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		<title>Mixed Reality Use Cases and Challenges in 2026</title>
		<link>https://www.rinf.tech/mixed-reality-2026-use-cases-challenges/</link>
		
		<dc:creator><![CDATA[rinf.tech]]></dc:creator>
		<pubDate>Sun, 17 Mar 2024 12:08:00 +0000</pubDate>
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		<category><![CDATA[mixed reality]]></category>
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					<description><![CDATA[<p>The article dives deep into the world of Mixed Reality, its use cases across industries, trends, challenges, and the future outlook.</p>
<p>The post <a href="https://www.rinf.tech/mixed-reality-2026-use-cases-challenges/">Mixed Reality Use Cases and Challenges in 2026</a> appeared first on <a href="https://www.rinf.tech">rinf.tech</a>.</p>
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					<h1 class="elementor-heading-title elementor-size-default">Mixed Reality Use Cases and Challenges in 2026</h1>				</div>
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					<p id="breadcrumbs"><span><span><a href="https://www.rinf.tech/">Home</a></span> » <span class="breadcrumb_last" aria-current="page">mixed reality</span></span></p>				</div>
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					<h4 class="elementor-heading-title elementor-size-default">Immersive technologies aim to extend our concept of reality through Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR). These innovative technologies are slowly becoming mainstream through video games, messengers, retail apps, and more. </h4>				</div>
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									<p><span data-contrast="auto">The global </span><a href="https://www.globenewswire.com/news-release/2024/05/13/2880543/0/en/Global-Immersive-Technologies-Market-Size-To-Worth-USD-170-2-Billion-By-2033-CAGR-of-17-79.html" target="_blank" rel="noopener"><span data-contrast="none">immersive technology market </span></a>, <span data-contrast="auto">valued at over $33.1 Billion in 2023, is projected to reach $170.2 billion by 2033 — and by 2026, enterprise adoption of Mixed Reality has accelerated well beyond consumer gaming and retail applications. Industrial manufacturing, automotive engineering, and aerospace are driving the most significant deployments, with measurable ROI already documented at BMW, Airbus, Siemens, and Volvo. What makes this moment different is the convergence of MR with AI — turning static overlays into context-aware assistance that understands what you&#8217;re looking at, reads live telemetry, and adapts guidance in real time.</span></p><p><a href="https://www.rinf.tech/what/r-d-embedded/mixed-realities/" target="_blank" rel="noopener"><span data-contrast="none">Mixed Reality</span></a><span data-contrast="auto"> </span> <span data-contrast="auto">is currently the least explored of immersive technologies. While we are beginning to delve into MR through AR advancements, significant development is still needed to achieve fully optimized MR experiences.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:210,&quot;335559739&quot;:210,&quot;335559740&quot;:259}"> </span></p><p><span data-contrast="none">The article explores how immersive technologies are transforming digital experiences by merging physical and virtual worlds, driven by advancements in AI, cloud computing, and powerful devices. It&#8217;ll highlight the rapid market growth, key applications across various industries such as retail, healthcare, education, and more, and delve into the potential and challenges of Mixed Reality as the least explored but highly promising segment of immersive technologies.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:210,&quot;335559739&quot;:210,&quot;335559740&quot;:259}"> </span></p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">What are Immersive Technologies?</h2>				</div>
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									<p><span data-contrast="auto">Before diving right into MR, let’s step back and get some definitions out of the way.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p><span data-contrast="auto">The term “immersive technology” describes the process of creating, displaying, and interacting with content in a new way. By combining AR, MR, VR, and haptic technologies like “3D touch” or “kinesthetic interaction,” immersive technologies are transforming digital experiences.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p>By combining users’ sight, touch, and sound, immersive technologies enable people to feel like part of a simulated artificial environment. Creating these experiences requires cutting-edge hardware, such as VR headsets, and advanced software.</p><p>The impact of immersive technologies is already visible across various industries. From enhancing customer engagement in retail to providing advanced training modules in education, these technologies are offering new ways to interact with digital content. Businesses are leveraging these advancements to create more engaging and effective solutions for their customers and employees.</p><p>More and more companies are adopting these technologies, highlighting the rapid integration of immersive technologies across various sectors. This adoption is driven by advancements in AI, cloud computing, and more powerful and versatile devices.</p><p>According to <a href="https://www.peekpro.com/blog/immersive-experience-trends" target="_blank" rel="noopener">Peekpro</a>, <b><span data-contrast="none">40% of AR applications</span></b><span data-contrast="auto"> will enhance customer engagement in <a href="https://www.rinf.tech/a-comprehensive-guide-to-smart-retail/" target="_blank" rel="noopener">retail</a> and e-commerce, significantly impacting shopping experiences by allowing customers to visualize products in their environment before purchasing. This trend has already shown a <strong>30% increase in customer engagement</strong> and a <strong>25% reduction in product returns</strong> for companies like IKEA.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p>Furthermore,<b><span data-contrast="auto"> 60% of VR applications</span></b><span data-contrast="auto"> will focus on training and educational purposes. VR training modules have demonstrated a</span><a href="https://www.pwc.com/us/en/tech-effect/emerging-tech/virtual-reality-study.html" target="_blank" rel="noopener"><span data-contrast="none"> 275% increase in trainees&#8217; confidence</span></a><span data-contrast="auto"> when applying new skills and a fourfold improvement in knowledge absorption compared to traditional classroom training.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p><span data-contrast="auto">Boeing incorporated </span><a href="https://www.researchgate.net/figure/Mixed-reality-based-maintenance-education-of-landing-gear-removal-of-Boeing-737-captured_fig1_350097798" target="_blank" rel="noopener"><span data-contrast="none">MR-based maintenance solutions</span></a><span data-contrast="auto">, enabling technicians to access real-time data and instructions hands-free, resulting in a <strong>20% decrease</strong> in <strong>maintenance time</strong> and a <strong>15% increase</strong> <strong>in operational efficiency</strong>.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p>These are just some of the cases proving the transformative potential of immersive technologies across various sectors, showcasing their ability to enhance productivity, engagement, and efficiency. What&#8217;s new in 2026 is how AI converges with these technologies — turning static MR overlays into context-aware assistants that understand what you&#8217;re working on.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">What is Mixed Reality?</h2>				</div>
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									<p style="font-weight: 400;"><span class="TextRun SCXW157413222 BCX4" lang="EN-US" xml:lang="EN-US" data-contrast="auto"><span class="NormalTextRun SCXW157413222 BCX4">Although MR is the rising star of immersive technologies, </span><span class="NormalTextRun SCXW157413222 BCX4">it’s</span><span class="NormalTextRun SCXW157413222 BCX4"> also the least understood.</span><span class="NormalTextRun SCXW157413222 BCX4"> The confusion often arises because MR combines the key benefits of both AR and VR and transforms them into one incredible experience.</span></span><span class="EOP SCXW157413222 BCX4" data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p><span data-contrast="auto">According to </span><a href="https://docs.microsoft.com/en-us/windows/mixed-reality/discover/mixed-reality" target="_blank" rel="noopener"><span data-contrast="none">Microsoft</span></a><span data-contrast="auto">, MR is a fusion of both physical and digital worlds that will help unlock natural and intuitive 3D computer, human, and environmental interactions. It’s possible today because of recent advancements in graphical processing, computer vision, </span><a href="https://www.rinf.tech/top-6-cloud-cost-optimization-strategies/" target="_blank" rel="noopener"><span data-contrast="none">cloud computing</span></a><span data-contrast="auto">, input systems, and display technologies.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p><span data-contrast="auto">The global MR market has continued its rapid growth, now projected to expand from approximately </span><a href="https://scoop.market.us/mixed-reality-statistics/" target="_blank" rel="noopener"><span data-contrast="none">$2.13 billion in 2023</span></a><span data-contrast="auto"> to a staggering $64.87 billion by 2032. This growth is driven by increasing investments and advancements in 5G technology and IoT, which enhance MR applications across various sectors.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><ul><li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">The entertainment and retail industries <a href="https://scoop.market.us/mixed-reality-statistics/" target="_blank" rel="noopener">collectively contribute 34%</a> to the MR market, reflecting substantial shifts in consumer experiences through immersive gaming and innovative shopping​.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></li><li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1"><span data-contrast="auto">The impact of mixed reality on the education sector is profound. It has demonstrated a</span><a href="https://www.mordorintelligence.com/industry-reports/mixed-reality-market/market-trends" target="_blank" rel="noopener"><span data-contrast="none"> 22% improvement</span></a><span data-contrast="auto"> in test scores and a 35% increase in student engagement and retention. </span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></li><li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="3" data-aria-level="1"><span data-contrast="auto">The healthcare sector also sees substantial benefits from MR, which is being applied in surgical training, patient care, and remote healthcare solutions. </span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></li></ul><p aria-level="1"> </p><p aria-level="1"><span data-contrast="auto">These technologies will play a pivotal role in enhancing real-time environment tracking, personalized content creation, and system performance optimization. Integrating 5G and cloud computing will enable seamless and responsive MR applications, enabling greater adoption and innovation across various industries​.</span></p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">How Does Mixed Reality Work?</h2>				</div>
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									<p><span data-contrast="auto">The way MR works is quite like AR. However, its applications have evolved in recent years because of the development of smart systems and tools that enable deeper interactions between humans, computers, and objects.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p><span data-contrast="auto">MR depends heavily on the rapidly evolving human and machine relationship. To work, MR tools and applications must understand different human actions within a specific digital space and the surrounding landscape.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p><span data-contrast="auto">With the help of multiple cameras, sensors, and Artificial Intelligence (AI) technologies, we can process massive amounts of data about a specific space and leverage that information to deliver digitally enhanced experiences in near real-time.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p><span data-contrast="auto">For example, whenever we wear a pair of MR glasses, the cameras and sensors in those glasses get to work collecting and distributing data to an application that is basically creating a virtual map of our physical world. This approach enables the creation of holographic images and content we can include in our reality through image projections.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p><span data-contrast="auto">For MR technologies to work effectively, they need to be able to track:</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><ul><li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="4" data-aria-level="1"><span data-contrast="auto">Ambient sounds and lighting (for added realism)</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></li><li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="5" data-aria-level="1"><span data-contrast="auto">A user’s body movements and position</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></li><li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="6" data-aria-level="1"><span data-contrast="auto">Objects and physical locations</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></li><li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}" aria-setsize="-1" data-aria-posinset="7" data-aria-level="1"><span data-contrast="auto">Objects surfaces and boundaries (through spatial mapping and scene understanding)</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></li></ul><p><span data-contrast="auto"> </span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p><span data-contrast="auto">Cloud computing enables the rapid processing of advanced input sensing. At the same time, environmental perceptions enable MR applications to merge our physical world with a virtual one successfully. We can do this in a manner that goes far beyond the means of AR technologies.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><p>By 2026, on-device AI has transformed what MR headsets can do locally. Real-time object recognition, environment understanding, and natural language processing all run on the headset itself — eliminating the cloud dependency that limited earlier MR deployments. This means the headset doesn&#8217;t just track where you look; it understands what you&#8217;re looking at.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Mixed Reality Use Cases Across Industries</h2>				</div>
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									<p style="font-weight: 400;">MR can break away from AR-related limitations to closely connect both virtual and real worlds. Let&#8217;s explore some MR use cases to see what&#8217;s already possible with this cutting-edge immersive technology.</p><h3>Training and Education</h3><p style="font-weight: 400;">The use of virtual environments for training in various industries is made possible by mixed Reality (MR) technology. Through immersive learning experiences, MR in education helps pupils better comprehend and remember difficult material. For instance, during medical school, aspiring surgeons might simulate surgical procedures before performing on actual patients, allowing them to develop their abilities and earn critical experience hands-on.</p><p style="font-weight: 400;">Students can actively participate in and engage with educational content by benefiting from interactive learning experiences provided by MR technology. Students can learn complex concepts by incorporating interactive elements like 3D models, holograms, and simulations. This method promotes critical thinking and problem-solving abilities while encouraging a deeper degree of understanding.</p><p style="font-weight: 400;">By bringing the past to life and allowing students to explore different environments and periods, MR creates chances for virtual field trips and historical recreations. Through MR, students can visit historical locations, relive significant historical events, and engage with virtual people and objects. Students&#8217; involvement is increased, and they form deeper connections to the subject matter thanks to this immersive teaching method.</p><p>Where AI changes the equation is in adaptive training. Static MR training shows you the same sequence every time. AI-powered MR training watches what you do, identifies mistakes, and adapts the lesson in real time. If you put a gasket in backwards, the system doesn&#8217;t just show you step 4 again — it recognises the error, explains why it matters, and offers corrective guidance. This turns MR training from a recorded video into an intelligent tutor that meets each trainee where they are.</p><h3>Gaming and Entertainment</h3><p style="font-weight: 400;">Mixed Reality has completely changed how people play video games by enabling immersive gameplay that blurs the lines between the real and virtual worlds. Players can interact more realistically and interactively with virtual worlds and characters. Whether played on mobile devices with AR capabilities or headsets like Microsoft HoloLens, MR gaming offers a new degree of immersion and engagement.</p><p style="font-weight: 400;">Gamers may now overlay virtual characters and items onto their surroundings thanks to the widespread use of augmented reality in mobile gaming. This technology has been successfully applied in games like Pokémon Go, where players may capture virtual critters in their real-world surroundings. AR gaming encourages social connection, exploration, and physical activity.</p><p style="font-weight: 400;">Immersive and thrilling Adventures are offered to tourists at virtual reality theme parks and experiences. Virtual reality (VR) headsets and motion-tracking technology are frequently used in these parks to transport visitors to virtual worlds where they may engage in various activities, including simulated roller coaster rides, extreme sports, or interactive storytelling experiences. VR theme parks provide distinctive entertainment that is enjoyable to all ages.</p><p>AI is pushing MR gaming further — NPCs that remember your play style, dynamic storylines that adapt to your choices, and real-time object recognition that blends virtual characters with your actual environment more convincingly than ever.</p><h3>Healthcare and Medical Applications</h3><p><a href="https://www.wired.co.uk/bc/article/mixed-reality-doctors-helping-patients" target="_blank" rel="noopener">Mixed Reality</a> has proven to be very effective in training and simulations for surgery. Surgeons can rehearse complex procedures in virtual environments by simulating real-world situations without the risk of operating on live patients. They may improve their abilities, enhance patient safety, and improve their decision-making skills by using MR technology.</p><p style="font-weight: 400;">Applications for mixed Reality can be useful in rehabilitation and physical therapy. Patients recovering from physical injuries or disabilities can benefit from interactive activities and simulations offered by MR. MR technology makes therapy sessions more motivating for patients to engage in them, speeds up their recovery, and improves their entire experience with rehabilitation.</p><p style="font-weight: 400;">MR has been used in strategies for pain control and distraction. MR diverts patients from discomfort and pain during surgeries or treatments by immersing them in virtual environments. Children receiving injections, for instance, might be taken to a virtual aquatic habitat where they can engage with sea life, reducing their fear and distress.</p><p>AI enhances healthcare MR by analysing patient anatomy in real time during surgery, flagging anomalies that a surgeon might miss, and adapting rehabilitation exercises based on patient progress tracked through the headset&#8217;s sensors.</p><h3>Architecture and Design</h3><p style="font-weight: 400;">Mixed Reality lets designers and architects view their projects more realistically and engagingly. MR technology enables experts to evaluate design aspects, examine spatial linkages, and make well-informed decisions before construction starts by superimposing virtual architectural models onto actual spaces. Collaboration is improved, and the accuracy of design outcomes is increased through the visualization process.</p><p style="font-weight: 400;">Mixed Reality enables digital walkthroughs and design prototypes. Before any physical construction, architects and clients can examine digital representations of buildings and spaces to have complete knowledge of the design. Through MR, stakeholders can better communicate effectively and avoid making expensive design revisions by seeing the materials, lighting, and spatial arrangements.</p><p style="font-weight: 400;">MR improves remote interaction and collaborative design. Whatever their actual locations, architects and designers can work together online. This allows for seamless communication, immediate feedback, and the capacity for group design decisions. With distance no longer a barrier, international teams can work together successfully on architectural projects.</p><h3>Manufacturing and Engineering</h3><p style="font-weight: 400;">In the process of designing and prototyping new products, <a href="https://www.wevolver.com/article/hololens-enabled-robotic-arms-digital-twin" target="_blank" rel="noopener">Mixed Reality</a> is essential. Engineers can assess a product&#8217;s functionality, ergonomics, and aesthetics in a simulated environment by developing virtual representations. The iterative design saves time and money since real prototypes can be improved based on input from MR simulations.</p><p style="font-weight: 400;">Applications for mixed Reality are useful for training and assembly line optimization. Assembly line employees receive real-time assistance and instructions via MR technology, which lowers errors and boosts productivity. New hires can practice assembly jobs in a secure setting with virtual training modules, which shortens their learning curve and eliminates the need for physical training settings.</p><p style="font-weight: 400;">Through MR, remote help and maintenance are improved. Through MR technology, specialists may provide field workers with real-time advice, minimizing the need for on-site visits. Remote cooperation makes it possible to troubleshoot and solve problems more quickly, reducing downtime and enhancing the entire maintenance process.</p><p>AI takes MR in manufacturing from a better manual to an intelligent co-worker. Instead of static step-by-step overlays, AI sees what you&#8217;re doing and understands context. It recognises when you&#8217;ve installed a component incorrectly, answers natural questions like &#8220;why won&#8217;t this part fit?&#8221; by referencing live CAD data, and adapts procedures on the fly — if a screw is rusted, it offers the alternative method instead of leaving you stuck. It reads live sensor data and correlates it with what you see, spotting problems before they become failures. Without AI, MR is a well-lit instruction sheet. With AI, it&#8217;s an experienced colleague standing next to you.</p><p data-line="134">Airbus has been using Microsoft HoloLens 2 across design and manufacturing since 2019, achieving 80% faster design validation and a 30% improvement in complex assembly tasks, with over 300 use cases identified across the enterprise (Microsoft News).</p><p data-line="136">Fujitsu deployed Vuforia Engine on HoloLens for network equipment assembly, reducing assembly time from 120 to 97 minutes (19% productivity increase), cutting SFP transceiver installation from 53 to 31 minutes (42% improvement), and reducing operator training from 3-5 days to approximately 1 hour (PTC case study).</p><h3>Retail and Marketing</h3><p style="font-weight: 400;">To help customers picture things before making a purchase, mixed Reality offers virtual try-on experiences. MR improves the shopping experience and lessens the need for real returns by enabling consumers to preview furniture in their own homes or try on virtual apparel. With this technology, shops may provide clients with individualized and practical solutions.</p><p style="font-weight: 400;"><a href="https://www.rinf.tech/how/industries/retail-supply-chain/ar-retail-application/" target="_blank" rel="noopener">Mixed Reality</a> makes it possible to shop and receive recommendations that are unique to you. Machine learning applications can examine client information, preferences, and past purchases to provide specialized product recommendations and shopping experiences. Retailers may establish tailored marketing efforts and increase customer satisfaction by knowing each customer&#8217;s preferences.</p><p style="font-weight: 400;">Mixed reality product demos that involve clients and produce memorable experiences. Through holograms, virtual tours, or interactive 3D models, MR can bring items to life. Thanks to this immersive approach, customers are drawn in and allowed to study things more dynamically and interestingly.