Automotive Extended Reality Market Outlook:
Automotive Extended Reality Market size was over USD 44.72 billion in 2025 and is projected to reach USD 71.47 billion by 2035, growing at around 4.8% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of automotive extended reality is assessed at USD 46.65 billion.
The growth of the market can be attributed to the rapid development of virtual reality (VR) technology, in the form of extended reality (XR). XR Cars uses a combination of virtual reality and augmented reality to provide virtual sales opportunities for auto manufacturers and sellers. Customers can view and experience all the features of any car model from the comfort of home, where virtual reality is available. More than 70% of young people consider the emerging technologies and interactive features to be extremely useful and engaging when buying a vehicle, as well as their preference for purchasing vehicles from an XR car dealer.
In addition, the increase in sales of automobiles with the adopted of new technologies such as automotive dealer management system is one of the largest growth drivers for the market is expected to be supported by an increasing use of XR in the automotive sector. The technology is not yet widely implemented on the ground, but it is expected to grow significantly over the period from 2025 onwards and have a significant share by 2030.
