The global automotive augmented reality (AR) and virtual reality (VR) market is experiencing a period of rapid growth, driven by the increasing demand for enhanced user experiences, improved safety features, and streamlined processes across the automotive industry. AR and VR technologies are transforming various aspects of the automotive lifecycle, from design and development to manufacturing, marketing, sales, and after-sales services. AR overlays digital information onto the real world, enhancing the user's perception and interaction with their surroundings. 1 In the automotive context, this can be used for applications such as head-up displays (HUDs), navigation systems, and driver assistance features. VR, on the other hand, creates fully immersive, computer-generated environments, allowing users to experience virtual prototypes of vehicles, explore different design options, and train for various tasks in a realistic setting. The automotive industry is leveraging AR and VR to improve efficiency, reduce costs, and enhance the overall customer experience. During the design and development phase, VR allows designers and engineers to collaborate on virtual prototypes of vehicles, evaluate different design options, and identify potential issues early in the process. This helps to reduce the time and cost associated with physical prototyping. AR is being used to create interactive training programs for assembly line workers, enabling them to learn complex procedures in a safe and engaging environment. In the marketing and sales domain, AR and VR are being used to create immersive customer experiences. Virtual showrooms allow potential buyers to explore different vehicle models and configurations without having to visit a physical dealership. AR apps enable customers to visualize how a particular car would look in their driveway or customize its features using their smartphones. AR-enhanced owner's manuals provide interactive instructions for vehicle maintenance and repair.
The global automotive augmented reality market is expected to register a compound annual growth rate (CAGR) of over 16.46%, with an incremental growth of USD 1,457.5 million during the forecast period 2025-2030. The global automotive AR/VR market is witnessing several key trends. Mobile AR, leveraging the power of smartphones and tablets, is gaining traction due to its accessibility and affordability. Cloud-based AR/VR solutions are emerging, enabling the streaming of AR/VR content and reducing the reliance on powerful local hardware. The integration of AR/VR with other technologies, such as artificial intelligence (AI), machine learning, and the Internet of Things (IoT), is creating new possibilities and enhancing AR/VR experiences. AI is being used to create more realistic and interactive virtual environments, while IoT connectivity is enabling the integration of AR/VR with real-world data and devices. Several key drivers are propelling the growth of the global automotive AR/VR market. The increasing demand for enhanced user experiences, particularly among younger generations, is a major factor. The growing adoption of AR/VR in various automotive applications, driven by the potential for increased efficiency, improved safety, and enhanced customer experiences, is also contributing significantly. The rising investments in AR/VR research and development by both public and private sectors are further fueling market growth. The proliferation of AR/VR devices and the increasing availability of AR/VR content and applications are making AR/VR more accessible to consumers and businesses. Trade programs and initiatives by governments and industry bodies are playing a vital role in promoting AR/VR adoption. These programs often focus on fostering innovation, providing funding for AR/VR startups, supporting the development of AR/VR infrastructure, and creating a favorable regulatory environment. Challenges such as high costs, technical complexities, content limitations, concerns about user privacy and data security, and the need for standardization remain significant hurdles to overcome for the sustainable growth of the global automotive AR/VR market.
What's Inside a Bonafide Research`s industry report?
A Bonafide Research industry report provides in-depth market analysis, trends, competitive insights, and strategic recommendations to help businesses make informed decisions.
