Augmented Reality in Retail Market size was over USD 3.74 billion in 2023 and is set to cross USD 366.89 billion by the end of 2036, growing at more than 42.3% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of augmented reality in retail is estimated at USD 5.01 billion.
The growth of the augmented reality in retail market can be attributed to the rapid evolution in the technology of augmented reality (AR), after the successful adoption virtual reality (VR) amongst various end-user industries. Augmented reality provides a virtual interactive experience by computer-generated perceptual information, in the real world, by targeting multiple sensory features, including visual, auditory, haptic, somatosensory, and olfactory experiences. Augmented reality in retail is used to provide virtual sale opportunities to the sellers by letting the consumers experience the product digitally, at their home, which is estimated to boost the market growth. Moreover, the COVID-19 pandemic had negatively affected the sales of automobiles, electronics, and other end-use products, as people could not go to retail store or showrooms to check-out the product before buying. According to the data by the International Energy Agency (IEA), the global sale of automotive dropped 16% between 2019 and 2020, due to the COVID-19 crisis. Along with this, the growing investment in the advancement of technology, and the adoption of advanced technologies to encourage sales of products, are anticipated to boost the augmented reality in retail market growth. According to the Technology and Innovation Report 2021 by The United Nations Conference on Trade and Development (UNCTAD), frontier technologies, including AI, IoT, and AR innovation hold a share of USD 350 billion, as of 2018, which is estimated to reach USD 3.2 trillion by 2025.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
42.3% |
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Base Year Market Size (2023) |
USD 3.74 billion |
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Forecast Year Market Size (2036) |
USD 366.89 billion |
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Regional Scope |
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The augmented reality in retail market is segmented by application into digital shopping, try-on solution, planning & designing, and others, out of which, the digital shopping segment is anticipated to hold the notable share in the market over the forecast period on account of increasing trend of at-home shopping applications, along with the unfavorable circumstances with respect to in-store shopping. Furthermore, the various features of digital shopping with AR, such as, control over digital elements in real space, are estimated to boost the market growth.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Device Type |
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Application |
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End-User Industry |
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On the basis of geographical analysis, the augmented reality in retail market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in Europe industry is expected to hold largest revenue share by 2036, driven by availability of advanced technology in developed countries, such as, Germany, Sweden, United Kingdom, and others.
The market in the North America region is anticipated to gain the largest market share throughout the forecast period owing to the high adoption of advanced technology, and growing private investment in technological research. Furthermore, the high R&D expenditure in the United States, is also estimated to boost the augmented reality in retail market growth. According to the data by the Organization for Economic Co-operation and Development (OECD), the gross domestic expenditure on R&D or GERD of United States accounted for around 3.07% of the national GDP in 2019.
September 27, 2021: PTC Inc., the global distributor of CAD, PLM, IoT, and AR technologies, and the Volvo Group to collaborate to deliver digital engineering transformation.
December 31, 2020: Augmented Pixels Inc. launched CorpMap.AI software to support AR shopping and AR navigation, available under iPhone 7+, Android, Robotics and AR Glasses.
Author Credits: Parul Atri
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