Augmented Reality in Automotive Market

Global Augmented Reality (AR) in Automotive Market Research Report: By Function (Standard AR HUD, AR HUD Based Navigation, AR HUD Based Adaptive Cruise Control, AR HUD Based Lane Departure Warning), By Sensor Technology (Radar, LiDAR, CCD/CMOS Image Sensor, Sensor Fusion), By Display Technology (TFT-LCD, Other Advanced Technologies), By Level of Autonomous Driving (Conventional, Semi-autonomous), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2023-2031.

Automobile & Transportation | November 2023 | Report ID: EMR00296 | Pages: 317

The global augmented reality in automotive market was valued at USD 5.20 billion in 2022 and is estimated to reach approximately USD 22.80 billion by 2031, at a CAGR of 17.8% from 2023 to 2031.

An important turning point in vehicle technology has been reached with the introduction of augmented reality (AR) into the automotive sector, which has completely changed the driving experience. Augmented reality (AR) improves drivers' perception and engagement with the environment around their vehicle by superimposing digital information over the real world. Here, augmented reality (AR) is applied to heads-up displays (HUDs), which project real-time data such as speed, navigation, and alerts onto the windshield to let drivers access important information without taking their eyes off the road. Furthermore, by superimposing step-by-step instructions or emphasizing vehicle components, augmented reality (AR) enables immersive maintenance and repair procedures that help personnel service cars more quickly. Beyond the driver, augmented reality (AR)-based assistance can also improve passenger entertainment by offering tailored content, travel insights, or interactive games. The use of AR in the automobile industry is changing the meaning of safety, convenience, and entertainment. This is paving the way for a time when cars act as connected information and entertainment hubs, improving the driving experience overall and guaranteeing safer and more knowledgeable travels for everybody.

 

 

AUGMENTED REALITY IN AUTOMOTIVE MARKET: REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Estimated Market Value (2022)

5.20 Bn

Projected Market Value (2031)

22.80 Bn

Base Year

2022

Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Function, By Sensor Technology, By Display Technology, By Level of Autonomous Driving, & Region

Segments Covered

By Function, By Sensor Technology, By Display Technology, By Level of Autonomous Driving, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Augmented Reality (AR) in Automotive Market Dynamics

The ongoing advancements in augmented reality (AR) software and hardware, which enable increasingly complex applications in cars, are important factors influencing this industry. Together, automakers and tech companies are working to seamlessly incorporate augmented reality, with the goal of creating user-friendly, intuitive interfaces that improve convenience and safety. This progress is being driven by consumer expectations, which call for AR features that provide interactive elements, contextual information, and real-time navigation inside the driving environment. Cost-effectiveness in the production of AR-enabled components becomes crucial as the technology develops, potentially affecting market accessibility and adoption rates. The adoption of AR is also influenced by regulatory frameworks and safety standards, which calls for the creation of guidelines to guarantee that AR displays do not distract drivers or jeopardize road safety. For the automobile industry, software developers, and AR experts to successfully negotiate these regulatory difficulties, partnerships are essential. Furthermore, as businesses compete to provide distinctive AR-driven experiences, from improved car diagnostics to passenger-immersive entertainment, they are also driven to innovate and differentiate themselves in the market. An exciting transformation in driving experiences is being paved by the complex interaction of consumer expectations, regulatory considerations, competitive pressures, and technology advancements shaping the future of augmented reality in the automobile sector.

 

Global Augmented Reality (AR) in Automotive Market Drivers

  • Technological Advancements in AR

More complex and engaging augmented reality experiences within cars are now possible because to advancements in AR hardware, software, and sensor technologies, which are developing quickly. These developments include enhancements to field-of-view, optics, and display quality, which produce larger, crisper augmented displays. Furthermore, advances in machine learning and augmented reality software algorithms improve gesture control, object detection, and spatial mapping for more natural and intuitive interactions with the car environment. The viability of augmented reality (AR) components in automotive applications is facilitated by their miniaturization and integration into small, effective systems, which allows for their smooth integration without sacrificing vehicle performance or design.  Advances in sensor technologies, including LiDAR and depth-sensing cameras, also improve AR's perception accuracy of the environment around the car, which is important for functions like object detection, collision avoidance systems, and augmented navigation. These advancements in technology not only enhance the functionality and quality of AR systems but also reduce their cost, opening up AR for integration into a wider variety of automobiles.

