Driving into Future: How XR Technology Transforms Automotive Industry
Car designer profession isometric with 3d model and vr symbols vector illustration

Extended reality is a technology that is already revolutionizing and improving the automotive industry. With augmented and virtual reality brands can facilitate car design and manufacturing processes and improve interaction with customers who buy cars.

No wonder, XR has been successfully implemented by famous brands, like Audi, Toyota, Kia, Mercedes-Benz, etc.

Exploring XR Technology Benefits

Brands are increasingly paying attention to extended reality in automotive industry due to its number of benefits, including

  • Facilitating car design and prototyping process. Using XR, engineers and designers can project new car designs in a more convenient and sophisticated way. In VR/AR, automotive workers can consider potential design flaws and car behavior on the road in the early stages of production. Projecting new cars in XR allows companies to save money and time.
  • Improving shopping experience. Virtual showrooms and test drives are convenient solutions for your customers, since they don’t have to spend their time reaching an actual showroom to buy a physical car. VR showrooms also allow brands to keep physical items in good condition without any concerns about damage while customers test virtual cars.
  • Reducing Environmental Impact. Immersive technologies are an ecologic solution for automotive brands. Using virtual showrooms and test-driving, the number of fumes that pollute the air is reduced. According to the research, 60% of automotive brands have an ecologic strategy called “Mission Zero”, that targets improving their cars as much as possible: zero accidents, zero injuries, zero emissions, and zero unplanned stops to provide additional services. And extended reality allows companies to optimize the car designing process without unnecessary money costs and harmful emissions. 
  • Enhancing employee training. Immersive technology training has long been proven to be an effective and engaging way to improve the skills of a company’s employees. For example, virtual reality allows you to recreate a workplace using photorealistic graphics, sounds, and even senses, provided by body trackers. Augmented reality gamifies the real workplace, turning standard training into a more interesting gaming experience. Virtual reality for training is also used in manufacturing.You can read more about successful cases here.
  • Improving communication between employees. Using immersive technologies, employees of the same car company in different parts of the world can meet in the same digital space and discuss the technical nuances of car models. For example, Mercedes-Benz introduced remote technical support for workers in mixed reality through Microsoft Hololens 2 called Dynamics 365 Remote Assist. With the help of communication in MR, a Mercedes-Benz service center car mechanic can solve a complex problem with a car without leaving their workplace and receive qualified assistance from the brand’s service center. Putting on Microsoft Hololens 2, a mechanic sees in front of them both a digital screen with an expert and virtual instructions that are superimposed on a real car engine or other parts of the car. The main purpose of introducing this remote support is to improve the efficiency of mechanics, speed up the problem-resolution process, and reduce costs and environmental damage due to trips related to vehicle repairs.

How Automakers Use XR to Sell More Cars

Explore Your Dream Car in Virtual Reality

High-quality virtual showrooms allow customers in VR glasses to see and try a digital model of the car before purchase. In addition, in such showrooms, there is an opportunity to customize the car to your own tastes and preferences.

Audi has released a virtual showroom that allows customers in VR headsets to view a virtual car before buying a real one. In this VR experience, a customer has access to such options as a virtual test drive, customization of the model (changing the color of the body, the design of the wheels, etc.), checking the engine and interior, etc. Audi also placed their virtual car on the surface of the moon to convey a certain mood of the model and attract the customer.

This video shows an example of how a customer checks a virtual Audi model in a specially designated room.

From Concept to Reality: The Role of XR in Car Design

Virtual reality allows you to project a new car design in a more detailed and sophisticated way. Instead of constantly using classic 2D sketches, designers create a new car model in VR with a clearer understanding of how the final product will look in reality.

Designing a new car model is better in virtual reality thanks to photorealistic graphics and the ability to peel off and examine the details of the car’s design in maximum detail.

For example, the automotive brand McLaren is already actively using VR to design new racing cars. With this technology, designers draw lines in VR directly on a 3D model using controllers, and there is also an option to switch between 2D and 3D modes.

“As a designer, you are thinking, how does it translate? But now, because we accelerated that process of “sketches straight into 3D”, it’s been much quicker, far more efficient. It still takes the craftsmanship of the drawn lines, you can capture that subtlety of line, then you can tweak it and affect it, and really tune that volume. Because for us, proportion is king,” said Rob Melville, design director at McLaren Automotive.

