Potential Growth Prospects in the Global Automotive Virtual Reality Sector
Premium automakers will implement VR in vehicles first; operational, functional, and safety-related constraints will challenge adoption in the future
Research Overview
Virtual Reality (VR) is an advanced immersive technology used in industries, such as healthcare, gaming, smartphone, and manufacturing, for a wide range of use cases to enhance user productivity and to provide high-definition entertainment services. The automotive industry has been experimenting with VR in manufacturing facilities and dealer showrooms. The urgency to digitize retail practices has taken priority like never before. VR offers virtual showroom tours, test drives, and 360° views of vehicle interiors for an immersive customer experience. In OEM manufacturing facilities, prototype designing is simplified using VR simulation and helps in making changes seamlessly. Virtual employee training programs, self-driving vehicle simulation testing, and collaborative design reviews are some use cases that can be implemented through VR. However, VR inside cars are very niche today. Gaming-capable processors are prerequisites to implementing VR in cars and, hence, VR-based entertainment services will be piloted in premium brands (such as Tesla, Audi) between 2023 and 2025. This study will analyze the different VR applications in the automotive industry and the potential growth opportunities and challenges of implementing VR in connected vehicles.
VR is used majorly in automotive digital showrooms and vehicle production environments for an interactive user experience and improved employee productivity. However, VR in cars is still a niche use case, and is expected to be implemented beyond 2023. VR will be used for entertainment purposes, such as movie streaming, media playback, gaming consoles, virtual tours, and online concerts by passengers in future ownership and usership vehicles. On-demand digital cockpits will redefine the in-car experience for consumers, with focus on comfort and convenience. Future connected vehicles are expected to have individual sound bubbles and dedicated infotainment screens for each passenger.
VR will play a critical role to support virtual entertainment options and provide personalized experiences for passengers.
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