Our company are building Augmented Reality Glass system for drivers.

  • We have been cooperate with a hardware company. We build the software based on their devices.
  • Our software includes :
    • Car localization system, offering high frequency 6dof car poses.
    • AR localization with respect to the move car, offering 6dof poses of the AR glasses.
  • We have been developing the following user cases:
    1. See thought the blind area for drivers, to be more safe.
    2. AR navigation assistant, to help driver better driving.

Environment Analysis

Current market is growing:

  • The market of Virtual Reality and Augmented Reality is growing. The market is 3 billons in US. A Compound Annual Growth Rate (CAGR) of over 40% between 2024 and 2036 is suggested 1.
    • In 2023, China’s AR market shipments will reach 262,000 units, a year-on-year increase of 154.4% 2.
    • But most growth are in VR and AI assistant AR. Not in real augmented reality glasses.
  • The market of Car is stable, and large. The projected revenue reaches US$549.9bn in China. With an annual growth rate (CAGR 2024-2028) of 1.07% anticipated 3.

Current Augmented Reality Glass in car market (no company is making augmented reality experiences for driver thought AR glasses) :

  • 2023/03 Rokid Max AR is available in Lixiang Car (for 2799¥), for in car cinema experiences, but only for passengers not the drivers 4.
    • Rokid Corporation’s estimated annual revenue is currently $38.2M per year. which is small size.
  • Meta had been developing AR glass in car since 2022. But no further product information since then.
    • And meta’s new AR glasses focus only on AI assistant (not on augmented reality experiences).

Can the market grow further? Not cue!

Do consumers like AR glasses in vehicles for driving assisting ? Not yet

Five Forces Analysis

  1. (=) Threat of Entry. Hard to entry.
    • High sunk costs - AR glass is a very complicated industry. The major technology barrier is about the lens, which cannot be used elsewhere.
    • Meta might build great competitive advantage.
  2. (-) Threat of Substitutes. We have only a few user cases, and they can be easily substituted by VR/MR glasses.
  3. (-) Bargaining Power of Buyers. Buyer could buy cheaper and more mature VR glasses, with similar functions.
  4. (+) Bargaining Power of Suppliers. The major user case of the lens are AR glasses.
  5. (-) Intensity of Rivalry. No large company, since the current market size is small.

Competitive Position

Current market problems :

  • Augmented Reality glasses sure is a cool thing, while it might need more time than we thought. (the current lens technologies cannot reach our anticipation - in FOV, weight, duration, etc).
  • Do driver need AR glasses ? Since HUD and digital screens might satisfy all needs.
  • Can (or should) driver wear AR glasses ? Since it might be dangerous, it might cause damage when car accidents, or it may distract the drivers.

As a result, in order to occupy a better position in this market, we need to overcome these problems, and be in a leading position at least for one of the fields. Let’s consider these problems :

  1. (x) Develop a better visual effect. While we are not a hardware company, without technology bases.
    • We could build a tight cooperation with a hardware company to overcome our shortage here.
  2. Find a better user case (that HUDs or digital screens cannot realize). Better understanding the consumers.
  3. We need to be both comfortable and safe.

Strategy Formulation

Here are some key strategies that can help position your company for success in the AR glasses market for drivers:

  1. Product Differentiation Strategy: offer features that are hard to replicate with HUDs or digital screens.
    • Blind Spot Visibility: Develop AR glasses that allow drivers to “see through” blind spots by overlaying live camera feeds or sensor data onto their view.
    • AR Enhanced Navigation: Provide a more immersive navigation experience where directions are projected directly onto the road or overlaid onto street signs and buildings.
    • Safety Alerts: Use real-time data to alert drivers to nearby hazards (e.g., pedestrians, vehicles) in their field of view, potentially integrating with existing ADAS (Advanced Driver Assistance Systems).
  2. Partnership and Collaboration Strategy : Strategic Hardware Partnerships & Automotive Industry Partnerships.
  3. Customer-Centric Strategy:
    • Consumer Education: hard.
    • Pilot Programs with Fleets: Partner with commercial fleets (e.g., trucking companies, delivery services) to run pilot programs.
    • Market Research and User Testing: Continue investing in market research to understand what consumers expect from in-car AR experiences. Conduct extensive user testing to ensure comfort, usability, and safety during driving.
  4. Technology and Innovation Strategy
    • Prioritize Safety: Build AR glasses that meet stringent safety standards. Ensure that your glasses don’t distract drivers, and that they can be safely worn in accidents. Incorporate minimal, clear, and actionable visualizations to avoid cognitive overload.
    • Software Development & Interoperability.
  5. Go-to-Market Strategy: Target Premium Vehicle Segments First, B2B First, Then B2C.
  6. Regulatory Strategy: Collaborate with Regulatory Bodies & Safety Certifications.

