Firm Estimates Automotive AR Industry Will Reach $5.5 Billion By 2022

With 177% growth and 1.7 million AR glasses shipped, this potential future would change the automotive industry forever.


The entertainment aspect of augmented reality's impact is the most front-facing when it comes to casual consumers, but its impact elsewhere cannot be doubted. An advisory board that focuses on transformative technology estimates that the AR automotive industry will grow to $5.5 billion by 2022 on the strength of augmented reality's influence on design, production, and sales.

Source: Bosche-presse

"Augmented Reality benefits automotive manufacturers at many stages of a product cycle, including design, prototyping, manufacturing, and marketing," says Marina Lu, Senior Analyst at ABI Research, in an AR market report covered by Business Insider. "In design, digital 3D visualization and analysis of body structure and components can save time and resources. Collaboration is streamlined and improved, evaluating the same content in real time, which ultimately speeds up decision-making. AR technology supplements traditional tools, such as clay modeling, with virtual components on top of an existing physical object, to show design variants or to support design reviews, again shortening cycles and saving on design and prototyping costs."

The report mentions that automotive giants Ford, Volkswagen, Hyundai, Jeep, and Volvo have all begun leveraging AR for their business, and they could have some company if efforts like NVIDIA's AR platform for autonomous vehicles take off.

ABI also estimates specifically global shipments for AR glasses will 1.7 million units, which is a division of augmented reality that Facebook is rumored to be investing in with Oculus AR glasses.

"While it is still early for automotive AR use, the applications at play have already shown proven ROI," adds Eric Abbruzzese, Principal Analyst. "ROI is always the first question to answer for any new technology, and this is especially true for AR. Collaboration, step by step instruction, remote expertise, 3D spatial visualization, and more have all been tried across industries, with positive and predictable results. The importance of design and prototyping combined with the slim margins of the automotive industry make it a prime candidate for wide AR adoption. From 3D visualization with designers to enhancing employee efficiency and safety on the plant floor to enticing buyers with digital experiences, the symbiotic relationship between augmented reality and the end-to-end automotive market is strong, and will continue to strengthen and grow."

Apple declared that AR is going to dramatically change the way a generation learns but it will also change how it drives, how it shops, and even how it applies makeup. Stay tuned to Shacknews for more transformative tech news.

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From The Chatty
  • reply
    April 19, 2018 10:05 AM

    Charles Singletary posted a new article, Firm Estimates Automotive AR Industry Will Reach $5.5 Billion By 2022

    • reply
      April 19, 2018 10:11 AM


    • Zek
      April 19, 2018 10:47 AM

      I assume they're talking about AR stuff on the windshield? That seems unnecessary when cars become self driving.

      • reply
        April 19, 2018 10:50 AM

        I think this is more about diag/tech work, not necessarily for consumers. As the picture shows, those are technicians peering inside the car. The system knows all the parts on the car based on VIN, and can project a 3D model of every nut and bolt on the car into the visor.

      • reply
        April 19, 2018 12:07 PM

        I bought stock in a company making stuff that I thought would end up being on everyone's car HUD.... Yeah it went nowhere and it's too late now because self driving cars....

    • reply
      April 19, 2018 10:48 AM

      The virtual car/diag stuff like shown in the photo (tech with AR glasses for diag/breakfix) is definitely coming. I'm actually working on a platform to enable this along with data acquisition for connected cars. Imagine putting glasses on and seeing the problem part on an Xray view, where the problem part is determined by various AI skills that suck in all telemetry from the vehicle, live, at all times, and will alert as soon as anything falls out of certain bounds. It's pretty awesome stuff. Even if there is no live connection the techs can probably pull logs off the car and feed them in at that time. I tend to think more and more cars will end up being fully connect, IoT devices, but there are a lot of privacy hurdles to jump, and everyone ultimately needs to conform to the strict GDPR requirements to ensure PI is not exposed and data mining/analytics are using anonymized data, along with data tenancy rules specific to every country.

      Modern CANBUS cars can acquire enormous amounts of telemetry data, but only recently has there been more serious efforts to ensure that is captured and stored for the entire lifecycle of a vehicle.

      I think Tesla is already doing similar as evidenced when they call out shady review practices, like purposely running batteries down and such (*cough* Top Gear *cough*).

      I think Volvo used similar techniques to find out that Uber disabled their safety mechanisms leading to the fatal crash.

    • reply
      April 19, 2018 11:01 AM

      I really like hearing about new tech and new uses for emerging tech. Thanks for the article!

    • reply
      April 19, 2018 12:08 PM

      And yeah Googlaphet is pushing Google Glass for industrial use now:

      • Zek
        April 19, 2018 12:12 PM

        My understanding is that this was always their most successful use case. I still haven't heard much about it in quite some time though.

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          April 19, 2018 6:31 PM

          Yeah I only saw it as an aside to coverage of somebody ELSES headset...

    • reply
      April 19, 2018 12:49 PM

      How long before I can play Tetris in AR while I drive