</p><h3>Transportation and Logistics</h3><p style="font-weight: 400;">Mixed Reality helps with navigation and warehouse optimization. Real-time information and visual overlays can be provided by MR technology, aiding warehouse workers in finding products, maximizing available storage, and enhancing inventory control. This improves the warehouse&#8217;s efficiency and simplifies processes while reducing errors.</p><p style="font-weight: 400;">Drivers and operators can benefit from augmented Reality, which improves situational awareness and helps with navigation. Real-time data, like directions, speed, and traffic data, can be superimposed onto the driver&#8217;s field of view through MR headsets or windshield displays. The productivity of transportation professionals has increased overall, distractions are decreased, and safety is improved.</p><p style="font-weight: 400;">MR applications provide opportunities for supply chain management and visualization. MR makes it possible to see intricate supply chain networks, allowing managers to track and improve the flow of commodities, spot bottlenecks, and make informed decisions. This real-time visibility increases productivity, lowers costs, and boosts supply chain performance.</p><h3>Industry 4.0</h3><p style="font-weight: 400;"><a href="https://www.rinf.tech/iot-device-management-what-why-and-when/" target="_blank" rel="noopener">IoT integration</a> and real-time data visualization are made easier by mixed Reality. MR technology can communicate with Internet of Things (IoT) devices and sensors to provide real-time data overlays on actual physical objects or settings. With the help of this interface, managers and operators may monitor and analyze data in real time, enabling predictive maintenance, streamlining workflows, and boosting overall efficiency.</p><p style="font-weight: 400;">Through Mixed Reality, remote machinery monitoring and maintenance are made possible. Technicians can get real-time access to equipment data, remote diagnostics, and detailed maintenance and repair instructions via MR devices. Thus, downtime decreases, maintenance effectiveness increases, and proactive troubleshooting is possible.</p><p style="font-weight: 400;">Virtual simulations and <a href="https://www.rinf.tech/digital-twin-development-why-when-and-how/" target="_blank" rel="noopener">digital twins</a> are used in manufacturing to make virtual versions of physical assets, procedures, or systems. Engineers and operators can model scenarios, test modifications, and improve performance using digital twins before practicing them in the real world. With this strategy, manufacturing sector risks are reduced, productivity is increased, and innovation is stimulated.</p><p data-line="150">BMW&#8217;s Virtual Factory, announced in June 2025, projects up to 30% reduction in production planning costs by enabling collision checks and layout optimization in digital twins before physical changes are made (BMW Group).</p><p data-line="152">Siemens&#8217; Digital Twin Composer, unveiled at CES 2026, demonstrated a 20% increase in throughput on initial deployment with PepsiCo, identifying up to 90% of potential issues before physical build (Siemens). This capability is built on <a style="background-color: #ffffff;" href="https://www.rinf.tech/what/r-d-embedded/digital-twin-development/">digital twin architecture</a>, the same patterns we use across industrial deployments. </p><h3>FinTech</h3><p style="font-weight: 400;">Applications for mixed Reality can improve online banking and financial services. Customers can communicate with virtual bank tellers or advisors, access banking services in virtual settings, and creatively visualize their financial data thanks to MR. Through improved accessibility and convenience, this technology enhances the client experience with financial assistance.</p><p style="font-weight: 400;">Mixed reality capabilities can be used to detect and prevent fraud. Many financial data sets may be analyzed by MR apps, which can also spot patterns and highlight possible fraud. MR enables analysts and investigators to spot and stop fraudulent transactions more efficiently by offering a more logical and interactive depiction of financial data.</p><p style="font-weight: 400;">Users may access virtual trading environments using mixed-reality investment and trading simulations. Without risking their money, traders and investors can test their tactics, examine market trends, and gain useful experience. Through MR simulations, people can hone their investment skills and make better decisions in the financial markets of the real world.</p><h3>Real Estate </h3><p>Mixed Reality is revolutionizing the real estate industry by providing immersive property tours that allow potential buyers to visualize properties as if they were physically present. Real estate agents can use MR to showcase multiple property options with interactive elements like changing room colors, moving furniture, or visualizing future renovations. This enhances the buying experience and saves time and resources by reducing the need for physical visits.</p><h3>Remote Collaboration and Virtual Workspaces </h3><p>As hybrid and remote working models gain traction, MR is reshaping the way teams collaborate. Virtual workspaces created with MR enable team members from different corners of the world to convene in a shared virtual environment, using avatars and 3D interactive presentations.</p><h3>Human Resources and Recruitment </h3><p><span data-contrast="auto">In HR, MR is used for innovative recruitment processes and immersive employee onboarding. Candidates can undergo virtual job simulations to demonstrate their skills in realistic scenarios while new employees can receive interactive, hands-on training and orientation without physical resources. This approach speeds up recruitment and training and provides a more engaging and practical learning experience.</span></p><h3>Integration with Legacy Systems </h3><p><span data-contrast="auto">One significant challenge is integrating MR with existing <a href="https://www.rinf.tech/legacy-system-modernization-strategies-for-a-digital-future/" target="_blank" rel="noopener">legacy systems</a>. Many industries, particularly manufacturing and healthcare, rely heavily on established technologies that may need to be more easily compatible with new MR solutions. Integrating MR requires extensive customization and sometimes complete overhauls of legacy systems, which can be both time-consuming and costly. This compatibility issue can slow down the adoption of MR, as companies must ensure that new MR applications can seamlessly work with their current infrastructure without disrupting ongoing operations.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> AI can help here — modernising legacy system interfaces through MR overlays that connect to existing databases via API middleware, without replacing the underlying systems. This is exactly the same methodology we use for <a href="https://www.rinf.tech/legacy-system-modernization-strategies-for-a-digital-future/">legacy system modernization</a> across exterprise environments.</span></p><h3>Data Management and Overload </h3><p><span data-contrast="auto">MR applications generate vast amounts of data, including spatial maps, user interactions, and real-time analytics. The effective management of this data is a significant challenge. Organizations must develop robust data management strategies to store, process, and analyze the information efficiently. The failure to manage data properly can lead to information overload, where the sheer volume of data becomes unmanageable and hinders the decision-making process. This can have serious consequences, underscoring the importance of ensuring data accuracy and consistency while maintaining user privacy.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><h3>Latency and Real-Time Processing </h3><p><span data-contrast="auto">Latency issues can severely impact the effectiveness of MR applications. For MR to provide a seamless experience, real-time processing is essential. Any lag or delay in rendering digital elements or processing user inputs can disrupt the immersive experience and reduce the effectiveness of the application, particularly in critical scenarios like medical surgery or military training. Advances in 5G and edge computing are helping to mitigate these issues, but achieving consistently low latency remains a technical challenge.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><h3>User Comfort and Safety </h3><p><span data-contrast="auto">Extended use of MR headsets can cause discomfort and health issues such as eye strain, headaches, and motion sickness. Ensuring </span><a href="https://visionscienceacademy.org/ergonomics-of-virtual-reality-diving-into-the-present-and-future/" target="_blank" rel="noopener"><span data-contrast="none">user comfort</span></a><span data-contrast="auto"> is a major challenge, particularly for prolonged-use applications. Manufacturers are working on improving the ergonomics of MR headsets and developing technologies to reduce these adverse effects, but achieving a balance between immersive experience and user comfort is ongoing. Safety concerns include ensuring that users remain aware of their physical surroundings to prevent accidents and injuries.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><h3>Environmental and Context Awareness </h3><p><span data-contrast="auto">MR applications must accurately interpret and interact with the user&#8217;s environment. This requires advanced spatial computing and environmental awareness technologies to map and understand physical spaces in real time. A complex technical challenge is ensuring that MR systems can </span><a href="https://capsulesight.com/mixedreality/the-technical-challenges-involved-in-creating-mixed-reality/" target="_blank" rel="noopener"><span data-contrast="none">adapt to dynamic environments</span></a><span data-contrast="auto">, recognize context-specific elements, and interact with them appropriately. Failure to do so can result in a disjointed user experience where digital elements do not align correctly with the physical world.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">The Challenges Ahead</h2>				</div>
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									<p style="font-weight: 400;">Although MR development is currently going through a period of significant acceleration, some obstacles remain. However, the primary challenge is to overcome the fear of change. Other times it can also be the IT department&#8217;s lack of understanding or expertise. </p><p style="font-weight: 400;">However, once businesses realize the actual benefits of MR, convenience will override paranoia. But even then, MR will have a long way to go before it achieves large-scale adoption.</p><h3>Technical limitations</h3><p style="font-weight: 400;">Mixed Reality (MR) is an evolving technology that combines elements of both augmented Reality (AR) and Virtual Reality (VR). Virtual reality (VR) and augmented reality (AR) are related but still developing technologies. Although MR improves AR by enabling virtual objects to interact with the real world, it still has several technical constraints. Making virtual things that accurately merge with the actual world while remaining smooth and realistic is one of the problems. <a href="https://www.rinf.tech/how/industries/technology/supply-chain-tracker-edge-computing-generic-cloud/" target="_blank" rel="noopener">Real-time tracking</a> of the existing environment and accurate object occlusion are still technical challenges.</p><p style="font-weight: 400;">MR hardware has evolved rapidly and has become more affordable. But it remains in its infancy stage with limited battery life, discomfort when worn for an extended period, and a relatively small field of view. However, these challenges won&#8217;t last and will be resolved sooner rather than later. We also need more tools to support hands-free interaction and collaboration in digital spaces. Although speech is one way of overcoming this challenge, it can be unsuitable in a learning environment. On-device AI processing has reduced reliance on cloud connectivity, addressing some of the real-time tracking challenges at the hardware level.</p><h3>Cost and accessibility</h3><p style="font-weight: 400;">The mainstream adoption of immersive technology, like substantial obstacles, including cost and accessibility, have hindered MR. Many people and organizations may not have access to these technologies due to the high hardware cost needed for MR experiences, such as headsets and sensors. For MR to promote greater accessibility, costs must be reduced, and cheaper MR solutions must be created. AI-assisted content creation tools are reducing the cost of developing MR training modules and environments, making enterprise MR deployments more accessible.</p><h3>Hardware limitations</h3><p style="font-weight: 400;">The development of hardware technology is essential to the success of mixed Reality. Hardware restrictions, such as a small field of view, bulky headsets, and limits on computational power, may impact the user experience. To improve the entire MR experience, it will be essential to upgrade the hardware infrastructure by making headsets lighter, more comfortable, and more powerful. 2026-generation headsets run AI models locally, enabling real-time object recognition and spatial understanding without cloud round-trips.</p><h3>Content creation and integration</h3><p style="font-weight: 400;">Another issue that needs to be solved is creating and integrating compelling and interesting MR content. Expertise in 3D modeling, computer vision, and spatial mapping are all necessary for creating virtual things and seamlessly incorporating them into the physical world. To guarantee a realistic and immersive experience, content creators must also consider elements like lighting conditions, object occlusion, and user interactions. AI-powered 3D model generation from photos and no-code MR authoring tools are significantly reducing content development time and cost.</p><h3>User Interface and Interaction</h3><p style="font-weight: 400;">Designing user-friendly user interfaces and methods of engagement with MR is a never-ending problem. Unlike conventional interfaces, MR interfaces must be incorporated into the environment and react to users&#8217; motions and gestures in real time. A successful MR experience will depend on developing effective and organic interaction mechanisms that allow users to easily manipulate virtual objects, navigate interfaces, and complete actions. Natural language processing enables voice-controlled MR interfaces, letting workers ask &#8220;what&#8217;s the next step?&#8221; instead of navigating menus.</p><h3>Privacy and Security</h3><p style="font-weight: 400;">As with any new technology, privacy, and security issues are crucial. MR solutions may gather private user information, including gestures, biometric information, and location data. Gaining user trust and facilitating the mass adoption of MR will require ensuring effective privacy safeguards, secure data processing, and protecting user identities and information from potential breaches. AI processing on-device (rather than in the cloud) addresses key privacy concerns for enterprises handling proprietary designs or regulated data.</p><h3>Ethical Considerations</h3><p style="font-weight: 400;">MR deployment involves several ethical questions. For instance, it is important to consider and deal with the possibility of addiction, social isolation, and psychological consequences on users. It is also necessary to set ethical rules and standards to prevent the exploitation of MR technology, such as intrusive data collection, unlawful surveillance, or the development of damaging or deceptive information. As MR+AI systems capture more user data, transparency about what the AI sees and stores becomes critical for ethical deployment.</p><h3>Standardization and Interoperability</h3><p style="font-weight: 400;">The creation and deployment of MR technologies depend heavily on standardization and compatibility. The seamless integration and cooperation of MR devices may be constrained by the absence of globally recognized standards, which might impede interoperability between various hardware and software platforms. Common protocols and measures must be established to foster interoperability and enable the development of a more coherent MR ecosystem. AI middleware layers are emerging to bridge MR hardware platforms (Apple, Meta, Microsoft), reducing vendor lock-in.</p><h3>User Acceptance and Adoption</h3><p style="font-weight: 400;">Although there is increased interest in immersive technologies, there are still issues with user acceptance and adoption. Due to numerous considerations, including motion sickness, discomfort, or uncertainty regarding its practical applicability, some may need clarification or concern about utilizing MR. The key to accelerating user acceptance and adoption of MR will be educating consumers about the potential advantages, addressing usability challenges, and showing compelling use cases. As AI makes MR interactions more intuitive — answering questions, adapting to user behaviour — adoption barriers related to complexity are decreasing.</p><h3>Power and Energy Efficiency</h3><p style="font-weight: 400;">Energy efficiency and power consumption are crucial factors when developing MR equipment. The computational demands of the current MR gear result in high energy usage and short battery life. Extending usage time, enhancing portability, and lessening the environmental impact of MR technology will be possible by improving the energy efficiency of headsets, tracking systems, and other components. AI chip optimisations (NPUs) have improved power efficiency, extending headset battery life from approximately 2 hours (2024) to 4-6 hours in current-generation devices.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Future Outlook for MR Technology </h2>				</div>
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									<p><span data-contrast="auto">The future of Mixed Reality is not just promising; it&#8217;s on the brink of a transformative revolution, especially with the integration of AI, machine learning (ML), and other advanced technologies. AI and ML are set to redefine MR experiences, propelling them to unprecedented levels by enhancing real-time environment tracking, predictive maintenance, and personalized content creation.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><h3>AI and Real-Time Environment Tracking</h3><p><span data-contrast="auto">AI algorithms can process and interpret vast amounts of data from the real world to create more accurate and responsive MR environments. This involves using computer vision and deep learning techniques to recognize objects, gestures, and spatial configurations, allowing MR applications to interact seamlessly with the physical world. For instance, AI can help MR systems dynamically </span><a href="https://capsulesight.com/mixedreality/the-revolutionary-impact-of-artificial-intelligence-ai-on-mixed-reality-mr/" target="_blank" rel="noopener"><span data-contrast="none">adjust to changing environmental conditions</span></a><span data-contrast="auto">, ensuring a smooth and immersive user experience.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> In 2026, this is no longer theoretical — Apple Vision Pro and Meta Quest 3 run real-time scene understanding on-device.</span></p><h3>Predictive Maintenance</h3><p><b> </b><span data-contrast="auto">In industries such as manufacturing and healthcare, the potential of AI-driven <a href="https://www.rinf.tech/predictive-maintenance-using-iiot-to-prevent-downtime-and-save-costs/" target="_blank" rel="noopener">predictive maintenance</a> in MR devices is nothing short of game-changing. By analyzing data from various sensors, AI can anticipate equipment failures before they occur, thereby reducing downtime and maintenance costs. This proactive approach ensures that MR systems function optimally, enhancing reliability and effectiveness.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> AI-powered predictive maintenance integrated with MR headsets is now deployed in production environments, with documented results from Siemens and BMW.</span></p><h3>Personalized Content Creation</h3><p><span data-contrast="auto"><a href="https://www.rinf.tech/top-10-machine-learning-algorithms-and-when-to-apply-them/" target="_blank" rel="noopener">ML algorithms</a> excel at analyzing user interactions and preferences. In the context of MR, ML can be used to create highly customized experiences. MR can adapt learning modules to match students&#8217; learning pace and style in</span><a href="https://www.hurix.com/master-k-education-with-virtual-learning-environments/" target="_blank" rel="noopener"><span data-contrast="none"> education</span></a><span data-contrast="auto">, making education more effective and engaging​.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><h3>5G and Cloud Computing</h3><p><b> </b><span data-contrast="auto">The advent of </span><a href="https://www.ericsson.com/en/blog/2020/4/how-5g-and-edge-computing-can-enhance-virtual-reality" target="_blank" rel="noopener"><span data-contrast="none">5G technology </span></a><span data-contrast="auto">and the continuous advancements in cloud computing are not just crucial. They are the solid foundation of the future of MR. 5G offers high-speed, low-latency internet connectivity, indispensable for real-time MR applications. This technology allows for the seamless streaming of high-resolution MR content and supports complex interactions without delays. Cloud computing, on the other hand, provides the necessary computational power to handle intensive MR tasks. It enables offloading heavy processing tasks to the cloud, making MR applications more accessible on lightweight devices​.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><h3>Emerging Technologies and Innovations</h3><p><span data-contrast="auto">Beyond AI and ML, other emerging technologies, such as blockchain and edge computing, are also set to impact the future of MR. Blockchain can provide secure and transparent data management solutions, which are critical for maintaining the integrity of MR interactions. Edge computing can reduce latency by processing data closer to the source, enhancing MR applications&#8217; responsiveness​.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p><h3><b><span data-contrast="auto">Enhanced Interactivity and Immersion</span></b></h3><p><span data-contrast="auto">Technological advancements continually push the boundaries of interactivity and immersion in MR. Innovations in haptic feedback, spatial audio, and advanced display technologies contribute to creating more lifelike and engaging MR experiences. These technologies allow users to interact with virtual objects naturally and intuitively, significantly enhancing the overall user experience​.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p>								</div>
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									<p data-line="272">As technology continues to evolve, becoming lighter, faster, and more affordable, Mixed Reality is moving from experimental to essential — especially when combined with AI that understands the physical world. The lines separating the physical and digital worlds are becoming less distinct each day, opening new possibilities in industrial manufacturing, automotive engineering, and beyond. The fusion of MR technology with AI-powered spatial intelligence has enormous promise for enterprises ready to move beyond static instructions to context-aware assistance.</p><p data-line="275">We foresee significant benefits in manufacturing and engineering as MR+AI adoption accelerates. The ability to combine real-time AI telemetry with hands-free MR overlays allows businesses to reduce downtime, improve training outcomes, and increase first-time fix rates — with measurable results already documented at BMW, Boeing, Siemens, Airbus, and Volvo.</p><p data-line="277">Whether you&#8217;re an industrial manufacturer exploring MR for digital twin visualization or an automotive OEM developing AI-powered remote maintenance workflows, <a href="https://www.rinf.tech/what/r-d-embedded/mixed-realities/">rinf.tech&#8217;s team</a> of skilled developers, designers, and strategists can provide the necessary guidance and expertise for your MR and AI initiatives.</p>								</div>
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				<article class="elementor-post elementor-grid-item post-18801 post type-post status-publish format-standard has-post-thumbnail hentry category-insights tag-mixed-reality" role="listitem">
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			<p>This article explores why and when businesses should consider building custom digital twins and what to take into account before jumping on the digital twin development project.</p>
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		<p>The post <a href="https://www.rinf.tech/mixed-reality-2026-use-cases-challenges/">Mixed Reality Use Cases and Challenges in 2026</a> appeared first on <a href="https://www.rinf.tech">rinf.tech</a>.</p>
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		<title>Digital Twin Development: Why, When, and How?</title>
		<link>https://www.rinf.tech/digital-twin-development-why-when-and-how/</link>
		
