USD 2.83 billion
Augmented Reality in Retail Market Size, Share, Growth Analysis, By Component (Hardware, Software), by Technology (Marker-based Augmented Reality, Marker-less Augmented Reality), by Device Type (Head-Mounted Display (HMD), Smart AR Mirror), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2243 |
Region:
Global |
Published Date: April, 2024
Pages:
199
|Tables:
91
|Figures:
70
Augmented Reality in Retail Market Insights
Global Augmented Reality in Retail Market size was valued at USD 2.83 billion in 2022 and is poised to grow from USD 4 billion in 2023 to USD 45.19 billion by 2031, growing at a CAGR of 41.4% in the forecast period (2024-2031).
The term "augmented reality" refers to the blending of digital and physical items. The process of superimposing digital elements onto our physical world—typically via a phone, tablet, or pair of AR glasses—is known as augmented reality. The retail industry uses augmented reality (AR) to add digital technologies to the world. Through a device like a smartphone or glasses, augmented reality (AR) in retail provides users with visual elements, sound, and other sensory information. The device overlays the information, which modifies the user's perspective of the physical world with digital data. The COVID-19 epidemic has led to a notable surge in the use of augmented reality in the retail sector in recent years. This is explained by the increasing demand for augmented reality among businesses to better serve their clients' demands and increase their income potential by enabling them to scan a specific piece of furniture with their phones and then superimpose it onto an image of your home.
The global augmented reality retail market is growing at a faster rate thanks to rising investments in the field and rising smartphone adoption. Furthermore, the market's expansion is favorably impacted by the augmented and virtual reality-based solutions' economic advantages. The market's growth is being hampered, nevertheless, by security and privacy issues related to augmented reality as well as the expensive setup and installation costs of these solutions. Conversely, during the projected period, the requirement for greater user interaction in the retail sector is anticipated to present lucrative prospects for market expansion. As of December 2021, KPMG estimates that new digital solutions before 2022 will account for 80% of the enterprise's revenue growth. This is what is driving the expansion of augmented reality in the retail business.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Head Mounted display
Fastest Growth
Smart AR Mirror
Growth Rate
41.4% CAGR
Global Audmented Reality in Retail Market ($ Bn)
Country Share for North America (%)
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Augmented Reality in Retail Market Segmental Analysis
Global Augmented Reality Market is segmented by component, by Technology, by Device Type, by Application, by Retail Type and by Region. Based on component, the market is segmented into Hardware (Sensors, Semiconductor Components, Displays & Projectors, Cameras, Others), Software (Software Development Kits (SDKs) and apps, Services). Based on Technology, the market is segmented into Marker-based Augmented Reality (Passive Marker, Active Marker), Marker-less Augmented Reality (Model Based, Image Processing Based). Based on Device type, the market is segmented into Head-Mounted Display (HMD), Smart AR Mirror, and Handheld Device. Based on application, the market is segmented into Advertising and Marketing, Try-on Solutions, Planning and Designing, Information Systems. Based on Retail Type, the market is segmented into Jewelry, Beauty and Cosmetics, Apparel Fitting, Furniture and Lighting, Grocery Shopping, Footwear, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Device
As per categorization by device type, the market is classified into head mounted display, smart AR mirror and hardware device. Among these, head mounted display earned the largest share and continues to dominate the market. The head-mounted display is contributing significantly to the CAGR over the forecast period and is expanding exponentially in the Augmented Reality in Retail segment. It encompasses a broad range of Augmented Reality in Retail tools, mainly used for immersive gaming and entertainment but also gaining popularity in retail for augmented reality head-mounted display in-store navigation, virtual tours, and product visualization in real-world situations. This category, which offers the infrastructure and technologies required for head-mounted displays utilizing augmented reality in retail, is essential to the augmented reality sector.
Over the forecast period, the Smart AR mirror segment is expected to rise steadily at a substantial CAGR. Some of the drivers propelling the expansion of this market are the quick transition from manual to virtual try-on experiences in clothes and cosmetics shopping, which allow customers to view themselves in various ensembles and makeup styles. Companies are increasingly investing in intelligent augmented reality (AR) technologies as a means of realising the strategic value of data. Furthermore, augmented reality (AR) is employed in retail for a variety of experiences, including virtual try-ons, product visualisation, interactive displays, and information access via smartphones and tablets, all of which are predicted to accelerate the market's growth.
