The world is changing. In the past two years, digital transformation, new technologies and evolving customer expectations have pushed virtually every business into a rapid state of evolution. Few sectors are under more pressure than the automotive industry.
For decades, automotive companies have been quick to adopt and explore new digital innovations. After all, consumers are constantly looking for faster, more efficient and safer vehicles. In the past two years, we’ve seen a significant increase in the number of automotive brands experimenting with new fuel sources, autonomous vehicles and artificial intelligence.
Now, one of the core technologies driving the new era of automotive appears to be “augmented reality.” XR solutions offer vehicle manufacturers and sellers new opportunities to speed up production processes, improve customer service and even improve employee training.
In fact, one element of XR, virtual reality, is projected to reach a value of around $14.7 billion by 2027 for the automotive space alone. So how are car brands taking advantage of this new landscape?
1. Use XR to enhance training
Countless dealerships and automakers are currently in the process of upgrading and retooling their equipment, hoping to drive faster innovation. Jaguar Land Rover, for example, recently committed to launching a new upskilling program for more than 29,000 employees.
Regular training and education is crucial in the automotive landscape for numerous reasons. The right training can help employees access and use new tools for prototyping and advanced innovation. Educational tools can also help improve business revenue by helping teams develop the interdisciplinary skills they need to effectively interact with consumers.
Unfortunately, delivering traditional training in a world of hybrid and distributed workers is easier said than done. That’s why innovative car brands are embracing the XR landscape. Even before the pandemic hit, companies like Volkswagen were investing in VR to train team members in more immersive and engaging experiences. Today’s innovators are leveraging XR to train team members in vehicle assembly, production line best practices, and even vehicle maintenance.
For example, BMW has a number of VR courses available for professionals, covering areas such as workplace planning, acquiring mechanical knowledge and skills, and leveraging design data.
2. Vehicle innovation
XR is also helping automotive companies explore the next generation of vehicle innovation. For example, the 2020 Mercedes-Benz GLE was widely regarded as the world’s first car to offer a top-level AR experience in the car environment. The GLE introduced users to an AR navigation screen, capable of displaying real-time navigation instructions and data, via a live camera view attached to the dashboard.
Looking ahead, companies plan to incorporate more of these powerful technologies into the windshield to provide drivers with up-to-date information designed to improve driver safety and improve road navigation. For example, the PSA group, known for owning several multinational car brands such as Citroen and Vauxhall, has already begun developing a head-up display that projects information onto the windshield of cars.
By implementing XR technology directly into vehicles, companies can give consumers access to more valuable information in the moment, which could help them plan their journey, avoid risks and keep pedestrians safe. WayRay recently shared some insights into its own AR car display, used on real-life roads in authentic conditions.
3. Improvement of production processes
Perhaps the biggest area most automotive companies are investing in when it comes to XR is production and planning. Market leaders in the automotive sector are bringing team members together using virtual reality headsets to enable resource-free development and production of prototypes.
In the past, designing new cars would be a time-consuming, expensive and resource-intensive process. But with virtual reality, companies can experiment with designs in an infinitely scalable world, creating digital twins of products they will eventually bring to market. Companies like Ford have already developed their own virtual labs where designers and engineers can collaborate on car designs and test the functionality of new components.
It’s not just virtual reality that has the potential to transform car production. In engineering environments where professionals are responsible for putting car components together and configuring new systems, MR and AR can be infinitely beneficial. An AR playbook can guide employees through complex manufacturing processes in real-time, with immersive insights.
4. Improved team collaboration
Building the next generation of powerful automotive expertise requires automotive companies to connect professionals from diverse backgrounds. In the past, gathering a multitude of different staff members in one space to create or revise a car model would have been a costly and time-consuming process. However, this is not the case with XR.
With virtual reality, companies can build digital twins of the production floor that allow people to work simultaneously on the development of new car models. In 2018, for example, Volkswagen began using virtual reality with HTC Vive to bring staff members together to work on the same model remotely, in real time.
In the future, mixed reality innovations could allow professionals responsible for quality analysis of newly manufactured vehicles to essentially “teleport” into a production environment. They could see holographic representations of the vehicle they need to check out in front of them, or even interact with a digital twin in virtual reality.
5. Transformed customer experiences
Since the pandemic, car companies have seen a massive drop in visits to physical showrooms. Consumers are less comfortable with the idea of visiting a showroom in person than they once were, even after businesses have officially “reopened” their doors. Part of the reason for this is that buying a new car has been a notoriously complex experience. Most showrooms only have the option to display a handful of models, depending on your physical property.
Shifting showrooms and customer experiences into the virtual world can lead to far more personalized and powerful experiences for consumers. For example, Audi offers the “Audi VR Experience,” where customers can explore a car’s details through a virtual reality headset and even make changes to trims, features, and colors on demand.
As virtual reality solutions continue to evolve, companies are even beginning to explore new opportunities that allow customers to virtually “test drive” a vehicle without actually stepping inside the car itself. Abarth launched the world’s first virtual reality driving experience in 2021.
Whether it’s training, customer experience or innovation, the automotive industry is quickly taking advantage of the various benefits the XR landscape offers. There is no doubt that the connection between XR and the automotive space will continue to evolve in the coming years.