  • Demand for Enhanced User Experience

Customers want their automobiles to be immersive, user-friendly, and personalized experiences in addition to being means of transportation. This need is satisfied by augmented reality (AR) technology, which allows digital data to be seamlessly integrated with the real-world driving environment, making interactions between drivers and passengers more interesting and educational. Intuitive interfaces that deliver real-time information without detracting from driving are what drivers look for. Heads-up displays (HUDs) and overlays powered by augmented reality (AR) provide crucial information to drivers in their field of vision, such as traffic updates, safety alerts, and navigation directions, enhancing situational awareness and minimizing the need for frequent visual adjustments. AR also makes traveling more comfortable and entertaining. With personalized material, augmented tourism experiences, and interactive entertainment available to them, passengers may make the trip more interesting and pleasurable. Innovation in automotive augmented reality is being driven by the growing desire for seamless and user-friendly experiences as customer expectations shift towards lifestyles that are connected with technology.

 

Restraints:

  • High production costs of AR-enabled components and systems

These expenses cover a range of items, such as the creation of specialized hardware, cutting-edge sensors, sharp displays, and intricate software integration. The complexity of creating, producing, and integrating AR systems into automobiles is a major factor in their high production costs. Production costs are further increased by the requirement for premium parts that adhere to strict automotive safety and durability standards. These costs frequently trickle down to customers in the form of higher car prices, which restricts access to AR-enhanced features, especially in more affordable car segments. Moreover, the constant progress in augmented reality technology necessitates continuous research, development, and improvement, which raises the cost of maintaining the vanguard of AR innovation. It is still difficult to reduce these high production costs without sacrificing functionality and quality, which could prevent AR-driven features from being widely available and used in the car industry.

 

  • Regulatory Compliance and Safety Standards

Augmented reality (AR) systems must carefully combine the need to provide useful information with the need to prevent distracted driving caused by stricter rules governing in-vehicle displays and driver distractions. Adherence to these standards frequently necessitates thorough testing and validation of AR interfaces to guarantee they fulfill specified safety limits, hence extending development cycles and increasing expenses. In addition, the dynamic character of rules in various jurisdictions and countries makes it more difficult to standardize AR systems, which presents difficulties for producers hoping to gain traction in the worldwide market. Sustaining ongoing innovation and compatibility with dynamic safety regulations is necessary to guarantee that augmented reality displays and features do not impede driver view or attention while delivering relevant information. Manufacturers may have to slow down the rate of innovation and adoption of AR technologies as a result of the constant need to adapt their products to these rules.

 

Opportunities:

  • AR-Driven Enhanced Safety Features

Automobile systems can provide unmatched safety measures by incorporating augmented reality (AR)-driven increased safety features. Augmented Reality (AR) projects vital information onto the driver's field of vision, delivering real-time notifications about potential crashes, road conditions, and hazards. With the help of this technology, drivers can have complete situational awareness without taking their eyes off the road. AR, for example, can provide heads-up displays (HUDs) that show speed restrictions, warning signs, and navigation cues to help with rapid and accurate decision-making. Moreover, people, obstructions, and possible threats can all be detected via AR-driven collision detection and avoidance systems, allowing for proactive accident prevention. These technologies guarantee a safer transition between manual and automatic modes and enhance driver awareness while integrating smoothly with autonomous driving systems.

  • AR-Based Maintenance and Remote Assistance

By streamlining repair procedures and facilitating remote support, Augmented Reality (AR) integration in vehicle maintenance presents a game-changing possibility. AR-based maintenance increases the accuracy and efficiency of technicians by superimposing digital instructions, schematics, and step-by-step directions over the actual car components. Real-time advice made possible by this technology streamlines difficult procedures and drastically cuts down on diagnosis and maintenance times. AR also makes it possible for professionals to offer advice from a distance by superimposing instructions on a technician's perspective in the field. In addition to increasing repair accuracy, this lowers operating expenses and downtime for service facilities. Furthermore, by providing workers with access to up-to-date repair techniques and expertise, AR-based maintenance promotes skill uniformity among technicians and facilitates ongoing learning.

