This case study is a transcript from our latest podcast titled 'Business Success in the Virtual World', which you can access on Apple, Spotify and other podcast services or via ISM's website: ismguide.com/podcasts

The Volvo Group is a Swedish multinational manufacturing corporation headquartered in Gothenburg, Sweden. The Volvo Group traces its roots back to 1927 when it was founded by Assar Gabrielsson and Gustaf Larson. Originally established as a subsidiary of the Swedish ball bearing manufacturer SKF, Volvo's mission was to produce vehicles suitable for Sweden's harsh climate and rugged terrain.

While its core activity is the production, distribution and sale of trucks, buses and construction equipment, Volvo also supplies marine and industrial drive systems and financial services.

As of January 2025, Volvo Group had over 104,000 employees. It has production facilities in 18 countries and sells its products in more than 190 markets. In 2024, Volvo Group's net sales were approximately $552 billion.

Over the decades, Volvo expanded its product range from passenger cars – it sold this division to Ford in 1999 -- to include trucks, buses, and construction equipment, becoming a renowned global brand. Emphasizing safety, quality, and sustainability, Volvo maintained a strong market position. Financially, the group grew through strategic acquisitions, partnerships, and innovations, adapting to changing market demands while consistently prioritizing strong financial management and expansion into international markets.

How Is Volvo Group Using VR, AR, and XR In Their Business?

Volvo Group has been at the forefront of automotive and construction innovation for decades, and its commitment to digital transformation is no exception. By embracing technologies such as virtual reality (VR), augmented reality (AR), extended reality (XR), artificial intelligence (AI), Volvo Group aims to enhance various facets of its business operations. The integration of these cutting-edge technologies is part of Volvo's broader strategy to improve efficiency, enhance customer experience, and drive sustainable practices across its global operations.

VR Applications in Design and Training

Volvo Group is strategically integrating VR into their design and training processes to enhance efficiency and innovation. In the realm of vehicle design, VR allows engineers and designers to immerse themselves in the virtual prototypes of trucks, buses, and construction equipment long before physical models are built. This immersive experience facilitates a better understanding of design and ergonomics, enabling teams to identify and rectify potential issues early in the development phase.

By exploring intricate details, VR technology accelerates the design iteration process, leading to a substantial reduction in time and costs.

For training, VR offers Volvo a powerful tool to improve workforce skills and safety. Employees can experience realistic, simulated environments where they practice operating equipment, experiencing maintenance procedures, or understanding complex systems without the associated risks of real-world training. This not only enhances the learning experience but also ensures that workers are better prepared for on-the-job challenges. The use of VR in training allows for a safe, repeatable, and controlled environment, ultimately leading to improved skill acquisition and retention across the workforce.

AR for Improved Maintenance and Support

Volvo Group is actively integrating AR into its maintenance and support processes to enhance efficiency and accuracy. By overlaying digital information onto physical equipment, AR allows technicians to visualize machinery internals and identify issues without extensive disassembly. This capability significantly reduces downtime and accelerates troubleshooting, as detailed schematics and real-time data can be accessed with a simple glance through AR-enabled devices like tablets or smart glasses.

AR serves as an interactive guide, offering step-by-step instructions and holographic mapping of engine components, enabling even less experienced technicians to perform complex repairs with ease. Additionally, Volvo employs AR for remote support, linking on-site technicians with experienced engineers who can provide guidance from afar, using augmented visuals to ensure precise communication. This technological advancement not only cuts training time but also reduces error rates and the cost associated with maintenance processes.

By embracing AR, Volvo Group ensures that its fleet remains at peak performance, supporting seamless operations and customer satisfaction in an increasingly technology-driven automotive industry.

Exploring XR for Immersive Experiences

Volvo Group is harnessing the potential of XR to deliver immersive experiences that revolutionize both manufacturing processes and customer interactions. By integrating VR, AR, and MR technologies, Volvo is redefining the way they design, test, and make products. In manufacturing, XR is employed to create simulated environments where employees can receive training on complex machinery without the risks associated with real-world scenarios.

This approach not only enhances safety but also improves the efficiency of the learning process, as trainees can interact with digital twins of equipment in a controlled setting.

In addition to internal applications, Volvo leverages XR to enhance customer experiences. Virtual showrooms allow customers to explore and customize vehicles in a virtual environment, providing a highly interactive and personalized experience. This innovative approach also facilitates better customer understanding of the vehicles' features and capabilities. The implementation of XR across various aspects of Volvo's operations underscores their commitment to technological innovation, paving the way for smarter, more engaging, and user-centric solutions in the automotive industry.

