development, fewer adjustment rounds, and quicker design process playing a crucial role in reducing the costs of the entire pre-manufacturing cycle are other crucial factors attributing to the mounting demand for Virtual Reality in vehicle design & prototyping.
On the other hand, the Training application is expected to gain significant traction in the coming years since VR-based training solutions are highly beneficial for both manufacturing & after-sales processes that help trainers minimize their error rates. It ensures quick onboarding of trainees and their proficiency in sync with the brand image. Moreover, VR-based training software provides potential customers with safe & highly effective VR driving lessons, i.e., another crucial aspect fueling the overall market, states MarkNtel Advisors in their research report, “Global Virtual Reality in Automotive Industry Analysis, 2022.”
Based on the Component, the Global Virtual Reality in Automotive Industry segments into:
Here, the Hardware component is more likely to acquire a significant market share through 2027, primarily due to the rapidly increasing adoption of Virtual Reality headsets owing to its reducing costs. Numerous countries are investing substantially in research & development activities toward developing advanced VR devices, further augmenting the demand for VR hardware in the coming years.
On the other hand, the Software component is gaining considerable popularity due to the rapidly increasing technological advancements resulting in the extensive availability of virtual reality solutions for different applications like designing, prototyping, modeling, etc.
For instance, Ford collaborated with Gravity Sketch to develop software to enable automotive designers to sketch through Virtual Reality using controllers & inspect the model from any angle by simply rotating it. This software allows Ford to reduce the processing time by leaping the conventional 2D designing process.
Based on the Geography, the Global Virtual Reality in Automotive Industry expands across:
Of them all, North America accounts for the largest market share through 2027, where the US shall witness the fastest market growth, primarily due to the active participation of prominent market players through substantial investments in the technological advancements of virtual reality.
One of the most popular automakers in the US, Ford, uses HoloLens (mixed reality headset) developed by Microsoft that enables quick prototyping in the virtual environment. Using HoloLens, automotive designers can combine virtual & physical designs of cars, which immensely saves their time for making & reviewing the required changes. Hence, such an initiative shall create significant growth opportunities for the market players across North America.
On the other hand, Europe is projected to emerge as an opportunistic region for the market players since it is an early adopter of virtual reality technology. In 2020, Volkswagen Commercial Vehicles attended the first-ever virtual Commercial Motor Show in Brussels and displayed the entire range of products & services on the virtual platform. The company also had its complete vehicle range on display, including the Volkswagen Crafter, Transporter, and Caddy vans. Moreover, Germany & France are also expected to gain considerable momentum in the market owing to the increasing adoption of virtual showrooms by automotive dealers across these countries to expand their consumer scalability.
On the other hand, the market across Asia-Pacific shall display a rapid surge in the coming years, mainly due to the expanding automotive industries in countries like China, India, and Japan. The Automotive industry in China is heavily investing in bringing virtual reality to the sector for enhancing the efficiency & skills of technicians at manufacturing units.
Key Questions Answered in the Virtual Reality in Automotive Industry Research Report:
Frequently Asked Questions
A. The Global Virtual Reality in Automotive Industry is anticipated to grow at a CAGR of around 41.32% during the forecast period, i.e., 2022-27.
A. The Design & Prototyping application is projected to maintain their dominance in the Global Virtual Reality in Automotive Industry during the coming period.
A. The Global Virtual Reality in Automotive Industry is driven principally by the abilities of Virtual Reality to speed up the self-driving testing process, enhance sales, and create better consumer engagement.
A. Amidst the crisis, the demand for Virtual Reality solutions surged across the automotive industry to create virtual showrooms for customers for in-house virtual test-driving. The same trend is likely to be followed in the coming years and provide lucrative growth opportunities for the leading market players.