The global demand for use of virtual reality in manufacturing is experiencing a significant rise, and the market is expected to grow considerably in next few years. The manufacturing sector involves everything from development and testing of prototype to manufacturing of finish product. The involvement of various different components such as electrical, mechanical, and utility make the development and manufacturing process prone to defects and risks. Thus, to optimize the product quality and utility there is a demand for advanced manufacturing solutions, which is a key driver in the growth of the virtual reality in manufacturing market throughout the forecast period. Virtual reality is a computer-generated three-dimensional environment consisting of virtual objects, which can be explored and interacted with by humans. The increasing complexity in automotive and aeronautical sector has further increased the demand for the use of virtual reality in manufacturing industry. The hazards and accidents during manufacturing can also be prevented by the use of virtual reality, thus making it a valuable asset for any manufacturing company. The key players in the industry are determined towards developing more advanced technologies which will simplify the process of product development and manufacturing.
A virtual reality solution, typically consists of a viewing system, tracking system, interactive element, artistic element and sensory system to create a virtual environment. A person can become a part of this virtual environment and can perform a series of actions with the virtual objects. This technology is especially useful in development and manufacturing sector to understand the complexities of the product by interacting with it virtually. It also helps evaluate the useability, safety, functioning, and aesthetics of a product. The continuous advancement ensures rapid growth in the use of virtual reality in manufacturing industry.
COVID-19 Impact analysis
- COVID-19 had affected virtual reality in manufacturing sector during the second quarter of 2020 as the demand witnessed a steep decline due to restrictions on manufacturing activities. Major players in the automotive and aeronautical industry decreased the production in the wake of reducing demand because of COVID-19.
- Countries like the U.S., the UK, Germany, Japan, China, and Italy, which are major automotive manufacturing hubs have been struggling because of COVID-19, thus negatively affecting the demand for virtual reality in manufacturing sector.
- COVID-19 pandemic also negatively affected the use of virtual reality in manufacturing sector due to the restrictions laid on factory operations. Virtual reality development industry is expected to focus on protecting its workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Developers and manufacturers in virtual reality sector can afford declining sales only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce the expenses. Whereas few players also adopted employee lay-offs to sustain during the COVID-19 health crisis.
- With the increasing vaccination drives and leniency in social restrictions, the manufacturing industry has shown signs of recovery which is a boost for the demand of virtual reality in manufacturing sector.
Top Impacting Factors
The increasing competition in the manufacturing industry has created a need to produce high-quality products by minimizing defects and maximizing utility. This has led to an increase in investment for product development and testing. Virtual reality offers an exceptional level of simulation, thus enabling the manufacturers to identify and rectify errors in the development phase of a product, which is a key driver in the growth of virtual reality in manufacturing market. Virtual reality also offers the capability to simulate manufacturing processes and machines; thus, optimizing the manufacturing process and reducing the cost of production. The tedious task of precise positioning of all the electrical and mechanical components in cars, aircrafts, and ships is simplified by the use of virtual reality; thus, further increases the demand for virtual reality in manufacturing sector. The high initial costs for integration of virtual reality in a manufacturing process is a major restraint in the growth of virtual reality in manufacturing market. The lack of skilled labor, over production costs, globalization and strategy of companies to adopt quality control techniques such as LEAN. Kaizen and Six-Sigma ensure substantial growth of virtual reality in manufacturing market throughout the forecast period.
- Lockheed Martin, an American aerospace company is using virtual reality to build the F-35 fighter aircrafts. This has enabled the company to speed up manufacturing process by 30% and achieve up to 96% accuracy.
- The key players in the automotive sector are rapidly adopting virtual technology as well. For instance, Ford uses virtual reality to simulate road and weather conditions, which enable testing of the vehicles from a driver’s perspective and developing a safer product.
- In 2019, EON Reality Inc., a leader in Virtual Reality announced its partnership with Toyota Material Handling. The partnership will combine EON Reality’s flagship EON-XR Platform with the Toyota Production System for optimizing training, sales and maintenance processes.
- Unity Technologies, creator of the world’s most widely-used real-time 3D development platform, has set up a special automotive division, which works with experts from companies such as Volkswagen, Renault, and GM to bring real-time 3D to the world’s automotive Original Equipment Manufacturers (OEMs) and suppliers. Unity and Toyota Motor Corporation are also jointly involved in various projects.
Key Benefits of the Report
- This study presents the analytical depiction of the virtual reality in manufacturing along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the virtual reality in manufacturing market share.
- The current market is quantitatively analyzed to highlight the virtual reality in manufacturing market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed virtual reality in manufacturing market analysis based on competitive intensity and how the competition will take shape in coming years.
Virtual Reality in Manufacturing Market Report Highlights
By Product Type
By End-User Industry
By Business Type
Key Market Players
Unity Technologies, EON Reality, HQSoftware, Google, NEXT/NOW, HTC Corporation, Sony, Microsoft, NVIDIA Corporation, Magic Leap, Inc., Samsung