AR and VR in Automotive - bvdw.org · PDF fileVideo cameras with 60 fps rendering, 12 megapixel (iPhone X) compared to 30 fps and 3.1 megapixels (iPhone 3GS) 4. ... AR and VR in Automotive

VIRTUAL AND AUGMENTED REALITY IN AUTOMOTIVE

Copyright 2017 Accenture. All rights reserved.

IMMERSIVE TECHNOLOGIES WILL FORM THE NEXT WAVE OF DIGITAL DISRUPTION

IF WE CONCLUDE FROM THE PAST,

IMMERSIVE TECHNOLOGIES

WILL REWRITE THE RULES…

…IN TERMS OF BUSINESS

MODEL,ARCHITECTURE AND

DOMINANT PROVIDERS

PC

WEB 1.0

WEB 1.1

WEB 2.0

MOBILE

AR / VR / MR

Internet Access

Subscription

?

Hardware Access

PC Sales

Search

Paid Search

Social Networks

Personalized Ads

Peer-to-Peer Networks

In-app Purchases

2Source: Based on Digi-Capital (July 2016)


AFTER SEVERAL DECADES ATTEMPTS –AR AND VR ARE NOW POISED TO TAKE OFF

3

2017 – ARKIT & ARCORE

Apple‘s & Google‘s developer tools make

(mobile) AR available for mass market

2013 – VW MARTA

VW develops Mobile AR

Technical Assistance (MARTA).

It uses built-in camera on tablet

to display vehicle service

information in real-time

2014 – GOOGLE GLASSES

Google releases first light-weight device

for consumers starting wearable AR trend

Modern Age (since 2010)

2016 – POKEMON GO

Breakthrough for AR with

Pokemon Go: Downloaded more

than 500m times worldwide

proofing revenue potential

Trial and Error (1950s - 2000s)

Source: Accenture (2017)

1950s – THE SENSORAMAFirst commercial VR use. Morton

Heilig offers virtual motorcycle ride

through NY for 25 cents per ride

1968 – SWORD OF DAMOCLES

Ivan Sutherland created first VR HMD

with NASA. Due to its weight, it was

fixed to the ceiling (hence the name)

1987 – VR IN ARCADE

Virtuality Group begins to sell VR

gaming machines for $70,000

1991 – COMMERCIAL VR GEAR

Jaron Lanier is first to sell VR goggles

($49,000) and gloves ($9,000)


MAINSTREAM ADOPTION OF IMMERSIVE TECHNOLOGIES IS ONLY A MATTER OF TIME

4Source: IDC (2017); Accenture based on Digi-Capital & Artillry (2017)

HMD Device Shipments [in Million]

HMD device shipment growth

@ CAGR 54,1% to reach 81,2M IN 2021

Head-Mounted Devices

14

21

32

47

61

0 13

10

20

0

10

20

30

40

50

60

70

2017 2018 2019 2020 2021

VR Devices AR Devices

Viewers

VR HMDs

AR HMDs

ARKit and ARCore bring AR to mass market

REACHING MORE THAN 3BN users in 2021

Handheld DevicesInstalled Base of ARKit and ARCore [in Million]

434586

740

853983

72

391

814

1.695

2.052

0

500

1.000

1.500

2.000

2.500

2017 2018 2019 2020 2021

ARKit ARCore

(iPads not included)


TECHNOLOGICAL ADVANCEMENTS HAVE UNLEASHED THE FULL POTENTIAL OF AR-VR

5

Video cameras with 60 fps rendering,

12 megapixel (iPhone X) compared to

30 fps and 3.1 megapixels (iPhone 3GS)

4. Affordable Devices

5. Keen Sensors

2. Powerful Processors

6. IoT Penetration

3. Sharp Cameras

1. Fast Connectivity

High computation power. iPhone X

(2.3 GHz) is 6 times faster than the

first iPhone (400 MHz)

2013: $1,300 (Google Glass),

2016: $600 (Oculus VR),

2017: $600 (HTC Vive), $100 (Zeiss VR

One), $15 (Google Cardboard)

Sensors to detect real-world objects, visual

positioning and cognitive recognition

IoT penetration is driving the demand for faster,

more intuitive visualization and interaction

Networks enabling high

speed data transfer

1G 3G 5G

2.4Kbit/s 2 Mbit/s 25 Gbit/s

GestureVisualSpeech

IoT Devices

2015 2020

CAGR 15% 20bn+ 10bn

Source: Apple (2017), Google (2017), Oculus (2017), HTC Vive (2017)


VISION PICKING | Equipping warehouse employees

with smart glasses that visualize where each picked

item needs to be placed

25% increase in operations efficiency

AUGMENTED MAINTENANCE | Providing HoloLens to

service technicians to visualize machine and establish

direct communication with remote support

Reduced average length of service calls by 4x

BUSINESSES ALREADY STARTED TO REALIZE THE BENEFITS OF IMMERSIVE TECHNOLOGY

6Source: DHL (2017), Thyssenkrupp (2017)


AND INDUSTRY EXPERTS ARE CONVINCED: AR-VR WILL CHANGE EVERY ORGANIZATION

7

EVERY ORGANIZATION

NEEDS AN AR STRATEGY.Michael E. Porter, HBR, November 2017

IT IS GOING TO CHANGE THE WAY

WE USE TECHNOLOGY FOREVER.Tim Cook, Apple, November 2017

Source: Apple (2017), HBR (2017)

Copyright 2017 Accenture. All rights reserved. 10

NOW WHAT

ABOUT OEMS?

