BMW's New Virtual Factory Technology May Cut Production Planning Costs By 30%: Report

In a bid to transform its automotive manufacturing processes, BMW Group has industrialised its Virtual Factory technology, says a report by ET Auto. The step represents a strategic shift toward digital-first production planning that aims to cut costs and gain efficiency.

Traditional Testing Methods Replaced

The Munich-based automotive giant has implemented digital twin technology across more than 30 manufacturing facilities globally as of June 2025. This comprehensive digital infrastructure enables the company to conduct virtual simulations instead of costly real-world production trials.

The manufacturer's ambitious roadmap includes integrating over 40 new and refreshed vehicle models into its production ecosystem through virtual planning processes between now and 2027. This digital-first approach is expected to slash production planning expenses by as much as 30 per cent, the report added.

Automated Collision Detection

A breakthrough innovation in BMW's virtual manufacturing arsenal is the deployment of automated digital collision detection systems. These sophisticated tools use construction blueprints and three-dimensional (3D) scanning technology to simulate vehicle movement throughout production facilities.

The automated system performs comprehensive collision analysis that previously required nearly four weeks of manual inspection. The new digital process completes the same evaluation in just three days, representing a dramatic improvement in efficiency.

Traditional testing methods demanded physical vehicle prototypes be manually navigated through production lines, typically consuming entire weekends. Paint shop operations presented particular challenges, sometimes necessitating the draining and thorough cleaning of dip coating tanks, resulting in substantial operational costs and extended downtime periods.

iFACTORY Strategy

BMW's virtual planning capabilities operate as a core component of the company's broader iFACTORY strategic framework. The system integrates comprehensive data streams from facility infrastructure, manufacturing equipment, logistics networks, and vehicle component specifications.

The digital twin infrastructure operates within a three-dimensional industrial metaverse platform developed using NVIDIA Omniverse technology. This advanced setup facilitates real-time simulation capabilities for facility layouts, robotic systems, and logistics operations.

Advanced Human Simulation

Beyond vehicle production optimisation, BMW has achieved notable advancement in human workflow simulation technology designed to enhance manual assembly operations. The company has also developed automated systems for extracting environmental mapping data from 3D facility scans, supporting intelligent transport system implementations.