XR in Automotive: Game-Changer for Employee Training

Augmented reality allows automotive factory workers to produce new cars faster and more efficiently with digital training and instructions.

For example, Toyota introduced Dynamics 365 AR training for its employees based on Hololens 2 MR glasses. Using these glasses, the employees of Toyota manufacture hone their own skills and gain new knowledge in a specially designated room. Working with models, for example, of an engine or a car door in the MR glasses, they receive tasks and instructions on how to perform these tasks.

“Augmented reality and the ability to provide additional information to an engineer or a team member on the shop floor, while they are doing their job, stands to have a huge potential impact. We launch a new model every three years, our team members have to re-learn or learn new processes. And Guides, in combination with the data collection tools, that are available from the Hololens, really have been a breakthrough for us”, said John Tierney, manager at TILT Lab, Toyota Motor North America.

AR Navigation Systems: Future of Driving

Today, augmented reality is already successfully used for built-in navigation in cars. Instead of looking at a schematic map every time, the driver sees the real street in front of them on a screen, with digital signs superimposed on a road. Read more about how augmented reality is used for navigation here. 

Crash-Testing Without Crashes: Benefits of VR in Automotive Safety

With the help of virtual simulations, developers can predict how the car will behave on the road and how to avoid a traffic accident.

Unfortunately, car accidents with fatal consequences are quite common in the world. In the first 9 months of 2022, the number of people killed in car accidents in the US exceeded 31 thousand people.

Considering the prevalence of this problem, the US automotive brand Ford has developed a virtual crash test that helps car manufacturers and buyers predict all possible risks that await the driver on the road.

Extended reality is already successfully changing and increasing the efficiency of the automotive industry. Thanks to XR, many car brands can create a more economical and environmentally friendly car development experience with less time spent on designing and testing the car on the road. For buyers, the XR is beneficial because of how in virtual reality you can choose and customize a digital car before buying a real one, and augmented reality also serves as a tool for convenient navigation.

Image: Freepik

Latest Articles

The State of 3D Medical Image Visualization in 2026
June 29, 2026
The State of 3D Medical Image Visualization in 2026