Download SampleThe sensor technology segment is crucial for the growth of the automotive AR/VR market, as sensors provide the data needed to create accurate and immersive AR/VR experiences. Various types of sensors are used in automotive AR/VR applications, including cameras, lidar, radar, ultrasonic sensors, inertial measurement units (IMUs), and environmental sensors. Cameras are used to capture images and videos of the real world, which are then processed to create AR overlays or VR environments. Lidar (light detection and ranging) uses laser beams to create highly detailed 3D maps of the surroundings, providing crucial information for autonomous driving and AR navigation. Radar uses radio waves to detect objects and their distances, even in adverse weather conditions. Ultrasonic sensors are used for short-range object detection, such as in parking assist systems. IMUs (inertial measurement units) measure the vehicle's acceleration and rotation, which is essential for accurate tracking and stabilization in AR/VR applications. Environmental sensors, such as temperature sensors, humidity sensors, and air quality sensors, provide data about the vehicle's environment, which can be integrated into AR/VR experiences. Advancements in sensor technology are driving the development of more sophisticated and accurate AR/VR systems. For example, the development of high-resolution cameras is improving the quality of AR overlays, while advancements in lidar technology are enabling more precise mapping and object detection. The integration of multiple sensors, known as sensor fusion, is also becoming increasingly important, as it allows for a more comprehensive and accurate understanding of the vehicle's surroundings.
The vehicle segment of the global automotive AR/VR market can be categorized based on various factors, such as vehicle type, vehicle class, and level of automation. Based on vehicle type, the market can be segmented into passenger cars, commercial vehicles, and electric vehicles. AR and VR technologies are being integrated into all types of vehicles, from compact cars to luxury SUVs, trucks, buses, and even motorcycles. Based on vehicle class, the market can be segmented into economy cars, mid-size cars, luxury cars, and sports cars. Luxury cars are often the first to adopt new technologies, including AR and VR, as they cater to a more tech-savvy and affluent customer base. Based on the level of automation, the market can be segmented into conventional vehicles, advanced driver-assistance systems (ADAS) equipped vehicles, and autonomous vehicles. AR and VR are playing a crucial role in the development of ADAS and autonomous driving technologies. AR HUDs can provide drivers with real-time information about their surroundings, enhancing safety and situational awareness. VR simulations are used to train autonomous vehicles in various driving scenarios, helping to improve their safety and reliability. The integration of AR and VR is also transforming the in-cabin experience for passengers. AR displays can provide passengers with information about points of interest along the route, while VR entertainment systems can offer immersive gaming and movie experiences. The vehicle segment of the automotive AR/VR market is expected to grow significantly in the coming years, driven by the increasing demand for enhanced user experiences, improved safety features, and the development of autonomous driving technologies.
The global automotive AR/VR market is experiencing growth across various regions, with some countries leading the charge in terms of adoption and innovation. North America, particularly the United States, is a major hub for automotive AR/VR development and adoption. The US boasts a strong ecosystem of automotive companies, technology providers, and research institutions, and is home to many of the leading AR/VR hardware and software providers. The region also benefits from a large and tech-savvy consumer base, as well as significant investments in AR/VR research and development by both public and private sectors. Europe is another important market for automotive AR/VR, with countries like Germany, the UK, and France witnessing significant growth. The region has a strong automotive industry and is home to a growing number of AR/VR startups and research institutions. The European market is also characterized by a high level of consumer awareness and interest in AR/VR technologies. The Asia Pacific region is expected to be the fastest-growing market for automotive AR/VR in the coming years. Countries like China, Japan, South Korea, and India are witnessing significant investments in AR/VR infrastructure, research, and development. China is a particularly important market, with a large and rapidly growing automotive industry. The country is home to many leading AR/VR hardware manufacturers and is investing heavily in the development of AR/VR applications for the automotive sector. Japan has a long history of innovation in virtual reality and is a major market for AR/VR gaming and entertainment, which is spilling over into automotive applications. South Korea is a hub for AR/VR innovation, with strong government support and a thriving AR/VR ecosystem. India is a rapidly growing market for automotive AR/VR, driven by increasing internet penetration, a large youth population, and a growing number of AR/VR startups. Other regions, such as Latin America and the Middle East, are also witnessing growing interest in automotive AR/VR, although their markets are currently smaller compared to the leading regions. The growth of the automotive AR/VR market in each country is influenced by a variety of factors, including technological advancements.
