Global Automotive Virtual Reality Growth Opportunities

Global Automotive Virtual Reality Growth Opportunities

Premium Automakers Will Implement VR in Vehicles First; Operational, Functional, and Safety Related Constraints Will Challenge Adoption in the Future

RELEASE DATE
09-Jul-2021
REGION
Global
Research Code: PBED-01-00-00-00
SKU: AU02179-GL-MT_25575
$2,450.00
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Description

Virtual Reality (VR) is an advanced immersive technology used in industries, such as healthcare, gaming, smartphone, and manufacturing, for a wide range of use cases to enhance user productivity and to provide high-definition entertainment services. The automotive industry has been experimenting with VR in manufacturing facilities and dealer showrooms. The urgency to digitize retail practices has taken priority like never before. VR offers virtual showroom tours, test drives, and 360° views of vehicle interiors for an immersive customer experience. In OEM manufacturing facilities, prototype designing is simplified using VR simulation and helps in making changes seamlessly. Virtual employee training programs, self-driving vehicle simulation testing, and collaborative design reviews are some use cases that can be implemented through VR. However, VR inside cars are very niche today. Gaming-capable processors are prerequisites to implementing VR in cars and, hence, VR-based entertainment services will be piloted in premium brands (such as Tesla, Audi) between 2023 and 2025. This study will analyze the different VR applications in the automotive industry and the potential growth opportunities and challenges of implementing VR in connected vehicles.

VR is used majorly in automotive digital showrooms and vehicle production environments for an interactive user experience and improved employee productivity. However, VR in cars is still a niche use case, and is expected to be implemented beyond 2023. VR will be used for entertainment purposes, such as movie streaming, media playback, gaming consoles, virtual tours, and online concerts by passengers in future ownership and usership vehicles. On-demand digital cockpits will redefine the in-car experience for consumers, with focus on comfort and convenience. Future connected vehicles are expected to have individual sound bubbles and dedicated infotainment screens for each passenger.
VR will play a critical role to support virtual entertainment options and provide personalized experiences for passengers.

Growth Opportunities:
5G is expected to slowly eliminate the bottleneck of computing power, latency rates, and high-speed network connectivity needed for real-time VR services in the automotive industry. VR will enable automakers to fast-track the self-driving vehicle testing process through multiple virtual simulations. VR simulations will ensure AV safety testing to be done at minimal costs virtually instead of complex road trial programs. Frost & Sullivan expects that premium vehicles and luxury brands with advanced processors and GPU compute capabilities will be the first ones to launch in-vehicle VR applications. Tesla announced a new gaming computer in Model S and X vehicles to support gaming and entertainment services. Audi, along with Holoride and Disney, demonstrated an in-car VR experience while the vehicle was in motion. Such developments indicate the inclination of premium brands such as Tesla and Audi to implement VR in vehicles. OEMs such as VW and BMW are expected to follow suit.

Challenges:
The overall cost of a VR setup is expensive and can be integrated with only high-performance computing devices to see the best results, thereby, increasing the overall service subscription costs for passengers. For a fully immersive experience, a 360-degree view is critical in VR. This requires robust Internet connectivity throughout the vehicle journey with low latency rates and higher speeds. Else, the VR experience will be poor with less real-time response and a disorientating experience that can lead to motion sickness for users. Lack of regulations to monitor automotive VR deployments, safety protocols, and best practices when viewing VR content will challenge VR implementation in vehicles.

Author: Dorothy Amy

RESEARCH: INFOGRAPHIC

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Table of Contents

Why Is It Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top Three Strategic Imperatives on Automotive VR Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Virtual Reality in the Automotive Industry—Key Findings

Global VR Ecosystem Overview

VR Ecosystem Classification

Hierarchy of VR Technologies

Current VR Headset Offerings in the Market

Automotive VR Market—Scope Analysis

Automotive VR Segmentation in the Industry

Key Growth Metrics for VR in Connected Cars

Forecast Assumptions, VR in Connected Cars

Growth Drivers for Connected Cars VR Adoption

Growth Restraints for Connected Cars VR Adoption

Connected Cars With Embedded Telematics: Forecast to 2030

VR in Connected Cars Penetration

Connected Cars With VR—Bearish Scenario

Connected Cars With VR—Likely Scenario

Connected Cars With VR—Bullish Scenario

Analysis of VR Growth Factors in Different Scenarios

VR Application by Industry for Business and Consumer

Automotive VR Drivers—Regional Impact Analysis

Automotive VR Challenges—Regional Impact Analysis

Key VR Applications Focused on by Automakers

Key Automotive VR Focus—Western Companies

Key Automotive VR Focus—Japan and Korea

Key Automotive VR Focus—Chinese Companies

VR in Future Cockpit Entertainment Features

What is the Customer Willingness to pay for In-Vehicle VR?

