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The global virtual reality in automotive market size was USD 436.2 million in 2018 is projected to reach USD 6,781.1 million by 2026, exhibiting a CAGR of 38.6% during the forecast period.
In the current scenario, most of the cars show a continuous trend towards automation. The advent of self-driving cars is one of the major milestones in the autotmotive industry. VR gives users the choice to experience the performance of a vehicle in several conditions, even before they are made available for practical use. VR has led to a technological revolution across the automotive industry.
Virtual reality is playing a leading role in automation in the automotive industry. It has opened tremendous market opportunities for car designers and manufacturers. Rapid advances in 3D display technology, augmented reality, and virtual reality has opened a new market for advanced car infotainment systems. Automotive industries are taking advantage of VR’s tech novelty and immersive value.
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Virtual reality in the automotive industry would significantly drive the brand affinity for automotive manufacturers, justifying the virtual environment as a potential tool for marketing campaigns or events. Also, virtual reality is a medium to add value to the product during the sales process. However, a technology that has potential to change the standards across the industry early adoption is always beneficial.
Virtual reality is no more the future for the automotive industry. Several manufacturers have already adopted this concept. Through it’s adoption, customers are totally immersed in a virtual world, allowing them to explore digital vehicles in an enhanced way..
“Increasing Need for Automotive Manufacturers to Improve Marketing Strategies and Optimize Production Time and Cost”
VR in automotive industry offers several advantages with regard to marketing and sales. Several automotive industries showcase their products in a virtual environment to the customers, partners or clients. VR can be a useful asset for manufacturers in terms of automotive marketing. VR can help marketers to create an immersive experience to explore their product.
For instance, showing a car in a completely different scenery such as in a park or other planet would probably drive the interest of the customer to buy the product. VR enables the customers to test the vehicle in any situation they want. This feature has positively influenced the development of autonomous cars.
Late detection and modification of errors in the automotive design would eventually generate some over budgets and delays. VR increases productivity during the vehicle designing phase. The virtual prototype reduces the time and effort required to build a physical prototype. The virtual prototype offers the ability to visualize and simulate the car design so that any design or technical errors would be modified before the final installation of the car.
Indeed, this ability would lead to a drastic reduction in production time and cost. Hence, we can conclude that increasing need for automotive manufacturers and dealers to improve marketing strategies and optimize production time and cost would drive the market growth during the forecast period.
“Substantial Investments of OEMS in Advanced Technologies Such as Virtual Reality, Artificial Intelligence, and IoT is Likely to Boost the Market Growth”
OEMs have recognized the potential of VR and are uplifting the VR process in automotive industry. Meanwhile, BMW is showcasing its own concept car, the BMW Vision iNEXT, which offers both luxury and anatomy. BMW uses VR technology mainly in three areas including workplace planning, training and qualification, and comparison of hardware components and given data.
Giant automaker Audi collaborated with Disney’s gaming division to showcase a new in-car infotainment system that uses the VR headsets to turn the vehicle into moving theme parks. Audi has developed Holoride, which is an integrated application with a mixture of VR and autonomous driving technology to create virtual reality adventures that sync with the movement of vehicle.
Furthermore, Renault partnered with Ubisoft to drive the concept of self-driving cars with a virtual reality experience that can be enjoyed while we are taking a ride in Renaults' self-driving cars. As mentioned on the Renault's official page, the car can ensure safety in case of an undesired event. The VR technology uses data from the cars' sensors to show a virtual presentation of the road and objects near you.
The above information shows that technological advances are disrupting the automotive industry. Many major players are making adequate investments in deploying VR applications in the automotive industry. As a result, we can say that substantial investments of OEMs in advanced technologies such as virtual reality, artificial intelligence, augmented reality, and IoT would expand the virtual reality in automotive industry market size during the forecast period.
“Hardware System is Likely to Propel the Market Revenue During the Forecast Period”
Based on the component, the market is divided into hardware, software, and content. The VR hardware segment is expected to boom the market growth in the coming years. Advances in VR headsets such as Oculus Rift, Google Cardboard, HTC Vive Samsung Gear VR demand for advanced hardware components to offer better services. Ford and Audi are using Oculus Rift to power their virtual applications.
VR content is estimated to exhibit a remarkable CAGR till 2026. VR content offers instinctive, and contextual training solutions enriched with dynamic content and appropriate guidance. For example, Volvo has released a virtual reality app that enables the users to take a test drive of the Volvo XC90. The Volvo XC90 test drive offers 360-degree video footage with a 3D animation in the interior of the car.
Key industry players such as Ford and Audi have created 3D experience environments that enable the customers to explore different customize car models and colors before seeing them in real-life. Organizations are actively working to offer innovative VR software solutions with a wide range of functionalities. For instance, Audi offers an application for Oculus Rift that enables its customers to view and configure the vehicle as they wish to do.