		<dc:creator><![CDATA[rinf.tech]]></dc:creator>
		<pubDate>Thu, 02 Mar 2023 10:10:15 +0000</pubDate>
				<category><![CDATA[Insights]]></category>
		<category><![CDATA[iot]]></category>
		<category><![CDATA[mixed reality]]></category>
		<category><![CDATA[randd]]></category>
		<guid isPermaLink="false">https://www.rinf.tech/?p=14059</guid>

					<description><![CDATA[<p>This article explores why and when businesses should consider building custom digital twins and what to take into account before jumping on the digital twin development project.</p>
<p>The post <a href="https://www.rinf.tech/digital-twin-development-why-when-and-how/">Digital Twin Development: Why, When, and How?</a> appeared first on <a href="https://www.rinf.tech">rinf.tech</a>.</p>
]]></description>
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					<h2 class="elementor-heading-title elementor-size-default">What is a digital twin?</h2>				</div>
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									<p><span style="font-weight: 400;">The </span><a href="https://www.digitaltwinconsortium.org/initiatives/the-definition-of-a-digital-twin.htm"><span style="font-weight: 400;">Digital Twin Consortium</span></a><span style="font-weight: 400;"> defines a digital twin as &#8220;a virtual representation of real-world entities and processes, synchronized at a specified frequency and fidelity&#8221;.</span></p><p><span style="font-weight: 400;">The digital twin technology uses design, engineering, geospatial and operational data to represent a physical object/facility and associated systems. The digital twin uses IoT-enabled sensors to collect and process asset data used in machine learning (ML) models. </span></p><p><span style="font-weight: 400;">In addition to physical assets, digital twin technology can be used to replicate processes to collect data to predict their performance, remote control physical objects, and more.</span></p><p><span style="font-weight: 400;">What sets the digital twin apart from the standard 3D model is that it is linked to a real-time data stream, which enables it to evolve along with its real-life counterpart.</span></p><p><span style="font-weight: 400;">This means that it can offer an accurate analysis of what is happening in real time and check future performance and assess potential risks. This creates new opportunities for efficiency gains, cost reduction, processes streamlining, and more.</span></p><p><span style="font-weight: 400;">To better understand digital twin technology adoption level, let&#8217;s look at its current market stats and future forecasts.</span></p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Digital Twin market growth drivers &amp; challenges in 2023 
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									<p style="font-weight: 400;">According to <a href="https://www.grandviewresearch.com/industry-analysis/digital-twin-market" target="_blank" rel="noopener">Grand View Research</a>, the global digital twin market was valued at <strong>$11.12 billion in 2022</strong> , and it is expected to grow at a CAGR of <strong>37.5%</strong> from 2023 to 2030.</p>								</div>
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									<p style="font-weight: 400;">The COVID-19 pandemic caused supply chain disruptions and production halts, which resulted in the suspension of various activities along the value chain in industries like manufacturing, aerospace, and automotive. This had a negative impact on the digital twin market during the initial stages of the pandemic in 2020. Nevertheless, as the number of COVID-19 cases decreased and restrictions were lifted, the digital twin market started recovering strongly as industries increasingly adopted automation and virtualization of products and processes.</p><p style="font-weight: 400;">By combining digital twin technology with advanced technologies like artificial intelligence, cloud computing, and IoT, the market growth is projected to increase. AI and IoT technologies are being implemented by businesses to gather and analyze behavioral data from connected products and existing IoT devices, which can then be utilized to replicate the usage and performance of the current device in the digital twin model.</p><p style="font-weight: 400;">This enables product engineers and designers to monitor product performance, identify any issues, and anticipate future iterations of common problems. Additionally, the adoption of these technologies helps organizations enhance operations and system productivity, leading to improved overall product performance.</p><p> </p>								</div>
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									<p>According to <a href="https://www.prnewswire.com/news-releases/the-future-of-the-digital-twins-industry-to-2025-in-manufacturing-smart-cities-automotive-healthcare-and-transport-301028858.html" target="_blank" rel="noopener">Research &amp; Markets</a><span style="font-weight: 400;">, the key factors driving the adoption of digital twins in organizations today are:</span></p><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The evolution of artificial intelligence (AI) technologies, data science and the industrial Internet of Things (IIoT),</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The rapid development of digital health and manufacturing solutions,</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Increased demand for predictive maintenance and real-time monitoring data,</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The need to reduce time to market and improve decision making,</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The need for production optimization and cost savings, etc.</span></li></ul><p><span style="font-weight: 400;"> </span></p><p><span style="font-weight: 400;">Speaking of the constraints holding back the massive adoption of digital twin technology, data security due to the widespread use of IoT and Cloud platforms is one of the main ones.</span></p><p><span style="font-weight: 400;">With the proliferation of cyberattacks on critical Cloud infrastructures over the past decade, cybersecurity has become a major concern for industrial automation users and vendors. As such, the growing threat to the security of data connected to the Cloud is expected to be a major impediment to the growth of the digital twin market.</span></p><p><span style="font-weight: 400;">Another major challenge on the path to efficiently designing and deploying digital twins is the lack of awareness of the cost-benefit of implementing digital twins.</span></p><p><span style="font-weight: 400;">Despite the barriers, <strong>31%</strong> of companies surveyed by <a href="https://www.gartner.com/en/newsroom/press-releases/2020-10-29-gartner-survey-reveals-47-percent-of-organizations-will-increase-investments-in-iot-despite-the-impact-of-covid-19-" target="_blank" rel="noopener">Gartner</a></span><span style="font-weight: 400;"> in 2021 said they were already using digital twins to improve the safety of their employees or customers by implementing remote asset monitoring, control, and tracking. </span></p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Types of digital twins</h2>				</div>
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									<div><p><span style="font-weight: 400;">There are three main types of digital twins:</span></p></div>								</div>
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									<h4 class="elementor-cta__title elementor-cta__content-item elementor-content-item">
						Product twins					</h4>
				
									<div class="elementor-cta__description elementor-cta__content-item elementor-content-item">
						Digital twins that are used to develop new products.					</div>
				