Table of Contents
- Table of Contents
- 1 Introduction 8
- 1.1 Industry Definition and Research Scope 8
- 1.1.1 Industry Definition 8
- 1.1.2 Research Scope 9
- 1.2 Research Methodology 11
- 1.2.1 Overview of Market Research Methodology 11
- 1.2.2 Market Assumption 12
- 1.2.3 Secondary Data 12
- 1.2.4 Primary Data 12
- 1.2.5 Data Filtration and Model Design 13
- 1.2.6 Market Size/Share Estimation 14
- 1.2.7 Research Limitations 15
- 1.3 Executive Summary 16
- 2 Market Overview and Dynamics 18
- 2.1 Market Size and Forecast 18
- 2.2 Major Growth Drivers 19
- 2.3 Market Restraints and Challenges 22
- 2.4 Emerging Opportunities and Market Trends 25
- 2.5 Porter’s Fiver Forces Analysis 28
- 3 Segmentation of Global Market by Component 32
- 3.1 Market Overview by Component 32
- 3.2 Hardware 34
- 3.3 Software 36
- 4 Segmentation of Global Market by Technology 37
- 4.1 Market Overview by Technology 37
- 4.2 Augmented Reality (AR) 39
- 4.3 Virtual Reality (VR) 42
- 5 Segmentation of Global Market by Application 44
- 5.1 Market Overview by Application 44
- 5.2 Manufacturing & Supply 46
- 5.3 Research & Development 47
- 5.4 Marketing & Sales 48
- 5.5 Aftermarket Service 49
- 5.6 Support Functions & Training 50
- 5.7 Other Applications 51
- 6 Segmentation of Global Market by Vehicle Type 52
- 6.1 Market Overview by Vehicle Type 52
- 6.2 Passenger Vehicles 54
- 6.3 Commercial Vehicles 55
- 7 Segmentation of Global Market by Driving Autonomy 56
- 7.1 Market Overview by Driving Autonomy 56
- 7.2 Conventional Driving 58
- 7.3 Autonomous & Semi-autonomous Driving 59
- 8 Segmentation of Global Market by Region 60
- 8.1 Geographic Market Overview 2019-2026 60
- 8.2 North America Market 2019-2026 by Country 64
- 8.2.1 Overview of North America Market 64
- 8.2.2 U.S. Market 67
- 8.2.3 Canadian Market 71
- 8.3 European Market 2019-2026 by Country 73
- 8.3.1 Overview of European Market 73
- 8.3.2 UK 76
- 8.3.3 France 78
- 8.3.4 Germany 80
- 8.3.5 Spain 82
- 8.3.6 Italy 84
- 8.3.7 Russia 86
- 8.3.8 Rest of European Market 88
- 8.4 Asia-Pacific Market 2019-2026 by Country 90
- 8.4.1 Overview of Asia-Pacific Market 90
- 8.4.2 China 93
- 8.4.3 Japan 95
- 8.4.4 India 98
- 8.4.5 Australia 100
- 8.4.6 South Korea 102
- 8.4.7 Rest of APAC Region 104
- 8.5 Latin America Market 2019-2026 by Country 106
- 8.5.1 Argentina 109
- 8.5.2 Brazil 111
- 8.5.3 Mexico 113
- 8.5.4 Rest of Latin America Market 115
- 8.6 Rest of World Market 2019-2026 by Country 116
- 8.6.1 UAE 119
- 8.6.2 Saudi Arabia 121
- 8.6.3 South Africa 123
- 8.6.4 Other National Markets 125
- 9 Competitive Landscape 126
- 9.1 Overview of Key Vendors 126
- 9.2 New Product Launch, Partnership, Investment, and M&A 129
- 9.3 Company Profiles 130
- Bosch 130
- Continental 132
- DENSO 133
- Garmin 134
- General Motors (GM) 135
- HARMAN International 136
- HTC 137
- Hyundai Motor Company 138
- Jaguar 139
- Mercedes-Benz 140
- Microsoft 141
- Nippon Seiki 142
- NVIDIA 143
- Panasonic 144
- Unity 145
- Visteon 146
- Volkswagen 147
- 10 Investing in Global Market: Risk Assessment and Management 148
- 10.1 Risk Evaluation of Global Market 148
- 10.2 Critical Success Factors (CSFs) 151
- Related Reports and Products 154
Table 1. Snapshot of Asia Pacific Augmented Reality Market, 2019-2026 15