Furthermore, software developers such as Autodesk offers a range of virtual automotive software’s including Alias, VRED, MAYA, Forge and others these are specifically car design software’s for sketching, concept modeling and digital prototyping.
“The Training Segment is Expected to Augment the Market Growth During the Forecast Period”
Based on the application, the market is segmented into designing and prototyping, training, virtual reality showrooms, and research and development. Training has been the most significant application of VR in the automotive industry. For example, Rolls Royce and Qatar airways are using virtual reality to train their engineers. Rolls Royce leverages valuable applications of virtual reality when it comes to refresher training.
Designing and prototyping of automotive is expected to be a key application of virtual reality in automotive industry. Simulation and testing of automotive models on the 3D virtual prototype save production time as well as money.
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Many automotive sellers follow the traditional practices in the automotive showrooms. Many times it happens that the color or the model which we want to buy is not available in the showroom. Virtual reality helps visualize the model of the desired car in a customized manner. Also, we would be able to take driving experience in the virtual environment. This is possible with the development of quality VR headsets and VR technology in the showroom.
Other VR applications in the automotive industrysuch as research and development and others would ensure to uplift the market revenue in the coming years.
Geographically, the market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The regions are further categorized into countries.
Europe is expected to emerge dominant in the virtual reality in automotive market. In 2018, Europe generated a remarkable revenue and is expected to inflate the market growth until 2026. Technologically advanced countries such as France, Germany, are the major contributors to market growth across the region.
The virtual reality in automotive market in Asia Pacific is projected to witness a rapid growth rate. Rising investments of government, manufacturers, and private organizations would magnify the market size in Asia Pacific. VR applications are gaining momentum in the region. Moreover, countries such as India, China, and Japan would hold a significant virtual realtiy in automotive market share in the coming years.
North America Virtual Reality in Automotive Market Size, 2018 (USD Million)
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North America is expected to hold a significant revenue share in the virtual reality in automotive market. In 2018 North America generated a revenue of USD 130.5 million and is expected to generate a remarkable market revenue during the forecast period. ICT giants such as Facebook, Google, Apple continue to focus on research and development of VR hardware and software to provide advanced virtual simulations. This would drive the market growth in the region.
Furthermore,the Middle East and Africa is estimated to have moderate growth, whereas Latin America is expected to have a steady growth in the virtual reality in automotive market. Inadequate investments of organizations in virtual reality and lack of VR content may restrict the market growth in the region. Also, slow adoption of virtual reality applications due to limited manufacturers would inhibit market growth.
“Key players in the virtual reality in automotive market, including Google, Facebook Technologies, HTC and others would continue to focus on partnerships and collaborations”
ZeroLight, a strategic visualization partner of Audi, collaborated to develop an advanced high-performance graphics engine. Oculus,now owned by Facebook Technologies, LLC. is the primary project partner of Audi. Most of the VR features provided by Audi would be run on the Oculus Rift headsets.
The Volkswagen Group, Innoactive, and HTC Vive have collaborated to present new VR applications for production and logistics. Volkswagen Group is backing VR solutions for interactive communication in production and logistics. The manufacturer uses the HTC-Vive VR system to provide VR applications.
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The report provides qualitative and quantitative insights into the virtual reality in automotive market and detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are recent industry developments such as mergers & acquisitions, macro and microeconomic factors, SWOT analysis, and key virtual reality in automotive market trends, competitive landscape and company profiles.
Value (USD million)
Fortune Business Insights says that the value of the global virtual reality in automotive market was USD 436.2 million in 2018.
As per our study, the market is projected to reach USD 6,781.1 million by 2026.
The market will grow at a rate of 38.6% CAGR. Many automotive startups are making investments in VR applications.
Europe is projected to hold the largest market share in the virtual reality in automotive market . The rapid adoption of advanced technologies and substantial investments of organizations in R&D would expand the market size across the region.
In the virtual reality in automotive market, hardware and content are the leading segments. Advances in VR headsets such as Oculus Rift, Google Cardboard, HTC Vive Samsung Gear VR demand for advanced hardware components
Some of the driving factors for the virtual Reality in automotive market are increasing need of automotive manufacturers to improve marketing strategies and optimize production time, and cost and substantial investments of OEMs in advanced technologies such as virtual reality, artificial intelligence, augmented reality and IoT.
In the virtual reality in automotive market, some of the key players are Facebook Technologies, Google, ZeroLight, HTC. These players are focusing on acquisition and partnership with domestic players to provide virtual reality applications in automotive.
Europe is expected to hold the highest market share in the virtual Reality in automotive market. Technologically advanced countries such as France, Germany, are the major contributors to market growth across the region.
The Asia Pacific is projected to witness a high growth rate among all regions in the virtual reality in automotive market. Rising investments from government, manufacturers, private organizations would magnify the market size in Asia pacific.