Immersive Technology in the Automotive Industry

From rapid prototyping of vehicle designs using virtual environments, to augmented reality showrooms that allow customers to explore and customise cars in unprecedented ways.

Immersive technology has made significant strides in recent years, and its application within the automotive industry is transforming various aspects of how consumers interact with vehicles and how companies develop, manufacture, and market their products. Encompassing immersive technologies contributes to a more engaging user experience.

VR/AR in the Automotive Industry

Virtual Prototyping

Virtual prototyping enables car designers to visualise the exterior of a vehicle virtually, reducing the need for creating physical mockups and saving time and costs. According to a case study from Jasoren, design teams can implement modifications to car exteriors in real-time using virtual mock-ups. technical tools like VR and Mixed Reality (MR) have a notable impact on the validation of vehicle concepts during the development process. 

Collaborative Design Tools

Collaborative design tools enable teams to work together in real-time and provide instant feedback in virtual environments. This enhances communication and ultimately leads to a more efficient and effective design process. For example, immersive technologies can be incorporated into the automotive design process to radically innovate transportation design education. 

Driver Training Simulations

By using VR technology, trainees can be exposed to various driving scenarios without being on the road. This enables them to practise manoeuvres, improve their reaction times, and develop a better understanding of different road conditions. Moreover, immersive technology allows educational institutions and driving schools to create custom training programs catering to individual needs.

Virtual Test Drives

Car manufacturers and dealers can utilise AR and VR to offer customers an interactive and realistic experience of a vehicle before purchase. Virtual test drives allow customers to better understand a car’s features and performance in controlled virtual environments, without any financial commitment or physical risk. They also serve as an effective marketing tool for automotive companies to showcase their products and attract potential buyers.

Quality Control

Utilising AR and VR devices, engineers can visually inspect components during the assembly process, ensuring that everything is built to the correct specifications. This has led to a significant reduction in errors and an overall increase in the quality of the final products. Additionally, AR can be used to overlay instructions on the assembly process, further minimising the risk of errors and making it easier for workers to follow the correct steps.

Advanced Robotics

By using VR to simulate and control robotic arms, manufacturers can achieve greater precision and accuracy in assembling vehicles. This technology has also been used in training workers on how to operate robotic equipment safely and effectively. Moreover, pairing robotic systems with AR technology has allowed for real-time adjustments to be made during the assembly process, ensuring the maximum efficiency of production lines.

Projected Market Value

  • XR Automotive Market The global virtual reality in automotive market size was valued at $759.3 Mn in 2019 & is projected to reach $14,727.9bn by 2027
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Immersive Technology the Automotive Industry

Immersive technology has made significant strides in recent years, and its application within the automotive industry is transforming various aspects of how consumers interact with vehicles and how companies develop, manufacture, and market their products. Encompassing virtual reality (VR), augmented reality (AR), and mixed reality (MR), immersive technologies have the potential to revolutionise the automotive landscape and contribute to a more engaging user experience.

One of the primary uses of immersive technology in the automotive industry involves the design and development process. With tools like AR and VR in automotive, designers and engineers can create and test prototypes more efficiently, while also visualising vehicle structures and components in three-dimensional spaces. Similarly, immersive technology assists in employee training, allowing staff members to familiarise themselves with new vehicles, components, and processes within a safe, simulated environment.

Moreover, companies are progressively using immersive technology as a sales and marketing tool, offering online car configurators, 3D visualisations, and AR demonstrations to potential customers. As the world moves toward digital showrooms and remote purchases, these technologies significantly enhance the car-buying experience by allowing customers to virtually explore, customise, and test drive vehicles from the comfort of their own homes.

Virtual Reality

Virtual reality (VR) showrooms are revolutionising the car-buying experience, enabling potential customers to explore and interact with various car models without physically visiting a dealer. By utilising VR, automotive brands can showcase their vehicles in a custom digital environment, allowing customers to explore different colour options, trim levels, and features at their leisure.

Key benefits of VR showrooms include:

  • Reducing the need for physical dealership visits
  • Allowing customers to instantly view and customise car models
  • Potentially increasing sales by creating engaging and interactive experiences

Several car manufacturers, such as Audi and BMW, have already implemented virtual showrooms to enhance their customer interactions, and this trend is likely to continue as the technology matures.

