The virtual reality and augmented reality in retail size is projected to reach US$ 60.09 billion by 2031 from US$ 6.1 billion in 2023. The virtual reality and augmented reality in the retail market are expected to register a CAGR of 33.1% during 2023–2031. VR-based advertising is likely to remain a key trend in the market.
Virtual reality and augmented reality in retail include growth prospects owing to the current market trends and their foreseeable impact during the forecast period. Virtual reality and augmented reality in retail are growing owing to factors such as the increasing adoption of AR/VR in retail and the huge growth of the ecommerce industry. Increased demand for Virtual try-ons to provide lucrative opportunities for virtual reality and augmented reality in retail.
Virtual reality (VR) and augmented reality (AR) are transforming the retail landscape by offering immersive and interactive shopping experiences. VR creates a fully digital environment where customers can explore virtual stores, visualize products in 3D, and even try on clothes virtually. AR, on the other hand, overlays digital information onto the real world, allowing shoppers to see how furniture might look in their homes or how makeup would appear on their faces using smartphone apps or smart mirrors. Both of these technologies enable retailers to bridge the gap between online and in-store shopping, enhance product visualization, reduce returns, and create engaging brand experiences that can drive customer engagement and sales.
One of the main sectors that the digital age has impacted is the retail sector. The largest retailers, including Walmart, Alibaba, and Amazon, actively invest in cutting-edge retail technologies in order to provide more individualized and interactive services to their customers. Three fundamental components of smart retail are increased convenience, personalization, and customization. Innovative solutions like applications powered by AR and VR are growing in popularity. Many retail businesses have started to adopt AR/VR technology after retail giants like Wayfair, Lowe's, and Ikea. For instance, more than 1 billion people are expected to use augmented reality products. The number is staggering. Virtual and augmented reality makes it easier for customers to identify and try things before buying. Huge shopping mall navigation will be made easier with the use of augmented reality.
The increased demand for virtual try-ons presents significant opportunities for VR and AR in retail market growth. By allowing customers to visualize products more accurately before purchase, virtual try-ons can significantly reduce return rates. This saves retailers money on shipping and restocking, improving profitability. Moreover, as customers gain confidence in their online purchases through virtual try-ons, they're more likely to buy items without seeing them in person first. This can boost e-commerce sales, especially in categories like clothing and cosmetics. Virtual try-ons offer a novel, interactive shopping experience that can increase customer engagement and satisfaction. This can lead to improved brand loyalty and repeat purchases.
Key segments that contributed to the derivation of virtual reality and augmented reality in retail market analysis are component, application, and retail type
The geographic scope of the virtual reality and augmented reality in retail market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The use of augmented reality (AR) and virtual reality (VR) in retail in the Asia Pacific is gaining traction. These technologies are being increasingly utilized in various ways to enhance the retail experience and drive customer engagement. These technologies have the potential to enhance the retail experience, drive customer engagement, and provide new opportunities for marketing, training, and education in the industry.
The regional trends and factors influencing the Virtual Reality and Augmented Reality in Retail Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Virtual Reality and Augmented Reality in Retail Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 6.1 Billion |
| Market Size by 2031 | US$ 60.09 Billion |
| Global CAGR (2023 - 2031) | 33.1% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Virtual Reality and Augmented Reality in Retail Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Virtual Reality and Augmented Reality in Retail Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The virtual reality and augmented reality in the retail market are evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in virtual reality and augmented reality in the retail market are listed below:
The “Virtual Reality and Augmented Reality in Retail Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
North America is expected to dominate the virtual reality and augmented reality in the retail market with the highest market share in 2023.
The virtual reality and augmented reality in retail market size is projected to reach US$ 60.09 billion by 2031.
The leading players operating in the virtual reality and augmented reality in the retail market are Epson America, Inc.; Marxent; Google LLC; Infosys Ltd; Intel Corporation; Microsoft Corporation; PTC Inc.; Qualcomm Technologies, Inc.; Retail VR
VR-based advertising is anticipated to play a significant role in the global virtual reality and augmented reality retail market in the coming years.
Increasing adoption of AR/VR in retail and the huge growth of the ecommerce industry are the major factors driving virtual reality and augmented reality in the retail market.
The global virtual reality and augmented reality in the retail market is expected to grow at a CAGR of 33.1% during the forecast period 2024 - 2031.