Augmented Reality in Retail Market Synopsis:
Augmented Reality in Retail Market Size Was Valued at USD 18.4 Billion in 2023, and is Projected to Reach USD 152.0 Billion by 2032, Growing at a CAGR of 26.5% From 2024-2032.
In the context of the retail market, AR or Augmented Reality means the addition of computational graphics and information to real-life retail scenes in order to improve the customer experience, to optimize business processes, and to sell more. AR adds value to retail sector through its features of enabling retailers to register computer generated images, animation or information on physical stores or products. Such applications may include fittings of clothes and other accessories, virtual navigation within a store, and product demonstration. Technological development for augmented reality in mobile devices have been a major boost for augmented reality application in the retail sector, the emerging trend of customization, growing competition among retailers catering to tech-savvy customers.
Currently the augmented reality (AR) in retail market is rapidly evolving, due to the channel shift preferences from traditional stores to digital experiences and the cross-overs between physical and online retailing with AR tools. Retailers use AR to span the gap between online and offline shopping by providing consumers with an effective means to engage with the product. For example, some applications that use the principals of augmented reality enable customer place furniture or makeup products in a room or on face, respectively, and thus, make the purchase decision. It should be noted that these benefits do not only contribute to the customer satisfaction, but also minimize the rates of returns and maxima the effectiveness of the operations.
The other factor influencing this market is the growing adoption of smartphones and other compatible devices on which all the physical hardware for augmented reality is available. Fashion retailers, furniture, beauty, and electronics are among retailers leveraging on AR to enhance their propositions and retain their customer base. As AR is implemented in social networks and e-commerce sites, the retail industry is set to evolve towards a new form where customers can interact using technologies.
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Augmented Reality in Retail Market Trend Analysis
Immersive AR Shopping Experiences
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The practice of Digital Shopping Enabled by Augmented Reality Shopping application is a new phenomenon that is rapidly transforming the fashion retail environment. DRIVERS Retailers are adopting many Augment Reality (AR) applications that give customers holographic representations of products in actual-use environments. Digital mirrors and application solutions based on augmented reality for trying on clothes and placing furniture within the context of houses and apartments are highly appreciated.
- IKEA and Sephora are two examples of the companies that moved to the front line of the AR applications that help to improve visualization during the shopping process. These findings resonate with the New Retail trend, characterized by highly individualized experiences where customers are able to gain an even deeper level of control over aspects of their shopping experiences such as customising products, engaging with brands in real time and making increasingly informed choices about purchasing.
AR in E-Commerce Expansion
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The constantly developing e-commerce industry can be considered a massive potential for AR in the retail space. As presently online purchase is gaining applause, AR can also solve many e-commerce problems like the lack of first-hand touch with the bought item. This gap is being filled in by AR enhanced virtual try on capabilities, 3D models for product rendering, and interactive product tutorials.
- Some e-Commerce retailers who have adopted AR have seen customers’ conversion rate increase as well as the reduced rate of product returns. The introduction of new products and services, easier and cheaper access through improvements in AR technology, AR technology is gaining increased popularity as an area in e-commerce, thus creating new opportunities for revenue generation to retailers across the globe.
Augmented Reality in Retail Market Segment Analysis:
Augmented Reality in Retail Market is Segmented on the basis of Type, Device, Application, and Region.
By Type, Lighting & Furniture segment is expected to dominate the market during the forecast period
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Among the analyzed segments, lighting and furniture AR for retail will occupy the greatest share during the forecast period. This dominance is attributed to the possibility within AR applications to showcase how furniture pieces and lighting setups within living or working spaces look like. Two of the major retailers in this segment are IKEA, which have created applications that use augmented reality to place furniture into homes while ascertaining whether it fits the available space and its color and design match the rest of the interior. They add values for such features clear the confusion of customer about the suitability of a specific product in relation to his or her needs, and may also improve the overall shopping experience to increase demand.