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							<svg xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" id="Layer_1" x="0px" y="0px" viewBox="0 0 66 66" style="enable-background:new 0 0 66 66;" xml:space="preserve"><path d="M46.2,53.3c-0.5-0.5-0.5-1.3,0-1.8l0,0l2.7-2.7l0.1-0.1c0-0.1,0-0.1-0.1-0.1l-2.7-2.7c-0.5-0.5-0.5-1.3,0-1.8s1.3-0.5,1.8,0  l0,0l2.7,2.7c1.1,1,1.1,2.7,0,3.8L48,53.3C47.5,53.8,46.8,53.8,46.2,53.3L46.2,53.3L46.2,53.3z M17,50c-2.5,0-4.6-2-4.6-4.6v-8.6  c0-2.5,2.1-4.6,4.6-4.6h0.1c0.7,0,1.3,0.6,1.3,1.3s-0.6,1.3-1.3,1.3H17c-1.2,0-2.1,0.9-2.1,2l0,0v8.6c0,1.1,0.9,2,2.1,2h28.4  c0.7,0,1.3,0.6,1.3,1.3S46.1,50,45.4,50H17L17,50L17,50z M31.6,43.3l-7.4-3.7c-1.1-0.5-1.8-1.7-1.8-2.9V28c0-1.2,0.7-2.4,1.8-2.9  l7.4-3.7c0.9-0.4,1.9-0.5,2.9,0l7.4,3.7l0,0c1.1,0.5,1.8,1.7,1.8,2.9v8.7c0,1.2-0.7,2.4-1.8,2.9l-7.4,3.7  C33.5,43.7,32.4,43.7,31.6,43.3L31.6,43.3L31.6,43.3L31.6,43.3z M25.1,36.8c0,0.2,0.1,0.4,0.3,0.4l6.2,3.1v-7.9l-6.5-3.2L25.1,36.8  L25.1,36.8L25.1,36.8z M34.4,32.4v7.9l6.2-3.1c0.2-0.1,0.3-0.3,0.3-0.4v-7.7L34.4,32.4L34.4,32.4L34.4,32.4z M32.8,24l-5.9,2.9  l6.2,3l6.1-3l-6-2.9c-0.1,0-0.1-0.1-0.2-0.1C32.9,23.9,32.9,23.9,32.8,24L32.8,24z M48.9,34c-0.7,0-1.3-0.6-1.3-1.3s0.6-1.3,1.3-1.3  H49c1.2,0,2.1-0.9,2.1-2v-9.5c0-1.1-0.9-2-2.1-2l0,0H24.7c-0.7,0-1.3-0.6-1.3-1.3c0-0.7,0.6-1.3,1.3-1.3H49c2.5,0,4.6,2,4.6,4.6v9.5  C53.6,31.9,51.5,34,48.9,34L48.9,34L48.9,34L48.9,34z M13.7,16.6c0-2.4,1.9-4.3,4.4-4.3s4.4,1.9,4.4,4.3s-2,4.4-4.4,4.4  C15.7,20.9,13.7,19,13.7,16.6L13.7,16.6z M16.3,16.6c0,1,0.8,1.8,1.8,1.8s1.8-0.8,1.8-1.8s-0.8-1.8-1.8-1.8  C17.1,14.9,16.3,15.6,16.3,16.6L16.3,16.6L16.3,16.6L16.3,16.6z"></path></svg>						</div>
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									<h4 class="elementor-cta__title elementor-cta__content-item elementor-content-item">
						Manufacturing twins					</h4>
				
									<div class="elementor-cta__description elementor-cta__content-item elementor-content-item">
						Digital twins that are used to verify manufacturing processes.					</div>
				
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							<svg xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" id="Layer_1" x="0px" y="0px" viewBox="0 0 66 66" style="enable-background:new 0 0 66 66;" xml:space="preserve"><path d="M15.9,31v13.8c0,0.6,0.6,1.2,1.2,1.2h9.8H40h9.8c0.7,0,1.2-0.6,1.2-1.2V35c0-0.6-0.6-1.2-1.2-1.2h-8.6v-9.3  c0-0.6-0.6-1.2-1.2-1.2H26.9c-0.7,0-1.2,0.6-1.2,1.2v5.3h-8.6C16.5,29.7,15.9,30.3,15.9,31L15.9,31z M48.5,36.2v7.3h-7.3v-7.3H48.5  L48.5,36.2L48.5,36.2z M28.1,25.7h10.6V35v8.5H28.1V31V25.7L28.1,25.7L28.1,25.7z M18.3,32.2h7.3v11.4h-7.3V32.2L18.3,32.2  L18.3,32.2z M32.9,33.1h-2.3v-1.4c0.7,0,1.2-0.2,1.7-0.5s0.7-0.7,0.8-1.3h1.7v9.5h-2L32.9,33.1L32.9,33.1L32.9,33.1z M58.4,50.9  l-3.3,3.2c-0.2,0.2-0.6,0.3-0.9,0.3c-0.3,0-0.7-0.1-0.9-0.3c-0.5-0.5-0.5-1.2,0-1.7l1.1-1.1H11.8c-0.7-0.1-1.2-0.6-1.2-1.3V15.6  l-1.1,1.2c-0.5,0.4-1.3,0.4-1.8,0s-0.5-1.2,0-1.7l3.3-3.2c0.5-0.5,1.3-0.5,1.8-0.1L16,15c0.5,0.5,0.5,1.2,0,1.7  c-0.2,0.3-0.6,0.4-0.9,0.4s-0.7-0.1-0.9-0.3L13,15.6v33.2h41.5l-1.1-1.1c-0.5-0.5-0.5-1.2,0-1.7s1.2-0.5,1.7,0l3.3,3.2  C58.8,49.6,58.8,50.4,58.4,50.9L58.4,50.9z"></path></svg>						</div>
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									<h4 class="elementor-cta__title elementor-cta__content-item elementor-content-item">
						Performance twins					</h4>
				
									<div class="elementor-cta__description elementor-cta__content-item elementor-content-item">
						Digital twins that are used for data collection, analysis, and informed decision making.					</div>
				
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									<div><p><span style="font-weight: 400;">The combination and integration of these three types of digital twins is known as the </span><a href="https://www.perforce.com/blog/vcs/future-scope-digital-twins-software" target="_blank" rel="noopener"><span style="font-weight: 400;">digital thread</span></a><span style="font-weight: 400;">. This can be incorporated into other products by collecting data from all product life cycle stages and production.</span></p><p><span style="font-weight: 400;">For a long time, creating digital twins was costly. Companies needed to hire full-time developers and engineers and invest in sophisticated software. Testing and data visualization were limited. Then, mixed reality technology and wearable gadgets came to the fore and changed the game by simplifying digital twin creation.</span></p><p><span style="font-weight: 400;">The benefits of a digital twin differ depending on when and where it is used. For example, using digital twins to monitor existing products, such as a wind turbine or oil pipeline, can reduce maintenance costs and save many millions in associated costs. </span></p><p><span style="font-weight: 400;">Digital twins can also be used to create prototypes before production, reducing product defects and shortening time to market.</span></p><p><strong>Common benefits of digital twins include:</strong></p><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">System reliability, availability and overall performance improvement through real-time monitoring and simulation. </span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Reduction of the risk of accidents and unplanned downtime due to failure.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Maintenance costs reduction by predicting failure before it occurs and ensuring that scheduled maintenance and repair works won&#8217;t affect production goals. </span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Continual improvements by analyzing custom patterns and ensuring product quality through real-time performance testing.</span></li></ul><p><span style="font-weight: 400;"> </span></p><p><span style="font-weight: 400;">Digital twins can use <a href="https://www.rinf.tech/how-ar-iot-helps-businesses-rethink-data-management/" target="_blank" rel="noopener">augmented reality (AR)</a> and gaming technologies (e.g. Unity) – a.k.a. Mixed Reality – to train driver assistance systems with synthetic sensor data. A detailed walkthrough of each scenario helps validate safety requirements and build vehicles that can respond correctly without the driver being present.</span></p><p><span style="font-weight: 400;">Now let&#8217;s have a closer look at digital twin use cases across various industries and domains.</span></p></div>								</div>
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		</section>
				<section class="elementor-section elementor-top-section elementor-element elementor-element-b247664 animated-slow elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="b247664" data-element_type="section" data-e-type="section" data-settings="{&quot;animation&quot;:&quot;none&quot;}">
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					<h2 class="elementor-heading-title elementor-size-default">Digital twin use cases in different domains</h2>				</div>
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									<h3>Digital twins in manufacturing</h3><p>Manufacturers use digital twins to optimize everything from end-to-end supply chain to operations, quality management, and custom manufacturing. Testing multiple solutions before actually building products helps determine the best cost, service, and capacity options. Organizations can minimize the impact of disruptions by identifying the best secondary source of supply.</p><p>Boeing <a href="https://www.perforce.com/blog/vcs/future-scope-digital-twins-software" target="_blank" rel="noopener">used digital twins</a> to predict the performance of various components. This resulted in 40% better quality the first time around, saving development time and money. The company used IoT sensors to achieve the perfect load balance, ensuring that every flight delivers the perfect amount of cargo.</p><p dir="ltr">With digital twins, manufacturing companies can improve reliability and efficiency. They can constantly learn and help avoid future problems.</p>								</div>
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									<div><h3 dir="ltr">Digital twins in healthcare</h3><p dir="ltr">The medical sector has benefited from the digital twin technology in organ donation, surgical training and procedure risk reduction. Digital twin systems also mimic the flow of people through hospitals and track where infections may exist and who may be at risk of contact.</p><p dir="ltr">The Dassault Systèmes <a href="https://www.todaysmedicaldevelopments.com/article/living-heart-fda-dassault-systemes-medical-devices/" target="_blank" rel="noopener">team has created</a> a virtual human heart to develop new medical devices and analyze drug safety. Researchers at Linköping University Hospital have <a href="https://www.dezeen.com/2021/07/09/digital-twins-develop-cities-digital-design-architecture/" target="_blank" rel="noopener">created digital twins</a> of diseases, including breast cancer and influenza, to improve diagnosis and treatment.</p><p dir="ltr"> </p><h3 dir="ltr">Digital twins in real estate</h3><p dir="ltr">According to <a href="https://www.ecmag.com/sites/default/files/Digital%20twin%20-%20the%20Age%20of%20Aquarius%20in%20construction%20and%20real%20estate.pdf" target="_blank" rel="noopener">EY</a>, the adoption of digital twins can reduce real estate operating costs by up to 35%, drive down carbon emissions, deliver a healthier workplace, and enhance user experiences.</p><p dir="ltr">According to <a href="https://techwireasia.com/2021/08/the-case-for-digital-twins-in-construction-and-real-estate/" target="_blank" rel="noopener">TechWire Asia</a>, of all real estate companies that already use custom digital twins:</p><ul><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation">50% report increase of sustainability and resiliency,</p></li><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation">35% report increase of building maintenance and operational efficiency;</p></li><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation">30% admit increase in productivity, and</p></li><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation">15% admit better space utilization.</p></li></ul></div>								</div>
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						Check out the interview with Bogdan Popescu, our Technical Director of the R&amp;D Embedded Business Unit 					</h4>
				
				
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					<h2 class="elementor-heading-title elementor-size-default">How to build digital twins?</h2>				</div>
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									<p><span style="font-weight: 400;">Digital twins are complex solutions, so specialized companies usually build and manage them as part of their <strong><a href="https://www.rinf.tech/what/r-d-embedded/" target="_blank" rel="noopener">R&amp;D</a></strong> and custom product development value proposition. Digital twin development companies take care of the entire lifecycle of the digital twin. They also provide custom onboard data collection platforms and applications, dashboards, and tools that harness the power of the digital twin tech.</span></p><h3>Finding the right skills and experience</h3><p><span style="font-weight: 400;">Your organization has probably already realized the value of data and digitization, but may not have the internal competence and capacity to fully exploit it. </span></p><h5><strong>By outsourcing digital twin development and data processing and analytics to a technology solutions company, you can focus on the practical application of the insights they provide.</strong></h5><p>Understanding the digital twin life cycle will help you understand what capabilities you need from a custom digital twin software development company.</p>								</div>
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					<h5 class="elementor-heading-title elementor-size-default">Digital Twin Architecture</h5>				</div>
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															<img loading="lazy" decoding="async" width="980" height="500" src="https://www.rinf.tech/wp-content/uploads/2021/10/digital-twin-architecture.png" class="attachment-full size-full wp-image-15472" alt="digital twin architecture" srcset="https://www.rinf.tech/wp-content/uploads/2021/10/digital-twin-architecture.png 980w, https://www.rinf.tech/wp-content/uploads/2021/10/digital-twin-architecture-300x153.png 300w, https://www.rinf.tech/wp-content/uploads/2021/10/digital-twin-architecture-768x392.png 768w" sizes="(max-width: 980px) 100vw, 980px" />															</div>
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									<p>Digital twin architecture by EY</p>								</div>
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									<h3>Digital Twin toolkit development</h3><p><span style="font-weight: 400;">The development phase includes building a toolkit that can be used to create unique digital twins for various assets. </span></p><p>Toolkit development is the hardest part of the digital twin&#8217;s lifecycle. It is typically done in R&amp;D by highly specialized data scientists, machine learning specialists and more.</p><p>Development work involves gathering information about the physical characteristics of the asset, the operating environment, and any conditions under which the asset is operated. In addition, the automatically-collected data from the asset is required to develop the required machine learning methodologies. The result is a mathematical model that can be used to model the behavior and performance of an asset.</p><p> </p><h3>Digital twin design</h3><p>There are two main elements in developing a digital twin. First, you need to select the supporting technology required to integrate a physical asset into its digital twin to enable real-time data flow from IoT devices and integration with operating rooms.</p><p>You must have a clear understanding of what device and modeling software are needed to create a 3D representation of the asset, and who will have access to the information in the digital twin or gain control of the physical asset through it.</p><p>Managing IoT devices securely is critical to overcoming the risks associated with identifying devices on your network.</p><p>It provides capabilities to authenticate, provision, configure, monitor, and manage each device. An identity-based IoT platform enables you to do this quickly and securely at scale.</p><p>This leads to the second design element. You must understand what type of information is required throughout the life of an asset, where this information is stored, and how it can be accessed and used. The information must be structured and reusable so that it can be quickly and efficiently exchanged between systems.</p><p>An identity-based IoT platform can manage the identity of each item in the digital twin and provide messaging services to automate secure communication between those people, systems and objects.</p><p> </p><h3>Creating standalone digital twins</h3><p>Standalone digital twins can be useful for monitoring key metrics or states of one specific asset, such as HVAC or environmental systems. They can also be used to match key building site elements with their original design.</p><p>A stand-alone digital twin usually contains a small number of data sources. At this point, you can create a twin enhancement toolkit using accurate &#8220;as is&#8221; data from other sources. For example, data from CAD systems, 3D models, or point clouds generated by laser scanning can be used to correlate with the sensor output.</p><p> </p><h3>Creating duplicated digital twins</h3><p>Digital modeling of a duplicated digital twin can help prevent real problems. Smart components connected to the cloud can collect sensor data, allowing real-time status analysis and comparison with previous metrics.</p><p>The duplicate digital twin contains all the important and measurable data sources needed to represent the entire asset.<br />Standalobe digital twin elements can be combined to form a duplicate model. Here, the granularity of the model may be too detailed for your needs. Make sure your goals are clear so you don&#8217;t collect too much data.</p><p>Database-driven BIM models provide an excellent foundation for duplicating a model. BIM was developed to enhance collaboration in the construction industry. It also provides a single source of truth platform that allows flexible viewing of data. These capabilities will also help digital twin models deliver the right information to the right people at the right time. Software analytics and AI will update the digital twin as its physical counterpart changes.</p><p>Harnessing the potential of duplicated digital twins involves moving away from sensors and dashboards to advanced virtual representations of physical assets, with the risk of added complexity.</p><p> </p><h3>Creating enhanced digital twins</h3><p>Digital twins can go far beyond individual pieces of equipment or individual buildings. The future of the digital twin is determined by scale.</p><p>The enhanced digital twin expands to include other data sources from the connected site. This will include correlated environmental data from external sources and information from external analytics and algorithms.</p><p>The more complex the system, the more difficult it is to manage and control all of its components. This is why digital twins are opening up tremendous opportunities for the interconnected cities of the future. They will provide the data and analysis you need to optimize people, planning and resources.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Final Thoughts</h2>				</div>
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									<p>Digital twins have many benefits as they improve the behavior of processes and products, which usually means more efficient operations.</p><p>Digital twins allow us to anticipate potential problems in the future. This reduces product defects and, among other things, shortens production times.</p><p>Digital twins help improve and optimize production processes through real-time information. They help reduce unplanned downtime due to potential errors and reduce the number of accidents, allowing us to simulate all kinds of possible situations.</p><p>Digital twin technology helps reduce maintenance costs by performing preventive maintenance tasks. It provides opportunities for continual improvement through simulations and the detection of failures and inefficiencies.</p><p>The digital twin is a great Industry 4.0 tool you need to leverage to become a future-ready organization.</p>								</div>
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					<h3 class="elementor-heading-title elementor-size-default">Why build your digital twin with rinf.tech?</h3>				</div>
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					<h4 class="elementor-heading-title elementor-size-default">R&amp;D Embedded Systems</h4>				</div>
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									<h4>Domains &amp; Solutions</h4><ul><li>Machine Learning, Deep Learning</li><li>Virtualization &amp; Cloud</li><li>Smart Conf Room &#8211; Sentiment Analysis</li><li>IoT Devices &amp; Protocols</li><li>Wireless Modules</li><li>BLE Bluetooth Low Energy</li><li>Device Efficiency</li><li>Secured Connectivity</li><li>ARM processors</li><li>Augmented &amp; Mixed Reality</li><li>Modified kernels for FaaS</li><li>Long and Short Range Connectivity</li><li>M2M Applications</li></ul>								</div>
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									<h4>Tools &amp; Frameworks</h4><ul><li>Docker, Kubernetes, MicroServices, FaaS, AWS, Azure, OpenStack, OpenVINO, OpenCV, CUDA, AR Core, AR Kit, Vuforia</li><li>Unity, WebGL</li><li>Sensors, Actuators</li></ul>								</div>
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									<h4>Protocols &amp; Standards</h4><ul><li>NBIoT, LTE, UMTS, GSM, LoRaWan</li><li>SCRUM, SAFe</li></ul>								</div>
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									<p>At <a href="https://www.rinf.tech" target="_blank" rel="noopener">Rinf.tech</a>, we have a full-fledged <a href="https://www.rinf.tech/what/r-d-embedded/" target="_blank" rel="noopener">R&amp;D Embedded Business Unit</a> that specialises in custom software product engineering and proof-of-concept (PoC) project development. From computer vision powered intruder detection software to robotic arm and its digital twin to sophisticated deep learning models, we use experimental approaches and lessons learned to build top-notch solutions and prototypes to future-proof business ideas and emerging tech.</p>								</div>
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		<p>The post <a href="https://www.rinf.tech/digital-twin-development-why-when-and-how/">Digital Twin Development: Why, When, and How?</a> appeared first on <a href="https://www.rinf.tech">rinf.tech</a>.</p>
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		<title>How to Capture Industrial IoT (IIoT) Value Through R&#038;D Innovation</title>
		<link>https://www.rinf.tech/how-to-capture-industrial-iot-iiot-value-through-rd-innovation/</link>
		
