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Metaverse for Automotive Market Size and Forecast, by Component (Hardware, Software, Services); Technology; Application - Growth Trends, Key Players, Regional Analysis 2026-2035

  • Report ID: 6487
  • Published Date: Sep 18, 2025
  • Report Format: PDF, PPT

Metaverse for Automotive Market Outlook:

Metaverse for Automotive Market size was valued at USD 4.42 billion in 2025 and is likely to cross USD 68.86 billion by 2035, registering more than 31.6% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of metaverse for automotive is assessed at USD 5.68 billion.

Metaverse for Automotive Market
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The metaverse for automotive market is forecast to expand owing to the ability of the metaverse to provide an immersive experience for consumers and car manufacturers alike. Virtual showrooms allow potential buyers to take a three-dimensional tour of models of vehicles, allowing personalization and enhanced engagement. This digital shift is driven especially, by rising consumer demand for personalized and interactive experiences, together with the continuous development of Artificial Intelligence (AI) and Augmented Reality (AR) technologies. For example, in January 2023, Metadome.ai signed a contract with MG Motor to introduce MGVerse-a realistic web-based metaverse with a 3D car configurator and virtual test drive capabilities. This development underlines the increasing magnitude of metaverse platforms in creating an immersive customer experience.

The metaverse for automotive industry is further supported by government initiatives, either through digitalization or AI-driven innovations. Most governments have continued to provide policies that encourage augmented and virtual reality in industries for the benefit of automotive manufacturing. Governments of the U.S. and Europe are granting grants and tax credits to speed up digital transformation, creating a favorable environment for automakers to experiment with technologies related to the metaverse. These efforts are likely to accelerate the pace of metaverse application adoptions, especially in electric vehicle production and virtual customer service.

Key Metaverse for Automotive Market Insights Summary:

  • Regional Highlights:

    • Asia Pacific metaverse for automotive market will account for 41.70% share by 2035, driven by rapid digital transformation and increasing consumer interest in electric vehicles and virtual experiences.
    • North America market will account for 25.10% share by 2035, driven by strong technological infrastructure and rapid adoption of AR and VR technologies.

  • Segment Insights:

    • The virtual reality segment in the metaverse for automotive market is projected to capture a 44% share by 2026-2035, attributed to VR's ability to provide virtual tours, enhance customer engagement, and enable marketing innovation.
    • The software segment in the metaverse for automotive market is forecasted to achieve a 37.50% share by 2035, driven by demand for virtual showrooms, immersive experiences, and real-time data analytics in automotive applications.

  • Key Growth Trends:

    • Virtual showrooms and customization
    • Enhanced AR in cars

  • Major Challenges:

    • Data privacy and security
    • Regulatory uncertainty

  • Key Players: BMW Group, Ford Motor Company, General Motors (GM), Mercedes-Benz AG, Toyota Motor Corporation, Unity Technologies, and Nvidia Corporation.

Global Metaverse for Automotive Market Forecast and Regional Outlook:

  • Market Size & Growth Projections:

    • 2025 Market Size: USD 4.42 billion
    • 2026 Market Size: USD 5.68 billion
    • Projected Market Size: USD 68.86 billion by 2035
    • Growth Forecasts: 31.6% CAGR (2026-2035)

  • Key Regional Dynamics:

    • Largest Region: Asia Pacific (41.7% Share by 2035)
    • Fastest Growing Region: Asia Pacific
    • Dominating Countries: United States, China, Japan, Germany, South Korea
    • Emerging Countries: China, India, Japan, South Korea, Singapore

