AR Segment to Dominate North America Virtual Reality and Augmented Reality in Retail Market during 2021–2028.
According to The Insight Partners market research study on “North America Virtual Reality and Augmented Reality in Retail Market to 2028 – COVID-19 Impact and Analysis and Forecast by: Type and Application,” the market is expected to reach US$ 7044.12 million by 2028 from US$ 1592.95 million in 2021. The market is estimated to grow at a CAGR of 23.7% from 2021 to 2028. The report provides trends prevailing in the North America virtual reality and augmented reality in retail market along with the drivers and restraints pertaining to the market growth. Increasing adoption of virtual reality (VR) technology to offer better customer experience across online retail stores is the major factor driving the growth of the North America virtual reality and augmented reality in retail market. However, issues associated with the security and privacy issues associated with ARs could hamper the growth of North America virtual reality and augmented reality in retail market.
The North America virtual reality and augmented reality in retail market is segmented into type, application, and country. In terms of type, the virtual reality and augmented reality in retail market is bifurcated into augmented reality and virtual reality. The AR segment dominated the market in the year 2020 and is expected to be the fastest growing during forecast period. Based on application, the virtual reality and augmented reality in retail market is categorized into online retail and offline retail. The online retail segment dominated the market in the year 2020 and is expected to be the fastest growing during forecast period. Based on country, the market has been segmented into US, Canada, and Mexico.
With the COVID-19 pandemic spreading across the US, all industries have been severely impacted. As a result, any impact on industry has a direct impact on the region's economic growth. The unusual spike in COVID-19 cases in the US, as well as the accompanying lockdown to battle the virus's spread across the country in the first two quarters of 2020, has prompted many businesses to prepare for the worst. In 2020, technological investments experienced a dip, owing to the above-mentioned reasons. However, the retail industry has been adopting technologies such as virtual reality and augmented reality much before the pandemic. According to IBM's 2020 US Retail Index report, the pandemic has expedited the shift to digital purchasing by about five years. Virtual "try-before-you-buy" experiences ranging from previewing furniture and products in your house with daily brands like IKEA and Home Depot to digitally trying on luxury fashion brands like Louis Vuitton and Gucci have been on the increase. Similarly, GLAMlab's Ulta's virtual try-on beauty tool, which was established four years ago, has seen an increase in utilization during the pandemic. In addition, when jewelry manufacturer Kendra Scott's stores were temporarily closed, the company implemented an augmented reality application that let buyers to visually try on numerous earring styles from the comfort of their own homes. Thus, rise in adoption of AR by customers and increase in investment in the technology by retailers during the pandemic have positively impacted the growth of the market across the region.
Epson America, Inc.; Google LLC; Infosys Ltd.; Intel Corporation; Marxent; Microsoft Corporation; PTC Inc.; Qualcomm Technologies, Inc.; and Samsung Electronics Co., Ltd. are among the leading companies in the North America virtual reality and augmented reality in retail market. The companies are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the dynamic market. For instance, in 2021, Marxent had announced an expansion of their 3D retail data analytics division and the addition of a new data analytics leadership position. John Bastone, formerly of SAS, will lead the company’s expanded behavioral analytics practice in his role as Head of Product Management.
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