Case Study: Audi and Holoride’s Cockpit Technology

VR for Driving Simulation and Vehicle Configurator

VR for Internal Training Programs

VR for Industry 4.0 and Digital Showrooms

Next Gen Automotive VR Solutions for Consumers

Customer Expectation From Virtual Reality

Key Parameters—Satisfaction Versus Importance

VR/AR Automotive Use Case—Benefit Versus Complexity

Impact of 5G on VR Applications

5G is a Key Enabler in VR Deployment

Future Automotive VR Offerings and Their Impact

VR Impact on Autonomous Vehicles

VR’s Impact on Connected Mobility

VR’s Impact on Shared Mobility

VR’s Impact on Electric Vehicles

Different Types of VR Devices for an In-vehicle Experience

Automakers’ Roadblocks to Implement VR in Vehicles

VR Ecosystem by Type of Participant

Traditional VR Value Chain

Revenue Model in the VR Ecosystem

Key Comparison Between Key VR Headset Providers

Automotive VR In-Car Sensor Requirements

VR Headset Breakdown by Suppliers

Summary of Key VR Suppliers in Automotive

Key Global VR Start-ups Working in the Automotive Space

Key VR Use Cases for OEMs—Future Potential

Key Conclusions and Future Outlook

Growth Opportunity 1: 5G Connectivity Will Spearhead the VR Technology in Connected Vehicles

Growth Opportunity 1: 5G Connectivity Will Spearhead the VR Technology in Connected Vehicles (continued)

Growth Opportunity 2: VR Will Continue to Drive Productivity Use Cases in Vehicle Manufacturing Plants

Growth Opportunity 2: VR will Continue to Drive Productivity Use Cases in Vehicle Manufacturing Plants (continued)

Growth Opportunity 3: Future Digital Cockpits Will Drive VR Adoption for Gaming and Entertainment Services

Growth Opportunity 3: Future Digital Cockpits Will Drive VR Adoption for Gaming and Entertainment Services (continued)

Your Next Steps

Why Frost, Why Now?

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

Legal Disclaimer

Related Research
Virtual Reality (VR) is an advanced immersive technology used in industries, such as healthcare, gaming, smartphone, and manufacturing, for a wide range of use cases to enhance user productivity and to provide high-definition entertainment services. The automotive industry has been experimenting with VR in manufacturing facilities and dealer showrooms. The urgency to digitize retail practices has taken priority like never before. VR offers virtual showroom tours, test drives, and 360° views of vehicle interiors for an immersive customer experience. In OEM manufacturing facilities, prototype designing is simplified using VR simulation and helps in making changes seamlessly. Virtual employee training programs, self-driving vehicle simulation testing, and collaborative design reviews are some use cases that can be implemented through VR. However, VR inside cars are very niche today. Gaming-capable processors are prerequisites to implementing VR in cars and, hence, VR-based entertainment services will be piloted in premium brands (such as Tesla, Audi) between 2023 and 2025. This study will analyze the different VR applications in the automotive industry and the potential growth opportunities and challenges of implementing VR in connected vehicles. VR is used majorly in automotive digital showrooms and vehicle production environments for an interactive user experience and improved employee productivity. However, VR in cars is still a niche use case, and is expected to be implemented beyond 2023. VR will be used for entertainment purposes, such as movie streaming, media playback, gaming consoles, virtual tours, and online concerts by passengers in future ownership and usership vehicles. On-demand digital cockpits will redefine the in-car experience for consumers, with focus on comfort and convenience. Future connected vehicles are expected to have individual sound bubbles and dedicated infotainment screens for each passenger. VR will play a critical role to support virtual entertainment options and provide personalized experiences for passengers. Growth Opportunities: 5G is expected to slowly eliminate the bottleneck of computing power, latency rates, and high-speed network connectivity needed for real-time VR services in the automotive industry. VR will enable automakers to fast-track the self-driving vehicle testing process through multiple virtual simulations. VR simulations will ensure AV safety testing to be done at minimal costs virtually instead of complex road trial programs. Frost & Sullivan expects that premium vehicles and luxury brands with advanced processors and GPU compute capabilities will be the first ones to launch in-vehicle VR applications. Tesla announced a new gaming computer in Model S and X vehicles to support gaming and entertainment services. Audi, along with Holoride and Disney, demonstrated an in-car VR experience while the vehicle was in motion. Such developments indicate the inclination of premium brands such as Tesla and Audi to implement VR in vehicles. OEMs such as VW and BMW are expected to follow suit. Challenges: The overall cost of a VR setup is expensive and can be integrated with only high-performance computing devices to see the best results, thereby, increasing the overall service subscription costs for passengers. For a fully immersive experience, a 360-degree view is critical in VR. This requires robust Internet connectivity throughout the vehicle journey with low latency rates and higher speeds. Else, the VR experience will be poor with less real-time response and a disorientating experience that can lead to motion sickness for users. Lack of regulations to monitor automotive VR deployments, safety protocols, and best practices when viewing VR content will challenge VR implementation in vehicles. Author: Dorothy Amy
More Information
No Index No
Podcast No
Author Dorothy Amy
Industries Automotive
WIP Number PBED-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9A70-A6,9B13-A6