Designing, building, and buying a car will be very different in the Metaverse, writes Kathrin Pannier
With its origins in the gaming industry, the Metaverse describes the convergence of several developments, all of which involve incremental changes in technological capabilities: mass market-ready devices for augmented, virtual and mixed reality, Metaverse worlds with hundreds of millions of active and virtual active users powered by Web3 technologies.
This convergence creates an immersive sphere where the boundaries between the virtual world and the physical world are blurred. A space where people and organizations can interact and fully immerse themselves in three-dimensional digital content, a far cry from the online experiences we are used to now.
A lot of money is already moving into this space. The economy of virtual assets (in the form of non-fungible tokens (NFTs) has exceeded $400 million in investments in just a few months. The global metaverse market size is expected to reach $250 billion to $400 billion By 2025, according to BCG’s Recent Report: The Corporate Hitchhiker’s Guide to the Metaverse Over the projected period, the market is expected to grow at a CAGR of around 40% driven by growing demand from industries such as media, entertainment and education.
The Metaverse will impact automotive companies at all levels of their value chain, with deeper and more immersive customer engagements, tighter integration and seamless collaboration with suppliers, partners and internally
The possibilities of the Metaverse are also being explored by several car manufacturers. Interactive holographic windshields and 3D virtual stores are just the start. But if it allows for better information and a better customer experience, what does the Metaverse really mean for the automotive industry?
The Metaverse will impact automotive companies at every level of their value chain, with deeper and more immersive customer engagements, tighter integration and seamless collaboration with suppliers, partners and internally. This will lead to shorter development cycles, better quality and better market fit.
Are the days of the real showroom almost over? Not necessarily, but we can be sure that designing, building, and buying a car will be very different in the Metaverse.
Many technologies have been in place for several years and have enabled things such as digital twins in product development, predictive maintenance and virtual planning. What is new is the level of connectivity and virtual maturity across the enterprise. To give an example: applying Metaverse technologies to product development will allow us to fundamentally rethink the way we design cars in the future. Ultimately, we will build hardware the same way we build software today. This means a product portfolio without fixed product cycles designed for updates, continuous development and integration of new technologies and product updates.
The use case described is just the tip of the iceberg: consistency of strategy, rigor of execution, and building in-house skills will be crucial to winning in this new market. The metaverse is here to stay, and early adopters will have the advantage of capitalizing on opportunities as they arise.
The opinions expressed here are those of the author and do not necessarily reflect the positions of Automotive World Ltd.
Kathrin Pannier is Managing Director & Partner at BCG
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