Source: Volkswagen (2017)


A STUDY BY BVDW & ACCENTURE OUTLINES THE OPPORTUNITIES AND CHALLENGES OF AR-VR

IN THE AUTOMOTIVE INDUSTRY

11

Qualitative Insights

25 External / Internal Expert Interviews

AR-VR IMPORTANCEIN AUTOMOTIVE

AREAS OF VALUE CREATION OF

AR-VR

RECOMMENDATIONS

FOR OEMS

Copyright 2017 Accenture. All rights reserved. 13

WHAT IMPORTANCE DOES AR-VR HAVE FOR OEMS?


OEMS HAVE IDENTIFIED THE POTENTIAL AND ARE RAMPING UP THEIR ACTIVITIES …

14Source: Automotive News, CIO, Innovators Magazine,

VRfocus, Haptic.AL (2017)


… WITH PROJECTED AUTOMOTIVE SPENDING VOLUME IN AR-VR TO RISE TO $12,8BN IN 2021

15

2017 2021

$0,2bn $12,8bn

AUTOMOTIVE SPENDING WILL GROW

@ CAGR 182% TO REACH $12,8bn UNTIL 2020

Source: Accenture based on IDC, Gartner, Frost Sullivan (2017)


WHAT ARE THE OPPORTUNITIES FOR OEMS IN AR-VR?

16


AR AND VR CREATE BUSINESS VALUE ACROSS THE VALUE CHAIN AND BY BECOMING PART OF THE CAR

17Source: Accenture based on HBR (2017)

AR-VR become part of car and

ecosystem CREATING ENHANCED USER

INTERACTIONS and helping OEMs to better

DIFFERENTIATE THEIR PRODUCT

AR-VR can IMPROVE PERFORMANCE

ACROSS ENTIRE VALUE CHAIN from R&D

to manufacturing, sales and aftersales

AREAS OF VALUE CREATION

Value Chain Product1 2


WIDE RANGE OF AR-VR OPPORTUNITIES ACROSS THE ENTIRE VALUE CHAIN OF OEMS

18Source: Accenture (2017)

Non-Exhaustive

Manufacturing

& Supply

Marketing

& Sales

Research

& DevelopmentAftersales

Training

Virtual Remote Development / Prototyping

Self-Driving Car Testing

Virtual Remote Control of Production

Virtual Test / Training Drives (inside / outside the car)

Virtual Showroom

VirtualCar Configurator

Virtual Technical Handbook (for service / workshop)

Virtual Factory Twin

VRAR

Smart Glasses Assistance in SCM / Production

Quality Control by Overlying Target Situation

Augmented Controlof Production Line

Augmented Car Configurator

Showcasing Exterior Accessory Parts

Augmented Damage Analysis

Rescue Assist App

AR Beta-Prototype Testing with End-Customers

Vision Pickingin Logistics

VR mostly used for TRAINING PURPOSES AND

IN REMOTE SETTINGS

OEMs already working on AR-VR since late 1990s – LARGE NUMBER OF USE

CASES ALREADY IN PILOT

ADVANCEMENTS IN AI opens up

more sophisticated use cases, e.g. AR supported error recognition in production


As a simple AR configurator, the BMWi visualizer allows

to change basic settings such as color or wheels and put

the car into different environments.

The interactive visualizer creates an immersive and

engaging customer experience offering diverse future

potentials, e.g. in the direction of upselling or aftersales.

19

Augmented Car

Configurator

Description Benefits

BMW AUGMENTED REALITY VISUALIZER ENABLES SHOWROOM EXPERIENCE AT HOME

Source: BMW (2017) Copyright 2017 Accenture. All rights reserved.


THE DISRUPTIVE IMPACT OF AR-VR INTERFACES ON THE CAR AND ITS USAGE


LOCATION-BASED

VISUALIZATION INTERACTION GAMIFICATION

AR SIGNS

NAVIGATIONVIRTUAL TECHNICAL

HANDBOOK

HOLOGRAM MENU

NAVIGATIONGEOCACHING

BACKSEAT

ENTERTAINMENT


WAYRAY’S AR NAVI PROJECTS HOLOGRAPHIC IMAGERY AND NOTIFICATIONS ON WINDSHIELD

23

Augmented Reality

Navigation

The startup projects a virtual dashboard onto a driver’s

windshield displaying information such as speed,

arrows and other elements to support navigation.