Table 2. Main Product Trends and Market Opportunities in Asia Pacific Augmented Reality Market 24
Table 3. Asia Pacific Augmented Reality Market by Component, 2015-2026, $ mn 31
Table 4. Asia Pacific Augmented Reality Market: Hardware by Type, 2015-2026, $ mn 34
Table 5. Asia Pacific Augmented Reality Market: Software by Type, 2015-2026, $ mn 35
Table 6. Asia Pacific Augmented Reality Market by Technology, 2015-2026, $ mn 37
Table 7. Asia Pacific Augmented Reality Market: Marker-based AR by Type, 2015-2026, $ mn 39
Table 8. Asia Pacific Augmented Reality Market: Markerless AR by Type, 2015-2026, $ mn 40
Table 9. Asia Pacific Augmented Reality Market by Device, 2015-2026, $ mn 41
Table 10. Asia Pacific Augmented Reality Market by Industry Vertical, 2015-2026, $ mn 46
Table 11. Asia Pacific Augmented Reality Market by End User, 2015-2026, $ mn 57
Table 12. Asia Pacific Augmented Reality Market: Enterprise by Size, 2015-2026, $ mn 60
Table 13. APAC Augmented Reality Market by Country, 2015-2026, $ mn 62
Table 14. China Augmented Reality Market by Technology, 2015-2026, $ mn 65
Table 15. China Augmented Reality Market by Device, 2015-2026, $ mn 65
Table 16. China Augmented Reality Market by Industry Vertical, 2015-2026, $ mn 65
Table 17. Japan Augmented Reality Market by Technology, 2015-2026, $ mn 68
Table 18. Japan Augmented Reality Market by Device, 2015-2026, $ mn 68
Table 19. Japan Augmented Reality Market by Industry Vertical, 2015-2026, $ mn 68
Table 20. India Augmented Reality Market by Technology, 2015-2026, $ mn 70
Table 21. India Augmented Reality Market by Device, 2015-2026, $ mn 70
Table 22. India Augmented Reality Market by Industry Vertical, 2015-2026, $ mn 70
Table 23. Australia Augmented Reality Market by Technology, 2015-2026, $ mn 72
Table 24. Australia Augmented Reality Market by Device, 2015-2026, $ mn 72
Table 25. Australia Augmented Reality Market by Industry Vertical, 2015-2026, $ mn 72
Table 26. South Korea Augmented Reality Market by Technology, 2015-2026, $ mn 74
Table 27. South Korea Augmented Reality Market by Device, 2015-2026, $ mn 74
Table 28. South Korea Augmented Reality Market by Industry Vertical, 2015-2026, $ mn 74
Table 29. Augmented Reality Market in Rest of APAC by Country, 2015-2026, $ mn 76
Table 30. Apple Inc.: Company Snapshot 81
Table 31. Apple Inc.: Business Segmentation 81
Table 32. Apple Inc.: Product Portfolio 82
Table 33. Apple Inc.: Revenue, 2016-2018, $ mn 82
Table 34. Apple Inc.: Recent Developments 82
Table 35. Risk Evaluation for Investing in Asia Pacific Market, 2019-2026 106
Table 36. Critical Success Factors and Key Takeaways 109
Figure 1. Research Method Flow Chart 11
Figure 2. Bottom-up Approach and Top-down Approach for Market Estimation 14
Figure 3. Global Market Forecast in Optimistic, Conservative and Balanced Perspectives, 2019-2026 16
Figure 4. Global Automotive AR and VR Market, 2019-2026, $ mn 18
Figure 5. Primary Drivers and Impact Factors of Global Automotive AR and VR Market 19
Figure 6. Primary Restraints and Impact Factors of Global Automotive AR and VR Market 22
Figure 7. Porter’s Fiver Forces Analysis of Global Automotive AR and VR Market 28
Figure 8. Breakdown of Global Automotive AR and VR Market by Component, 2019-2026, % of Revenue 32
Figure 9. Contribution to Global 2020-2026 Cumulative Revenue by Component, Value ($ mn) and Share (%) 33