Today’s imaging systems are more powerful than ever. A single CT scan generates hundreds of cross-sections. An MRI cardiac study captures the heart in four dimensions. A full-body PET produces a dense volumetric map of metabolic activity across every organ system. And yet, in most hospitals today, clinicians consume all of that data the same way they did in the 1990s: as 2D slices, scrolled one frame at a time, with the third dimension reconstructed entirely in the radiologist’s head. That gap between the data that exists and the data that gets used is what 3D medical visualization is closing. Progress hasn’t been uniform. The specialties with the highest spatial stakes have moved fastest. In oncology, where tumour margins and vascular relationships determine whether a resection is safe, 3D visualization is now routine. In cardiology, where structural defects live in three dimensions that 2D echo can only approximate, volumetric review has become standard practice for complex case planning. For these teams, rotating a segmented model or flying through a volume-rendered vessel is part of the reading workflow. Within healthcare, oncology drives roughly 34% of total 3D imaging spend: 52% of cancer centers already use 3D imaging as part of their standard workflow, and 44% of cardiology departments do the same. For much of medicine, the shift is still underway. But the direction is clear. The market reflects it. The global 3D medical imaging market was valued at $21.43B in 2025 and $23.39B in 2026 and is projected to reach $42.75B by 2032  at a compound annual growth rate of 10.36%. Healthcare has become the largest adopter of 3D imaging technology overall. In this article, we break down what 3D medical visualization actually means technically and where it creates measurable clinical value. The imaging data problem Begin with the scanners, because they don’t produce data the same way: CT measures X-ray absorption, so dense tissue like bone reads strongly while soft tissue stays faint: the default for trauma, lung, and skeletal work. MRI reads tissue magnetic properties instead of density, trading speed and bone detail for soft-tissue contrast nothing else matches. PET maps metabolic activity rather than structure, and almost always travels fused to a CT or MRI so the active regions have anatomy to sit against. Ultrasound produces a live volume but depends heavily on probe angle and operator skill. Cone-beam CT gives a tight, high-resolution field at the cost of coverage, which is why it dominates dental and interventional suites. All of these imaging methods capture a 3D volume of the body. Yet in most cases, doctors still review that data as a series of 2D slices. At first glance, this seems surprising: why collect rich 3D data only to view it in 2D? Part of the answer is habit and established workflows, but there are also practical reasons why 2D slices remain the standard in medical imaging. Raw data, nothing interpreted. A slice shows the scan as acquired. Every 3D rendering is the product of decisions which densities to display, which to hide, where to set the threshold and any of those can suppress a real finding or manufacture one that isn’t there. Full coverage of the dataset. Scrolling slices walks the eye across every voxel in the study. A 3D view by definition hides whatever sits behind the surface it shows, and for catching a small lesion or a faint ground-glass opacity, seeing everything matters. 3D earns its place once the task moves past detection: Spatial relationships. 3D visualization makes it easier to understand how anatomical structures relate to one another. Instead of mentally reconstructing anatomy from dozens of 2D slices, clinicians can view organs, vessels, and abnormalities as a single 3D model. Change over time. Tracking changes across multiple scans becomes much easier in 3D. By measuring the volume of a structure over time, clinicians can quickly identify trends that may be difficult to spot in individual slices. Communication. A 3D model is something a patient, a referring physician, or a multidisciplinary team can read at a glance, where a slice stack means little to anyone outside radiology. So, 3D visualization is most valuable when understanding spatial relationships is difficult or time-consuming in 2D. What complicates this in practice is the format the data arrives in. Most medical imaging is still stored as DICOM, a standard built around 2D-image workflows. DICOM is the backbone of medical imaging, but several of its legacy choices make 3D visualization and analysis harder to build on top of it. Gathering everything a full analysis needs is one problem: a careful read of a pathology usually draws on prior scans and the patient’s imaging history, and that data sits scattered across separate studies and series rather than in one place. Interoperability is another. DICOM has to exchange data with the hospital’s other systems, such as PACS, RIS, and the electronic health record, and every connection point adds friction. The input itself is uneven too: scans vary in quality and completeness depending on how and where they were acquired, so a tool built for real cases has to hold up across that range. We’ve written separately about why DICOM is stuck in the ’90s. What “3D medical visualization” actually means There are five techniques in common use. Most clinical software uses two or three of them together. Segmentation comes first, because the others depend on it. Segmentation. Something has to label what is in the scan before the rest can work. It needs to know which voxels are liver, which are tumour, which are vessel wall. This used to be manual work. A radiologist drew outlines on each slice, which for a complex case could take close to an hour. Two radiologists rarely produced identical outlines. AI tools changed this. TotalSegmentator and similar models label most organs in a CT scan in under a minute. The clinician checks and corrects the result instead of drawing it. This is what makes the other four techniques practical for routine use. Multiplanar reformatting (MPR)….

Immersive Storytelling: How XR Turns Audiences from Viewers into Participants
June 8, 2026
Immersive Storytelling: How XR Turns Audiences from Viewers into Participants