 

Segment Overview

By Function

Based on function, the global augmented reality in automotive market is divided into Standard AR HUD, AR HUD based navigation, AR HUD based adaptive cruise control, AR HUD based lane departure warning. The AR HUD based navigation category dominates the market with the largest revenue share in 2022. AR HUD-based navigation systems enhance traditional GPS navigation by overlaying dynamic and interactive guidance directly onto the windshield. This provides real-time, intuitive directions, including turn-by-turn navigation, lane guidance, and points of interest, improving navigation accuracy and reducing reliance on traditional dashboard screens. Where, Standard AR HUD this segment involves the integration of basic AR HUD technology into vehicles. It overlays essential information onto the windshield or a dedicated display within the driver's field of view. The displayed data typically includes speed, navigation prompts, basic vehicle diagnostics, and safety alerts, ensuring vital information is readily available without diverting the driver's attention from the road. AR HUD based adaptive cruise control, this segment integrates AR HUD technology with adaptive cruise control systems. AR overlays relevant information about surrounding vehicles, traffic conditions, and speed limits, directly aiding the driver in adjusting cruise control settings for safe and efficient driving in varying traffic scenarios. AR HUD-based lane departure warning systems use visual cues projected onto the windshield to alert drivers when unintentionally drifting out of their lane. The system detects lane markings and provides real-time alerts, enhancing driver awareness and reducing the risk of accidents due to unintended lane changes.

 

By Sensor Technology

Based on the sensor technology, the global augmented reality in automotive market is categorized into radar, LiDAR, CCD/CMOS image sensor, sensor fusion. The sensor fusion category leads the global augmented reality in automotive market with the largest revenue share in 2022. Sensor fusion involves the integration and processing of data from multiple sensor types, combining information from radar, LiDAR, image sensors, and other sources. Sensor fusion techniques aim to create a comprehensive and accurate representation of the vehicle's surroundings, improving the reliability and accuracy of AR applications such as collision avoidance, autonomous driving, and contextual information overlays. Radar systems in automotive AR utilize radio waves to detect objects around the vehicle. They measure the distance, speed, and direction of other vehicles, pedestrians, or obstacles in the vicinity. Radar helps in adaptive cruise control, collision warning systems, and blind-spot detection by providing data on surrounding objects. LiDAR technology uses laser light pulses to measure distances and create detailed 3D maps of the vehicle's surroundings. In AR applications, LiDAR provides high-resolution spatial data, enabling precise object detection, localization, and mapping for autonomous driving, navigation assistance, and obstacle avoidance. CCD (Charge-Coupled Device) and CMOS (Complementary Metal-Oxide Semiconductor) image sensors capture visual information, converting light into digital signals. These sensors are utilized in AR systems to capture real-time visual data, enhancing features like lane departure warnings, pedestrian detection, and traffic sign recognition by analyzing the visual environment.

 

By Display Technology

Based on display technology , the global augmented reality in automotive market is segmented into TFT-LCD, other advanced technologies. TheTFT-LCD segment dominates the augmented reality in automotive market. TFT-LCD displays are a type of flat-panel display commonly used in automotive AR systems. These displays consist of thin-film transistors that control the individual pixels, allowing for sharper images, faster response times, and improved color reproduction. In AR applications, TFT-LCD screens are employed for heads-up displays (HUDs) or in-dash displays to project digital information, such as navigation prompts, safety alerts, speed, and other vehicle data, onto the windshield or a dedicated screen within the driver's line of sight.

 

By Level of Autonomous Driving

Based on level of autonomous driving, the global augmented reality in automotive market is divided into conventional, semi-autonomous. The semi-autonomous category dominates the market with the largest revenue share in 2022. Semi-autonomous vehicles possess advanced driving assistance systems that allow for a higher level of automation in certain driving scenarios. AR technology in semi-autonomous vehicles supports these systems by providing augmented information to assist drivers during automated driving modes. This might include AR overlays for lane-keeping assistance, adaptive cruise control, augmented navigation with real-time mapping and route guidance, and enhanced object detection to aid semi-autonomous driving functionalities. Where, conventional vehicles refer to those that operate primarily with traditional human control, lacking advanced autonomous driving capabilities. In this context, AR technology is integrated into vehicles to enhance the driving experience, improve safety, and provide convenience features for drivers. AR applications in conventional vehicles often include heads-up displays (HUDs) that project essential information such as speed, navigation prompts, safety alerts, and other vehicle data onto the windshield or dashboard. These AR features aim to augment the driver's awareness and provide crucial information without causing distraction.