Figure 10. Global Automotive AR and VR Market: Hardware, 2015-2026, $ mn 34
Figure 11. Global Automotive AR and VR Market: Software, 2015-2026, $ mn 36
Figure 12. Breakdown of Global Automotive AR and VR Market by Technology, 2019-2026, % of Revenue 37
Figure 13. Contribution to Global 2020-2026 Cumulative Revenue by Technology, Value ($ mn) and Share (%) 38
Figure 14. Global Automotive AR and VR Market: Augmented Reality (AR), 2015-2026, $ mn 39
Figure 15. Global Automotive AR and VR Market: Virtual Reality (VR), 2015-2026, $ mn 42
Figure 16. Breakdown of Global Automotive AR and VR Market by Application, 2019-2026, % of Revenue 44
Figure 17. Contribution to Global 2020-2026 Cumulative Revenue by Application, Value ($ mn) and Share (%) 45
Figure 18. Global Automotive AR and VR Market: Manufacturing & Supply, 2015-2026, $ mn 46
Figure 19. Global Automotive AR and VR Market: Research & Development, 2015-2026, $ mn 47
Figure 20. Global Automotive AR and VR Market: Marketing & Sales, 2015-2026, $ mn 48
Figure 21. Global Automotive AR and VR Market: Aftermarket Service, 2015-2026, $ mn 49
Figure 22. Global Automotive AR and VR Market: Support Functions & Training, 2015-2026, $ mn 50
Figure 23. Global Automotive AR and VR Market: Other Applications, 2015-2026, $ mn 51
Figure 24. Breakdown of Global Automotive AR and VR Market by Vehicle Type, 2019-2026, % of Revenue 52
Figure 25. Contribution to Global 2020-2026 Cumulative Revenue by Vehicle Type, Value ($ mn) and Share (%) 53
Figure 26. Global Automotive AR and VR Market: Passenger Vehicles, 2015-2026, $ mn 54
Figure 27. Global Automotive AR and VR Market: Commercial Vehicles, 2015-2026, $ mn 55
Figure 28. Breakdown of Global Automotive AR and VR Market by Driving Autonomy, 2019-2026, % of Revenue 56
Figure 29. Contribution to Global 2020-2026 Cumulative Revenue by Driving Autonomy, Value ($ mn) and Share (%) 57
Figure 30. Global Automotive AR and VR Market: Conventional Driving, 2015-2026, $ mn 58
Figure 31. Global Automotive AR and VR Market: Autonomous & Semi-autonomous Driving, 2015-2026, $ mn 59
Figure 32. Global Market Snapshot by Region 60
Figure 33. Geographic Spread of Worldwide Automotive AR & VR Market, 2019-2026, % of Revenue 61
Figure 34. Contribution to Global 2020-2026 Cumulative Revenue by Region, Value ($ mn) and Share (%) 62
Figure 35. North American Automotive AR & VR Market, 2015-2026, $ mn 65
Figure 36. Breakdown of North America Automotive AR & VR Market by Country, 2019 and 2026, % of Revenue 65
Figure 37. Contribution to North America 2020-2026 Cumulative Revenue by Country, Value ($ mn) and Share (%) 66
Figure 38. U.S. Automotive AR & VR Market, 2015-2026, $ mn 68
Figure 39. Canada Automotive AR & VR Market, 2015-2026, $ mn 71
Figure 40. European Automotive AR & VR Market, 2015-2026, $ mn 74
Figure 41. Breakdown of European Automotive AR & VR Market by Country, 2019 and 2026, % of Revenue 74
Figure 42. Contribution to Europe 2020-2026 Cumulative Revenue by Country, Value ($ mn) and Share (%) 75
Figure 43. Automotive AR & VR Market in UK, 2015-2026, $ mn 76
Figure 44. Automotive AR & VR Market in France, 2015-2026, $ mn 78
Figure 45. Automotive AR & VR Market in Germany, 2015-2026, $ mn 80
Figure 46. Automotive AR & VR Market in Spain, 2015-2026, $ mn 82