Analysis by Application
Innovation and use of augmented reality (AR) try-on solutions are surging in the worldwide retail sector. Retailers are utilizing augmented reality (AR) technology to give customers personalized and immersive shopping experiences, enabling them to virtually try on things prior to making a purchase. In light of continuous worries about global health, this technology not only improves customer involvement but also lessens the need for in-person connection, meeting the growing need for contactless shopping experiences.
Several factors contribute to the augmented reality in retail market's rapid expansion in terms of planning and solutions, advertising, and marketing, as well as information systems. First off, information technology developments have made it easier for businesses to organize, analyze, and make decisions based on data in an effective manner. Second, corporations have been able to expand their market reach and promote their products more effectively through the use of effective advertising and marketing tactics. Finally, strong planning and solution frameworks assist businesses in optimizing their operations for long-term growth and adjusting to changing market conditions.
Global Audmented Reality in Retail Market By (%)
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Augmented Reality in Retail Market Regional Insights
In terms of market size, North America is anticipated to lead the AR in retail market in 2018, and throughout the forecast period, APAC is anticipated to have the strongest growth in the AR in retail industry. Leading the way in private equity investments is also North America. North America has accounted for more than 95% of all investments made in the AR sector. There are a few significant retail industries in the US, the greatest of which being the garment sector, which is 50% bigger than the retail sector in China. One-third of the global market is held by the 12 largest US retailers, which further propels AR in the North American retail sector. The expansion of AR in the retail industry in APAC would be aided by expanding consumer and business markets as well as increased investment in nations like China and Japan. Retailers in Asia-Pacific are increasingly focusing on e-commerce, with China emerging as the global leader in this sector.
The availability of smartphones and developments in AR technology are driving a spike in the usage of augmented reality (AR) in retail in Europe. Trends indicate that virtual try-on experiences for apparel and accessories are becoming more and more popular as retailers integrate augmented reality (AR) solutions to improve the shopping experience. AR is becoming more popular in Latin America as businesses look for creative methods to stand out from the competition and engage customers. High hopes are held for interactive shopping experiences and product visualization enabled by augmented reality. Similar to this, shops in the Middle East are embracing augmented reality (AR) to build immersive shopping environments, especially in the luxury and fashion sectors. Personalized AR-powered marketing and virtual showrooms are the main features of these settings.
Global Corneal Pachymetry Market By Geography
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- Fastest
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Augmented Reality in Retail Market Dynamics
Drivers
Enhancing of Customer Engagement
- AR technology gives shops the chance to give customers engaging and dynamic purchasing experiences. Retailers may improve customer engagement and build closer relationships with their brands by enabling shoppers to see products in real-world situations through augmented reality (AR) applications. Increased revenue and client loyalty are frequently the results of this higher engagement.
Product Visualization Improvement
- With augmented reality (AR), consumers may virtually try on furniture, cosmetics, and apparel before making a purchase. Through AR simulations, merchants may provide realistic and accurate product representations, thereby addressing typical concerns associated with online shopping, such as fit or sizing issues. This enhanced product visualisation not only makes for a more enjoyable shopping experience overall, but it also lowers the possibility of returns, which benefits merchants by increasing cost-effectiveness and operational efficiency.
Restraints
Implementation Expenses
- The high implementation costs of AR technology are a major barrier to retailers' adoption of this technology. It can cost a lot of money to create AR apps, buy gear like AR-enabled devices, and integrate AR technology into current systems. Adoption may be hampered by this expense barrier, especially for smaller stores with tighter resources.
Massive Infrastructure is required
- The infrastructure needs and technical intricacy of AR technology are another limitation. Robust hardware, smart software, and internet connectivity are required for the implementation of AR systems. Retailers may also face difficulties in guaranteeing a smooth integration with current retail systems and resolving technological malfunctions or compatibility problems. These technological difficulties might prevent AR from being widely used in the retail industry.
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Augmented Reality in Retail Market Competitive Landscape
It is anticipated that there would be a lot of industry players actively competing in the global augmented reality retail market. Big businesses are working hard to launch AR try-ons through Snapchat lenses, metaverse purchasing, ARKit, mesh for teams, and virtual outfit tools to boost the industry as a whole. To compete with traditional Augmented Reality in Retail sales, a number of manufacturers in the Augmented Reality in Retail industry are also concentrating on improving and growing their core business through the introduction of new, effective goods. To stay competitive in the industry, major businesses are implementing a range of commercial tactics, such as technological alliances and mergers and acquisitions (M&A).