		<dc:creator><![CDATA[rinf.tech]]></dc:creator>
		<pubDate>Wed, 17 Nov 2021 17:17:23 +0000</pubDate>
				<category><![CDATA[Insights]]></category>
		<category><![CDATA[digital innovation]]></category>
		<category><![CDATA[iot]]></category>
		<category><![CDATA[mixed reality]]></category>
		<category><![CDATA[randd]]></category>
		<guid isPermaLink="false">https://www.rinf.tech/?p=15503</guid>

					<description><![CDATA[<p>This article focuses on the key technological changes enterprises need to make in order to support their innovation goals and how R&#038;D can be an effective solution and a driver of IIoT success and sustainability.</p>
<p>The post <a href="https://www.rinf.tech/how-to-capture-industrial-iot-iiot-value-through-rd-innovation/">How to Capture Industrial IoT (IIoT) Value Through R&#038;D Innovation</a> appeared first on <a href="https://www.rinf.tech">rinf.tech</a>.</p>
]]></description>
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					<h1 class="elementor-heading-title elementor-size-default">How to Capture Industrial IoT (IIoT) Value Through R&amp;D Innovation
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									<p>A guide for manufacturing enterprises looking to accelerate the pace of innovation</p>								</div>
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					<h3 class="elementor-heading-title elementor-size-default">Innovations in the industrial software stack and applications for advanced analytics, artificial intelligence, machine learning, 5G connectivity, edge computing, and the Industrial Internet of Things (IIoT) are potentially valuable business assets.</h3>				</div>
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					<h4 class="elementor-heading-title elementor-size-default">However, for many manufacturing companies and businesses, "technical screening" can be the easy part. Capturing value and creating and scaling effective use cases is where the challenge lies.</h4>				</div>
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									<p>Use cases need to be digitally supported, but heterogeneous systems and application landscapes can become obstacles due to outdated software and/or decentralized solutions and technologies. These technical problems, combined with unclear business plan hurdles and lack of organizational capacity, end up driving many companies into a constant pilot purgatory.</p><p>In recent years, there have been significant advances in technology, especially in scalable connectivity and integration, which finally allowed enterprises to upgrade and extend their existing solutions rather than fully replace them. From 5G to AI to edge computing and beyond – the emerging technologies enable companies to implement and scale efficient use cases with minimal additional cost when used wisely.</p><p>Over the years of creating and delivering high-performance, customized IoT solutions, we at <a href="https://www.rinf.tech" target="_blank" rel="noopener">rinf.tech</a> have noticed that manufacturing companies with a holistic approach are the most successful ones. In particular, they benefit from the digitization of industry along the entire value chain, providing a range of advantages to both their suppliers and customers.</p><p><strong>This article focuses on the key technological changes enterprises need to make in order to support their innovation goals and how R&amp;D can be an effective driver of IIoT success and sustainability.</strong></p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">What does it take to deliver IIoT success?</h2>				</div>
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									<p>Reaping the benefits of IIoT requires a holistic approach to drive the end-to-end transformation of an organization and technology.</p><p><span data-preserver-spaces="true">To successfully develop IIoT projects, enterprises must focus on three core pillars:</span></p><ul><li><span data-preserver-spaces="true">IIoT Infrastructure: Plan and design an IIoT architecture to scale digital use cases across an organization.</span></li><li><span data-preserver-spaces="true">Data Infrastructure: Get the right data at the right time and in the right quality for digital and analytics.</span></li><li><span data-preserver-spaces="true">Technology ecosystem: Expanding a network of companies to collaborate with to bring innovation to the enterprise faster and more effectively.</span></li></ul><p> </p><h4>So why is it essential for enterprises, especially manufacturing, to use IIoT and advanced technologies for digital transformation projects?</h4><p>There are several good reasons why companies should start or continue to use IIoT and advanced technologies:</p><ul><li>Deployment of scalable use cases is accelerating as platforms become more user-friendly. That is, from low-code to code-free software, toolkits make development and installation more cost-effective than ever.</li><li>Decentralized computing is becoming more popular as infrastructure solutions make it easy to manage distributed networks of platform resources and solve the problem in real-time.</li><li>Integration and connectivity are being dramatically improved by frameworks such as the unified architecture of Open Platform Communications (OPC) and the emergence of 5G, offering high-speed, secure and highly flexible low-latency solutions where existing alternatives don&#8217;t work.</li><li>Computing power and processing power have grown exponentially, while storage and CPU costs have plummeted.</li></ul><p> </p><h4>The benefits of IIoT are significant</h4><p>To name just a few:</p><ul><li>Tremendous improvements in performance, productivity, resilience, flexibility, speed to market and customization can be achieved through proper IIoT implementation.</li><li>Moving to advanced manufacturing helps significantly increase the resilience of manufacturers, allowing them to respond faster to crises with modern digital work planning tools and solutions.</li></ul>								</div>
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					<h3 class="elementor-heading-title elementor-size-default">Successful implementation of IIoT at scale follows key actions in three areas:
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									<ul><li><h4><span data-preserver-spaces="true">On the business side</span></h4></li></ul><p><span data-preserver-spaces="true">First, companies need to identify, prioritize, and test new use cases. They then need to create an achievable roadmap for deploying these use cases across IT, OT, and all enterprise/plant locations. After that, it would be great to capture value and measure opportunities with overarching impact and without distracting attention to local requirements for solutions. However, in terms of continually improving local initiatives, they need to be monitored and continued.</span></p><ul><li><h4><span data-preserver-spaces="true">On the company side</span></h4></li></ul><p><span data-preserver-spaces="true">Organizations need to set clear targets for the entire digital transformation and create a team/unit responsible for monitoring progress and adjusting courses when needed. Then a new way of working should be introduced that fosters cross-functional communication and develops related skills and capabilities.</span></p><ul><li><h4><span data-preserver-spaces="true">On the technology side</span></h4></li></ul><p><span data-preserver-spaces="true">First, enterprises need to define the current situation and target architecture of their IIoT platform, focusing on collecting, connecting, ingesting, and integrating data in ways that enable innovative use cases, including platform cybersecurity management.</span></p><p><span data-preserver-spaces="true">Second, you need to understand the impact of cloud computing and integrate it into the overall design of the platform.</span></p><p><span data-preserver-spaces="true">Third, an ecosystem of suppliers and partners needs to be built to support implementation, taking into account the different complexity levels of individual enterprises. They include a type of production and products, enterprise size and IT-OT landscape, etc.</span></p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Where does R&amp;D step in to make a difference?</h2>				</div>
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									<h4>R&amp;D is essential for innovative IIoT use case development and future-proofing.</h4><p><a class="editor-rtfLink" href="https://www.investopedia.com/ask/answers/043015/what-are-benefits-research-and-development-company.asp" target="_blank" rel="noopener"><span data-preserver-spaces="true">Research and development (R&amp;D)</span></a><span data-preserver-spaces="true"> is the part of a company that seeks knowledge to develop, design and improve its products, services, technologies or processes. Along with creating new products and adding features to old ones, R&amp;D investments integrate different parts of a company&#8217;s strategy and business plans, such as marketing and cost reduction.</span></p><p><span data-preserver-spaces="true"><a href="https://www.rinf.tech/what/r-d-embedded/" target="_blank" rel="noopener">R&amp;D</a> consists of investigative actions that a person or business takes to obtain the desired discovery result. A completely new product, product category, or service will be created.</span></p><p><span data-preserver-spaces="true">The development part refers to applying a new science or thinking so that a new and better product or service can begin to take shape.</span></p><p><span data-preserver-spaces="true">Research and development is essentially the </span><a class="editor-rtfLink" href="https://www.investopedia.com/ask/answers/043015/what-are-benefits-research-and-development-company.asp" target="_blank" rel="noopener"><span data-preserver-spaces="true">first step</span></a><span data-preserver-spaces="true"> in developing a new product, but product development is not only research and development. As an offshoot of research and development, product development can refer to the entire product life cycle, from concept to sale, refurbishment, and retirement.</span></p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">R&amp;D for IIoT use case development
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									<p><span data-preserver-spaces="true">Deploying IIoT use cases is facilitated mainly by the following factors:</span></p>
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<h4><span data-preserver-spaces="true">Enhanced usability of IoT platforms</span></h4>
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<p><span data-preserver-spaces="true">IoT and IIoT platforms become more user-friendly as the software supports user extension. In addition, as access to IIoT software development expands, more experimentation will take place to benefit the entire IIoT manufacturing ecosystem.</span></p>
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<h4><span data-preserver-spaces="true">Simplified development</span></h4>
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<p>A rich set of ready-to-use APIs, code snippets and microservices, well-established communication standards, and available solutions with little or no coding ensure more cost-effective creation and implementation of use cases.</p>
<p>These low-code/no-code platforms offer small and midsize businesses access to IIoT software functionality without the need for talented programmers that early adopters should have had.</p>
<ul>
<li>
<h4><span data-preserver-spaces="true">Imprinted scalability </span></h4>
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<p><span data-preserver-spaces="true">Routines for rapidly provisioning and updating applications in reusable data pipelines, containerization for hardware-independent software deployment across multiple peripherals, and sophisticated solutions to manage the entire software/hardware stack enable DevSecOps methodologies to be implemented and help scale platforms rapidly across the enterprise.</span></p>
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<li>
<h4>5G and AI become the catalysts of change when it comes to IIoT innovation</h4>
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<p>For enterprises migrating to Industry 4.0, 5G offers corresponding short-term IIoT opportunities. With these dramatic productivity gains, factories and plants can overcome the severe disruptions inherent in pre-<a href="https://www.rinf.tech/iiot-and-the-4th-industrial-revolution/" target="_blank">Industry 4.0</a>&nbsp;production halls. As a result, manufacturing is expected to account for more than half of all 5G sales when 5G brings significant benefits.</p>								</div>
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					<h3 class="elementor-heading-title elementor-size-default">Are you looking to leverage external R&amp;D to future-proof your IoT solution's feasibility and/or build PoC fast and cost-effectively?</h3>				</div>
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					<h2 class="elementor-heading-title elementor-size-default">Using R&amp;D to harness the power of 5G, AI, Edge Computing, and Mixed Reality</h2>				</div>
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									<h4>5G</h4><p>Some of the most compelling examples of 5G in manufacturing are automated guided vehicles and real-time process control. Today, automated vehicles typically connect to a Wi-Fi network and rely on software loaded on the vehicle to manage routing and task execution. 5G will dramatically improve connectivity to the edge of the cloud for real-time sharing data between vehicles and coordinating fleets, thereby allowing them to free themselves from fixed paths in an ever-changing manufacturing environment.</p><p>As an added benefit, 5G also improves reliability by offering seamless connectivity as automated vehicles move through the factory and switch between access points or radios. When it comes to real-time process control, wired controllers and sensors can be used for years. However, 5G opens up a new space for solutions, helping to connect modules for relatively easy targeted analysis of sensors and actuators – especially important for older machines, whose control and power systems may be outdated and less adaptable to modern technology.</p><h4>Artificial Intelligent (AI)</h4><p id="tw-target-text" class="tw-data-text tw-text-large tw-ta" dir="ltr" data-placeholder="Translation"><span class="Y2IQFc" lang="en">Artificial intelligence represents the third era of computing, usually defined as the ability of machines to perform cognitive functions as or better than humans. These functions include <strong>perception</strong>, <strong>learning</strong>, <strong>reasoning</strong>, <strong>problem solving</strong>, <strong>contextual understanding</strong>, <strong>inference and prediction</strong>, and <strong>creativity</strong>. </span></p><p class="tw-data-text tw-text-large tw-ta" dir="ltr" data-placeholder="Translation"><span class="Y2IQFc" lang="en">The convergence of groundbreaking research, business use cases, skyrocketing data growth, and improvements in computing power and storage are all encouraging advances in AI.</span></p><p dir="ltr" data-placeholder="Translation">As there&#8217;s no single standard marking a clear distinction between weak AI and strong AI, both AI researchers and AI project managers find it difficult to make the right decision about architectures and technologies that should be used to deliver innovative AI-driven experiences. R&amp;D provides a solid platform for experimentation, which results in better justification of corporate AI spending.</p><p dir="ltr" data-placeholder="Translation">In particular, R&amp;D allows for extensive experimentation and discovery around the following AI areas:</p><ul><li dir="ltr" data-placeholder="Translation">MLOps</li><li dir="ltr" data-placeholder="Translation">Low-code/no-code machine learning (ML)</li><li dir="ltr" data-placeholder="Translation">Web-scale content analysis</li><li dir="ltr" data-placeholder="Translation">Empathy and emotions simulation</li><li dir="ltr" data-placeholder="Translation">Artificial Emotional Intelligence (AEI)</li><li dir="ltr" data-placeholder="Translation">Serverless computing</li><li dir="ltr" data-placeholder="Translation">Data synthesis </li><li dir="ltr" data-placeholder="Translation"><a href="https://www.rinf.tech/what/r-d-embedded/digital-twin-development/" target="_blank" rel="noopener">Digital twins</a></li><li dir="ltr" data-placeholder="Translation">Advanced AI chipsets, etc.</li></ul><h4>Edge Computing</h4><p id="tw-target-text" class="tw-data-text tw-text-large tw-ta" dir="ltr" data-placeholder="Translation"><span class="Y2IQFc" lang="en">AI-powered decision making and processing happens closer to the data source generation, in contrast to the cloud, a technique known as &#8220;edge computation&#8221;. Internet of things and its billions devices combined with 5G network and increased processing power, has made large-scale AI possible at the edge of the possible.</span></p><p id="tw-target-text" class="tw-data-text tw-text-large tw-ta" dir="ltr" data-placeholder="Translation"><span class="Y2IQFc" lang="en">Data processing directly on devices will be important in the future for healthcare, automotive and manufacturing applications as it is potentially faster and safer. </span></p><p class="tw-data-text tw-text-large tw-ta" dir="ltr" data-placeholder="Translation"> </p>								</div>
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				In 2021, US tech giant Dell Technologies has officially launched a $66 million R&amp;D center in Singapore to spur edge computing innovation.			</p>
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											<cite class="elementor-blockquote__author">Source: TNP</cite>
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									<h4>Mixed Reality (MR)</h4><p id="tw-target-text" class="tw-data-text tw-text-large tw-ta" dir="ltr" data-placeholder="Translation"><span class="Y2IQFc" lang="en">Microsoft designed HoloLens 2 head-up display (HUD) specifically for business solutions leveraging cloud and AI capabilities, interoperability with industry applications, and a suite of developer tools. </span></p><p class="tw-data-text tw-text-large tw-ta" dir="ltr" data-placeholder="Translation"><span class="Y2IQFc" lang="en">The device has already been adapted for the US Army and many of its advanced features include thermal imaging and night vision.</span></p><p id="tw-target-text" class="tw-data-text tw-text-large tw-ta" dir="ltr" data-placeholder="Translation"><span class="Y2IQFc" lang="en">Smart glasses and headgear maker Nreal has announced an Android-compatible all-in-one headset for enterprises that looks more like a helmet than a pair of goggles, with built-in edge computing capabilities. These business-focused headsets are used in a wide variety of applications, from monitoring supply chains and complex equipment with digital twins, to conducting remote 3D meetings and providing augmented reality guides in on-the-job training.</span></p><p dir="ltr" data-placeholder="Translation">These and other solutions have already motivated many R&amp;D teams to experiment with AR, VR, Diminished Reality (DR) and integrate them with AI, machine learning, and Cloud.</p><p dir="ltr" data-placeholder="Translation">Our <a href="https://www.rinf.tech/what/r-d-embedded/" target="_blank" rel="noopener">rinf.tech R&amp;D team</a> is no exception. We&#8217;ve recently built a HoloLens-based digital twin of the robotic arm used for touchscreen testing.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Future IIoT architecture, as per McKinsey</h2>				</div>
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															<img loading="lazy" decoding="async" width="800" height="908" src="https://www.rinf.tech/wp-content/uploads/2021/11/Screenshot-2021-11-17-at-19.18.44-902x1024.png" class="attachment-large size-large wp-image-15506" alt="future IoT architecture" srcset="https://www.rinf.tech/wp-content/uploads/2021/11/Screenshot-2021-11-17-at-19.18.44-902x1024.png 902w, https://www.rinf.tech/wp-content/uploads/2021/11/Screenshot-2021-11-17-at-19.18.44-264x300.png 264w, https://www.rinf.tech/wp-content/uploads/2021/11/Screenshot-2021-11-17-at-19.18.44-768x872.png 768w, https://www.rinf.tech/wp-content/uploads/2021/11/Screenshot-2021-11-17-at-19.18.44.png 1090w" sizes="(max-width: 800px) 100vw, 800px" />															</div>
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					<h2 class="elementor-heading-title elementor-size-default">How to start developing an IIoT R&amp;D project
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									<h4>Step 1: Discover and deploy innovative value-driven use cases that deliver positive impact</h4><p>Deploying early use cases is an investment, and therefore it is important to think about the deployment in a strategic manner. In most situations, it is recommended to deploy use cases based on value/feasibility.</p><p>First, select use cases that create immediate value and avoid use cases that require building databases from scratch or other complex prerequisites.</p><p>While the focus is usually on low-effort, high-value use cases, there is a strong case for using use cases with little or no ROI. For example, a use case may not result in immediate impact, but it may allow future use cases to be used.</p><p>This decision is pre-analyzed, and the rationale must be clearly stated so that all relevant stakeholders are aware of the investment and its value, even if that value is delayed.</p><h4>Step 2. Begin collecting and aggregating data while building important features in parallel</h4><p>Not all items need to be securely fastened before the deployment. In particular, even before the required data is connected, prioritization of use cases provides an overview of the required data sources and an understanding of what data is available and can be connected. The data collection architecture can be customized or defined for a specific OT equipment and data source based on this information.</p><p>However, in parallel, the development of the platform core should not be neglected and should start in sync with the development of the use cases. It is necessary to connect sources for automatic data collection as soon as possible. Depending on the implementation state of the target architecture, a use case can be deployed to a local server based on a specific architecture. This assumes the use of frameworks that will eventually be used on the back end.</p><p>But it won&#8217;t take long to implement the final architecture prioritizing the first use cases, and the migration of the first use cases will be possible in just a few weeks. Further, each use case is implemented in the target architecture. In preparation for this, consider and engage the next wave of use cases by connecting to the required data sources in the previous wave (s).</p><p>The point to keep in mind here is that many use cases take longer to prepare simply because some data sources do not yet exist. To compensate for this, it may be necessary to add sensors, change the PLC logic of the machine, update systems, and so on.</p><h4>Step 3. Establish processes and collaboration that will ensure the required deployment</h4><p>A standard process of connecting to new businesses should be established to ensure that the team is in place when deployments begin there. Implementation is also about changing how an organization works and thinks; thus, it is important to make informed change management the same priority as the deployment itself. The success of a use case can be undermined if the benefit has not been clearly identified and people are either not using a new application or system in their day-to-day work or are using it incorrectly.</p><p>A central IIoT deployment team takes care of the needs across the enterprise, making sure everything is in place prior to deployment. The list of needs includes the skills and the technical background required for a use case. The R&amp;D team identifies the right people on-site to manage the deployment and resolves issues.  The central team also monitors deployment status and emerging issues.</p><p>This provides a holistic view of benefits, implementation status and problem solutions to generate best practices for IIoT innovation.</p><p>A deeper look at use cases will almost certainly reveal a need for skills that may not currently be available in an organization or individual business. Hiring new talent or training existing employees should begin as early as possible so that skills are in place when they are needed.</p><p>Skill development and capacity building is an ongoing effort because deploying use cases never ends. Investing in these areas is a must for an organization that wants to succeed in its Industry 4.0 efforts.</p><p>It is also important to have a clear collaboration model that identifies one person for each workstream with clear accountability. Effective communication must be ensured within the organization, such as the exchange of information between enterprises and between the organization and its partners. Important archetypes of value chain partners are industrial equipment suppliers, technology providers and integrators, as well as specialists in functional areas.</p><p>Employee training should begin before deployment (or even concurrently) to ensure a shared vision and understanding of each use case capabilities and advantages. Training sessions are critical as time is devoted to answering employee questions and concerns. In addition, getting the people who will be working on a new application or tool into the development process and getting their feedback can create a tool that better suits their needs and provides broader acceptance and interest.</p><p>It will also be important to define the expectations and responsibilities of the use case owners as they will define the subsequent sprints within the use cases and report status updates and issues. Consistency of processes is very important, such as how communication occurs and measuring status and progress.</p><p> </p>								</div>
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				R&amp;D is an integral part of any IoT project, and expanding it can be the first step to project success. By leveraging research and development, your business can optimize costs, reduce risk, and minimize time-to-market for various IoT applications. R&amp;D teams manage both the technical and business elements of the product. Their responsibilities include evaluating both the usefulness of the product and the technology itself.

