Augmented Reality (AR) and Virtual Reality (VR) in Automotive - Thematic Research
This report looks at the emerging trends in Augmented and Virtual Reality in the automotive sector. These technologies will play a larger role in the future of automotive retail, servicing and manufacturing in the future.
This report is part of our ecosystem of thematic investment research reports, supported by our “thematic engine”.
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Augmented and virtual reality (AR and VR) are two emerging fields of digital technology. Augmented reality uses cameras, sensors and processors to superimpose additional information over a user’s field of view. Virtual reality uses similar technologies but swaps out a user’s view of the world for an entirely simulated environment.
The link between AR and VR, and the automotive industry is not necessarily obvious. In vehicles where a human is tasked with driving, unlike semiautonomous or fully self-driving vehicles, the ability to see the outside world is a safety-critical issue, leading to the assumption that AR and VR will play no role in the cars of the future. However, in other areas of the auto industry, AR and VR could become vital technologies enabling safer operation of vehicles, faster training of automotive staff, and more in-depth entertainment experiences.
Augmented reality, in particular, could play a larger role in vehicles. Examples include the use of overlaid navigation instructions on real-world images, enabling clearer guidance based on the actual road layout facing the driver. In maintenance and servicing, AR could play a role in enhancing the efficiency of processes. Technicians can have repair and maintenance instructions overlaid on their physical view of the car being repaired, directing them to the next task without them needing to research it separately.
Considering VR entirely blocks out a user’s field of view, its use in vehicles may be limited – even beyond restricting a driver’s view, it could cause them or other passengers to suffer motion sickness as the movement of the vehicle no longer matches the movement of the image in front of them. However, that does not mean VR has no role to play in the auto industry.
If, for example, designers want to rapidly simulate the interior or exterior look of a vehicle, they can generate a digital representation on a computer and then view it in VR without ever needing to create a physical model. This speed up the design process by allowing faster prototyping and analysis of different designs in a virtual space.
Similarly, in the automotive retail environment, VR could make the buying process more flexible. Potential buyers could visit a showroom, slip on a virtual reality headset and get up close with a number of different models, regardless of whether the dealer has physical examples to demonstrate. Creating memorable experiences such as these could enhance consumer engagement and increase brand loyalty.
GlobalData's latest, "Augmented Reality (AR) and Virtual Reality (VR) in Automotive - Thematic Research" report looks at the emerging trends in Augmented and Virtual Reality in the automotive sector. These technologies will play a larger role in the future of automotive retail, servicing and manufacturing in the future. This report is part of our ecosystem of thematic investment research reports, supported by our “thematic engine”.