In conclusion, immersive technologies like AR and VR offer promising opportunities for various applications within the automotive industry. By embracing these innovations, car manufacturers can enhance the driving experience and streamline the car-buying process.

Augmented Reality

Augmented reality (AR) technology is transforming the way drivers interact with their vehicles’ dashboards. AR dashboards overlay digital graphics onto the real-world view, providing drivers with relevant information such as navigation, speed, and alerts. This information is often displayed on the windshield, allowing drivers to keep their eyes on the road. As a result, AR-enhanced dashboards have the potential to improve driver safety and streamline the driving experience.

Some advantages of AR dashboards include:

  • Visual guidance for navigation, avoiding the need to look away from the road
  • Real-time alerts for obstacles, traffic, and upcoming turns
  • Customisable displays that can show preferred data and widgets

Car manufacturers like BMW have successfully implemented AR dashboards, and we can expect more brands to follow suit as the technology becomes more prevalent.

Applying Immersive Tech in the Automotive

Design and Prototyping

Designers can explore different shapes, sizes, and configurations in a virtual environment, allowing for faster design iterations and more accurate assessments of aesthetics and ergonomics. VR also enables collaborative design reviews, as teams can remotely visualise and interact with the same virtual model.

Engineering & Simulation

VR allows engineers to simulate and test various scenarios, such as crash simulations, aerodynamics, and performance analysis. By visualising and experiencing these simulations in virtual environments, engineers can make informed design decisions and optimise vehicle performance.

Manufacturing & Assembly

AR overlays digital information onto the physical workspace, providing real-time guidance to assembly line workers. Assembly instructions, part identification, and quality control processes can be displayed directly on the worker’s field of view, reducing errors and improving efficiency on the production line.

Benefits & Impact


Immersive technologies can be integrated with other emerging technologies, such as artificial intelligence (AI) and the Internet of Things (IoT), to create even more innovative applications for the automotive sector. 

Design & Engineering

Engineers and designers utilise immersive technologies such as augmented reality to visualise, test, and refine new car models in real-time. This results in a more efficient and effective design process, saving time and reducing costs.

Enhanced User Experience

The use of virtual reality showrooms allowing customers to explore and interact with cars in a lifelike environment without needing to visit a physical location. This saves time and resources and also opens up new marketing and sales opportunities.

Future Trends and Developments

As technology continues to advance at an unprecedented pace, the automotive sector has embraced immersive technologies as a means to revolutionize various aspects of the industry. From design and engineering to manufacturing and customer experience, immersive technologies such as virtual reality (VR) and augmented reality (AR) have brought about transformative changes.

Augmented reality is revolutionising the manufacturing process by providing real-time visual guidance and instructions to assembly line workers. AR overlays digital information onto physical environments, aiding in tasks such as part identification, quality control, and assembly procedures. This technology streamlines production, improves accuracy, and reduces human error, ultimately leading to increased productivity and cost savings.

Immersive technologies are also significantly impacting the automotive retail experience. Virtual reality is transforming the way customers interact with vehicles, enabling virtual test drives and immersive showroom experiences. Potential buyers can explore different models, customise features, and even visualise the vehicle in various environments, all without leaving the dealership.

These immersive experiences enhance customer engagement, facilitate informed decision-making, and contribute to a more personalised and memorable purchasing journey.

  • Connected Vehicles Connected vehicles will enable more immersive experiences for passengers, such as personalized entertainment and augmented reality displays.
  • Virtual Showrooms Virtual showrooms will allow customers to explore and customise vehicles in a fully immersive and interactive environment, reducing the need for physical showrooms.
  • Augmented Reality Maintenance Augmented reality can be used to provide real-time maintenance instructions and diagnostics, reducing the need for physical inspections and repairs.
  • In-Car Entertainment Immersive technologies such as virtual and augmented reality will enable more engaging and personalized in-car entertainment experiences for passengers.
  • Extended Reality (XR) Gaming Automakers and tech companies are combining vehicle data and physics with XR to create immersive gaming experiences for backseat passengers, raising the bar for in-car entertainment significantly.

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