Augmented Reality (AR) in Automotive - Thematic Research

Augmented Reality (AR) in Automotive - Thematic Research

Summary


Augmented reality (AR) is a technology that allows the user to see the real world overlaid with digital data. Unlike semi-autonomous or fully self-driving vehicles, the ability to see the outside world clearly is a safety-critical issue in vehicles where a human is driving. AR can enable the safer operation of vehicles through easily understandable head-up displays (HUDs). It can also ensure faster training of automotive staff and create more immersive entertainment experiences.

The global AR market was worth nearly $7 billion in 2020, and GlobalData forecasts that it will reach $152 billion by 2030, recording a compound annual growth rate (CAGR) of 36% over the 10-year period. AR’s impact on the automotive industry is currently minor. Before welcoming it into their cars, consumers will probably need to get used to the technology in other aspects of life. Once AR is accepted, however, it will play a significant role in the future of onboard information and entertainment systems, especially in autonomous vehicles (AVs).

AR can enhance user experiences in and out of the vehicle

AR can play a wide range of valuable roles in vehicles. By overlaying navigation instructions on real-world images, AR enables more precise guidance based on the actual road layout facing the driver. From a practical perspective, this means junction exits and final destinations can be visibly highlighted. From a safety perspective, potential hazards, including potholes, pedestrians, and other vehicles on the road, can be visibly highlighted. This is especially useful in night-time conditions or when severe weather patterns reduce visibility. When fully self-driving vehicles arrive-around 2035, according to GlobalData forecasts-AR can also improve entertainment experiences, overlaying content and video games over the outside world or repurposing car windows to display a different world entirely.

Outside of the vehicle, AR can increase maintenance efficiency and create a new avenue for sales. Technicians can have repair and maintenance instructions and training overlaid on their physical view of the car, directing them to the next task without them needing to research it separately. AR can also enhance consumer engagement and increase brand loyalty by allowing customers to view virtual vehicles in real life and take them for a virtual test drive.

AR HUDs will become a standard feature in future vehicles

Leaders and laggards

Below we list some of the leading and lagging players in the AR value chain

Original equipment manufacturers

• Leaders: BMW, Daimler, Ford, General Motors, Hyundai, Jaguar Land Rover, Porsche, Volvo, Volkswagen.
• Laggards: Kia, Lexus, Mahindra & Mahindra, Suzuki, Subaru, Renault.

Suppliers

• Leaders: Bosch, Continental, Infineon, Qualcomm, Visteon.
• Laggards: BorgWarner, Mahle, Aisin, Tenneco.

Specialist vendors and service providers

• Leaders: Blippar, DigiLens, Envisics, StradVision, Varjo, Visteon, WayRay.

Key Highlights

• AR is already in use in several specific areas of the automotive sector. For example, some infotainment systems have integrated it as part of an augmented GPS navigation system, displaying holographic arrows on a live image feed from the front of the car. AR headsets are also being used in maintenance and manufacturing to reduce training time and more efficiently and accurately perform quality control checks.
• The automotive sector is not immune to the hype around the metaverse, which is likely to be based on AR-related technology. The metaverse concept (a virtual world where users share experiences and interact in real-time within simulated scenarios) has gained traction since the beginning of 2021. AR-related technologies such as simultaneous localization and mapping (SLAM), facial recognition, and motion tracking will be vital for developing metaverse-based use cases.
• Some automotive companies have already begun exploring the metaverse. For example, BMW has partnered with Nvidia, and Hyundai has partnered with Unity, both with the intent of building virtually accessible 3D digital twins of their factories. This will allow employees to collaboratively assess modifications and adjustments to production lines in the early planning stages. WayRay has also developed a concept car, the Holograktor, tagged a “metaverse on wheels” due to its heavy reliance on AR technology.

Scope

• The detailed value chain comprises five segments: semiconductors, components, devices, platforms, and applications and content. Leading and challenging vendors are identified across all five segments.
• Challenges the automotive sector is currently facing are outlined, and the solutions provided by augmented reality are addressed.
• Details of specific use cases of augmented reality in the automotive sector are given,
• Forecasts are given for augmented reality revenues to 2030 split by end-user (consumer and enterprise) and platform (hardware and software). Comprehensive industry analysis is also provided, looking at patent, company filing, hiring, and social media trends related to augmented reality in the automotive sector.
• It contains details of M&A deals driven by the augmented reality theme both globally and within the automotive sector, and a timeline highlighting milestones in the development of augmented reality.

Reasons to Buy

• Understand the impact augmented reality is having in the automotive space. Identify the emerging trends in the theme and how these developments might advance in the future. Learn about the different use cases and where they are emerging. View market and forecast data for the sector.
• Source the leading vendors for augmented reality in the au industry from our winners lists and shortlist potential partners based on their areas of expertise.
• Quickly identify attractive investment targets by understanding which companies are most advanced in the themes that will determine future success in the TMT industry.
• GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.

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