Building a business case for XR in the automotive industry

    XR represents one of the most exciting avenues for business transformation. With the right extended reality technology, companies can boost creativity, improve collaboration, and deliver stronger customer experiences. By 2026, the extended reality market will reach a value of $397.81 billion, registering a CAGR of around 57.91% in the next 5 years.

    However, even with such significant growth to target, it’s not always easy to justify a significant investment in a disruptive new technology. For the auto industry, it will be crucial to build a business case that highlights the potential benefits of XR.

    Let’s see how you can build a more effective business case for XR in the automotive industry.

    Step 1 – Consider the Various Aspects of XR

    Extended Reality comes in a multitude of different flavors, meant to cater to the different needs of the XR landscape. For example, VR in the automotive industry was valued at around $759.3 million in 2019, but experts now predict that the market will be worth $14.7 billion by 2027. VR has the potential to improve training opportunities, provide new driving lessons to customers around the world. the world and create virtual showrooms for car companies.

    On the other hand, augmented and mixed reality can enable business leaders in the automotive space to connect the virtual and real worlds for rapid innovation. With mixed reality, Kia innovators are working collaboratively with their peers to design new vehicle prototypes at an incredible pace while keeping costs to a minimum.

    Alternatively, AR solutions can bring more information into the vehicle environment for commercial users. BMW and Basemark worked together to create an AR app for a new era of BMW cars, giving customers real-time information in an immersive dashboard.

    Step 2: Experiment with education

    One of the easiest ways to get quick benefits from the XR environment in the automotive space is to take advantage of immersive technology for education. Training everyone from field service technicians to management staff to customer service agents is easier with access to XR.

    Companies can immerse their team members in virtual reality environments where they can learn how to use various devices and tools in a memorable format.

    The potential of virtual reality for education is so significant that it is already helping people prepare for their driving tests and learn to operate complex vehicles, such as tanks and planes.

    In addition to 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. It would allow sales and customer service agents to explain to customers how to use new features in a car, without having access to a physical model.

    Step 3 – Watch the collaboration update

    Few truly life-changing innovations happen in any industry without excellent teamwork. As the automotive landscape becomes increasingly complex, with new technologies and opportunities emerging all the time, teams must work together to come up with 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 review designs at scale.

    Using extended reality solutions gives team members more freedom to work without restrictions, in an environment where they can easily bring in other specialists and experts when needed.

    The right environment also enables business leaders to share prototypes with approval and compliance teams so they can speed time to market for new creations.

    Step 4: Address Cost Savings 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 will always be expenses to consider when implementing new technology, it’s worth remembering that these tools can also deliver long-term savings.

    Companies like Ford, for example, use virtual labs to experiment with design options today, 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 rate, without the costs associated with outdated design strategies.

    Extended reality also ensures that teams don’t have to travel around the world to present a new idea or prototype to a business leader or executive team.

    Through virtual and mixed reality, companies can give executives the freedom they need to walk around a car dealership and give their approval that way.

    Step 5: Prioritize the customer experience

    In the automotive industry, XR solutions have the potential to significantly improve the employee experience by strengthening collaboration and opening the door to more creative instances of teamwork. However, there is also significant potential in XR to improve the customer experience.

    As mentioned above, XR solutions can help sales and service teams guide their customers through their new car and show them how to use various features.

    The same solutions can help automaker business leaders guide employees and mechanics in the service environment through the process of completing multiple complex tasks to fix a vehicle problem.

    Companies like Porsche are already using AR smart glasses to support mechanics, leading to a 40% reduction in service resolution times, by allowing technicians to view schematics overlaid on top of a vehicle as they work.

    More importantly, XR’s offerings mean companies can create entire virtual showrooms for their customers, so they can explore potential new vehicles from the comfort of their home. With these tools, companies can even ensure that they are ready to reap the benefits of the Metaverse in the future.

    Step 6 – Observe competitive innovation

    Finally, like any business in today’s modern marketplace, automakers must be able to innovate at an incredible rate to stay ahead of their competitors. With XR, companies can create unique experiences and opportunities across their vehicle brands.

    Through 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 like augmented and mixed reality windshields to reduce the risk of accidents.

    If you want to stay ahead of the curve in the automotive world, you need to explore the benefits of XR.