- The use of 3D models and augmented reality has made it possible for brands to display their furniture and lighting products with elaborate features of interactivity providing mimicked environment catalogs. Increases in customer expectations for individualised services and convenience are thus making such applications in this segment essential tools for retailers as they gain competitive advantage in the segment.
By Device, Handheld Devices segment expected to held the largest share
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Smartphones and tablets fall under handheld devices segment, it is anticipate that this segment will have the highest market share in the Retail Augmented Reality market. This is mainly because the ownership of such devices is common and the applications are well suited to the workings of AR. Consumers rely on smartphones to access AR experiences, and this can be in the form of augmented try-on or scanning a QR code to get to other engaging contents. That is why retailers have made a focus on the use of their AR applications into mobile platforms to make the interactions smooth and intuitive.
- Since the portable handheld devices are more personal devices, the AR experiences are more feasible to a wider population in both, physical and online stores. This is backed by the fact that features of augmented reality are increasingly being incorporated into widely used social networks and online shops to increase usage frequency. The fading AR technology trends suggest that improvements achieved in the compatibility and performance of handheld devices will enshrine them as the preferred mode of retail AR interfaces.
Augmented Reality in Retail Market Regional Insights:
North America is Expected to Dominate the Market Over the Forecast period
- North America is projected to dominate the augmented reality (AR) market throughout the forecast period, driven by several key factors. The region boasts advanced technological infrastructure, widespread smartphone adoption, and a high concentration of leading AR solution providers. Retailers in North America have been early adopters of AR technology, leveraging it to enhance customer experiences, boost sales, and improve operational efficiency. The growing integration of AR into e-commerce platforms has further accelerated market expansion, as businesses seek immersive shopping solutions.
- Increased investments in AR development by major tech companies and startups alike have fueled innovation and adoption. With strong consumer demand for interactive and personalized digital experiences, North America remains at the forefront of A market growth, supported by a robust ecosystem of developers, enterprises, and tech-savvy users.
Active Key Players in the Augmented Reality in Retail Market:
- Apple Inc. (United States)
- Augment SAS (France)
- Blippar (United Kingdom)
- Google LLC (United States)
- IKEA (Netherlands)
- Marxent (United States)
- Microsoft Corporation (United States)
- Nextech AR Solutions (Canada)
- Niantic Inc. (United States)
- PTC Inc. (United States)
- Qualcomm Technologies (United States)
- Samsung Electronics (South Korea)
- Shopify (Canada)
- ViewAR (Austria)
- Zugara Inc. (United States), and Other Active Players
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Augmented Reality in Retail Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
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Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 18.4 Billion |
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Forecast Period 2024-32 CAGR: |
26.5% |
Market Size in 2032: |
