XR represents one of the most exciting avenues for business transformation. With the right extended reality technology, businesses can boost creativity, improve collaboration, and deliver stronger customer experiences. By 2026, the extended reality market is expected to reach a value of $397.81 billion, registering a CAGR of approximately 57.91% over the next 5 years.
However, even with such significant growth, it’s not always easy to justify a significant investment in disruptive new technology. For the automotive industry, developing a business case highlighting the possible benefits of XR will be crucial.
Let’s see how you can create a more effective business case for XR in the automotive industry.
Step 1: Consider the different aspects of XR
Extended Reality comes in a host of different flavors, meant to meet the different needs of the XR landscape. For example, virtual reality in the automotive industry was valued at around $759.3 million in 2019, but experts are now predicting that the market worth $14.7 billion by 2027. Virtual reality has the potential to improve training opportunities, bring new driving lessons to customers around the world, and create virtual showrooms for automakers.
On the other hand, augmented and mixed reality can enable automotive business leaders to connect the virtual and real worlds for rapid innovation. With mixed reality, innovators at Kia work together with their colleagues to design new vehicle prototypes at an incredible pace, keeping costs to a minimum.
Alternatively, AR solutions can bring more information into the vehicle environment for business users. BMW and Basemark have worked together to create an AR app for a new era of BMW cars, providing customers with real-time information in an immersive dashboard.
Step 2: Experiment with Education
One of the easiest ways to quickly take advantage of the XR environment in the automotive space is to take advantage of immersive technology for education. Training everyone from field service technicians to management personnel and customer-facing agents is easier with access to XR.
Companies can immerse their team members in VR environments where they can learn to use various devices and tools in a memorable format.
The potential of VR for Education is so important that it is already helping people prepare for their driving tests and learn to drive complex vehicles, such as tanks and planes.
Besides simply helping your team members be more effective in their roles, using XR in an educational format in the automotive industry could also help improve the customer experience. This would allow customer service and sales agents to explain to customers how to use new features of a car, without having access to a physical model.
Step 3: Review Collaboration Upgrade
Few truly life-changing innovations happen in any industry without great teamwork. As the automotive landscape becomes increasingly complex, with more and more new technologies and opportunities constantly emerging, teams must work together to deliver phenomenal ideas.
Fortunately, XR creates the perfect environment for this immersive collaboration in a digital world. Even when teams can’t collaborate face-to-face, they can use digital twins of products and prototypes in an MR, AR, or VR environment to experiment with parts, explore the use of different materials, and revise designs at large. ladder.
Using extended reality solutions gives team members more freedom to work without restrictions, in an environment where they can easily call on other specialists and experts whenever needed.
The right environment also allows business leaders to share prototypes with approval and compliance teams so they can get new creations to market faster.
Step 4: Seize cost reduction opportunities
One of the biggest concerns for companies considering moving to the XR automotive environment is the cost associated with purchasing new software and hardware. While there are always expenses to consider when implementing new technology, it’s worth remembering that these tools can also lead to cost savings in the long run.
Companies like Ford, for example, are now using virtual labs to experiment with design options, reducing the costs needed to invest in expensive materials and prototyping processes.
When teams can work with virtual versions of products, they can iterate and discover new opportunities at a faster pace, without the costs associated with old-school design strategies.
Extended Reality also ensures teams don’t have to travel the world to pitch a new idea or prototype to a business leader or executive team.
Thanks to virtual and mixed reality, it’s possible for companies to give executives the freedom they need to walk around a representation of a car and give their approval that way instead.
Step 5: Prioritize the customer experience
In the automotive industry, XR solutions have the potential to dramatically improve the employee experience, strengthening collaboration and opening the door to more creative instances of teamwork. However, XR also has significant potential to improve the customer experience.
As mentioned above, XR solutions can help sales and service teams walk their customers through their new car and show them how to use various features.
The same solutions can help automaker business managers guide employees and mechanics in the service environment through the process of performing various complex tasks to resolve a vehicle problem.
Companies like Porsche are already using AR smart glasses to support mechanics, which cut service resolution times by 40% by allowing technicians to see diagrams overlaid on a vehicle as they work.
More importantly, XR offerings allow companies to create entire virtual showrooms for their customers, so they can explore potential new vehicles from the comfort of their own homes. With these tools, companies can even ensure that they are ready to take advantage of the benefits of the metaverse in the future.
Step 6: Examine competitive innovation
Finally, like any business in today’s modern marketplace, automakers must be able to innovate at an incredible pace to stay ahead of their competition. With XR, companies can create unique experiences and opportunities across their vehicle brands.
With XR, you can prepare for a future in the Metaverse, where customers will use more virtual environments to interact with companies and their products. You can also take new steps towards a future of safer and more informed driving, with concepts such as augmented and mixed reality windshields to reduce the risk of accidents.
If you want to stay ahead of the automotive world, you need to explore the benefits of XR.