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

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.