The augmented reality in retail market size is expected to increase from USD 919.0 Million in 2019 to USD 18.05 Billion in 2027, representing a CAGR of 44.8% for the global augmented reality in the retail industry. The market is growing significantly as smartphone penetration rises. Customers are benefiting greatly from augmented reality technology in retail by using their cell phones to scan a particular product and then visually superimpose the image onto a living room or hallway to assess its aesthetic appeal. This aids in reducing the time and effort that would normally be required to physically create such settings.
The expansion of the worldwide augmented reality in the retail business is boosted by an increase in investments in the AR market and a rise in smartphone adoption. Additionally, the cost-effective advantages of augmented and virtual reality-based solutions have a beneficial effect on the market’s expansion. However, the high setup and installation costs of AR solutions as well as security and privacy issues related to AR are impeding the market’s expansion.
Primary and secondary data are used in the study technique. The size of the market and the various dependent submarkets in the total augmented reality retail market has been estimated and validated using top-down and bottom-up methodologies. Secondary research has helped to identify the major industry participants. The secondary sources include directories, databases, white papers, certified publications, articles from reputable authors, company annual reports, news releases, and investor presentations. Organizations and associations like the Retail Industry Leaders Association (RILA), Augmented Reality for Enterprise Alliance, AugmentedReality.Org, and VR/AR Association are a few of these secondary sources.
Further key findings from the report suggest:
Impact evaluation of COVID-19
The COVID-19 pandemic outbreak has contributed to the considerable rise of augmented reality in the retail sector over the past few years. This might be linked to the increased demand for augmented reality among businesses to better serve their clients’ needs and increase income potential by enabling them to take their phones and scan a certain piece of furniture, which they can then superimpose into an image of your space. Additionally, 80% of the enterprise’s revenue growth will depend on new digital services before 2022, according to KPMG in December 2021, which fuels the expansion of augmented reality in the retail sector.
Investing more in the AR market
By enhancing the interaction between the consumer and the brand, augmented reality has almost completely saturated the retail industry. It can be utilized anywhere, whether on a PC at home, a mobile device, or in kiosks in stores. Additionally, the growth in investments in the AR market is due to a surge in end-user acceptance as it makes purchasing experiences on smartphones while seated at home as similar to real-life shopping experiences as possible with “Try on” and “Try out” choices.
More people using smartphones
The widespread use of smartphones and technological developments have made it possible for their users to view virtual images immersed in actual surroundings. For instance, Wikitude, a provider of mobile augmented reality technology, estimates that 32% of shoppers use AR regularly and that 73% of smartphone AR users are very satisfied with their experiences as of May 2021. These augmented reality retail figures demonstrate how the market has embraced the technology and is expanding rapidly as a result.
Device Type Outlook (Revenue, USD Billion; 2017-2027)
- Head Mounted Display
- Handheld Device
- Smart Augmented Reality Mirror
Technology Outlook (Revenue, USD Billion; 2017-2027)
- Marker-based Augmented Reality
- Marker-less Augmented Reality
Retail Product Type Outlook (Revenue, USD Billion; 2017-2027)
Regional Outlook (Revenue, USD Billion; 2017-2027)
- North America
- the Asia Pacific
- Latin America