Immersive storytelling has moved from experimental format to a working tool used by humanitarian agencies, museums, newsrooms, and brands. The UN commissions 360° productions to communicate field realities. Agog is funding up to $1 million in 2026 grants for immersive climate work. Museums build location-based AR around their collections. Brands replace banner-grade content with VR experiences their audiences actually remember. What unites these use cases is a shift in what audiences expect from a story. Watching is no longer enough. People want to step into the scene, choose where to look, and feel that their presence shapes what happens next. The market reflects this shift. Fortune Business Insights projects the immersive marketing segment alone to grow from $11.66 billion in 2026 to $89.45 billion by 2034, at a CAGR of around 29%. In this article, we look at what immersive storytelling actually means in 2026, the formats producing the strongest results today, why presence works the way it does on a cognitive level, and where the medium is creating the most measurable impact across sectors. What is immersive storytelling? Immersive storytelling is a narrative method built on VR, AR, MR, 360° video, spatial audio, and interactivity. What makes it a distinct medium is the sense of being inside a story rather than watching it from outside. This changes the relationship between content and viewer in three concrete ways. Linear video becomes a 360° scene. Traditional film frames the shot for the audience: the director decides what is in view and what is cut out. In a 360° production, that frame disappears. The viewer chooses where to look, and different details emerge depending on where their attention goes. The same scene can carry multiple parallel observations, and two people watching the same piece may come away with different impressions of what mattered. Text and photography become interactive environments. A written article describes a place; a photo captures a moment of it. Both keep the audience on the outside. Interactive VR and AR let the audience step into the environment, examine objects up close, and in many cases trigger responses through their own actions. Passive consumption becomes an embodied experience. Watching content engages mostly the eyes and ears. Immersive formats add spatial awareness, proprioception, and a sense of physical location. The brain registers the experience closer to how it registers being somewhere in the real world, which is why retention and emotional response measure differently in immersive media than in flat content. How far the experience goes in any of these directions depends on the creative approach. Why it works: The science of presence and empathy When immersive storytelling produces results, it does so through specific mechanisms. The effect it has on audiences has been documented in peer-reviewed research and confirmed by neuroscience. A peer-reviewed study on immersive storytelling and presence found that delivering a story via 360° video on a head-mounted display produces stronger self-location and copresence than the desktop or text version of the same piece. Self-location is the feeling of being physically inside the scene; copresence is the sense of being there with other people. Both have a direct effect on how audiences respond emotionally. Copresence boosts cognitive empathy—the ability to understand what someone else is going through. Self-location and copresence together drive affective empathy—the capacity to share in those feelings. The format is changing what the audience is neurologically equipped to feel. Neuroscience confirms the difference at the signal level. EEG studies comparing VR with television viewing have documented greater mu rhythm suppression during VR sessions—a neural signature long associated with empathic response and mirror neuron activity. The brain registers immersive content differently from flat content. It shows up on EEG equipment, independently of what the audience reports feeling. These findings explain why immersive storytelling is being adopted in fields where emotional connection and behavioral change actually matter: humanitarian communication, climate advocacy, public health, education. But the effect is not automatic. Presence on its own is just immersion. Real emotional and behavioral impact comes from the combination of presence, intentional narrative design, and ethical representation of the subject. Without the second and third, the first is a novelty. Core formats There are five core formats producing immersive storytelling today. They differ in how they are built, how they reach the audience, and what kind of story they can carry. The choice between them is usually the first practical decision in any project. 360° video is the lowest barrier to entry. It is filmed, not built, using specialized cameras that capture the full surrounding scene, which the viewer then explores by turning their head. Production logic is closer to documentary filmmaking than to game development, which makes it accessible to teams already working in video. It is the strongest fit for documentary, fundraising, brand stories, and any project where the goal is to transport the audience into a real place. It is also the most common entry point for organizations producing their first immersive piece. Interactive VR experiences are fully built in engines like Unity or Unreal. Unlike 360° video, the environment is constructed rather than filmed, which means the audience can move through it, interact with objects, and trigger branching narratives. VR development is closer to game development than to film, with longer timelines and higher budgets, but the payoff is depth: the audience can spend hours inside a well-built VR experience and keep finding new layers. This format is the strongest fit for education, simulation, and brand experiences where engagement time matters more than reach. AR experiences anchor digital content to physical locations or objects, delivered through smartphones or smart glasses. The audience stays in the real world and sees a layer of story added on top of it. This makes AR and MR development especially valuable when the physical context is part of the message: a museum exhibit that comes alive when viewed through a phone, a historical site that reconstructs itself on screen, a product that reveals its inner workings when scanned. AR works…

From Pain Relief to Rehabilitation: A Portrait of VR Therapeutics in 2026
May 27, 2026
From Pain Relief to Rehabilitation: A Portrait of VR Therapeutics in 2026

