New Report Says AR Is Creating Market Value For Automotive Industry
Report from ABI Research predicts that Automotive AR market will reach $5.5 billion by 2022.
Augmented reality (AR) has started to attract attention is industry and enterprise, with a rising number of firms turning to AR or mixed reality (MR) to improve productivity in various ways. A report by ABI Research indicates that this trend will continue, and that AR will be vital in creating future market value for the automotive industry.
Automotive manufacturers are already experimenting with AR and MR technologies, with Ford equipping its designers with the Microsoft HoloLens, and other companies such as Hyundai and Volvo utilising the technology for virtual test drives.
ABI Research estimates that global smart glasses shipments for use in the automotive industry will hit 1.7 million in 2022, and the total automotive AR market is expected to grow at CAGR of 177% to reach $5.5 billion (USD) by 2022.
“Augmented Reality benefits automotive manufacturers at many stages of a product cycle, including design, prototyping, manufacturing, and marketing,” says Marina Lu, Senior Analyst at ABI Research. “In design, digital 3D visualization and analysis of body structure and components can save time and resources. Collaboration is streamlined and improved, evaluating the same content in real time, which ultimately speeds up decision-making. AR technology supplements traditional tools, such as clay modeling, with virtual components on top of an existing physical object, to show design variants or to support design reviews, again shortening cycles and saving on design and prototyping costs.”
“While it is still early for automotive AR use, the applications at play have already shown proven ROI,” adds Eric Abbruzzese, Principal Analyst. “ROI is always the first question to answer for any new technology, and this is especially true for AR. Collaboration, step by step instruction, remote expertise, 3D spatial visualization, and more have all been tried across industries, with positive and predictable results. The importance of design and prototyping combined with the slim margins of the automotive industry make it a prime candidate for wide AR adoption. From 3D visualization with designers to enhancing employee efficiency and safety on the plant floor to enticing buyers with digital experiences, the symbiotic relationship between augmented reality and the end-to-end automotive market is strong, and will continue to strengthen and grow.”
The full report, titled AR in Automotive, Design, Prototyping and Marketing is part of ABI Research’s AR & Mixed Reality research service. Further information can be found on the company’s website. Further news on developments in the VR and Ar industry will be here on VRFocus.