How VR And AR Can Redfine Automotive Industry In 2023

How VR And AR Can Redfine Automotive Industry In 2023

The automotive industry has undergone rapid transformation in recent years, but the upcoming metaverse technology, coupled with extended reality (XR) — which is a mix of virtual reality (VR), augmented reality (AR), and mixed reality (MR) — is expected to fundamentally alter it. The global metaverse market for automotive is projected to increase from $1.9 billion in 2022 to $16.5 billion by 2030, with a CAGR of 31.4 percent, according to MarketsAndMarkets research. 

In the metaverse, users can interact with other users as well as a computer-generated world. It is a highly immersive technological convergence of AR, VR, etc. Furthermore, as a result of the rapid advancements in immersive technologies, the automobile industry is set to undergo a shift that will change the way we think about this sector.

Here’s a look at how VR and AR can redefine the automotive industry in 2023:

Business Metric

VR and AR are changing business metrics in the automotive industry by providing new approaches to improving consumer experiences and operational efficiencies. 

Customers can now visualize and personalize cars in a virtual environment, which increases consumer engagement and sales. They also allow technicians and employees to be trained more effectively and efficiently, reducing errors and increasing productivity. 

According to the National AI Portal of India, the market for augmented reality and virtual reality in the automotive sector is predicted to reach an incredible $673,602.20 million by 2025, with a CAGR of 175.7 percent. In addition, businesses can use VR, AR, and XR to collect data on consumer behaviour and preferences, which they can then use to improve product designs and marketing strategies. 

Overall, these technologies are altering how automobile companies operate and compete, resulting in improved performance, profitability, engagement time, brand awareness, and conversion rates.

Virtual Showrooms

The traditional car dealership model has been around for a long time, but it is often associated with high-pressure sales tactics and pushy salespeople. 

However, the consumer experience in a virtual showroom can be more comfortable and personalized. They may be given the opportunity to investigate various models, modify their features, and simulate driving a car. 

Moreover, customers can use virtual reality technology to sit inside the car and see it from all angles. They may interact with the vehicle’s features, such as changing the seats, turning on the headlights, and checking the audio system. This will provide a more interesting and educational experience than a static brochure or video presentation.

Remote Assistance

Auto maintenance and repairs can also be done remotely thanks to the metaverse. With the aid of augmented reality technology, mechanics can remotely walk automobile owners through the repair process. 

To walk the owner through the process step-by-step, they can use a tablet or smartphone. As there is no need for a physical visit to the mechanic for basic maintenance and repair activities, this can save both time and money. Additionally, with augmented reality, the requirement for physical training sessions may be lessened as they can learn how to maintain and repair various car models in a virtual setting. 

Since they can train technicians consistently all over the world, manufacturers can benefit greatly from this.

Autonomous Driving Simulations

The future of the automotive industry is autonomous driving, yet this technology is still in its nascent stage. The Virtual World can offer a platform for testing and simulations that will hasten the development of autonomous driving technology. 

To test different scenarios and obtain information on how autonomous vehicles respond, engineers can develop virtual environments. Moreover, engineers can design intricate settings with accurate traffic patterns, weather patterns, and pedestrian behaviour using VR technology. 

They can also test the autonomous vehicles’ safety features, like emergency braking and obstacle detection. This could hasten the advancement of automated driving technology and enhance its security measures.

Customization And Personalization

The ability to customize and personalize the user experience is one of the Metaverse’s advantages. This can result in personalized car designs and features in the automotive industry. 
Customers can use virtual reality technology to create their ideal car, including the colour, wheels, interior, and accessories. Customers can also use AR technology to see how their car would look in real life. In addition, they can place a virtual car in their driveway or on the street to see how it blends in. 

This can provide customers with a more engaging and personalized experience, increasing their satisfaction and loyalty to the brand.

Interactive Advertising

In the automotive sector, the metaverse can serve as a platform for interactive advertising. The automakers can design virtual experiences and showrooms that highlight their newest models and features. In addition, gamification, like via virtual test drives, is another tool they may use to engage users and create a more memorable experience. 

Automakers can create immersive experiences that give customers a fun and interesting way to interact with their products using VR, AR, and XR technology. 

Thus, in order to enhance their marketing techniques, they can also gather information about consumer behaviour and preferences.

Increased Accessibility

The virtual worlds can also increase accessibility to the automotive industry, particularly for people with disabilities. Virtual showrooms and test drives can provide an alternative to physical locations, which can be difficult to access for people with mobility or sensory impairments. 

However, using VR/AR/XR technology, car manufacturers can create accessible experiences that cater to people with different abilities. They can also design cars that are more accessible and inclusive, such as cars with features that cater to people with mobility or sensory impairments.

The automotive business has the potential to change for the better in a variety of ways thanks to the metaverse. The Virtual Worlds, enabled with XR, can give clients a more interesting and immersive experience, from virtual showrooms to unique automotive designs. Additionally, it can hasten the development of autonomous driving technologies and increase the effectiveness of auto maintenance and repairs. Thus, it will be interesting to see how the automotive sector is reshaped and how the customer experience is redefined when XR and metaverse technology develops more in the years to come.

(The author is the founder and CEO of, an immersive 3D and XR technology company)

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.

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