VR therapeutics is becoming a real category of reimbursable medicine. It now has FDA authorization pathways, dedicated billing codes, and growing support from commercial insurers. This shift didn’t happen overnight. It has built up over several years through a series of regulatory, clinical, and commercial milestones that together make 2026 a turning point for the industry. The market is starting to reflect that. Estimates vary by methodology, but SNS Insider projects the broader VR healthcare market to grow from $4.27B in 2024 to $46.4B by 2032 (a 33% CAGR). VR telerehabilitation alone is projected to grow from $1.2B in 2026 to $2.67B by 2030, a 22% CAGR that captures the segment this article focuses on. Three moments tell the story of how we got here. 2021: The first prescription VR therapy gets FDA cleared. AppliedVR’s RelieVRx became the first VR product authorized as a prescription medical device in the US. 2023: Medicare opens the reimbursement door. Centers for Medicare and Medicaid Services created the first VR-specific billing code, placing prescription VR into the Durable Medical Equipment category. The practical effect: doctors gained a way to prescribe VR therapy, and insurers gained a code to pay against. 2025: Commercial insurers begin following Medicare’s lead. In September, Cigna became one of the first major commercial payers to cover FDA-approved digital therapeutics. In this article, we’ll walk through six therapeutic domains where that infrastructure is taking shape. Each has its own clinical logic, its own leading players, and its own path to scale.  Market architecture Before we walk through the six therapeutic domains, it’s worth understanding the shape of the market they sit inside: what’s growing, where the money is concentrated, and what changed structurally between 2023 and 2025 to make any of this viable. Where therapy and rehab sits inside VR healthcare VR healthcare as a whole spans everything from surgical training simulators to anatomical education tools. But within that broader market, VR therapeutics and rehabilitation is the fastest-growing application segment, and it’s also where regulatory and reimbursement infrastructure is forming most actively. Inside therapy-and-rehab itself, two sub-segments are consistently identified by independent market research as the fastest-growing: pain management and mental health therapy. Both have something the other categories don’t yet: FDA-cleared products in the market, peer-reviewed efficacy data, and at least nascent reimbursement pathways. Geographically, the market is concentrated in two regions for very different reasons. North America is leading adoption mainly because the FDA has started approving prescription VR therapies, and dedicated billing codes now allow healthcare providers to get reimbursed for using them. Europe is catching up via different infrastructure, particularly Germany’s DiGA framework, which provides a parallel route to physician prescription and statutory health insurance coverage. France’s PECAN and the UK’s DTAC are developing in a similar direction. The pattern is clear: once regulators create a formal pathway, companies and investment tend to follow. What the hardware cycle unlocked The clinical use cases for VR therapy didn’t really change between 2020 and 2025. What changed is that the hardware finally became viable for the business models the clinical work demanded. Consumer-grade standalone headsets brought the price floor down to where at-home prescription models work. Meta Quest 3, Meta Quest 3S, and Pico 4 helped bring standalone VR headsets to more affordable consumer price levels—an important step for prescription VR therapies that patients are expected to use at home. RelieVRx, for example, is a self-administered program delivered to patients in their living rooms; that model is described in detail in MDIC’s case study of the product. Major headset manufacturers are doubling down on healthcare partnerships rather than building healthcare-specific hardware. A useful signal here is HTC VIVE’s April 2025 expansion with Mynd Immersive, Select Rehabilitation, and AT&T into more than 150 US senior living communities—the largest deployment of immersive therapeutics into senior care to date. The interesting strategic detail isn’t the size of the rollout but its structure: a hardware OEM (HTC), a content/care platform (Mynd), a clinical services partner (Select Rehab), and a connectivity provider (AT&T). That’s the four-party stack that scaled clinical VR is going to require, and partnerships like this one are essentially templates that the rest of the industry will be copying. Body: pain & physical rehab 1. Pain management Pain is the single largest unmet need in clinical medicine. In the United States alone, roughly 50 million adults live with chronic pain, and the toolkit physicians have to treat it is uncomfortably narrow: opioids carry addiction risk, non-opioid pharmaceuticals are inconsistently effective, and behavioral therapies are scarce and slow. Procedural pain is its own category, often managed with anesthesia or sedation, which adds cost, risk, and recovery time. This is the gap VR fills. The clinical evidence for VR as a pain intervention rests on two well-documented neurological mechanisms. The first is gate control theory: pain signals traveling up the spinal cord compete with other sensory inputs for processing capacity, and immersive visual and auditory stimulation can effectively crowd them out before they reach the brain as pain. The second is cognitive load: a fully immersive VR experience occupies enough of that capacity to leave less available for processing pain as pain. Together, these mechanisms make VR more than just a distraction. They turn it into a real neurological intervention, which helps explain why VR can reduce pain in clinical settings where simpler distractions like music or conversation often cannot. There are two distinct applications emerging from this. The first is procedural pain, where Medtronic provides the clearest commercial example. Medtronic’s VR solution makes office hysteroscopy more comfortable by immersing the patient in a virtual environment during the procedure. According to Medtronic, the immersive sedation-analgesia content reduces patient anxiety and decreases pain-related brain activity. The second application is chronic pain. RelieVRx, which we talked about above, is a shining example, receiving Breakthrough Device Designation and De Novo authorization specifically for chronic lower back pain. A regulatory pathway the AppliedVR team has documented in detail in the peer-reviewed literature. The clinical data behind…



Let's discuss your ideas

Contact us