Metaverse in Automotive Market size was USD 3.99 billion in 2024 and the overall Metaverse in Automotive revenue is anticipated to grow at a CAGR of 38.34% during the forecast period from 2024 to 2035, reaching almost USD 25.34 Billion by 2035.
Metaverse in Automotive Market Overview
Metaverse is a virtual reality environment that has the ability to accommodate a variety of online interactions. From designing products to procuring, from manufacturing to inventory, Metaverse technology can be utilized to tighten and optimize supply chain management for the Automotive Industry.
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What are the growth prospects in this industry?
The constant innovations in VR and AR technologies are unlocking new opportunities for the automotive industries, from design & manufacturing to sales & customer care. These technologies not only add value to the user experience but also enhance efficiency, safety, and innovations in the car industry. As VR and AR advance, their application in the automotive sector is also likely to increase, with even more revolutionary changes. AR is proving to be helpful in supporting technicians while working on maintenance and repairs by projecting instructions and diagrams onto the actual vehicle.
As cars and user information become part of an integrated digital world, the threat of hacking and data theft is steadily increasing. Cybercriminals are after personal data, vehicle control units, and proprietary data, which may result in serious financial and reputational losses to the users and the organizations. Most of today’s vehicles have IoT devices that communicate with outside systems, and if businesses are not experiencing strong security, such devices can act as doors to cyberattacks, potentially undermining the safety of vehicles and user privacy.
The automotive sector needs to put in place strong incident response procedures to quickly deal with and reduce the effects of cybersecurity attacks. Moreover, the use of continuous monitoring systems to identify and respond to possible threats in real-time is essential in ensuring a secure metaverse.
Metaverse for Automotive Industry Trends
The latest developments in Mixed Reality (MR) technology have the potential to transform the automotive industry because it provides a combination of physical and virtual experiences that improve everything from car design to customer engagement. MR, which combines aspects of Virtual Reality (VR) and Augmented Reality (AR), is being more widely incorporated into all areas of automobile innovation and consumer interaction. For example, in January 2024, Porsche began to integrate MR technology into its customer experience strategy. This new development is designed to provide an unmatched degree of immersion and interactivity, revolutionizing the manner in which customers interact with cars.
With more emphasis on cloud and software integration to aid metaverse applications, numerous organizations are embracing cloud services. This includes the use of cloud-based platforms for real-time data processing, vehicle connectivity, and immersive virtual experiences like virtual test drives and showrooms. Beyond that, sophisticated software solutions allow for complete integration of AR and VR technologies, making it possible to perform complex product customization, simulation, and remote diagnostics, ultimately driving innovations and enhancing customer interaction in the automotive sector.
For example, in February 2024, Capgemini and Unity Technologies revealed a broadened strategic partnership, disclosing Capgemini’s acquisition of Unity’s Digital Twin Professional Services business. As part of this deal, Unity’s Digital Twin Professional Services team will become part of Capgemini, creating one of the largest teams of Unity enterprise developers in the world. This is to speed up the development and deployment of real-time 3D (RT3D) visualization software, particularly for industrial digital twin use cases. The integration will allow end users to better visualize, understand, and interact with physical systems, promoting intelligent industry capabilities.
Metaverse for Automotive Market Share
BMW Group & Mercedes-Benz AG collectively owned more than 30% stake in metaverse for automotive industry in 2023. BMW Group, one of the prominent luxury automobile manufacturers, has been actively involved in exploring and investing in metaverse technologies to increase its brand presence, customer experience, and product development process. The company recognizes the capability of the metaverse to transform the automotive sector and has undertaken a number of initiatives to place itself at the vanguard of this new technology.
Mercedes-Benz AG is a world-famous German luxury car manufacturer with a rich history and global presence. Mercedes-Benz is utilizing metaverse technologies to develop digital replicas of their cars and manufacturing facilities. This enables more effective design iterations, virtual testing, and optimization of the manufacturing process, which could shorten development time and expenses.
Metaverse for Automotive Market Companies
Key players involved in the metaverse for automotive sector are
BMW Group
Mercedes-Benz AG
Toyota Motor Corporation
Ford Motor Company
General Motors (GM)
Unity Technologies
Nvidia Corporation
The metaverse for automotive market research report has segmented like below
Market, By Component
- Hardware
- VR headsets
- AR glasses
- Haptic devices
- 3D projectors
- Software
- Metaverse platforms
- Simulation software
- Design and prototyping software
- Customer experience software
- Services
- Consulting services
- Implementation services
- Training and support services
- Maintenance and upgrades
Market, By Application
- Virtual showrooms and dealerships
- Training and education
- Design and prototyping
- Customer experience and engagement
- Marketing and advertising
- Others
Market, By Technology
- Virtual Reality (VR)
- Augmented Reality (AR)
- Mixed Reality (MR)
- Blockchain and NFTs
Metaverse in Automotive Market Segment By Technology
According to Technology, the Virtual Reality (VR) segment dominated with the highest market share of around 60% of the Global Metaverse in the Automotive Market. Based on the analysis by MMR, the segment is also expected to develop at a growth rate of CAGR 34.6% during the forecast period and remains the largest segment in the Global Metaverse in the Automotive Market. The growing adoption of Virtual reality (VR) platforms in the development of in-car reality entertainment systems is expected to be supported by the rapid expansion of virtual platforms. The leading players such as Oculus (acquired by Facebook), HTC, Sony, Microsoft, and Google are leaders in VR technology development, developing innovative VR experiences and immersive spaces for different applications, including automotive, entertainment, and training.
VR technology adds value to the automotive experience of customers in various ways like replicating the feel of driving a vehicle, and assisting in designing, developing, and testing cars, thus enabling designers to design and test vehicle features virtually. VR technology is utilized to boost customer experiences by offering interactive and immersive 360-degree virtual tours, thus speeding up the purchasing process and improving customer retention rates. Also, VR is employed to develop virtual showrooms, which allow consumers to browse various cars, enhance the car buying experience, and make informed choices without biased sales environments. VR is also being utilized for staff training to offer realistic settings for learning and enabling staff to rehearse activities like component installation within given time limits. Application of VR technology by the automotive segment provides advantages that include enhanced employee training, efficient product design, and development along with engaging experiences for customers allowing the segment to dominate the industry.
