Automotive Augmented Reality Market Share

Introduction: Navigating the Competitive Landscape of Automotive Augmented Reality

The automobile augmented reality market is experiencing an unprecedented period of competitive intensity, driven by a combination of rapid technology adoption, the evolving regulatory framework and consumers’ increasing expectations of immersive experiences. The main players, from the car manufacturers, IT systems integrators, equipment manufacturers and the latest AI-driven start-ups, are using their unique capabilities to try to establish themselves as leaders. While the car manufacturers are concentrating on integrating augmented reality into the design and user experience of their vehicles, the IT systems integrators are concentrating on seamless connectivity and data analytics. And the new start-ups, with their IoT and AI-driven solutions, are reshaping the market with their enhanced personalization and operational efficiency. Meanwhile, the growth of biometrics and green technology is influencing both consumers’ preferences and compliance with regulatory requirements. As we look ahead to 2024–25, the biggest growth opportunities are expected to be in North America and Asia-Pacific, where strategic deployments of augmented reality are set to completely transform the engagement and operational paradigms of the automobile sector.

Competitive Positioning

Full-Suite Integrators

These vendors provide comprehensive solutions integrating hardware and software for augmented reality applications in automotive.

Specialized Technology Vendors

These companies focus on specific AR technologies and solutions tailored for automotive applications.

Infrastructure & Equipment Providers

These vendors supply the necessary hardware and infrastructure to support AR applications in vehicles.

Emerging Players & Regional Champions

• WayRay, Switzerland, is a company that specializes in holographic augmented reality for use in vehicles. It has recently teamed up with several car manufacturers to offer a new model of its technology to be installed in the next generation of automobiles. This new technology is meant to challenge the established suppliers by providing a more enveloping and engaging experience for the driver.
• VISIBQ (UK): The focus is on software for augmented reality displays. It recently won a contract from a major car manufacturer to enhance its on-board information system, complementing the hardware suppliers with its advanced software capabilities.
• NavVis (Germany): Offers AR solutions for navigation and mapping in vehicles, recently implemented their technology in fleet management systems, positioning themselves as a challenger to traditional navigation system providers.
• Holoride (Germany): Provides augmented reality entertainment for in-car use. Recently teamed up with the world's leading carmakers to integrate its platform into new cars, thereby complementing existing infotainment systems and presenting a new challenge to traditional media.

Regional Trends: By 2024, the augmented reality market for cars in Europe and North America will have grown considerably, thanks to the rising demand for augmented reality and safety features. Companies are focusing on specialised software and the establishment of close relationships with the automobile manufacturers to integrate augmented reality solutions into vehicles. The trend is towards the development of more immersive experiences that not only entertain but also support the navigation and safety of the driver. New players are emerging to challenge the established players.

Collaborations & M&A Movements

• During the course of the past two years, Nvidia and Mercedes-Benz have teamed up to develop and build a set of intelligent augmented reality features for their cars, with the goal of improving both the safety and the quality of their vehicles and enhancing their competitiveness in the luxury car market.
• Volkswagen acquired AR technology firm 3D-AR in early 2024 to bolster its digital cockpit offerings, which is expected to significantly increase its market share in the automotive AR space amidst growing consumer demand for immersive experiences.
• Ford and Qualcomm announced a collaboration to develop next-generation heads-up displays for their cars. The new systems will be aimed at improving navigation and driver assistance, thereby establishing the two companies as leading competitors in the field of smart mobility.

Competitive Summary Table

Conclusion: Navigating the Competitive AR Landscape

Towards the end of the decade, the competition in the market for augmented reality in automobiles will be more and more characterized by fragmentation. The trend towards the emergence of a strong market is mainly reflected in North America and Europe, where a combination of regulatory support and the demand for innovation is bringing about the development of the market. Strategic positioning will have to be based on the exploitation of the possibilities offered by artificial intelligence, automation, and flexibility. While the established players are concentrating on integrating augmented reality into existing platforms, the newcomers are innovating with their own augmented reality solutions. The ability to adapt to changing customer requirements and technological developments will be decisive for the leadership in this rapidly changing market.