Market Analysis and Insights:
The size of the global augmented reality retail market was estimated at USD 2.15 billion in 2022 and is projected to grow at a revenue compound annual growth rate (CAGR) of 43.9% to reach a value of USD 56.28 billion in 2032.
The retail augmented reality market is being driven by factors such as increased IoT expenditure, greater internet penetration, and the growing need to deliver a better consumer experience.
Ar In Retail Market Scope :
|Revenue forecast in 2032
|USD 56.28 billion
|CAGR of 43.9% during 2022-2032
|by Type ,By Application ,by Region.
|North America, Europe, Asia Pacific, South America Middle East and Africa
|Key Players Profiled
|Microsoft, Google LLC, Blippar Limited, Apple, Sony Corporation, Infinity Augmented Reality Limited, Magic Leap, Incorporated, Niantic, Zappar Limited, and Wikitude GmbH.
In the retail business, augmented reality (AR) is the use of technology to overlay digital information on the actual environment, generally through a smartphone or tablet.
Customers may use this to see a preview of a product before they buy it. This is particularly advantageous for products like clothing, accessories, and makeup. With AR, more product details like features, specifications, and reviews might be shown. This might help buyers make informed decisions while buying purchases.
Key Market Segmentation:
Insights on Type:
The Beauty Segment is growing at the fastest growth rate
It is also anticipated that the beauty sector would grow considerably throughout the forecast period. This is because there is a growing need for personalized beauty experiences. AR may be used to create virtual makeovers, allowing customers to try several cosmetic looks before purchasing them. This may assist buyers in determining the best cosmetic look for their face and skin tone.
During the projection period, the lighting and furniture industry is also predicted to rise. This is because lighting and furniture dealers are increasingly interested in AR-based visualization solutions. AR may be used to build virtual showrooms where customers can view how various things might appear in their homes. This may assist consumers in making more educated purchasing selections.
Insights on Application:
The Try-on Solution Segment is boosting
During the forecast period, the try-on solutions sector of the AR in the retail market is predicted to expand the most. This is related to the increased need for personalized shopping experiences as well as the popularity of internet buying.
With virtual try-on solutions, buyers can see how an item will look on them before making a purchase. This is particularly advantageous for products like clothing, accessories, and makeup. Retailers may assist customers in making more informed purchasing choices and minimize the frequency of returns by enabling them to try on things.
Virtual try-on solutions may also be utilized to develop more engaging and interactive marketing campaigns. A business, for example, may launch a campaign that enables customers to virtually test several clothing or cosmetics styles. This may serve to develop enthusiasm and interest in the items, which can lead to increased sales.
Insights on Region Analysis:
The Asia Pacific region is boosting
During the forecast period, the Asia Pacific region is predicted to expand the quickest in AR in the retail market. This is because of the following reasons:
• The region's increasing middle class is contributing to a rise in disposable income and discretionary expenditure.
• The region's rising use of smartphones and other AR-enabled gadgets.
• The region's rising reliance on internet purchasing.
• The region's growing need for personalized retail experiences.
Some of the significant market players are Microsoft, Google LLC, Blippar Limited, Apple, Sony Corporation, Infinity Augmented Reality Limited, Magic Leap, Incorporated, Niantic, Zappar Limited, and Wikitude GmbH.
COVID-19 Impact and Market Status
Increase in demand of the market
The COVID-19 epidemic has had a huge influence on the retail sector, compelling many firms to shut their brick-and-mortar locations and relocate their activities online. This has presented an opportunity for augmented reality (AR) technology to be utilized to improve the online purchasing experience.
AR may be utilized to make shopping more immersive and engaging for customers. For example, augmented reality (AR) may be used to enable customers to digitally try on clothing or cosmetics, or to see how a piece of furniture might appear in their house. This may assist customers in making more educated purchases and lower the number of returns.
Furthermore, augmented reality (AR) may be utilized to develop more engaging and interactive marketing efforts. A merchant, for example, may develop a campaign that lets customers virtually tour a new location or play a game that educates them about a product. This may serve to develop enthusiasm and interest in the items, which can lead to increased sales.
Latest Trends and Innovation:
• Amazon: In 2021, Amazon introduced its AR View function, which lets customers view how things will appear in their homes. The Amazon app for iOS and Android smartphones now has the capability.
• IKEA released its arrange app in 2022, allowing customers to visually arrange furniture in their homes. The app is available for download from the Google Play and App Store.
• Sephora: Sephora debuted its Virtual Artist app in 2022, allowing customers to virtually test cosmetics. The app is available for download from the App Store and Google Play.
• Walmart released the AR Shopping Assistant in 2023, allowing customers to browse product information and ratings in AR. The Walmart app for iOS and Android smartphones includes the assistant.
• Nike: In 2023, Nike released "Nikeland," an augmented reality game that enables users to visually try on shoes and clothing. The game may be found on the Roblox platform.
Significant Growth Factors:
Retailers are increasingly using augmented reality technology to enhance their consumers' shopping experiences.
• Consumers' need for personalized purchasing experiences is growing. AR may be used to present customers with personalized suggestions and information, making it easier for them to locate the things they are searching for.
• Online shopping is growing more popular, and augmented reality may be utilized to improve the online purchasing experience. AR, for example, may be utilized to let customers digitally try on clothing or cosmetics before purchasing them.
• The cost of augmented reality technology is decreasing, making it more accessible for shops to implement.
• AR technology advancements: AR technology is continually changing, and new AR applications are always being created. This is propelling the rise of augmented reality in the retail business.
The expense of integrating AR technology might be too expensive for certain businesses. The cost of AR technology, on the other hand, is reducing, and as more stores use AR, the cost is projected to reduce even more.
• Scarcity of qualified experts: There is a scarcity of skilled professionals capable of developing and implementing AR applications. As a result, shops may struggle to obtain the skills required to produce effective AR experiences. However, as the need for AR developers develops, it is probable that more individuals will be educated in this field.
• AR-enabled device availability is limited: AR-enabled devices are currently not as widely accessible as smartphones and tablets. Retailers may find it challenging to reach a big audience with their AR experiences as a result of this. However, as augmented reality technology becomes more common, we may expect to see more AR-enabled gadgets on the market.
• Concerns regarding privacy: Some users may be worried about the privacy implications of AR technology. They may be concerned, for example, that AR applications would follow their movements or gather personal data without their knowledge. Retailers must address these issues in order to create customer confidence and persuade them to utilize AR technology.
• Technical problems: In order to make AR technology more dependable and user-friendly, certain technical hurdles must yet be addressed. AR applications, for example, may be sluggish or unresponsive at times, and the AR experience might be hampered by bad lighting or other environmental variables. In order to provide a smooth and pleasurable AR experience for their consumers, retailers will need to collaborate with AR developers to overcome these difficulties.
Key Segments AR in Retail Market Insights
• lighting & furniture
• apparel fitting
• advertising & marketing
• try-on solutions
• information system
• planning & designin
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America