AMR Future Brief| Virtual Reality (VR) in Automotive: AMR’s thought-provoking Poll

Virtual reality (VR) is transforming the automotive industry by enhancing design, manufacturing, training, and customer experience. By creating immersive, interactive environments, VR is helping automakers innovate and streamline operations. 

To understand perceptions of VR’s future impact on the automotive sector, a poll of 600 industry professionals was conducted by Allied Market Research. Respondents were asked, “How do you think virtual reality (VR) will most significantly impact the automotive industry in the next five years?” The results revealed four primary areas of impact, design and prototyping, immersive customer experience, workforce training, and manufacturing optimization. 

Vehicle Design & Prototyping Lead the Poll 

Garnering 67% of the votes, vehicle design & prototyping were identified as VR’s most significant impact areas. VR enables automakers to simulate and refine vehicle designs without the need for physical prototypes, significantly reducing development costs and timelines. A 2020 study published by the Design Research Society—committed to promoting and developing design research—claimed that 70% of the total cost of a product is incurred in iteration, which is one of the most expensive and time-consuming aspects of design development. A study revealed that VR-based prototyping could lower design iteration costs by up to 30% compared to traditional methods.  

Training & Skill Development Benefits Recognized 

Training & skill development received 25% of votes, highlighting VR’s potential in improving skill development. Training simulations in VR offer realistic, risk-free environments for technical workers to practice complex procedures, such as assembly line tasks or vehicle repair. 

A study conducted by PwC—a multinational professional services brand of firms—revealed that employees trained with VR learned faster and retained information better than conventional training methods. The study further claimed that task performance of VR-trained employees improved by 4× and confidence level increased by 25%. Furthermore, a survey conducted by Deloitte unveiled that 70% of the employees were of the view that VR and AR can helped to improve their job performance. Thus, VR training minimizes operational downtime while improving workforce efficiency. 

Immersive Customer Engagement Gaining Momentum 

8% of respondents emphasized the role of VR in enhancing customer experiences. Immersive VR showrooms enable potential buyers to visualize and customize vehicles without visiting a physical dealership. For example, Kia Motors launched a VR showroom in 2024 that allowed users to explore car interiors, modify configurations, and simulate test drives in various environments. Thus, VR help to make purchase decisions easier as compared to those who rely solely on static online platforms. 

The Road Ahead for VR in Automotive 

The poll highlights that design and prototyping lead as the most impactful use of VR in the automotive industry, while customer engagement trails behind. With advancing technology, VR is set to drive efficiency, reduce costs, and enhance engagement across these areas in the next five years.  

For more insights into VR-driven innovations in automotive, connect with our team of experts.