Virtual Reality and Augmented Reality in Retail Market Growth and Recent Trends by 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

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 Regional Insights

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 The 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.

Virtual Reality and Augmented Reality in Retail Market Report Scope

Virtual Reality and Augmented Reality in Retail Market Players Density: Understanding Its Impact on Business Dynamics

The Virtual Reality and Augmented Reality in Retail 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.

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