    • Last updated on : 18 September, 2025

Growth Drivers

  • Virtual showrooms and customization: With the growing consumer preference for digital shopping experiences, companies are focused on virtual car showrooms are being created. Such trends allow customers to experience the car, customize it, and even test-drive it in the metaverse. In December 2022, Metadome.ai partnered with Mahindra to create XUV400verse, a virtual platform for the XUV400 model, to further enhance customer experience. This shift to virtual platforms is helping manufacturers engage customers remotely, offering a more immersive and personalized buying process.
  • Enhanced AR in cars: Automakers are integrating augmented reality (AR) into automobiles. In May 2023, a collaboration between Microsoft and Volkswagen introduced the "moving platform" feature for HoloLens 2, which allows AR to function in a moving environment, showing AR information like heads-up displays for drivers in real time. This technology enhances safety and convenience for drivers, allowing them to access real-time data without distractions from the road.
  • Increasingly complex AI-driven applications: AI-driven metaverse technologies are being used to streamline manufacturing processes. BMW, for instance, partnered with NVIDIA in December 2022 to deploy the Omniverse platform throughout its global production network. It used powerful digital twin technology to optimize workflows and cut production times. This partnership represents a broader trend in the automotive industry, where AI and virtual simulations are driving efficiency and reducing costs.

Challenges

  • Data privacy and security: The immersive nature of the metaverse can cause concern regarding data privacy and security, considering what an extensive amount of personal data is gathered through virtual interactions. In a recent survey, 71.3% of the respondents showed concern about how their privacy and personal data would be maintained in the metaverse. This reflects, in general, the concern of data collecting practices.
  • Regulatory uncertainty: Despite the rapid developments in technologies within metaverse ecosystems, many regions still grapple with unparalleled ambiguity and a lack of harmony in their laws and regulations concerning virtual environments. In the absence of tight regulatory mechanisms, businesses and consumers are confronted by a state of confusion that prevents deeper immersion into these technologies. Core issues pertain to data privacy, rights over intellectual property, and cross-border digital transactions.

Metaverse for Automotive Market Size and Forecast:

Report Attribute Details

Base Year

2025

Forecast Period

2026-2035

CAGR

31.6%

Base Year Market Size (2025)

USD 4.42 billion

Forecast Year Market Size (2035)

USD 68.86 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, South Korea, Malaysia, Australia, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Metaverse for Automotive Market Segmentation:

Component 

Software segment is expected to capture over 37.5% metaverse for automotive market share by 2035, driven by higher demand for advanced software platforms that support virtual car showrooms, immersive customer experiences, and real-time data analytics for manufacturers. Secondly, the increasing demand for AR and VR applications inside the vehicle promotes software innovations. In September 2021, Roblox Corporation collaborated with Hyundai Motor Company to introduce "Hyundai Mobility Adventure" on its platform. It offers a metaverse platform that showcases advanced products and future mobility solutions of the company. Such developments are highly probable to make automakers heavily invest in software capability for further enhancement in driving and operational efficiency.

Technology 

By 2035, virtual reality (VR) segment is set to capture over 44% metaverse for automotive market share. VR represents newer levels of immersion where customers can experience virtual tours and test drives of vehicles from inside the comforts of their homes. The use of VR by automotive companies has been increasingly seen to improve customer experience. For example, in June 2022, Audi and Holoride partnered on VR-based in-car entertainment that would be synched with the movements of the car. That is a major leap in VR technology for the automotive sector. This initiative represents one of the most important advances in VR technology in the automotive industry, which shows the ability of VR to change the customer experience and also automotive marketing and training applications.

Our in-depth analysis of the global market includes the following segments:

Component
  • Hardware
  • Software
  • Services

Application
  • Virtual Showrooms and Dealerships
  • Training And Education
  • Design And Prototyping
  • Customer Experience and Engagement
  • Marketing And Advertising
  • Others

Technology
  • Virtual Reality (VR)
  • Augmented Reality (AR)
  • Mixed Reality (MR)
  • Blockchain and NFTs
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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Metaverse for Automotive Market Regional Analysis:

Asia Pacific Market Insights

Asia Pacific industry is predicted to account for largest revenue share of 41.7% by 2035. The rapid digital transformation in countries such as China and India, combined with the increasing interest of consumers in electric vehicles and immersive virtual experiences, are acting as the main driving forces for the leadership of this region. The thriving automotive industry is highly focused on the integration of metaverse technologies into the sector, with government-backed initiatives for digital innovation.

The majority of automotive manufacturers in China have already begun providing rapid adoptions with AR and VR technologies to achieve improvements both at the levels of manufacturing and customer engagement. For instance, Raythink launched the next generation AR-HUD in June 2023, which had immersive 3D effects. Similarly, well-known Chinese players like NIO and BYD are already using metaverse platforms to provide interactive virtual test drives and car configurators.