Volvo Group’s Use of AI

Not surprisingly, the Volvo Group is increasingly using AI technology to support and supplement its VR, AR and XR applications. They have embraced artificial intelligence to enhance efficiency across its operations. AI is utilized to optimize supply chain management by predicting demand patterns and improving inventory control. With machine learning algorithms processing vast amounts of data, Volvo can foresee potential disruptions and adapt logistics accordingly, ensuring a seamless flow from manufacturing to delivery. In their production facilities, AI-driven automation systems are employed to streamline assembly lines, reducing human error and improving precision in manufacturing processes.

Predictive maintenance powered by AI also plays a crucial role, allowing Volvo to anticipate potential mechanical issues in its vehicles before they arise, which minimizes downtime and enhances the lifespan of their trucks and machinery. Furthermore, AI is integrated into Volvo’s customer service operations, where chatbots and virtual assistants provide efficient 24/7 support, handling inquiries and troubleshooting with greater accuracy. By leveraging AI, Volvo Group not only boosts operational efficiency but also enhances decision-making, strengthens their competitive edge, and ensures a superior experience for their clients and partners.

Insights from the CES 2025 Keynote from Volvo Group’s President, and CEO

I close this podcast with insights from Martin Lundstedt, President, and CEO of the Volvo Group since 2015, who has played a pivotal role in steering the company toward innovative pathways and sustainable growth. He has not only guided Volvo in maintaining its competitive edge but has also helped position it at the forefront of the transition towards more sustainable and efficient transport solutions on a global scale.

The Role of Innovation in The Future of Transportation

In his CES 2025 keynote, which was delivered using VR, he emphasized the pivotal role of innovation in shaping the future of transportation. He highlighted how technological advancements will revolutionize the industry, making it more sustainable, efficient, and accessible. He pointed out that the integration of advanced technologies, such as artificial intelligence, electrification, and connectivity, is not just enhancing vehicle performance but also transforming the entire ecosystem of transportation.

Volvo's Commitment to Sustainability and Green Technology

Lundstedt also emphasized the company's unwavering commitment to sustainability and the advancement of green technology. Lundstedt highlighted Volvo's strategic vision, which is firmly rooted in reducing the environmental impact of its operations and products. As part of this vision, Volvo Group is actively pursuing innovations in electric mobility, renewable energy solutions, and circular economy principles. He spoke of three energy sources Volvo Group is pursuing: battery electric, fuel cell electric, and internal combustion running environmentally friendly fuels.

Key Technological Advancements in Volvo's Product Line

Central to Volvo’s innovations is their commitment to sustainability and efficiency, with a focus on zero-emission solutions and integrated connectivity across its vehicles. Volvo Group is committed to achieve 25% zero emissions by 2025, 50% by 2030, 75% by 2035, and 100% by 2040. While an ambitious plan, what impressed me was how Lundstedt has built a consensus across Volvo and its partners to achieve these goals. One of the most significant developments is the rollout of fully electric powertrains for heavy-duty trucks and construction equipment, which promise reduced environmental impact while maintaining the robust performance customers expect. For example, Volvo has partnered with Aurora who are currently driving fully autonomous Volvo heavy-duty trucks in Texas.

Vision For the Future: Volvo's Roadmap For 2030 And Beyond

At the core of Volvo’s strategic roadmap is a commitment to sustainable and innovative mobility solutions, as the company seeks to redefine transportation in an era increasingly concerned with environmental impact and efficiency. I would like to close by returning to Volvo Group’s wonderful mantra: work hard and be curious! This mantra is part of Volvo Group’s DNA. To learn more, I encourage you to view this Lundstedt keynote now available on YouTube. What an incredible journey Volvo Group has been pioneering since 1927!

My Spatial Computing business partner, Tim Bajarin, and I are keen to assist manufacturing companies like Volvo Group at each step of the way to ensure their successful entry into AI and Spatial Computing (VR/AR/XR). To read about additional manufacturing company AI and Spatial Computing case studies, I strongly encourage you to visit ISM’s award-winning AI and Spatial Resource Center, where in addition to gaining access to more than 350 AI and Spatial Computing case studies, more than 350 AI & Spatial Computing articles, and more than 150 AI & Spatial Computing videos, you can download ISM’s new ‘8 Steps to Do Business Successfully in Spatial Computing’ White Paper, download ISM’s New ‘VR Training Guide for the Enterprise,’ learn about and sign-up for ISM’s complimentary 2-hour Spatial Computing Executive Bootcamp, and more. 

Barton Goldenberg (bgoldenberg@ismguide.com) is president of ISM, Inc. For 40 years, ISM has helped global companies successfully apply leading-edge technologies to sales, marketing, and customer service. We offer 4 services: AI and Spatial Computing, CRM, and Digital Communities to help sales, marketing, customer service, and field service executives move their performance to the next level. His thought leadership including creator of the ‘Business Success in a Virtual World’ podcast, creator of the award-winning AI and Spatial Computing Resource Center, and author of three business books including The Definitive Guide to Social CRM. He is also in high demand as a keynote speaker (www.bartongoldenberg.com).