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									<p>In addition to this, R&amp;D teams can see future business opportunities. The end result of this should be research, prototyping, and clarification on the IoT product. The R&amp;D team can study the idea before it becomes a product and support the transformation of the concept into a functional asset that solves the user&#8217;s problems.</p>								</div>
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					<h3 class="elementor-heading-title elementor-size-default">Benefits of utilizing R&amp;D for IIoT projects
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									<h4>Fast time to POC, Prototype and MVP</h4><p><span data-preserver-spaces="true">IoT technology is evolving at a rapid pace. Why not save time and effort by testing ideas with a <strong>Proof of Concept (POC)</strong>, <strong>Minimum Viable Product (MVP)</strong>, or <strong>Prototype</strong> before launching a specific product?</span></p><p><span data-preserver-spaces="true"><strong>POC</strong> is the practice of deep product interpretation. This happens before any planning for a product. POC allows you to learn a concept without spending too much time and money.</span></p><p><span data-preserver-spaces="true"><strong>Prototype</strong> has the same basic goal of helping companies understand if a product is potentially good enough to get the job done. </span></p><p><span data-preserver-spaces="true">The R&amp;D team can test the product&#8217;s performance, design, and benefits by creating a prototype. This way, you can use the prototype with a limited group of people to test it out before going to market for multiple users.</span></p><p><span data-preserver-spaces="true"><strong>MVP</strong> is a product with a sufficient number of features that can be implemented in the market. The goal of MVP is to provide feedback for the future development of IoT projects. Choosing between one or all of these three can be a little tricky, and doing one of them requires specialists and some IoT equipment.</span></p><h4><span data-preserver-spaces="true">Enterprise innovation cost optimization</span></h4><p><span data-preserver-spaces="true">Digital transformation and innovation projects often lead to overhead costs. This includes administrative costs in excess of the total cost of the equipment. Using R&amp;D for IIoT projects will help reduce these costs. Many tech companies provide their R&amp;D services to businesses looking for a variety of outsourcing options. Some of these companies even have entire departments that focus on experimenting with cutting edge technology. They investigate and scrutinize IoT solutions, deep learning, robotics, digital twin and other technologies to create solutions, POCs and MVPs for themselves and their customers.</span></p><h4><span data-preserver-spaces="true">Better Control and Risk Management</span></h4><p><span data-preserver-spaces="true">The company must interpret risks and be able to assess or mitigate them immediately. Using R&amp;D for IoT projects can help you mitigate these risks. R&amp;D engineers need to understand well how new IoT devices or functions will work and whether they can meet your business goals and requirements.</span></p><p><span data-preserver-spaces="true">Like any other technology, IoT solutions need deep research and development and are best done by professionals. R&amp;D outsourcing allows you to optimize costs, get an idea to market faster and avoid life-saving risks.</span></p>								</div>
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									<p>Wrapping up, expanding market participation, cost management benefits, developing marketing capabilities and keeping up with trends are all reasons why companies invest in R&amp;D. Research and development can help a company follow or stay ahead of market trends and keep the company up-to-date.</p><p>While R&amp;D requires complex engineering-heavy resources, quality certifications, compliance with the industry standards and more, the innovations resulting from it may actually work to lower costs through more efficient manufacturing processes or more efficient and higher-quality products.</p><p>To accelerate enterprise innovation and create a unique and compelling IIoT value proposition, i&#8217;s highly recommended that manufacturing companies establish technology partnerships with companies that already have well-established R&amp;D centers or innovation labs and that have accumulated best practices of leveraging the newest technologies and methodologies.</p><pre>We'll share tips for choosing the right custom IoT software development partner in our next blog post. Meanwhile, check out <a href="https://www.rinf.tech/how-to-build-a-highly-effective-iot-development-team/" target="_blank" rel="noopener">what it takes to build a highly effective IoT development team in-house or offshore</a>.</pre>								</div>
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		<p>The post <a href="https://www.rinf.tech/how-to-capture-industrial-iot-iiot-value-through-rd-innovation/">How to Capture Industrial IoT (IIoT) Value Through R&#038;D Innovation</a> appeared first on <a href="https://www.rinf.tech">rinf.tech</a>.</p>
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		<title>How Digital Cockpit Changes Customer Experience and Automotive Landscape</title>
		<link>https://www.rinf.tech/how-a-digital-cockpit-changes-customer-experience-and-automotive-landscape/</link>
		
		<dc:creator><![CDATA[rinf.tech]]></dc:creator>
		<pubDate>Mon, 18 Oct 2021 14:41:25 +0000</pubDate>
				<category><![CDATA[Insights]]></category>
		<category><![CDATA[automotive]]></category>
		<category><![CDATA[mixed reality]]></category>
		<guid isPermaLink="false">https://www.rinf.tech/?p=14306</guid>

