Virtual Reality and Augmented Reality in Retail Market Size 2031
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 Market Analysis
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 and Augmented Reality in Retail Market Overview
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.
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Virtual Reality and Augmented Reality in Retail Market: Strategic Insights
Market Size Value in US$ 3147.58 million in 2020 Market Size Value by US$ 17864.86 Million by 2028 Growth rate CAGR of 24.8% from 2021-2028 Forecast Period 2021-2028 Base Year 2021
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Virtual Reality and Augmented Reality in Retail Market: Strategic Insights
| Market Size Value in | US$ 3147.58 million in 2020 |
| Market Size Value by | US$ 17864.86 Million by 2028 |
| Growth rate | CAGR of 24.8% from 2021-2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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Virtual Reality and Augmented Reality in Retail Market Drivers and Opportunities
Increasing Adoption of AR/VR in Retail to Favor Market
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.
Increased Demand For Virtual Try-Ons
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.
Virtual Reality and Augmented Reality in Retail Market Report Segmentation Analysis
Key segments that contributed to the derivation of virtual reality and augmented reality in retail market analysis are component, application, and retail type
- Based on the components, virtual reality and augmented reality in the retail market are divided into hardware, software, and services. The hardware segment will hold a significant market share in 2023.
- By application, the market is segmented into advertising and marketing, try-on solutions, planning and designing, and others. The advertising and marketing segment held the largest market share in 2023.
- In terms of retail type, the market is segmented into jewelry, apparel, beauty & cosmetics, furniture, others). The apparel segment held the largest market share in 2023.
Virtual Reality and Augmented Reality in Retail Market Share Analysis by Geography
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.
Virtual Reality and Augmented Reality in Retail Market Report Scope
Virtual Reality and Augmented Reality in Retail Market News and Recent Developments
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:
- Apple released its first mixed-reality headset, Vision Pro, with 600 new apps and games. Among these were forays into augmented reality (AR) and virtual reality (VR) from major retailers, taking advantage of the capacity to offer consumers more interactive eCommerce journeys. The Vision Pro app presents headset users with a 3D shopping experience, enabling them to peruse products and assemble outfits. Additionally, the integration of the Apple SharePlay feature for FaceTime video calls enables the retailer to provide real-time advice from stylists in this lifelike environment. (Source: Apple, Press Release, February 2024)
- Zero10 offers digital solutions through AR mirrors leveraged in-store and in-window displays to brands like Tommy Hilfiger and Coach. Tommy Hilfiger also uses technology company Zero10′s AR Mirrors in Europe as a part of their Shawn Mendes campaign and to promote their recent launch of puffer jackets. Meanwhile, Coach employs Zero10′s AR Mirror and AR storefront to publicize their Tabby bag and Holiday Season campaigns (Source: Zero10, Press Release, April 2024)
Virtual Reality and Augmented Reality in Retail Market Report Coverage and Deliverables
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:
- Virtual reality and augmented reality in retail market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Virtual reality and augmented reality in retail market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Virtual reality and augmented reality in retail market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for virtual reality and augmented reality in the retail market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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