Augmented Reality (AR) in Automotive – Thematic Research

The global augmented reality (AR) market was worth nearly $7 billion in 2020. The market is expected to grow at a CAGR of more than 35% by 2030.  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 is a safety-critical issue in vehicles where a human is driving. AR can also enable the safer operation of vehicles through easily understandable head-up displays (HUDs). Moreover, it can ensure faster training of automotive staff and create more immersive entertainment experiences.

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.

AR Market Outlook (2020-2030)

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What is the impact of AR on the automotive industry?

COVID-19 may present an opportunity for AR. Consumers are understandably wary of interacting with shared surfaces, so there could be more demand for systems that allow users to interact without making physical contact with controls. This could manifest as deeper smartphone integration for interacting with ride-hail services.

Autonomous technology can also act as a selling point, and with more autonomy comes the ability to integrate more instances of AR technology. In semi-autonomous vehicles, vehicle occupants, particularly the driver, have more time to devote to tasks other than driving the car. In these circumstances, drivers and passengers can interact with onboard entertainment systems through AR without being constantly aware of their surrounding environment. Bringing these technologies together in one vehicle would certainly help attract more customers.

AR headsets can reduce both the error rate and the amount of time spent quality checking components before they are put together. This reduces the likelihood of cars being recalled due to manufacturing errors and increases the amount of time a vehicle can be on the road before it requires repair.

Considering that novel on-board technological experiences are a potential avenue to attract younger buyers to a brand, it’s easy to see how AR could enhance a vehicle’s digital package. Whether that is through augmenting digital content into the interior experience or creating a virtual experience as part of a new model’s marketing campaign, there are myriad ways the technology could be used to help sell vehicles.

What are the different value chains of AR market?

The value chains of AR market can be divided into five segments: semiconductors, components, devices, platforms, and apps & content.

Semiconductors

Semiconductors are one of the key battlegrounds in AR today. Chipmakers are now striving to improve their existing capabilities to suit the evolving requirements of AR, mostly around screen resolution, frame rates, processing speed, and connectivity.

Components

Much of the major action in AR components is around 3D sensors, cameras, audio, displays, and batteries. These components come together for positional tracking, motion tracking, gesture recognition, and machine vision.

Devices

AR-enabling hardware comes in various forms, including smartphones, eyewear (AR smart glasses), and AR headsets. For consumer AR applications, smartphones are the most commonly used platform, while enterprises typically prefer AR headsets and AR smart glasses, which offer a broader range of functions.

Platforms

Building an AR ecosystem by incorporating both hardware and software is essential for the long-term success of any company in this market. The five prerequisites for a successful AR ecosystem are application programming interfaces (APIs) & SDKs, AR engines – games, AR engines – enterprise, AI, and application delivery networks (ADNs) & content delivery networks (CDNs).

Apps & Content

Content is a major area of concern for AR companies. Snap, Meta, Tencent, and ByteDance have merged AR and eCommerce into their social media platforms, offering users the ability to try on products virtually. The ease of viewing products online, coupled with the ability to interact with those products, gives users a novel and immersive shopping experience.

AR Market, by Value Chains

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Which are the key automotive companies associated with the AR theme?

The key automotive companies associated with the AR theme are BMW, Continental, Daimler, Ford, General Motors (GM), Hyundai, Jaguar Land Rover (JLR), Nissan, Stellantis, Tesla, Toyota, Volkswagen, and Volvo.

Automotive Companies Associated with AR Theme

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Which are the specialist AR market vendors in the automotive sector?

The specialist AR market vendors in the automotive sector are Blippar, DigiLens, Envisics, StradVision, Varjo, Visteon, and WayRay.

Specialist AR Vendors in the Automotive Sector

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Market Report Scope

Segments Covered in the Report

AR Value Chain

• Semiconductors
• Components
• Devices
• Platforms
• Apps and content

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.
• The 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.