Global augmented reality in the retail market was valued at $ 13.3 billion in 2020 and is foreseen to cross $ 95 billion by 2025, recording a CAGR of 47.1% over the outlook period.
Augmented reality in retail refers to a technology that enables the integration of digital information with the user's environment in real time through devices such as smartphones or tablets. The need to deliver an improved customer experience, increased internet penetration, and increased IoT spending are driving the demand for augmented reality in the retail market.
To improve branding and customer satisfaction, retailers often personalize and filter their content to deliver related products to customers with reduced effort. Personalization and product improvements have gained in importance with the application of augmented reality. In addition, the growing adoption of smartphones and growing mobile commerce have become one of the main sources of implementing augmented technology to provide enhanced shopping experience for customers.
With the Coronavirus disease 2019 (COVID-19), the world is grappling with a health pandemic and an economic pandemic, impacting nearly billions of dollars in revenue.
Business leaders around the world are creating war rooms to keep the 'lights on' to combat the impact of COVID-19. More than 1,000 analysts are in constant contact with their 7,500+ clients regarding the revenue impact of COVID-19 on their business and the resulting shift in priorities and transition to short-term strategies. The increasing emphasis on technology to innovate process in almost all industries, including retail is foreseen to create growth opportunities for the AR in the retail market.
Market Growth and Trends:
Smart AR mirrors are mainly used as virtual test solutions in clothing and cosmetic fitting. The use of smart AR mirrors in the retail industry is due to the emergence of virtual trail rooms. Virtual walk-in closets have become a trend for fashion retailers and are expected to drive the use of smart AR mirrors. This “try before you buy” option helps customers make the right decision.
Advertising and Marketing app is among the best AR apps that increase customer engagement. Getting sales and income is the primary goal of using AR in advertising and marketing. The increase in AR adoption is based on important metrics such as emotional connection to AR, economic advertising with more engagement, sales momentum, and improved hyperlocal advertising.
The growing adoption of smart AR mirrors in the apparel industry has helped boost AR in the retail market. Smart mirrors are increasingly being used for virtual clothing fitting as a try-before-you-buy option. The use of trial solutions has also been more widely adopted in jewelry stores, where customers can virtually try on jewelry before buying.
Market Drivers and Restraints:
The growth of global augmented reality in the retail market is driven by the growth in demand for online shopping, easy and convenient shopping and development of e-commerce market. Other factors driving the growth of the market include declining storage costs, low inventory requirement, and interactive user experience. However, factors such as high initial investment cost and heightened privacy concerns are holding back the growth of the market.
The growing demand to improve the quality and efficiency of business operations is driving the adoption of augmented reality in aerospace and defense applications. The industry deals with various complex machines, which requires the implementation of advanced technology to ensure the quality and reliability of the industry's production. Devices, such as immersive displays, spatial audio, touch screens, and force feedback systems, enhance the strength of astronauts and pilots, who control these complex machines. The growing need to improve operational efficiency, security and training will drive the demand for the augmented reality market. Additionally, the technology is widely adopted in the aerospace and defense industry globally for a variety of applications, including battlefield visualization, security, and simulation. With the war constantly evolving, the demand for growing graphics and data processing capabilities will increase, driving market growth.
The global augmented reality in the retail market is mainly categorized based on type, component, and geography.
Depending on the type, the market is classified into department stores, supermarkets, specialty stores, shopping centers and others. According to the component, it is classified into hardware and software.
A geographic breakdown and in-depth analysis of each of the segments is included for the areas of North America, Europe, Asia-Pacific and LAMEA.
The augmented reality market in Asia-Pacific will register a CAGR of around 67% during the forecast period due to the wide adoption of the technology in the healthcare, industrial and retail sectors. The presence of established actors in the region favors the deployment of these technologies. The fast growing tourism industry in countries like China, India and Japan is contributing to the growth of the market. The technology is integrated with functions such as GPS, camera and microphones, helping to deliver information and data for navigation purposes in the tourism industry. Additionally, the growth of the regional automotive sector encourages manufacturers to implement advanced technologies such as head-up displays (HMD).
Key market players:
The main players in the global augmented reality in the retail market are Google (United States), PTC (United States), Apple (United States), Microsoft (United States), Wikitude (Austria), DAQRI (United States), Zugara (United States), Blippar (United Kingdom), Marxent Labs (United States), Augment (France) and ViewAR (Austria). Other players featured in the report include Holition (UK), Ikea (Netherlands), Sephora (France), Amazon (US), Imaginate Technologies (India), Kudan (UK), Total Immersion (France) and INDIA (United Kingdom). The startup ecosystem includes Ads Reality (UK), XZIMG (China), VisionStar Information Technology (China), Zappar (UK), and Obsess (US).
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Augmented Reality in Retail Market, By Type
6.1.1 Department Store
6.1.4 Specialty Stores
6.1.5 Market Size Estimations & Forecasts (2019-2024)
6.1.6 Y-o-Y Growth Rate Analysis
6.1.7 Market Attractiveness Index
6.2 Augmented Reality in Retail Market, By Component
6.2.3 Market Size Estimations & Forecasts (2019-2024)
6.2.4 Y-o-Y Growth Rate Analysis
6.2.5 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.2 By Type
7.2.3 By Component
7.3.1 By Country
188.8.131.52 Rest of Europe
7.3.2 By Type
7.3.3 By Component
7.4 Asia Pacific
7.4.1 By Country
184.108.40.206 South Korea
220.127.116.11 South East Asia
18.104.22.168 Australia & NZ
22.214.171.124 Rest of Asia-Pacific
7.4.2 By Type
7.4.3 By Component
7.5 Latin America
7.5.1 By Country
126.96.36.199 Rest of Latin America
7.5.2 By Type
7.5.3 By Component
7.6 Middle East and Africa
7.6.1 By Country
188.8.131.52 Middle East
7.6.2 By Type
7.6.3 By Component
8. Key Player Analysis
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.9 Marxent Labs
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures