Metaverse in Automotive Market Expected to Reach $27.2 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Metaverse in Automotive Market," The metaverse in automotive market size was valued at $2.2 billion in 2022, and is estimated to reach $27.2 billion by 2032, growing at a CAGR of 29.9% from 2023 to 2032.

Asia-Pacific is expected to register significant CAGR in the metaverse in automotive market The rapidly expanding automotive sector in Asia-Pacific is embracing metaverse technology, with China investing in augmented reality startups, Japanese manufacturers promoting EVs in the metaverse, and India adopting VR-based marketing, which is propelling the expansion of the metaverse market for automotive industry.

Europe is the second largest market in 2022. The development of specialized solutions that address particular industry needs and improve efficiency and transparency was made possible through collaboration between automotive businesses and blockchain technology suppliers in UK. For instance, in March 2022, McLaren Automotive, a renowned British car manufacturer, ventured into the metaverse by offering customers an enhanced experience that enables them to create and trade non-fungible tokens (NFTs). Collaborating with InfiniteWorld, a US-based IT company specializing in Plug & Play NFT and metaverse infrastructure, McLaren will present its high-end hypercars and supercars within the metaverse as NFTs or other digital artworks.

Global automobile makers expanded their presence in Europe with the help of virtual showrooms. For instance, in January 2023, FIAT launched the FIAT Metaverse Store, an alternative car shopping experience in Europe. This digital showroom allows customers to configure and purchase cars within a virtual environment. It initially debuted in Italy in December, and FIAT plans to expand the metaverse showroom to France, Germany, and the UK in early 2023. This innovative approach to car shopping leverages the metaverse to provide a unique and immersive experience for potential buyers.

The automotive industry is utilizing virtual reality to create realistic showrooms that let customers explore vehicles in-depth, customize options, and even go on simulated test drives. In addition, VR is transforming the automobile industry by enabling engineers and designers to see and improve car prototypes in a digital environment, resulting in shorter and more productive design cycles.

Furthermore, by establishing an artificial environment for stimulation, VR is now used to undertake car safety assessments. As a result, less time and effort need to be spent in conducting the tests.

Moreover, AR displays embedded within vehicles overlap information like navigation prompts, safety alerts, and points of interest onto the driver's view. The development of heads-up displays increasing and new products unveiled in the market. For instance, in June 2023, Raythink, a Chinese manufacturer of augmented reality heads-up displays (AR-HUD), introduced an innovative automotive solution. This solution utilizes the OpticalCore picture generation unit of company, capable of projecting fully-visible 3D images. Through its advanced photorealistic technologies, the solution offers drivers immersive and detailed 3D effects for an enhanced driving experience.

In addition, car dealerships are embracing the metaverse to engage with the next generation of car purchasers, who are becoming more tech-savvy and looking for innovative experiences. Car dealerships provide a fully immersive and engaging experience that cannot be recreated in the physical world by constructing a virtual showroom in the Metaverse. Customers may now examine several models, adjust their features, and simulate driving a car via virtual showrooms. Customers can even sit inside the car and view it from every angle using virtual reality technology.

Factors such as rise in focus on leveraging the metaverse for marketing campaigns, increase in demand for modern vehicle shopping experiences with immersive virtual showrooms, and growth in demand for intuitive metaverse design for product development and manufacturing drives the growth of the market across the globe. In addition, factors such as cost associated with installing and maintaining premium components and issues related to cybersecurity and privacy act as a barrier for the growth of the market across the globe. However, the factors such as car maintenance and repairs by metaverse and incorporation of metaverse in automotive infotainment creates ample opportunities for the growth of the market during the forecast period.

Impact of Russia-Ukraine war

The tensions and disruptions caused by the conflict have led to significant consequences for the industry. The war between Russia and Ukraine has the potential to exacerbate spare part supply chain concerns. During times of geopolitical tension, there may be an increased risk of cybersecurity threats and attacks. As metaverse technologies often rely on interconnected digital systems and data, heightened cybersecurity risks could affect the integrity and security of metaverse applications in the automotive sector. Automotive companies and technology providers may need to invest more in cybersecurity measures to protect their metaverse solutions.

It is essential to note that the impact of geopolitical events like the Russia-Ukraine war on the metaverse in automotive market can vary depending on the duration and severity of the conflict, as well as the specific dependencies and vulnerabilities of individual companies and markets. To mitigate potential risks and navigate challenges, businesses in the automotive and metaverse sectors should closely monitor geopolitical developments, diversify supply chains where possible, and maintain agility in adapting to changing market conditions.  Thus, European countries have difficulties managing resources for manufacturing of automobile.

KEY FINDINGS OF THE STUDY

• By product, the software segment is anticipated to exhibit significant growth in metaverse in automotive market in the near future.
• By technology, the augmented reality segment is anticipated to exhibit significant growth in metaverse in automotive market in the near future.
• By application, the simulation, testing and designing segment is anticipated to exhibit significant growth in metaverse in automotive market in the near future.
• By region, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

The key players profiled in the metaverse in automotive market report include Microsoft Corporation, NVIDIA Corporation, Roblox Corporation, Unity Technologies, Stradvision, Eccentric, Wayray AG, holoride GmbH, Varjo Technologies, and metadome.ai (Formerly Adloid) as the major companies operating in the market.