					<description><![CDATA[<p>Check out what it takes to build a highly effective digital cockpit solution and how it can benefit both car makers and Tier1 providers.</p>
<p>The post <a href="https://www.rinf.tech/how-a-digital-cockpit-changes-customer-experience-and-automotive-landscape/">How Digital Cockpit Changes Customer Experience and Automotive Landscape</a> appeared first on <a href="https://www.rinf.tech">rinf.tech</a>.</p>
]]></description>
										<content:encoded><![CDATA[		<div data-elementor-type="wp-post" data-elementor-id="14306" class="elementor elementor-14306" data-elementor-post-type="post">
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					<h1 class="elementor-heading-title elementor-size-default">How Digital Cockpit Changes Customer Experience and Automotive Landscape
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									<p>and How Carmakers, OEMs, and Tier 1 Providers Should Respond Now</p>								</div>
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						<div class="elementor-element elementor-element-76a69b62 animated-slow elementor-invisible elementor-widget elementor-widget-heading" data-id="76a69b62" data-element_type="widget" data-e-type="widget" data-settings="{&quot;motion_fx_motion_fx_scrolling&quot;:&quot;yes&quot;,&quot;motion_fx_opacity_effect&quot;:&quot;yes&quot;,&quot;motion_fx_opacity_direction&quot;:&quot;out-in-out&quot;,&quot;motion_fx_opacity_level&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:6,&quot;sizes&quot;:[]},&quot;motion_fx_opacity_range&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:{&quot;start&quot;:0,&quot;end&quot;:50}},&quot;motion_fx_blur_effect&quot;:&quot;yes&quot;,&quot;motion_fx_blur_level&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:15,&quot;sizes&quot;:[]},&quot;motion_fx_blur_range&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:{&quot;start&quot;:0,&quot;end&quot;:25}},&quot;_animation&quot;:&quot;slideInUp&quot;,&quot;motion_fx_blur_direction&quot;:&quot;out-in&quot;,&quot;motion_fx_devices&quot;:[&quot;desktop&quot;,&quot;tablet&quot;,&quot;mobile&quot;]}" data-widget_type="heading.default">
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					<h3 class="elementor-heading-title elementor-size-default">Today, a digital cockpit is changing the landscape of the automotive industry, including user experience, sales and profits.
</h3>				</div>
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					<h4 class="elementor-heading-title elementor-size-default"><a href="https://www.globenewswire.com/Tracker?data=Huvh21eC0GpffhVNsQcE5P_prgoY5DGweK0Kp4itMtwc7MnFDGWK7tZ-n8zpd0z2bMMSz0tGPgQIf9Qz8K--dkbfYsIxmHv9bu81O4i-rM3Ur-Cld1I9Hj4zVt7rcO2mcPQKiESTwdw1qVSqjke0KydhhTRggWmbd_Zp_mV73uVyGRZL5GScWTw41j3KkyDg_JuHOd_vxKtzQSaA-65e3TkZJvEzuDE4MDfmf9uCCdwojZqttVCirZecWOWC2WMJ">According to a study by GreyViews, the Automotive Digital Cockpit Market is expected to grow from $20.25 billion in 2022 to $36.65 billion by 2030. 
</a></h4>				</div>
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					<h2 class="elementor-heading-title elementor-size-default">Introduction</h2>				</div>
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									<p>The traditional cockpit has evolved into a digital product similar to smart devices. As part of this evolution, automotive industry actors are encouraged to transform their approach to R&amp;D and the emerging technology to stay relevant.</p><p>We expect to see full-scale digitization in the automotive manufacturing cycle by 2030, driven mainly by four mutually reinforcing trends: connected, autonomous, shared and electric (CASE) vehicles. The original equipment manufacturing (OEM) businesses get a new opportunity to generate continuous revenue while meeting the digital needs of their future customers.</p><p>Connected, electric and autonomous vehicles are seen as a key technology trend that will affect car cockpits on a large scale. The trend towards car connectivity is driving the rise of two key product categories – the cockpit dashboard (instrument cluster) and the infotainment system, which make up about two-thirds of the digital cockpit.</p><p>Just as technology has changed the way people communicate, access food and work remotely, the digital cockpit is changing the way we perceive cars. Vehicles of the future will play a pivotal role in moving towards a smarter and more personalized in-car experience that is software and service-oriented, networked and interoperable.</p><p>Technologies such as 5G, edge computing, <a href="https://www.rinf.tech/a-guide-to-cloud-migration-why-and-how-you-should-do-it/" target="_blank" rel="noopener">cloud computing</a> and artificial intelligence (AI) have already begun to influence the automotive industry – the ideal digital cockpit can combine these complex technologies into one access point that is simple and seamless.</p>								</div>
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									<p>The automotive digital cockpit market is segmented by equipment, vehicle type, electric vehicle type and application. Growth between segments helps analyze niche growth areas and go-to-market strategies, as well as identify main differentiators in target markets.</p><p>Let&#8217;s take a closer look at the size of different digital cockpit market categories.</p><p style="font-weight: 400;">In 2022, the global In-Vehicle Infotainment market was <a href="https://www.globenewswire.com/en/news-release/2022/12/06/2568531/0/en/In-Vehicle-infotainment-Market-Size-is-projected-to-reach-USD-50-64-Billion-by-2031-growing-at-a-CAGR-of-10-3-Straits-Research.html" target="_blank" rel="noopener">estimated</a> at <strong>$20.96 billion</strong>. According to projections, it will increase at a compound annual growth rate (CAGR) of <strong>10.3%</strong> during the forecast period (2023-2031) and is anticipated to reach <strong>$50.64 billion by 2031</strong>. The North American region is the market&#8217;s largest contributor and is predicted to grow at a CAGR of <strong>9.9%</strong> during the forecast period.</p><p>The global Instrument Cluster Market Size is <a href="https://www.ktvn.com/story/44762928/instrument-cluster-market-in-2021-is-estimated-to-clock-a-modest-cagr-of-47-during-the-forecast-period-2021-2026-with-top-countries-data-latest-116" target="_blank" rel="noopener">projected</a> to reach $13,610 million by 2026, up from $10,320 million in 2020, at a CAGR of 4.7%.</p><p>The head-up display segment is <a href="https://www.businesswire.com/news/home/20210729005740/en/The-Worldwide-Automotive-Digital-Cockpit-Industry-is-Expected-to-Reach-36.1-Billion-by-2028---ResearchAndMarkets.com">expected</a> to record the highest CAGR of over <strong>15%</strong> from 2021 to 2028 thanks to the integration of augmented reality (AR) to improve safety and driving experience.</p><p style="font-weight: 400;">In 2022, the TFT-LCD display panel market achieved a value of <strong>$148.3 billion</strong> on a global scale. During the forecast period of 2023-2028, it is predicted to expand at a CAGR of <strong>4.9%</strong> and is projected to attain a value of <strong>$197.6 billion by 2028</strong>.</p><p style="font-weight: 400;">According to <a href="https://www.databridgemarketresearch.com/reports/passenger-vehicles-market" target="_blank" rel="noopener">Data Bridge Market Research</a>, in 2021, the global market for passenger vehicles was assessed at <strong>$445.00 billion</strong>, and it is projected to reach <strong>$2641.10 billion by 2029</strong>, with a compound annual growth rate (CAGR) of <strong>7.83%</strong> during 2022-2029. The use of electric vehicles is predicted to increase significantly in the application segment due to heightened environmental concerns.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Digital cockpit components</h2>				</div>
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									<p><span style="font-weight: 400;">Different technologies and components are emerging on the market for digital integrated cockpit systems. Some of these are as follows:</span></p><h3>Head-up display (HUD)</h3><p>HUD was first used by fighters and is now used in the automotive industry. The HUD is a transparent display that shows information such as vehicle speed, navigation data, obstacle data and more, right into the driver&#8217;s field of vision without distraction.</p><p>Three types of technologies are used here: C-HUD, W-HUD and Augmented Reality-HUD. HUDs are mainly used for luxury vehicles, but as customer needs grow, Tier 1 suppliers are planning to implement HUDs on commercial and passenger cars, as well. The future of HUDs are 3D HUDs, voice-controlled HUDs and laser HUDs.</p><h3>Digital instrument cluster</h3><p>The digital instrument cluster provides the driver with a variety of information that dynamically adapts to the current driving situation. The digital cluster is ideal for a wide range of possible application scenarios, including conventional tacho displays, function displays, route planning charts or displaying video from a rear view camera.</p><p>It allows the drivers to keep tabs on the car performance indicators in real-time. This provides fewer to zero distractions and helps reduce the risk of an accident. The information is very easy to read in all situations, thanks to the outstanding display resolution. Thanks to its capabilities, the human-machine interface (HMI) can be personalized and easily adapted to different vehicle models and markets.</p><h3>Infotainment system</h3><p>The infotainment system, as the word suggests, is a combination of information and entertainment. Basically, an infotainment system is a set of hardware and software in vehicles that provide audio and video entertainment/information. Infotainment systems play an important role in making the driving journey enjoyable and safe.</p><p>As the automotive tech industry continues to grow, older infotainment systems are being replaced by advanced systems with high definition screens and improved connectivity such as WiFi, Bluetooth and USB. HD touchscreens are built into the car&#8217;s dashboard for the driver to access or in the rear seats where passengers can use them. It can be operated using the touch screen or with remote controls.</p><h3>Navigation system</h3><p>A car navigation system uses navigation satellites to determine the location of a specific place or person (via a mobile phone). These systems are not limited to indicating the location of a place or person. They also provide information on nearby hotels, restaurants, hospitals, gas stations, traffic congestion, shortest route and other similar information, which is analyzed and optimized using various ML algorithms.</p><h3>Smart HVAC Controller</h3><p>Nowadays, every vehicle comes pre-installed with heating, ventilation and air conditioning. The HVAC system is used to monitor the temperature inside the vehicle. Previously, knobs were used to regulate the temperature, but as technology evolved, they were replaced by automatic temperature controllers consisting of thermal sensors installed inside the car. Thermal sensors detect the temperature outside the car and send the data to a programmable controller, which then adjusts the temperature inside the car (according to an algorithm).</p>								</div>
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									<h5>Our custom-built digital cockpit solutions drive success for the automotive industry leaders and Tier 1 suppliers alike.</h5><h5>Our integrated approach, backed by deep industry knowledge, contributes to ideas making their way to the new mobility era.</h5>								</div>
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									<h3><span style="font-weight: 400;">Smart voice assistants</span></h3><p><span style="font-weight: 400;">From managing audio/video information to controlling multiple vehicle functions, the intelligent voice assistants enable drivers and passengers to perform multiple tasks hands-free.</span></p><p><span style="font-weight: 400;">According to Business Insider, in the United States, in-car voice assistance is more popular than smartphone assistance thanks to the hands-free experience it provides. Modern connected vehicles are developed with built-in voice assist systems that take the driving experience to a whole new level.</span></p><p>As per <a href="https://voicebot.ai/2021/08/23/in-car-voice-assistant-users-127-million-in-the-u-s-with-strong-adoption-in-the-uk-and-germany-as-well-new-report/" target="_blank" rel="noopener">Voicebot.ai</a>, there&#8217;re currently 127.1 million consumers of voice assistants in the USA alone – that&#8217;s an impressive audience.</p><p><span style="font-weight: 400;">Tech giants like Apple and Google have developed extensions/apps for connected car operating systems that can be linked to the dashboard display via USB or Bluetooth / WiFi. Such solutions include Apple CarPlay and Google Android Auto – two apps specifically designed to control connected vehicle systems. More than 70 car manufacturers use Android Auto, and more than 50 car manufacturers use CarPlay as their smart voice assistant, according to Business Insider.</span></p><p> </p><h3><span style="font-weight: 400;">Middleware</span></h3><p><span style="font-weight: 400;">In-vehicle applications – braking, ABS, self-parking, and more – are being developed within complex digital cockpits. And just like a computer or mobile phone, these apps are built on standard operating systems; this is called a middleware product. Middleware allows developers to focus on their innovations through their applications.</span></p><p><span style="font-weight: 400;">Middleware provides basic functionality such as communications, memory management, scheduling, and I/O. It removes the development overhead associated with taking care of these details, allowing you to focus entirely on the specific purpose of your application. </span></p><p><span style="font-weight: 400;">Today&#8217;s automotive middleware is </span><a href="https://drivingembeddedexcellence.com/automotive-middleware/" target="_blank" rel="noopener"><span style="font-weight: 400;">based on</span></a><span style="font-weight: 400;"> two standardized platforms: </span></p><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">classic AUTOSAR (Automatic Open System Architecture) that includes braking, ABS, engine management, wipers, etc., and</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">adaptive AUTOSAR that’s used for the next generation of powerful automotive computers needed to support future vehicle innovations.</span></li></ul><p> </p>								</div>
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									<p><span style="font-weight: 400;">Creating unique and sustainable driving experiences and consistently engaging consumers throughout the vehicle-ownership life cycle presents a complex challenge for automotive companies. The fact that consumers’ interaction with brands has changed drastically in the past years exacerbates that challenge. </span></p><p><span style="font-weight: 400;">The following factors could push car companies to create innovative business models that will change the way OEMs and dealers interact with their customers:</span></p><ul><li>Personalization</li><li>Voice technology</li><li>Increased consumer demand for home-like driving experience, i.e. driving with all the comforts of a home</li><li>Security concerns</li><li>IoT and Vehicle-to-Everything (<a href="https://corporatefinanceinstitute.com/resources/knowledge/other/vehicle-to-everything-v2x/" target="_blank" rel="noopener">V2X</a>) –<span style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, 'Helvetica Neue', Arial, 'Noto Sans', sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 1rem; white-space: pre-wrap;"> a communication system that allows vehicles to communicate with other vehicles and the infrastructure around them.</span></li><li>Evolution of AI, machine and deep learning (ML/DL), computer vision, mixed reality, and other new technologies.</li></ul><p> </p><p>As customer demands for connected cars become more sophisticated, new challenges emerge for car makers and OEMs.</p><p id="tw-target-text" class="tw-data-text tw-text-large XcVN5d tw-ta" dir="ltr" data-placeholder="Translation"> </p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Customer expectations from an integrated digital cockpit</h2>				</div>
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									<p id="tw-target-text" class="tw-data-text tw-text-large XcVN5d tw-ta" dir="ltr" data-placeholder="Translation"><span class="Y2IQFc" lang="en">As an <a href="https://www.tietoevry.com/en/blog/2019/06/five-factors-to-keep-in-mind-in-digital-cockpit-design/" target="_blank" rel="noopener">example</a>, drivers expect the car to be ready to go as soon as they get inside or turn the key. This is very different from other areas that use software platforms.</span></p><p class="tw-data-text tw-text-large XcVN5d tw-ta" dir="ltr" data-placeholder="Translation"><span class="Y2IQFc" lang="en">Imagine walking to your car in a parking lot with many other cars. As you get closer, your car detects you approaching and starts booting the system, while keeping the display dark. When you&#8217;re seated and ready to start the car, the display lights up, presenting you with an immediately up-and-running system.</span></p><p>Moving forward, brand identity alone will not suffice to maintain the level of customer loyalty that automakers currently have. As more connected features become available, consumers will pay more attention to the features than the brand logo. They now want to integrate features into the car that enhance the driving experience within their connected driving cycle. IoT capabilities such as lane departure detection and over-the-air (OTA) software updates will influence shopper decisions.</p><p>To maintain customer loyalty, automotive brands must also successfully integrate connected customer lifestyles through digital services. This will allow consumers to interact with their cars in the same way they use their own familiar connected devices such as smartphones. Realizing that sales will be influenced by services and features rather than brand reputation, automotive companies will need to provide the same hassle-free and intuitive in-vehicle experience as using a smartphone. According to <a href="https://www.ericsson.com/en/blog/2021/9/the-5-top-connected-car-challenges-faced-by-automotive-oems" target="_blank" rel="noopener">Ericsson</a>, this is especially relevant since services are expected to account for 54% of the global revenue from connected cars by 2025.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">How connected car developers should respond to ever growing customer expectations</h2>				</div>
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									<p>OEMs and Tier 1 providers are well positioned to monetize their direct access to customers and data, as very few companies have such regular and extensive interactions with their end consumers.</p><p>Despite the potential, many automotive companies have only scratched the surface of data monetization, and their efforts often fail because they create inconvenience for customers and run into performance issues, resulting in low retention.</p><p>For example, many of them have complex registration and login processes on different devices or complex interfaces, which puts OEMs at a disadvantage compared to companies that offer the relative simplicity of one-click smartphone solutions.</p><p>The approach that emerging electric vehicle (EV) makers are taking to tackle this problem is different from that of traditional companies. They use customer feedback and continually improve their products based on information.</p><p>EV OEMs also have very short reaction times and are ready to release beta versions, which they later improve with OTA updates. For example, one OEM hired rinf.tech to develop and release a feature to correct vehicle warnings within six weeks in response to their customer request.</p><p>In parallel, consumer technology market players are also leveraging their in-house expertise to develop operating systems (OS) that provide access to a complete ecosystem of internal and external digital cockpit applications such as cards. Again, their approach is more similar to that of smartphones than cars.</p><p>Some OEMs and suppliers are gradually waking up to this new world and developing better infotainment solutions and applications. Others are taking a different path and integrating complete infotainment solutions developed by tech players, with some already announcing these projects. However, OEMs and suppliers still have a long way to go to fully focus on the customer.</p><p>To drive connected car data monetisation and improve CX, OEMs and Tier 1 providers should focus on the following 9 clusters, as per <a href="https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/unlocking-the-full-life-cycle-value-from-connected-car-data" target="_blank" rel="noopener">McKinsey</a>:</p><ol><li><b>Product strategy</b></li><li><b>R&amp;D optimization</b></li><li><b>Sales efficiency</b></li><li><b>Hardware/software on demand</b></li><li><b>Seamless in-car experience</b></li><li><b>Mobility insurance</b></li><li><b>Vehicle health monitoring</b></li><li><b>Infrastructure planning/optimization</b></li><li><b>Cyber security and data safety</b><span class="Y2IQFc" lang="en"><b> </b><br /></span></li></ol>								</div>
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									<h5 style="text-align: center;">Use cases fall into nine clusters that deliver value across B2B and B2C applications</h5>								</div>
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															<img loading="lazy" decoding="async" width="1020" height="400" src="https://www.rinf.tech/wp-content/uploads/2021/10/Use-cases-fall-into-nine-clusters-that-deliver-value-across-B2B-and-B2C-applications.png" class="attachment-full size-full wp-image-15591" alt="9 use cases to drive customer loyalty in connected car" srcset="https://www.rinf.tech/wp-content/uploads/2021/10/Use-cases-fall-into-nine-clusters-that-deliver-value-across-B2B-and-B2C-applications.png 1020w, https://www.rinf.tech/wp-content/uploads/2021/10/Use-cases-fall-into-nine-clusters-that-deliver-value-across-B2B-and-B2C-applications-300x118.png 300w, https://www.rinf.tech/wp-content/uploads/2021/10/Use-cases-fall-into-nine-clusters-that-deliver-value-across-B2B-and-B2C-applications-768x301.png 768w" sizes="(max-width: 1020px) 100vw, 1020px" />															</div>
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									<p id="tw-target-text" class="tw-data-text tw-text-large XcVN5d tw-ta" dir="ltr" data-placeholder="Translation"><span class="Y2IQFc" lang="en">These nine clusters could <a href="https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/unlocking-the-full-life-cycle-value-from-connected-car-data" target="_blank" rel="noopener">generate</a> <strong>$250 billion to $ 00 billion</strong> in annual added value for players across the connected car ecosystem in 2030.</span></p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Building digital cockpit with stickiness in mind</h2>				</div>
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									<p>It’s important to consider software product stickiness principles when developing digital cockpit and other automotive technology solutions.</p><p>Product stickiness is a feedback loop that measures user value and, more broadly, business value. Not only are sticky products a pleasure to use from time to time, they become part of our daily life, and that could be the secret to customer retention for automotive companies.</p><p>Stickiness is a common goal that connected car programs should strive to achieve. The degree of user improvement in a product depends on the ease of use and the uniqueness of the feature set. The stickiness aspect is important for connected car products in general and digital cockpit in particular because the competition goes beyond the automotive industry.</p><p><span style="font-weight: 400;">In a connected car world, a competitor is simply a third-party mobile application that can reduce the need for customers to use the embedded features provided by automotive OEMs.</span></p><p>To enable digital cockpit stickiness, it’s highly recommended to build solutions around the 5E concept:</p><ul><li><b>Effectiveness</b></li><li><b>Efficiency</b></li><li><b>Entertainment</b></li><li><b>Error tolerance, and</b></li><li><b>Ease of use</b></li></ul>								</div>
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									<h5 style="text-align: center;"><strong>Product stickiness aspects, according to <a href="https://www2.deloitte.com/content/dam/Deloitte/in/Documents/consumer-business/in-consumer-business-reimagining-success-in-connected-vehicles-with-a-differentiated-cx-approach-noexp.pdf" target="_blank" rel="noopener">Deloitte</a></strong></h5>								</div>
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									<p>Differentiated customer experiences can be influenced by design, quality, and time of gaining that experience.</p><p>Now let&#8217;s delve into details of how personalization, AI and voice technology, IoT, and security help build new customer experiences and gain a competitive edge.</p>								</div>
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									<h3>Personalization</h3><p>The car infotainment system has evolved from radio, cassettes and CDs to car navigation systems, video players, USB and Bluetooth connectivity, car computers, in-car internet and WiFi.</p><p>In addition to this, the widespread availability of entertainment content and the need for information related to driving are factors fueling the demand for multifunctional infotainment systems.</p><p>Consumers are increasingly demanding more advanced and personalized infotainment features.</p><p>In addition to basic infotainment and personalization features, drivers are showing a strong interest in the following features, according to<a href="https://www2.deloitte.com/content/dam/Deloitte/in/Documents/consumer-business/in-consumer-business-reimagining-success-in-connected-vehicles-with-a-differentiated-cx-approach-noexp.pdf"><span style="font-weight: 400;">Deloitte&#8217;s 2019 Automotive Consumer Survey</span></a><span style="font-weight: 400;">:</span></p><ul><li><b>Smart parking solutions (91%),</b></li><li><b>Access to real-time traffic and navigation updates streamed to their IVI (86%),</b></li><li><b>Predictive maintenance and personalised care based on their driving habits (86%)</b></li><li><b>Over-the-air software updates for in-car IVI systems (82%)</b></li></ul><p> </p><p>Tier 1 providers need to consider designing and integrating infotainment systems and applications, including interfaces to home devices and links to offices. In addition, OEMs can sell advertisements during autonomous shared travel, just as public transportation does today.</p><p>The in-car infotainment system finds application in infotainment, navigation, communication and network services, remote services and telematic services with over-the-air (OTA) updates. In developed markets, people also use infotainment systems to access social media and email, check city parking spaces, and stream HD audio and video.</p><p>Advanced infotainment features combine both user behavior and next-level data-driven infotainment systems. They can add power to the on-board IVI system by manually personalizing the media playlist or automating entertainment selections based on user behavior data.</p><p>Driver behavior data is derived from analytics using interactive voice recognition based on the mood of the vehicle owner.</p><p>The architecture should provide intelligent profiling with both interactive voice recognition systems and pattern recognition algorithms without compromising client privacy.</p><p><b>Important considerations for building advanced IVI systems:</b></p><ul><li>Selective abstraction – keep the right amount of content to show to the driver.</li><li>Multi-profiling: know your customer and adapt accordingly.</li><li>Scalability: adapt and integrate new applications and different architectural use cases.</li><li>Proactive Learning: Implement machine learning to allow features’ self-learning without waiting for manual configurations.</li></ul>								</div>
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									<h3>Voice assistance</h3>
<span style="font-weight: 400;">Over the past six years, we have seen a significant increase in the use of voice assistants in hotels, hospitals, at home, in driveways. Cars are no exception.</span>