USD 152.0 Billion |
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Segments Covered: |
By Type |
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By Device |
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By Application |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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Chapter 1: Introduction
1.1 Scope and Coverage
Chapter 2:Executive Summary
Chapter 3: Market Landscape
3.1 Market Dynamics
3.1.1 Drivers
3.1.2 Restraints
3.1.3 Opportunities
3.1.4 Challenges
3.2 Market Trend Analysis
3.3 PESTLE Analysis
3.4 Porter's Five Forces Analysis
3.5 Industry Value Chain Analysis
3.6 Ecosystem
3.7 Regulatory Landscape
3.8 Price Trend Analysis
3.9 Patent Analysis
3.10 Technology Evolution
3.11 Investment Pockets
3.12 Import-Export Analysis
Chapter 4: Augmented Reality in Retail Market by Type
4.1 Augmented Reality in Retail Market Snapshot and Growth Engine
4.2 Augmented Reality in Retail Market Overview
4.3 Lighting & Furniture
4.3.1 Introduction and Market Overview
4.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
4.3.3 Key Market Trends, Growth Factors and Opportunities
4.3.4 Lighting & Furniture: Geographic Segmentation Analysis
4.4 Apparel Fitting
4.4.1 Introduction and Market Overview
4.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
4.4.3 Key Market Trends, Growth Factors and Opportunities
4.4.4 Apparel Fitting: Geographic Segmentation Analysis
4.5 Jewelry
4.5.1 Introduction and Market Overview
4.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
4.5.3 Key Market Trends, Growth Factors and Opportunities
4.5.4 Jewelry: Geographic Segmentation Analysis
4.6 Footwear
4.6.1 Introduction and Market Overview
4.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
4.6.3 Key Market Trends, Growth Factors and Opportunities
4.6.4 Footwear: Geographic Segmentation Analysis
4.7 Beauty
4.7.1 Introduction and Market Overview
4.7.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
4.7.3 Key Market Trends, Growth Factors and Opportunities
4.7.4 Beauty: Geographic Segmentation Analysis
Chapter 5: Augmented Reality in Retail Market by Device
5.1 Augmented Reality in Retail Market Snapshot and Growth Engine
5.2 Augmented Reality in Retail Market Overview
5.3 Handheld Devices
5.3.1 Introduction and Market Overview
5.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
5.3.3 Key Market Trends, Growth Factors and Opportunities
5.3.4 Handheld Devices: Geographic Segmentation Analysis
5.4 Head-Mounted Displays
5.4.1 Introduction and Market Overview
5.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
5.4.3 Key Market Trends, Growth Factors and Opportunities
5.4.4 Head-Mounted Displays: Geographic Segmentation Analysis
5.5 Smart AR Mirrors
5.5.1 Introduction and Market Overview
5.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
5.5.3 Key Market Trends, Growth Factors and Opportunities
5.5.4 Smart AR Mirrors: Geographic Segmentation Analysis
Chapter 6: Augmented Reality in Retail Market by Application
6.1 Augmented Reality in Retail Market Snapshot and Growth Engine
6.2 Augmented Reality in Retail Market Overview
6.3 Advertising & ing
6.3.1 Introduction and Market Overview
6.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.3.3 Key Market Trends, Growth Factors and Opportunities
6.3.4 Advertising & ing: Geographic Segmentation Analysis
6.4 Information Systems
6.4.1 Introduction and Market Overview
6.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.4.3 Key Market Trends, Growth Factors and Opportunities
6.4.4 Information Systems: Geographic Segmentation Analysis
6.5 Try-On Solutions