Figure 47. Automotive AR & VR Market in Italy, 2015-2026, $ mn 84
Figure 48. Automotive AR & VR Market in Russia, 2015-2026, $ mn 86
Figure 49. Automotive AR & VR Market in Rest of Europe, 2015-2026, $ mn 88
Figure 50. Asia-Pacific Automotive AR & VR Market, 2015-2026, $ mn 91
Figure 51. Breakdown of APAC Automotive AR & VR Market by Country, 2019 and 2026, % of Revenue 91
Figure 52. Contribution to APAC 2020-2026 Cumulative Revenue by Country, Value ($ mn) and Share (%) 92
Figure 53. Automotive AR & VR Market in China, 2015-2026, $ mn 93
Figure 54. Automotive AR & VR Market in Japan, 2015-2026, $ mn 96
Figure 55. Automotive AR & VR Market in India, 2015-2026, $ mn 98
Figure 56. Automotive AR & VR Market in Australia, 2015-2026, $ mn 100
Figure 57. Automotive AR & VR Market in South Korea, 2015-2026, $ mn 102
Figure 58. Automotive AR & VR Market in Rest of APAC, 2015-2026, $ mn 104
Figure 59. Latin America Automotive AR & VR Market, 2015-2026, $ mn 107
Figure 60. Breakdown of Latin America Automotive AR & VR Market by Country, 2019 and 2026, % of Revenue 107
Figure 61. Contribution to Latin America 2020-2026 Cumulative Revenue by Country, Value ($ mn) and Share (%) 108
Figure 62. Automotive AR & VR Market in Argentina, 2015-2026, $ mn 109
Figure 63. Automotive AR & VR Market in Brazil, 2015-2026, $ mn 111
Figure 64. Automotive AR & VR Market in Mexico, 2015-2026, $ mn 113
Figure 65. Automotive AR & VR Market in Rest of Latin America, 2015-2026, $ mn 115
Figure 66. Automotive AR & VR Market in Rest of the World (RoW), 2015-2026, $ mn 117
Figure 67. Breakdown of RoW Automotive AR & VR Market by Country, 2019 and 2026, % of Revenue 117
Figure 68. Contribution to RoW 2020-2026 Cumulative Revenue by Country, Value ($ mn) and Share (%) 118
Figure 69. Automotive AR & VR Market in UAE, 2015-2026, $ mn 119
Figure 70. Automotive AR & VR Market in Saudi Arabia, 2015-2026, $ mn 121
Figure 71. Automotive AR & VR Market in South Africa, 2015-2026, $ mn 123
Figure 72. Growth Stage of Global Automotive AR and VR Industry over the Forecast Period 126
Related Reports
One individual can access, store, display, or archive the report in Excel format but cannot print, copy, or share it. Use is confidential and internal only. Read More
One individual can access, store, display, or archive the report in PDF format but cannot print, copy, or share it. Use is confidential and internal only. Read More
Up to 10 employees in one region can store, display, duplicate, and archive the report for internal use. Use is confidential and printable. Read More
All employees globally can access, print, copy, and cite data externally (with attribution to Bonafide Research). Read More
Safe and Secure SSL Encrypted
Quick Contacts
Want to customize this report?
We offer 10% Free Customization at the time of purchase
Get Free Customization.png "Nikita Jabrela")
Trusted Partners
Budget constraints? Get in touch with us for special pricing
Request DiscountOrder Detail
- Order Placed (04 May, 2025)
- Notify To Team (04 May, 2025)
- Report updation (05 May, 2025)
- Report Quality Check (05 May, 2025)
- Report Dispatch (06 May, 2025)
- Hard Copy
Recently Viewed Products
Global Automotive Augmented Reality and Virtual Reality Market Outlook, 2030
We are friendly and approachable, give us a call.