By delivering contextually relevant information to

drivers, they are fully informed, are helped to stay better

focused leading to an increase in safety.

Description Benefits

Source: Wayray (2017) Copyright 2017 Accenture. All rights reserved.


WHERE WILL AR-VR HAVE THE BIGGEST IMPACT FOR OEMS?

24


MOST PROMISING USE CASES IN AUTOMOTIVE

25

Most promising Use Cases

Research & Development

Manufacturing & Supply

Support Functions / Training

Aftersales

Marketing & Sales

Product

Virtual

Prototyping

Cost

Reduction

Augmented

Training

Process

Optimization

Immersive

Showrooming

Added

Customer Value



WHAT IS PREVENTING OEMS FROM UNLEASHING THE FULL POTENTIAL OF AR-VR?

26


TECHNICAL MATURITY OF HW REMAINS MAIN CHALLENGE FOR AUTOMOTIVE OEMS

IMMATURE HARDWARE

SLOWS DOWN

IMPLEMENTATIONOF USE CASES

Hardware Maturity

Limited processing power and battery life, low resolution, hand-eye tracking, unaesthetic form

User Acceptance

Constraints with unknown physical impacts and concerns about privacy & aesthetics

UI and Experience

UI not yet optimized for AR/VR experiences. Mobile-like forms offer poor UI

Data Management

Complex integration of IoT data to enable visualization & interaction

Business Case

Often unclear ROI – no comparable projects

77%

69%

54%

46%

38%

27

IOT PLATFORMS CAN HELP TO

HARNESS DATA


What are the top three challenges your organization is facing in the implementation of

immersive technologies, n = 25


WHAT DO OEMS

HAVE TO DO?

ESTABLISH A DEDICATED AR-VR STRATEGY!

28


MAKE AR-VR AN INTEGRAL PARTOF YOUR ORGANIZATION


Start with creating aDEDICATED UNIT

TO ESTABLISH THE

INFRASTRUCTURE

for AR-VR to flourish

Organization

Business

Unit

Business

Unit

AR-VR

Unit

AR-VR Strategy

Budget /

OperationsBudget /

Operations

Technical Infrastructure

GoverningAR/VR UNIT

• Defines overall AR-VR

strategy and sets priorities

• Defines technological

standards and processes

• Enables business units

Operating BUSINESS UNITS

• Operates own AR-VR projects

• Shares overall AR-VR strategy

• Adheres central technological

standards and processes

BENEFITSSynergies

leveraged

Knowledge

shared

Business Units

enabled

AR / VR Adoption

facilitated

Strategic Initiatives

prioritized


CONSIDER WHERE AR-VR CAN BRING MOST VALUE IN YOUR ORGANIZATION


1. PERFORM A VALUE ANALYSIS

Financial potential

IDENTIFY KEY

INITIATIVES

AND THEN…

2. SELECT RELEVANTUSE CASES

Cover user

needs

Collect user

feedback

3. PROTOTYPE& TEST

Generate user

advantage

Flawless HW, SW and user

interaction

Measure impact

Qualitative factors


AR-VR WILL BE DIFFERENTIATING – BUT TOOCOMPLEX FOR ONE COMPANY ALONE


CONCEPT MODELLING ENHANCEMENTDEVELOPMENT

& UX/UI DESIGN

Outsource or

PartnerOutsource

Inhouse or

Partner

Use cases

Storyboard

Concept art

Texturing

Rendering

Animations

Gesture Recognition

Voice Recognition

App Development

API Development

UI / UX Design

Customer-

specific

Sensitive

Data

Gain first mover advantage

Highly specific

capabilities required

Continuous know-how development needed

No competitive advantage

from doing in-house

Partner for

backend integration

Outsource app

and design

Illustrative


WITH RIGHT APPROACH, OEMS CAN EXPLOIT FULL VALUE OF IMMERSIVE TECHNOLOGIES

32

1

ORGANISATION

• Make AR a priority

• Build an governing AR-VR unit to establish the infrastructure

2

IMPLEMENTATION

• Consider where AR-VR can provide most value

• Identify most valuable use cases

3

COLLABORATION

• Partner up to leverage the full potential of AR-VR

• Outsource non-conceptual activities


BEFORE MAINSTREAM ADOPTION,

OEMS NEED TO DEFINE A DEDICATED AR-VR STRATEGY


DISCUSSION

Tobias Lucas

Manager, Accenture Digital

Phone: +49 15117156296

E-mail: [email protected]

Ricarda Wagner

Referent Digitale Transformation, BVDW

Phone: +49 30 206218619

E-mail: [email protected]

Please get in touch with the initiators of this study to discuss:

33

Copyright © 2017 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. This document makes

descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by

Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks.

mailto:[email protected]

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Documents

AR and VR in Automotive - bvdw.org · PDF fileVideo cameras with 60 fps rendering, 12 megapixel (iPhone X) compared to 30 fps and 3.1 megapixels (iPhone 3GS) 4. ... AR and VR in Automotive