Immersive Adventures: Steering the Future of Automotive with AR/VR

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The Power of Immersive Tech in Auto Industry


Around the world, the car parts industry is using immersive technologies like Augmented Reality (AR) and Virtual Reality (VR). These technologies help car companies provide excellent services and make high-quality, eco-friendly products. 


In particular, immersive technology is a favorite tool for Original Equipment Manufacturers (OEMs). It can improve results in all areas, from research and development to manufacturing, sales, and after-sales services. A report from Allied Market Research (AMR) predicts that by 2025, the global market for AR and VR in the automotive industry could reach an impressive $6.73 billion. This represents a Compound Annual Growth Rate (CAGR) of 175.7%. 


Impact on the Industry


AR and VR are now very important in the car industry. These technologies help companies get ahead by making the design and prototype process easier. 


Ford, for example, has been using AR a lot to make changes to their trucks, cars, and SUVs with Microsoft HoloLens after a successful trial. HoloLens can also be helpful for mechanics, as seen with Mercedes-Benz technicians using it to fix cars. Porsche’s AR app also helps mechanics by giving them clear instructions.


AR in the US auto parts market shows huge potential and is set for rapid growth, as shown below:


Figure: AR in Automotive: North America Market Size (2017-2018, in USD Billion)


The Thriving and Expanding Sector


Despite the rise of advanced and automated production lines, vehicle production remains labor-intensive. Major companies like Volvo and Mitsubishi are using HoloLens and AR glasses for virtual guidance and quality control, improving maintenance efficiency. This is also seen in Virtual Reality Automobile Training programs used by industry leaders like Volkswagen, Audi, BMW, and others.


In this context, it’s useful to look at the technological breakdown of the Global Augmented Reality (AR) in Automotive Market:


  • Standard AR HUD
  • AR HUD Based Navigation   
  • Radar
  • LiDAR
  • CCD/CMOS Image Sensor
  • TFT-LCD and similar technologies


Value for Customers


Immersive technologies are changing the car parts industry, especially for customers. This can be seen in things like interactive AR car manuals. More and more virtual reality dealerships are popping up, which are improving the customer experience by allowing things like virtual customization and better setups. AR and VR are also becoming important for new self-driving cars, helping to improve safety checks and get the cars ready for sale faster.



You might remember the popular ZeroLight VR, a cloud-based 3D visualization software that Toyota used to virtually launch its C-HR Car. Audi introduced its Audi VR Experience technology, which lets customers try out different accessories to put together the best features for their car. Luxury car maker Genesis has a strong app with AR capabilities that helps users understand car functions. 


Other notable examples include Hyundai’s Virtual Guide, KIA’s Augmented Reality navigation system, and TeenDrive 365. The importance of these immersive technologies was further highlighted in a recent Virtual Reality Commercial by Jaguar Range Rover.


Implications for Future


As the car industry changes, the use of Extended Reality (XR) is showing a lot of potential. With things like AR Head-Up Displays (HUDs), real-time overlays, 3D models that look like the real thing, and virtual test drives, both passengers and drivers could enjoy safer, more interactive, and more interesting trips. 



As XR technologies keep getting better, the work of tech innovators and car companies could make it hard to tell where Augmented Reality ends and the driving environment begins. With exciting new developments like the launch of the “BMW i Vision Dee” concept car and auto accessory maker Harman’s recent announcement of AR displays, the car industry is poised for a new Digital Emotional Experience filled with immersive solutions.


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