Using XR Technology to Get a Competitive Edge in the Automotive Industry

Vladimir Sviridenko
Chief Business Development Officer

Did you know that the automotive industry is one of the most highly competitive and profitable industries globally, with a growth rate of about 3% annually? One major factor that accounts for this rapid growth is the fact that people want to be able to share their experiences with others and feel like they’re driving something special. With so many car brands out there on the market today, it can be hard to stand out from all of your competitors. But one way you can do this successfully is by leveraging XR technology.

Companies like General Motors, Ford, Audi, and other automotive giants are investing huge dollars in developing technologies that can be used to create immersive car experiences. This will help people feel more connected to their cars while they drive them, and it’s also a great way of increasing the overall value of the vehicles. In fact, many experts predict that the AR/VR market would hit a value of 5.5 billion in the automotive industry by 2022.

Car view in augmented reality

XR Technologies: the Future of Automotive

Many factors have shaped the car industry, but new technologies will play a huge role in shaping how products and services are used in this industry. One of these is XR (Augmented and Virtual reality) — these technologies have been around for quite some time and are only going to become more prevalent over the next few years.

By 2025, AR/VR is projected to be a $150 billion industry. That’s more than double the size of the current market, and it will be driven by automotive companies like Ford, GM, Honda, and others that are creating new products with this technology in mind.

XR technologies are all about immersing the user in an experience that they can see, hear and interact with. It will allow customers to take a test drive of their next car without ever leaving the showroom — they’ll be able to explore every inch of it before deciding on whether or not they want to buy it. This is just one of many ways XR is transforming the fast-paced automotive world.

The main obstacle in implementing an XR strategy is the lack of understanding surrounding it. Still, statistics show that the automotive industry accounts for the highest rate of investment in augmented reality technology. This shows that many companies continue to adopt XR technologies, and others who are slow to do so risk getting left behind. Some of the ways XR is currently being used in the automotive industry include:

R&D design  

Audi recently developed a prototype of its e-Tron electric SUV that can be configured with immersive VR technology. Many automotive companies now implement AR & VR as part of their R&D design processes. They use it to test new concepts, validate the design, and explore what the future of cars will look like. Other potential applications in automotive design include VR-powered testing for self-driving cars and VR remote development.


Extended reality is also applied in the actual process of manufacturing vehicles. Aside from using XR for virtual design, visualization, and interior modeling, Ford also uses AR/VR for engineers on the plant floor who are designing new parts or plotting out assembly lines.

Marketing: test drives and showrooms

Thanks to ongoing widespread digitalization, it is no news that the automotive industry market has become increasingly consumer-focused. Many companies now seek to create personalized marketing models for their customers, and one of the ways they do this is by using XR technologies. Ford, for example, launched its new Mustang model in 2019 and included a cool AR experience with it —  customers were able to see the car they would be buying before they even test drove it. Honda also uses this technology as part of its marketing strategy by creating interactive galleries and showrooms that allow users to explore different vehicles.

Immersive aftersales

XR is also finding applications in the delivery of after-sales services to car buyers. If you happen to purchase a car from GM, then the company may offer an AR or VR service where they can repair your vehicle remotely. Ford has also partnered with WayRay on what is currently one of the world’s best virtual reality navigation systems for cars. Mixed reality troubleshooting for vehicles could also become quite popular in the coming years, making it possible for carmakers to assist customers with solving common car issues faster. Already, Porsche service technicians now use AR glasses that show virtual schematics to examine vehicle components. As the company revealed, this technology led to a 40% reduction in the service resolution time.

Summing Up

The future of the automotive industry is bright, and XR can be used to help car manufacturers make the most out of it. It will give your company a competitive edge by integrating immersive car experiences into your current marketing strategy, as this technology has already been proven successful in other industries like education, healthcare, and many more.


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