 

Global Augmented Reality (AR) in Automotive Market Overview by Region

The global augmented reality in automotive market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. North America emerged as the leading region, capturing the largest market share in 2022. The area is home to several of the top manufacturers of automobiles, research institutes, and creators of augmented reality technologies, making it a hub for technical innovation. This focus of knowledge encourages quick progress in augmented reality systems designed for use in automobiles. Furthermore, embracing cutting-edge technologies is highly valued by the North American automobile industry as a means of improving driving experiences and safety. In response to consumer demands for more features, this proactive strategy has pushed the incorporation of augmented reality (AR) elements like heads-up displays (HUDs) and advanced driver assistance systems (ADAS) into automobiles. Additionally, the size of the market and customer preferences in the area are crucial. North America has a sizable car industry, with tech-savvy buyers that appreciate cutting-edge technologies and innovative design in their cars. Automakers have prioritized integrating augmented reality technology in order to match client expectations and differentiate their vehicles due to this need. Furthermore, North America is a leader in the automobile industry's integration of augmented reality (AR) because to cooperative efforts between industry players, government programs promoting innovation, and a welcoming regulatory environment for testing and deploying new technology.

 

 

 

Global Augmented Reality (AR) in Automotive Market Competitive Landscape

In the global augmented reality in automotive market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global augmented reality in automotive market include Continental AG, Volkswagen AG, Daimler AG, BMW Group, Panasonic Corporation, Visteon Corporation, Hyundai Motor Company, Jaguar Cars, WayRay, Audi AG, and various other key players.

 

Global Augmented Reality (AR) in Automotive Market Recent Developments

In February 2022, Germany's Apostera Automotive Technology is acquired by Samsung's Harman. Harman is committed to providing in-car experiences that combine the dependability and performance of automotive grade technologies with the speed and flexibility of consumer technology.

 

Scope of the Global Augmented Reality (AR) in Automotive Market Report

Augmented Reality (AR) in Automotive Market Report Segmentation

ATTRIBUTE

DETAILS

By Function

  • Standard AR HUD
  • AR HUD Based Navigation
  • AR HUD Based Adaptive Cruise Control
  • AR HUD Based Lane Departure Warning

 

 

 

By Sensor Technology

  • Radar
  • LiDAR
  • CCD/CMOS Image Sensor
  • Sensor Fusion

 

By Display Technology

  • TFT-LCD
  • Other Advanced Technologies

 

 

 

By Level of Autonomous Driving

  • Conventional
  • Semi-autonomous

 

 

 

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Augmented Reality (AR) in Automotive Market Size and Forecast:

To identify and estimate the market size for the global augmented reality in automotive market segmented by function, by sensor technology, by display technology, by level of autonomous driving, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of augmented reality in automotive between 2019 and 2031.

  • Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global augmented reality in automotive market

  • Market Influencing Factors:

To find out the factors which are affecting the sales of augmented reality in automotive among consumers

  • Impact of COVID-19:

To identify and understand the various factors involved in the global augmented reality in automotive market affected by the pandemic

  • Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

  • Automakers and Manufacturers
  • Consumers
  • Maintenance and Repair Professionals
  • Insurance Companies
  • Retailers, Wholesalers, and Distributors
  • Governments, Associations, and Industrial Bodies
  • Investors and Trade Experts

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

The global augmented reality in automotive market forecast period is 2023 - 2031.
According to augmented reality in automotive market research, the market is expected to grow at a CAGR of ~17.8% over the coming years.
Asia-Pacific is expected to register the highest CAGR during 2023 - 2031.
North America held the largest share in 2022.
The major players operating in the global augmented reality in automotive market include Continental AG, Volkswagen AG, Daimler AG, BMW Group, Panasonic Corporation, Visteon Corporation, Hyundai Motor Company, Jaguar Cars, WayRay, Audi AG ,and various others.