Virtual Reality (VR) in Automotive Market to Grow at a CAGR of 35.9% Over 2024 – 2032; Increasing Usage of VR by Automakers Enhances Customer Experience Further Augmenting Market Growth

The global Virtual Reality (VR) in automotive market size stood at USD 2.36 billion in 2023. The market revenue is anticipated to rise from USD 3.19 billion in 2024 to USD 37.13 billion by 2032, registering a CAGR of 35.9% from 2024 to 2032.

Fortune Business Insights™ presents this information in its report titled, “Virtual Reality (VR) in Automotive Market Size, Share & Industry Analysis, By Type (Hardware, Software, and Content), By Application (Design, Prototyping and Testing, Training and Simulation, Showroom and Retail Experience, Manufacturing and Assembly, and Others (Logistics)), and Regional Forecast 2024 – 2032”.

Virtual Reality (VR) in automotive is used for the design and manufacturing process. It enables designers and engineers to make and interact with virtual prototypes, allowing them to imagine and assess ideas, ergonomics, and practicality. The growing usage of VR by automakers to enhance the customer experience is propelling market expansion.

The COVID-19 pandemic assisted market growth as there was an increased demand for custom-made and appealing customer experiences augmented virtual reality (VR) adoption in automotive applications.

Rising Need for Generative AI Technologies Improves the Design and Development Procedure

Automakers use innovative AI technologies to improve the design and development procedure. Generative AI enables engineers and creators to make and iterate on virtual prototypes more competently. This decreases the necessity for physical prototypes and hastens the overall product improvement cycle.

Growing Focus on Partnerships by Key Players to Boost Market Growth

Holoride collaborated with Maxdome to integrate VR video streaming into vehicles by introducing the 'Holoride Cinema' app in September 2023. This app supported travelers to deploy the business’s motion-synchronized in-car entertainment system to stream all forms of VR content from Maxdome.

Rapid Adoption of Virtual Reality in the Automotive Industry due to Its Affordability and Accessibility Fuels Market Progress

The adoption of virtual reality (VR) in automotive has increased due to its surging availability and affordability. The consumer market has recently observed a rise in the improvement and commercialization of superior VR headsets and related hardware from top tech players. This reduced the overall cost of VR setups and boosted intense competition among producers. The accessibility of manageable and affordable VR software solutions has allowed automotive companies to use the full potential of this technology. Hence, even smaller automotive companies and startups can now explore the benefits of VR, boosting innovation and adoption of this transformative technology in the automotive industry.

On the other hand, the relentless speed of innovation within the VR domain is restraining the Virtual Reality (VR) in automotive market growth.

Leading Companies Collaborate with VR Content Developers to Create More Engaging Customer Experiences

Key players collaborate with VR content developers and software suppliers to make more immersive and engaging customer experiences. Top participants concentrate on improving team communication and collaboration to maintain their dominance in the market.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/virtual-reality-vr-in-automotive-market-101702

Notable Industry Development:

• January 2023: Hyundai introduced its special pavilion on the Metaverse at the 2023 Auto Expo, displaying its virtual city, Hyundai Mobility Adventure, on Roblox. It comprises models, including TUCSON, IONIQ 6, NEXO, and VENUE N Line.

List of the Companies Profiled in the Report:

• Vection Technologies Ltd. (Australia)


• Wear Studio (Ukraine)


• Unity Technologies (U.S.)


• XR Labs (India)


• Bosch GmbH (Germany)


• Meta Platforms, Inc. (U.S.)


• Tecknotrove (India)


• Volkswagen AG (Germany)


• BMW M GmbH (Germany)


• WayRay AG (Switzerland)

Further Report Findings:

• North America dominates the market fueled by modern technological infrastructure, a trained workforce, and a rise in government funding. Moreover, the robust initiatives to support emerging technologies boosts the regional market’s growth.


• Europe is a significant player in the market owing to its well-established automotive industry. Rapid integration of VR solutions due to increasing emphasis on innovation and sustainability and the presence of a strong technology ecosystem are boosting the deployment of Virtual Reality (VR) in automotive applications.


• By type, the hardware segment takes the lead in the market due to the surging need for constant renovations and replacements to keep pace with technological innovations.


• Based on application, the training and simulation segment held the highest Virtual Reality (VR) in automotive market share with the increased need for enhanced employee performance and decreased training costs.

Table of Segmentation