Strategy Implementation

The 4A Model of Strategy Execution—which focuses on Alignment, Ability, Architecture, and Agility—provides a structured way to execute your company’s strategies. Here’s how you can apply this model to your AR glasses for drivers project:

1. Alignment

Alignment ensures that all team members and partners understand and are committed to the strategic goals.

  • Clear Vision & Communication: Ensure that your entire team and partners (especially your hardware collaborator) share a clear understanding of the strategic goals. Hold regular meetings to reinforce how the current work aligns with the company’s larger vision of building AR solutions that enhance driver safety and experience.
  • Internal Buy-In: Engage key stakeholders (leadership, engineering teams, marketing, and sales) to ensure everyone is committed to the strategy and understands the priorities. For example, make sure your software team knows the emphasis on “blind spot visualization” as a key differentiator from HUDs.
  • Partner Alignment: Your hardware partner must be on the same page regarding product development goals. Define clear milestones and goals, such as improving lens technology and FOV, that are aligned with your unique software advantages.

2. Ability

Ability refers to ensuring that the team has the skills, resources, and competencies needed to execute the strategy.

  • Skill Development: Your team needs to excel at both AR development and automotive safety standards. Invest in training programs for your software engineers on real-time localization and data visualization. Consider cross-training the team to understand the nuances of hardware integration, even if it’s not their core responsibility.
  • External Expertise: Since you rely on hardware partners, ensure that your team can effectively communicate and collaborate with them. Bring in external consultants for areas where your team may lack expertise, such as advanced optical technologies or ergonomics for safe AR glasses in vehicles.
  • Resource Allocation: Allocate enough resources to prioritize safety and usability testing for drivers. It may be necessary to build an in-house testing lab where real-world driving scenarios can be simulated to refine the AR features.

3. Architecture

Architecture involves the systems, processes, and structures needed to support strategy execution.

  • Project Management: Establish a robust project management system that tracks both hardware and software development progress. Use tools like Jira or Asana to ensure that tasks are aligned with strategic milestones, such as launching pilot programs or integrating with automakers.
  • Cross-functional Teams: Create cross-functional teams that work closely on AR localization, UX design, and automotive integration. For example, a team focused on blind spot detection should include software developers, user interface designers, and automotive engineers to ensure a cohesive product.
  • Feedback Loops: Implement feedback loops within the development cycle. Use customer and user testing feedback early in the design and prototyping stages to iterate quickly on features that aren’t working well in real-world driving conditions.
  • Vendor Collaboration Process: Build formal processes for collaboration with your hardware partners. This includes regular status updates, shared roadmaps, and quality control systems to ensure the hardware development aligns with the software.

4. Agility

Agility is the ability to respond quickly to changes in the market, technology, or customer needs.

  • Market Responsiveness: Continuously monitor trends in the AR and automotive industries. Be ready to pivot your product focus based on market conditions or competitive developments, such as a sudden increase in AR glasses adoption for consumer use or new automotive regulations.
  • Prototyping and Iteration: Use rapid prototyping methods to test new features and functionalities. For example, if a user case for enhanced navigation visualization shows strong demand, prioritize that development and quickly iterate based on user feedback.
  • Flexible Business Models: Be prepared to adapt your business model if the market requires it. For example, if B2B adoption (e.g., fleet services) shows more promise than consumer adoption, adjust your go-to-market strategy to prioritize commercial partnerships.
  • Risk Management: Develop contingency plans to address potential risks, such as delays in hardware production or challenges in achieving regulatory approvals. Being agile means having options in place for any setbacks.

Practical Application Example

Let’s say you’re working on developing the blind spot visualization feature. Here’s how you would apply the 4A model:

  • Alignment: Ensure that everyone understands that this feature is critical for product differentiation. Communicate its importance to your engineering team and make sure your hardware partner understands the role of their lens technology in making this feature successful.
  • Ability: Provide training to your team on integrating camera feeds and real-time data processing. If necessary, hire specialists with automotive experience to ensure the system is reliable for use in driving scenarios.
  • Architecture: Set up a cross-functional team of UI/UX designers, engineers, and safety experts who will collaborate to deliver this feature. Implement processes for rapid feedback from test drivers to improve the feature before launch.
  • Agility: If early tests show the feature isn’t delivering the expected results, be prepared to iterate quickly. Pivot resources to solve issues like latency in visualizations or user distraction concerns.

By focusing on Alignment, Ability, Architecture, and Agility, your company can ensure that its strategies for developing AR glasses for drivers are executed effectively, positioning you for leadership in this growing market.

References

  1. Mixed Reality Market Size & Share, by Component, Device Type, Application - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report ↩

  2. IDC：四季度中国AR出货量历史首超VR，2023全年AR/VR出货量72.5万台 ↩

  3. Passenger Cars - China ↩

  4. AR 品牌「Rokid」与新能源车品牌「理想」合作 ↩