<span>Regular use will also improve the platform&#8217;s natural language understanding capabilities, thereby adding to its skills (use cases in which voice search can respond) to perform more actions.</span>

<b>Important considerations for building in-vehicle voice assistance:</b>
<ul>
 	<li>Voice search is not 100% accurate. There is a possibility of mistakes and misinterpretation of words. However, the introduction and continuous improvement of voice technology is critical to overall success of automotive solution development.</span></li>
 	<li>How well voice recognition works in cars also depends on the terrain. Mobile voice recognition technologies need improvement to ensure smooth operations.</li>
 	<li>Processing time needs to be improved so that the result is in direct synchronization with the expected result in a particular case.</li>
 	<li>Closing the loop of misinterpretations without affecting the user is necessary as this can lead to erroneous conclusions that can affect the driving experience.</li>
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									<h3>Internet of Things (IoT)</h3><p><span style="font-weight: 400;">The growing smart home market and the need to connect drivers to their external environment force car manufacturers to rethink their development strategies and partnerships. Connecting to broader intelligent infrastructure will require integrating a range of partnerships and platforms into the vehicle.</span></p><p><span style="font-weight: 400;">Interconnected devices such as smartphones and smart cars have changed our way of life and made it more convenient. Consumers are always looking for custom solutions and smooth transitions out of the car.</span></p><p><span style="font-weight: 400;">Aspects related to interoperability, user interface and implementation are important areas for proper solution design.</span></p><p><b>Important considerations for building automotive IoT solutions:</b></p><ul><li><span style="font-weight: 400;"> Compatibility of home automation and car automation solutions.</span></li><li><span style="font-weight: 400;"> Required / possible degree of automation when connected to home.</span></li><li><span style="font-weight: 400;"> Ease of use for each use case, both in terms of solution customization and the ability to demonstrate and realize its benefits, will determine the levels of user acceptance.</span></li></ul>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Embedding security and compliance into digital cockpit 
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									<p><span style="font-weight: 400;">According to </span><a href="https://www2.deloitte.com/content/dam/Deloitte/in/Documents/consumer-business/in-consumer-business-reimagining-success-in-connected-vehicles-with-a-differentiated-cx-approach-noexp.pdf"><span style="font-weight: 400;">Deloitte</span></a><span style="font-weight: 400;">, <strong>62%</strong> of German and <strong>59%</strong> of American car buyers are extremely concerned about data security.</span></p>
<p><span style="font-weight: 400;">Fifty-nine per cent are aware that data can be collected from their vehicles.</span></p>
<p><span style="font-weight: 400;">While <strong>83%</strong> of consumers are aware of the European General Data Protection Regulation (GDPR), <strong>40%</strong> of them believe it impacts data protection.</span></p>
<p><span style="color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ); font-size: var( --e-global-typography-text-font-size );">While consumers are concerned about their digital cockpit security and data safety, only&nbsp;</span><strong style="color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ); font-size: var( --e-global-typography-text-font-size );">10%</strong><span style="color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ); font-size: var( --e-global-typography-text-font-size );"> of car makers have an established cybersecurity team, as per a recent&nbsp;</span><a style="font-family: var( --e-global-typography-text-font-family ); font-size: var( --e-global-typography-text-font-size );" href="https://www.synopsys.com/software-integrity/resources/analyst-reports/automotive-cyber-security.html?cmp=pr-sig" target="_blank" rel="noopener">Ponemon Institute study</a><span style="color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ); font-size: var( --e-global-typography-text-font-size );">. &nbsp;As vehicle functionality becomes more software-based, manufacturers will need to prioritize more reliable testing and safety measures investments.</span></p>
<p>Original equipment manufacturers continue to focus on consumer privacy and safety as software vulnerabilities can undermine the security of connected automotive systems and functions, compromising user privacy and physical security. A single accident can destroy a brand&#8217;s reputation, making it very difficult for consumers to return.</p>
<p>With this in mind, we at rinf.tech provide secure connection management and isolate the Internet of Things from other cellular traffic by encrypting it. In addition, we use abnormal activity alerts and robust identity and access management to maintain the IoT network security.</p>
<p>The bulk of the responsibility to&nbsp;deliver highly secure and compliant digital cockpit solutions rests with OEMs. They should consider the ecosystem as a whole and develop strategies to protect the components under their direct control and educate and inform end users about the protection of the components they control. While not only their responsibility, OEMs stand to benefit if they are aware of the security and privacy aspects that customers need to be aware of.</p>
<p><span style="font-weight: 400;">It will benefit customers and bring OEMs into the spotlight if they make efforts to raise awareness of the following factors:</span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What is the most vulnerable component of a digital cockpit?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family );">What are the immediate shutdown mechanisms?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Does the connectivity feature include any device that the customer needs to protect and refrain from sharing with others? Why is the device important in terms of a connected vehicle?</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What are the best practices for vehicle passwords and security tokens?</span></li>
</ol>
<p><span style="font-weight: 400;">&nbsp;</span></p>
<p><span style="font-weight: 400;">From an enterprise perspective, OEMs need to s</span><span style="font-weight: 400;">ecure their digital cockpit solutions and include aspects such as authentication and authorization between the two components, session establishment and maintenance. Some other security aspects that Tier 1 manufacturers need to build into their solutions include the following:</span></p>
<ul>
<li><span style="font-weight: 400;"> Security of IoT devices.</span></li>
<li><span style="font-weight: 400;"> Vehicle Safety Information and Event Management (SIEM).</span></li>
<li><span style="font-weight: 400;"> Adequate data collection for law enforcement.</span></li>
<li><span style="font-weight: 400;"> Restrictions on data collection that protect the privacy of users.</span></li>
<li><span style="font-weight: 400;"> Authentication and authorization of interacting devices.</span></li>
<li><span style="font-weight: 400;"> Data transmission with protection against integrity.</span></li>
<li><span style="font-weight: 400;"> Transmission of data protected from replay.</span></li>
<li><span style="font-weight: 400;"> Confidential data transfer (if required for the application).</span></li>
</ul>
<p><span data-preserver-spaces="true"><br></span></p><p><span data-preserver-spaces="true">Regulations will play a vital role in the implementation of connected, highly automated vehicles. Governments and regulators are now working with automakers to improve transportation by addressing key issues such as traffic congestion, accidents and costs. As part of this effort, governments would like to introduce features such as automatic braking and lane-departure warnings that have been shown to reduce accidents.</span></p>
<p><span data-preserver-spaces="true">While these capabilities are primarily based on in-vehicle services, connectivity can help extend the driver&#8217;s line of sight beyond the immediate range of onboard sensors. As a result of these new technologies, the <strong>Advanced Driver Assistance Systems (ADAS)</strong> segment is expected to grow to$ 36 billion by 2025, with a CAGR of 30.8%, according to&nbsp;</span><a class="editor-rtfLink" href="https://www.statista.com/statistics/591579/adas-and-ad-systems-in-light-vehicles-global-market-size/" target="_blank" rel="noopener"><span data-preserver-spaces="true">Statista</span></a><span data-preserver-spaces="true">.</span></p>
<p><span data-preserver-spaces="true">The need for limitless coverage poses another challenge for digital cockpit. Local data and sovereignty rules complicate connection management by affecting where the collected data can be analyzed and stored when a vehicle crosses borders to different countries or regions. Inconsistent guidelines will have a negative impact on adoption and usage. However, if the EU regulatory framework proves to be effective, <strong>43%</strong> of vehicles could be partially or fully autonomous by 2035.</span></p>								</div>
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									<p><span style="font-weight: 400;">Today’s connected car capabilities provide a differentiated value proposition. It is expected to become a commodity in the future. The key to maximizing its potential is to continuously innovate and improve customer service over time. Key considerations for any automotive player along the way include the following:</span></p><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The rollout of 5G over the next few years will be one of the biggest technological breakthroughs driving the growth of the in-vehicle infotainment market. With the introduction of this technology, consumers will be able to access high-speed data, entertainment-on-demand, high-definition cards and a range of other services.</span></li></ul><ul><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Automotive manufacturers should strive to keep products consistent as it is very easy for the consumer to jump to a competitor instead of using the features provided by the manufacturers.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">A connected car strategy must be able to meet critical customer needs and support innovation that will shape the future. Every use case and every feature needs to be carefully researched before delivering them to customers. There may be scenarios where a simple function can provide maximum convenience and encourage adoption,while a negative user experience can actually harm the solution.</span></li><li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">A security challenge for Tier 1 providers should not be seen as a challenge but as an opportunity to improve their business and gain an edge in the marketplace. This is an opportunity for OEMs to increase customer loyalty. In fact, this emphasis on integrating security with connectivity can lead to robust security features.</span></li></ul>								</div>
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		<p>The post <a href="https://www.rinf.tech/how-a-digital-cockpit-changes-customer-experience-and-automotive-landscape/">How Digital Cockpit Changes Customer Experience and Automotive Landscape</a> appeared first on <a href="https://www.rinf.tech">rinf.tech</a>.</p>
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