6.5.1 Introduction and Market Overview
6.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.5.3 Key Market Trends, Growth Factors and Opportunities
6.5.4 Try-On Solutions: Geographic Segmentation Analysis
6.6 Planning & Designing
6.6.1 Introduction and Market Overview
6.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.6.3 Key Market Trends, Growth Factors and Opportunities
6.6.4 Planning & Designing: Geographic Segmentation Analysis
Chapter 7: Company Profiles and Competitive Analysis
7.1 Competitive Landscape
7.1.1 Competitive Benchmarking
7.1.2 Augmented Reality in Retail Market Share by Manufacturer (2023)
7.1.3 Industry BCG Matrix
7.1.4 Heat Map Analysis
7.1.5 Mergers and Acquisitions
7.2 APPLE INC. (UNITED STATES)
7.2.1 Company Overview
7.2.2 Key Executives
7.2.3 Company Snapshot
7.2.4 Role of the Company in the Market
7.2.5 Sustainability and Social Responsibility
7.2.6 Operating Business Segments
7.2.7 Product Portfolio
7.2.8 Business Performance
7.2.9 Key Strategic Moves and Recent Developments
7.2.10 SWOT Analysis
7.3 AUGMENT SAS (FRANCE)
7.4 BLIPPAR (UNITED KINGDOM)
7.5 GOOGLE LLC (UNITED STATES)
7.6 IKEA (NETHERLANDS)
7.7 MARXENT (UNITED STATES)
7.8 MICROSOFT CORPORATION (UNITED STATES)
7.9 NEXTECH AR SOLUTIONS (CANADA)
7.10 NIANTIC INC. (UNITED STATES)
7.11 PTC INC. (UNITED STATES)
7.12 QUALCOMM TECHNOLOGIES (UNITED STATES)
7.13 SAMSUNG ELECTRONICS (SOUTH KOREA)
7.14 SHOPIFY (CANADA)
7.15 VIEWAR (AUSTRIA)
7.16 ZUGARA INC. (UNITED STATES)
7.17 OTHER ACTIVE PLAYERS
Chapter 8: Global Augmented Reality in Retail Market By Region
8.1 Overview
8.2. North America Augmented Reality in Retail Market
8.2.1 Key Market Trends, Growth Factors and Opportunities
8.2.2 Top Key Companies
8.2.3 Historic and Forecasted Market Size by Segments
8.2.4 Historic and Forecasted Market Size By Type
8.2.4.1 Lighting & Furniture
8.2.4.2 Apparel Fitting
8.2.4.3 Jewelry
8.2.4.4 Footwear
8.2.4.5 Beauty
8.2.5 Historic and Forecasted Market Size By Device
8.2.5.1 Handheld Devices
8.2.5.2 Head-Mounted Displays
8.2.5.3 Smart AR Mirrors
8.2.6 Historic and Forecasted Market Size By Application
8.2.6.1 Advertising & ing
8.2.6.2 Information Systems
8.2.6.3 Try-On Solutions
8.2.6.4 Planning & Designing
8.2.7 Historic and Forecast Market Size by Country
8.2.7.1 US
8.2.7.2 Canada
8.2.7.3 Mexico
8.3. Eastern Europe Augmented Reality in Retail Market
8.3.1 Key Market Trends, Growth Factors and Opportunities
8.3.2 Top Key Companies
8.3.3 Historic and Forecasted Market Size by Segments
8.3.4 Historic and Forecasted Market Size By Type
8.3.4.1 Lighting & Furniture
8.3.4.2 Apparel Fitting
8.3.4.3 Jewelry
8.3.4.4 Footwear
8.3.4.5 Beauty
8.3.5 Historic and Forecasted Market Size By Device
8.3.5.1 Handheld Devices
8.3.5.2 Head-Mounted Displays
8.3.5.3 Smart AR Mirrors
8.3.6 Historic and Forecasted Market Size By Application
8.3.6.1 Advertising & ing
8.3.6.2 Information Systems
8.3.6.3 Try-On Solutions
8.3.6.4 Planning & Designing
8.3.7 Historic and Forecast Market Size by Country
8.3.7.1 Russia
8.3.7.2 Bulgaria
8.3.7.3 The Czech Republic
8.3.7.4 Hungary
8.3.7.5 Poland
8.3.7.6 Romania
8.3.7.7 Rest of Eastern Europe
8.4. Western Europe Augmented Reality in Retail Market
8.4.1 Key Market Trends, Growth Factors and Opportunities
8.4.2 Top Key Companies
8.4.3 Historic and Forecasted Market Size by Segments
8.4.4 Historic and Forecasted Market Size By Type
8.4.4.1 Lighting & Furniture
8.4.4.2 Apparel Fitting
8.4.4.3 Jewelry
8.4.4.4 Footwear
8.4.4.5 Beauty
8.4.5 Historic and Forecasted Market Size By Device
8.4.5.1 Handheld Devices
8.4.5.2 Head-Mounted Displays
8.4.5.3 Smart AR Mirrors
