Nextech AR Solutions Corp. (CSE:NTAR, OTCQB:NEXCF, NEO:NTAR) said major auto parts distributor, Genuine Parts Company (NYSE:GPC), has signed up for its ARitize 3D technology, expanding the company’s offering into auto parts which provides a substantial revenue opportunity.
“This 3D modeling contract for the auto parts industry is a big win as we are always competing with other 3D solutions providers on businesses when it comes to a big brand,” Nextech CEO Evan Gappleberg said in a statement.
“This is just the start of what we believe is a long-term relationship. Being able to provide scalable 3D/AR solutions for this trillion dollar industry at what we believe is the lowest cost and highest quality, the most scalable solution sets the stage for tremendous upside in this category," he added.
Founded in 1928, Genuine Parts is a global service organization engaged in the distribution of automotive and industrial replacement parts, and serves hundreds of thousands of customers from a network of more than 10,000 locations across North America, Europe, and Australasia.
READ: Nextech AR launches metaverse builder app ARitize Maps
ARitize allows large enterprise, medium and small ecommerce businesses to convert 2D images into 3D models at scale, using Nextech’s AI-driven technology. Nextech has had success in the automotive industry, using its ARitize CAD technology to create models of the Ford Mustang Mach-E and Ford Escape SE Hybrid, the company noted.
ARitize 3D has been gaining market traction, it said, adding that it will continue to expand into new industries and product types after announcing last month an expansion of its offerings into adult, fashion, nap pods, flooring, dog wear, jewelry, scooters, sports equipment, and furniture, amongst others.
“Ecommerce businesses are recognizing that the future of ecommerce rests in product visualizations through 3D models, as it has been proven to increase conversions and reduce returns,” Nextech said.
An April 2021 market study published by Global Industry Analysts Inc., the premier market research company, showed that amid the COVID-19 crisis, the global market for auto parts and accessories was estimated at US$1.9 trillion in 2020, and is projected to reach US$2.3 trillion by 2026, it noted.
Nextech said it is uniquely positioned to meet the rapidly growing global demand in the auto parts industry with its ARitize 3D and ARitize CAD products.
“I believe that with this deal, 3D models in the automotive industry will move from a ‘nice to have’ to ‘must have’ and with Nextech having the 3D model factory that can scale, we are turning our platform into a ‘must have’ solution for ecommerce in the automotive industry,” CEO Gappleberg said.
Nextech is the engine accelerating the growth of the metaverse. Using breakthrough AI, Nextech is able to quickly, easily and affordably transform vast quantities and varieties of existing assets at scale, making products, people and places ready for interactive 3D use and giving creators at every level the essential tools they need to build out their digital AR vision in the metaverse.
Contact the author at jon.hopkins@proactiveinvestors.com