Top Player’s Company Profiles
- Augment
- Ikea
- Apple
- Microsoft
- Blippar
- ViewAR
- Holition
- Sephora
- Amazon
- Imaginate Technologies
- Kudan
- Holition
- PTC
- Zugara
- Marxent Labs
- Gravity Jack
- Inde
- Sony Group Corporation
- Niantic Labs
Recent Developments
- In November 2022, Adidas debuted the "Adidas AR Experience" app, which provides users with an engaging augmented reality purchasing encounter. Using their iPhones, users can digitally try on shoes with the app, which gives them a realistic idea of how the shoes would seem on their feet. Adidas is committed to using augmented reality (AR) technology to improve the in-store experience and increase customer engagement, as evidenced by this effort.
- In September 2023, IKEA unveiled "IKEA Place," a shopping app that uses augmented reality (AR) to let customers see furniture and home decor items in their own homes. IKEA uses augmented reality technology to let buyers visually "place" furniture in order to evaluate its size, style, and compatibility, improving the furniture shopping experience.
- In December 2023, With the introduction of "Amazon StyleSnap," an augmented reality tool, customers can visually try on clothing before making a purchase. By letting consumers see how apparel will fit them before making a purchase, this innovation improves the online shopping experience and lowers the possibility of returns.
Augmented Reality in Retail Key Market Trends
- Growing AR Market Investors: Nearly every aspect of the retail industry has been impacted by augmented reality, which offers a sophisticated digital experience that improves customer-brand relationships and can be utilized anywhere—on a home computer, on a mobile device, or at store kiosks. Additionally, as end consumers adopt AR technology more frequently, the market for AR is expected to develop. This is due to AR technology allows customers to simulate in-store purchasing experiences on smartphones while lounging about the house, complete with "Try on" and "Try out" choices.
- AR in Smartphones: Smartphone penetration is on the rise, and technological developments have made it possible for users to watch virtual visuals that are fully immersed in authentic environments. For example, in May 2021, 32% of buyers are estimated by Wikitude, a mobile augmented reality technology company, to be frequent users of AR, and 73% of smartphone AR users are highly satisfied with their experiences. Retail figures for augmented reality demonstrate how the market has embraced technology and is expanding rapidly as a result.
Augmented Reality in Retail Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, With the help of augmented reality (AR) technology, retailers can create captivating shopping experiences that increase consumer engagement and brand loyalty by letting customers see products in actual settings. Retailers benefit from improved product visualization with augmented reality (AR) as it allows for virtual try-ons and realistic representations, which improves the shopping experience and lowers returns, increasing operational efficiency and cost-effectiveness. Retailers find it difficult to adopt AR technology due to its high implementation costs, which include fees for developing apps, purchasing hardware, and integrating systems. This is especially true for smaller establishments with constrained resources. Furthermore, there are obstacles that could prevent AR systems from being widely used in the retail sector, such as the significant infrastructure needs and technological complexity of the systems, which include reliable hardware and smooth interaction with current retail systems.
The global augmented reality retail market is highly competitive, with many companies vying for market share with cutting-edge tools like AR try-ons, metaverse purchasing, and virtual outfit tools. Meanwhile, manufacturers are concentrating on enhancing their core business offerings, and major players are pursuing a variety of business strategies, such as technological alliances and mergers and acquisitions, to stay ahead of the competition. Investors are drawn to the expanding augmented reality market due to its broad influence on the retail sector, which is further enhanced by the increasing number of smartphones in use. According to recent research from Wikitude, a sizable percentage of purchasers are interacting with augmented reality (AR), demonstrating the contentment of smartphone AR users and the swift adoption and growth of AR technology in the retail industry.
| Report Metric | Details |
|---|---|
| Market size value in Retail | USD 2.83 billion |
| Market size value in 2031 | USD 45.19 billion |
| Growth Rate | 41.4% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Augmented Reality in Retail Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Augmented Reality in Retail Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Augmented Reality in Retail Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Augmented Reality in Retail Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Augmented Reality in Retail Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Augmented Reality in Retail Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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