hhThe global automotive extended reality (XR) market is estimated to grow at a significant CAGR over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to the massive evolution in the technology of virtual reality (VR), in the form of extended reality (XR). XR is a combination of virtual, augmented and mixed reality, where the elements present in the physical environment are utilized to provide a new reality which has opened doors to various innovations. XR has been successfully implemented in the medical field and has also garnered significant share in the field of education. Automotive XR uses a blend of virtual reality and augmented reality to provide virtual sale opportunities to the automotive manufacturers and sellers. Customer can view and experience all the features of any model of car at the comfort of their home, where the VR is available. This is estimated to boost the market growth. The COVID-19 pandemic had severe impact on the sales of automobiles, as people were stuck in their homes. According to the data by the International Energy Agency (IEA), the global sale of automotive fell from over 88 million units in 2019 to less than 73 million units in 2020. However, the growing adoption of XR in the automotive sector is estimated to raise the sales, which is one of the major growth drivers for the market. The technology is not implemented widely on the ground level, but is expected to grow tremendously by the end of 2025, and gain significant share by 2030.
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The market is segmented by application into automobile sales, virtual testing, and others, out of which, the automobile sales segment is anticipated to hold the largest share in the global automotive extended reality (XR) market over the forecast period as XR provides a digital environment for customers, where they interact with exteriors as well as the interiors of the vehicle in true-to-life color, scale, and overall look. Moreover, the need for rapid recovery after the downfall of sales of cars after the COVID-19 pandemic is estimated to boost the segment growth.
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
On the basis of geographical analysis, the global automotive extended reality (XR) market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America region is estimated to witness noteworthy growth over the forecast period on the back of high adoption of technology, presence of major automobile manufacturers and growing demand for cars. According to the report by IEA, 17 million cars were sold in the United States in 2019.
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The global automotive extended reality (XR) market is further classified on the basis of region as follows:
Our in-depth analysis of the global automotive extended reality (XR) market includes the following segments:
The market is dominated by Accenture PLC, Qualcomm Technologies, Inc., Augray LLC, and other technology research companies. The technology is being adopted at a modest pace amongst the automotive industry, which is estimated to grow tremendously by the end of 2030.
FREQUENTLY ASKED QUESTIONS
Increasing adoption of virtual car sales is estimated to boost the market growth.
The market is anticipated to attain a significant CAGR over the forecast period, i.e., 2022 – 2030.
Lack of accessibility is estimated to hamper the market growth.
The market in the North America region is estimated to gain noteworthy growth owing to the increasing adoption of advanced technology in the region.
The major players in the market are Accenture PLC, Qualcomm Technologies, Inc., Augray LLC, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by components, application, and by region.
The automobile sale segment is anticipated to hold largest market size over the forecast period and display significant growth opportunities.
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