Automotive Extended Reality Market Size

Automotive Extended Reality Market size is estimated to surpass USD 900 billion by the end of 2036, growing at a CAGR of 5% during the forecast period i.e., 2024-2036. In the year 2023, the industry size of automotive extended reality was around USD 41 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.