8.4.6 Historic and Forecasted Market Size By Application
8.4.6.1 Advertising & ing
8.4.6.2 Information Systems
8.4.6.3 Try-On Solutions
8.4.6.4 Planning & Designing
8.4.7 Historic and Forecast Market Size by Country
8.4.7.1 Germany
8.4.7.2 UK
8.4.7.3 France
8.4.7.4 The Netherlands
8.4.7.5 Italy
8.4.7.6 Spain
8.4.7.7 Rest of Western Europe
8.5. Asia Pacific Augmented Reality in Retail Market
8.5.1 Key Market Trends, Growth Factors and Opportunities
8.5.2 Top Key Companies
8.5.3 Historic and Forecasted Market Size by Segments
8.5.4 Historic and Forecasted Market Size By Type
8.5.4.1 Lighting & Furniture
8.5.4.2 Apparel Fitting
8.5.4.3 Jewelry
8.5.4.4 Footwear
8.5.4.5 Beauty
8.5.5 Historic and Forecasted Market Size By Device
8.5.5.1 Handheld Devices
8.5.5.2 Head-Mounted Displays
8.5.5.3 Smart AR Mirrors
8.5.6 Historic and Forecasted Market Size By Application
8.5.6.1 Advertising & ing
8.5.6.2 Information Systems
8.5.6.3 Try-On Solutions
8.5.6.4 Planning & Designing
8.5.7 Historic and Forecast Market Size by Country
8.5.7.1 China
8.5.7.2 India
8.5.7.3 Japan
8.5.7.4 South Korea
8.5.7.5 Malaysia
8.5.7.6 Thailand
8.5.7.7 Vietnam
8.5.7.8 The Philippines
8.5.7.9 Australia
8.5.7.10 New Zealand
8.5.7.11 Rest of APAC
8.6. Middle East & Africa Augmented Reality in Retail Market
8.6.1 Key Market Trends, Growth Factors and Opportunities
8.6.2 Top Key Companies
8.6.3 Historic and Forecasted Market Size by Segments
8.6.4 Historic and Forecasted Market Size By Type
8.6.4.1 Lighting & Furniture
8.6.4.2 Apparel Fitting
8.6.4.3 Jewelry
8.6.4.4 Footwear
8.6.4.5 Beauty
8.6.5 Historic and Forecasted Market Size By Device
8.6.5.1 Handheld Devices
8.6.5.2 Head-Mounted Displays
8.6.5.3 Smart AR Mirrors
8.6.6 Historic and Forecasted Market Size By Application
8.6.6.1 Advertising & ing
8.6.6.2 Information Systems
8.6.6.3 Try-On Solutions
8.6.6.4 Planning & Designing
8.6.7 Historic and Forecast Market Size by Country
8.6.7.1 Turkiye
8.6.7.2 Bahrain
8.6.7.3 Kuwait
8.6.7.4 Saudi Arabia
8.6.7.5 Qatar
8.6.7.6 UAE
8.6.7.7 Israel
8.6.7.8 South Africa
8.7. South America Augmented Reality in Retail Market
8.7.1 Key Market Trends, Growth Factors and Opportunities
8.7.2 Top Key Companies
8.7.3 Historic and Forecasted Market Size by Segments
8.7.4 Historic and Forecasted Market Size By Type
8.7.4.1 Lighting & Furniture
8.7.4.2 Apparel Fitting
8.7.4.3 Jewelry
8.7.4.4 Footwear
8.7.4.5 Beauty
8.7.5 Historic and Forecasted Market Size By Device
8.7.5.1 Handheld Devices
8.7.5.2 Head-Mounted Displays
8.7.5.3 Smart AR Mirrors
8.7.6 Historic and Forecasted Market Size By Application
8.7.6.1 Advertising & ing
8.7.6.2 Information Systems
8.7.6.3 Try-On Solutions
8.7.6.4 Planning & Designing
8.7.7 Historic and Forecast Market Size by Country
8.7.7.1 Brazil
8.7.7.2 Argentina
8.7.7.3 Rest of SA
Chapter 9 Analyst Viewpoint and Conclusion
9.1 Recommendations and Concluding Analysis
9.2 Potential Market Strategies
Chapter 10 Research Methodology
10.1 Research Process
10.2 Primary Research
10.3 Secondary Research
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Augmented Reality in Retail Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
|
Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 18.4 Billion |
|
Forecast Period 2024-32 CAGR: |
26.5% |
Market Size in 2032: |
USD 152.0 Billion |
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Segments Covered: |
By Type |
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By Device |
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By Application |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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