India is also witnessing notable strides in the metaverse for automotive sector. In January 2023, Maruti Suzuki introduced ARENAVerse – which offers a way for users to experience their vehicles virtually and has shown the increasing importance of the metaverse in India automotive market. The emphasis of India on improving the digital infrastructure and adopting new technologies such as AR and VR provides an apt ecosystem for automotive companies to evaluate metaverse opportunities. All these technologies are also summed up and driven by the initiative of the government known as "Digital India," thereby driving growth in the industry.

North America Market Insights

By the end of 2035, North America metaverse for automotive market is poised to capture around 25.1% revenue share. This is due to strong technological infrastructure and rapid adoption of AR and VR technologies in automotive manufacturing and customer experiences. Robust investments in digitalization and metaverse technologies by leading automotive players, further propel growth in the region. Furthermore, the thrust on sustainable automotive practices by the government is likely to create more opportunities for applications of the metaverse in the production of electric vehicles.

The U.S. automotive manufacturers are leading in the metaverse revolution. For example, in March 2022, Acura opened a virtual showroom in Decentraland where one could virtually walk around its Integra model. Such trends are driving most U.S. automotive companies to increasingly shift their customer experiences to a virtual level, hence making the country the driver of metaverse adoption in the automotive industry.

Furthermore, Canada automotive companies are increasingly considering the application of the Metaverse to improve customer interactions and better production processes. In July 2023, the Government of Canada announced a new initiative to support the development of AI and metaverse manufacturing industries-including automotive-through tax incentives and grants. Such initiatives are expected to further accelerate the integration of Metaverse technologies within the automotive industry in Canada.

Metaverse for Automotive Market Size
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Metaverse for Automotive Market Players:

    Competition in the metaverse for automotive market is fragmented and is dominated by few established players. Some of the key players include Microsoft, Metadome.ai, BMW, MG Motor, and NVIDIA, each with the facility of advanced technologies such as AR, VR, and digital twins, in enhancing both customer experience and manufacturing efficiency. These companies are forming various partnerships and launching advanced metaverse projects in the automotive industry.

    For example, Capgemini strengthened its strategic partnership with Unity Technologies in February 2024 and inked an agreement to acquire Unity's Digital Twin Professional Services division, hence enabling the former to further reinforce its position in the automotive metaverse market based on industrial AI and digital twins while gaining entry among key players in the field.

    Here are some leading players in the metaverse for automotive market:

    • BMW Group
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Mercedes-Benz AG
    • Ford Motor Company
    • General Motors (GM)
    • Unity Technologies
    • Nvidia Corporation

Recent Developments

  • In April 2024, Basemark announced it had raised USD 23.9 million to enhance driving safety through AR technology. The company’s advanced AI-based computer vision system enables the rapid development of automotive AR experiences, with a focus on collaborating with OEMs in Europe, East Asia, and the United States, positioning itself as a key player in the global automotive AR market.
  • In February 2022, Eccentric partnered with MG Motor India to introduce an innovative online car consultation platform called eXpert. Leveraging augmented reality, this platform provides customers with a digital showroom experience, including real-time assistance from customer service representatives, enhancing accessibility and convenience. 
  • Report ID: 6487
  • Published Date: Sep 18, 2025
  • Report Format: PDF, PPT
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Frequently Asked Questions (FAQ)

In the year 2026, the industry size of metaverse for automotive is assessed at USD 5.68 billion.

The global metaverse for automotive market size was valued at over USD 4.42 billion in 2025 and is expected to register a CAGR of over 31.6%, exceeding USD 68.86 billion revenue by 2035.

Asia Pacific metaverse for automotive market will account for 41.70% share by 2035, driven by rapid digital transformation and increasing consumer interest in electric vehicles and virtual experiences.

Key players in the market include BMW Group, Ford Motor Company, General Motors (GM), Mercedes-Benz AG, Toyota Motor Corporation, Unity Technologies, and Nvidia Corporation.

Metaverse for Automotive Market Report Scope

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