Every vehicle on the road started with an idea that was tested vigorously. This process has historically required Two-Dimensional (2D) models and physical prototypes. However, these tactics are archaic compared to the Extended Reality (XR) tools available to automakers today.
XR-enabled digital twins enable engineers and designers to optimize vehicle performance and user experience before moving to production. With such tools at their disposal, car brands can expedite time to market and minimize costly recalls. Beyond vehicle design, XR can be used on the customer end to provide virtual experiences and provide valuable feedback from anywhere in the world.
Consequently, ABI Research forecasts a ten-fold increase in XR revenue within the automotive and transportation sector by 2030, reaching US$2.9 billion.
XR Use Cases in Automotive Engineering and Design
From the complexities of an Electric Vehicle (EV) supply chain to a rapidly aging workforce, the automotive industry requires technological solutions that streamline and simplify the manufacturing process. Here’s how XR supports these goals:
- Collaboration: XR enables seamless collaboration between dispersed teams. Engineers, designers, and project managers can work in a shared virtual space, making real-time decisions on design adjustments without distance or time limitations. This improves the speed and quality of decision-making, ultimately resulting in faster time to market for new vehicles and software features.
- Review: Traditional design reviews require automakers to assemble a physical version of a new vehicle. When an issue is encountered within the prototype, it must be physically remedied, which delays production cycles and increases costs. With XR, teams can interact with virtual prototypes, enabling more accurate and comprehensive reviews. This allows engineers to detect potential issues early in the design process and resolve them before committing to physical production.
- Creation: XR accelerates the creation of virtual vehicle prototypes and simulations. Engineers can test and modify vehicle designs quickly within a virtual environment, meaning they don’t have to wait for physical components to be delivered. Moreover, XR simulations mimic real-world conditions to ensure the final product is optimized for performance and safety.
Customer-Facing Use Cases of XR
Beyond design and engineering, XR also augments automakers' customer engagement.
- Virtual Showrooms: XR enables immersive virtual showrooms where customers can explore vehicle models in 3D. This provides an interactive and engaging experience, allowing potential buyers to inspect and even “test drive” cars virtually.
- Personalization: XR lets customers personalize vehicles by modifying elements like colors, interiors, and tech features in real time. This interactive experience helps customers visualize their preferences, enhancing satisfaction and influencing purchasing decisions.
- Remote Engagement: With XR, automotive companies can engage with customers remotely. This is especially applicable for high-end or limited-edition models that are difficult or impossible to interact with in person. Potential buyers can access these rich experiences through apps or Virtual Reality (VR) setups in pop-up stores or trade shows.
These virtual experiences are also sustainable as they eliminate the need for potential customers to drive to a dealership.
Case Study: BAC and Siemens
A notable example of how XR benefits automakers is the case of Briggs Automotive Company (BAC). Its small team of designers and engineers is tasked with prototyping custom-made vehicles based on customer preferences, which requires a robust modeling platform. BAC plans to use Sony’s XR headset and Siemens’ NX Immersive Designer module to virtually construct and modify 3D Computer-Aided Design (CAD) models.
This solution enables BAC to test changes to car components in real time and intertwine its U.K.-based and Germany-based teams. The XR solutions will reduce vehicle development time and improve product quality.
To learn how automakers should plan their XR adoption strategy, check out the article “Best XR Adoption Path for Automotive Players.”
About the Author
Matilda Beinat, Research Analyst
Matilda Beinat is a Research Analyst within ABI Research's Strategic Technologies group, with a focus on Augmented Reality (AR) and Virtual Reality (VR). Coverage includes devices, content, platforms, and use cases across consumer and enterprise applications.
