The global virtual reality and augmented reality in retail market was valued at US$ 3147.58 million in 2020 and is projected to reach US$ 17864.86 million by 2028; it is expected to grow at a CAGR of 24.8% from 2021 to 2028.
North America dominated the virtual reality and augmented reality in retail market in 2020 with a share of 42.4%. Rise in investment by major retailers across the region over the years to integrate VR and AR capabilities across their retail stores or online applications is also expected to contribute to the growth of the market. For example, Levi's is supplementing its augmented reality retail strategy with digital tools such as Squad, an online co-watching video software that allows friends to shop together. Virtual storefronts are also being used by retailers to redefine the digital shopping experience using AR technologies. Kohl's and Snapchat teamed up to launch Kohl's AR Virtual Closet in May 2020. Consumers can now stroll inside an augmented reality dressing room; mix and match things; and make a purchase without ever leaving the Snapchat app. Some of the other retail brands that are investing in AR and VR technologies are Ulta Beauty and Kendra Scott, among others. 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 house products of brands such as IKEA and Home Depot to digitally trying on luxury fashion brands such as Louis Vuitton and Gucci. 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.
Europe stood second in the virtual reality and augmented reality in retail market with a decent market share in 2020. Ahold Delhaize, REWE Combine, Tesco PLC, IKEA Group, Inditex, LVMH Mot Hennessy-Louis Vuitton S.A., Carrefour, and Auchan Holding SA are among the top retail firms operating in Europe. Also, mentioned retail stores are among the top 25 retailers of the region; therefore, the installation of advanced AR and VR technologies will gain high momentum across the region, owing to the presence of big retailers.
Makeup & fashion and furniture retailers, among others, are making high investments to integrate AR and VR technologies in their applications and stores. For instance, IKEA has released a new augmented reality (AR) application that allows users to test IKEA's products in real time using customer’s smart phone. To visualize a product within a location, the application scans the expanse of a room through a phone’s camera. To make their decisions, users can search via an online database of nearly 2,000 IKEA products.
The virtual reality and augmented reality in retail market players mainly perform several strategies to expand their business and maintain their brand name globally. For instance, in 2021, Epson, a global leader in imaging and projection technology announced the Moverio BT-40 and BT-40S, a new generation of award-winning Moverio augmented reality (AR) smart glasses designed to deliver a high-quality AR viewing experience with maximum comfort.
The virtual reality and augmented reality in retail market is segmented into type, application, and geography. Based on type, the virtual reality and augmented reality in retail market is bifurcated into augmented reality and virtual reality. Based on application, the virtual reality and augmented reality in retail market is categorized into online retail and offline retail. Geographically, the virtual reality and augmented reality in retail market is segmented into North America (the US, Canada, and Mexico), Europe (France, Germany, Italy, the UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, India, Japan, South Korea, and Rest of APAC), Middle East & Africa (Saudi Arabia, South Africa, the UAE, and Rest of MAE), and South America (Brazil, Argentina, and Rest of SAM)
Virtual Reality and Augmented Reality in Retail Market Breakdown— by Region, 2020 and 2028
Virtual Reality and Augmented Reality in Retail Market Report 2027
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Virtual Reality and Augmented Reality in Retail Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (AR and VR) and Application (Online Retail and Offline Retail)
Virtual Reality and Augmented Reality in Retail Market Report 2027
Download Free SampleVirtual Reality and Augmented Reality in Retail Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (AR and VR) and Application (Online Retail and Offline Retail)
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