Virtual Reality and Augmented Reality in Retail Market Trends to 2027

The virtual reality and augmented reality in retail market is expected to grow from US$ 3147.58 million in 2020 to US$ 17864.86 million by 2028; it is estimated to grow at a CAGR of 24.8% during 2021–2028.

Customer support departments have improved considerably in recent years because of the potential of AI-powered chatbots and virtual assistants. On the other hand, virtual reality (VR) in customer service is proving to be a game-changer for retailers in terms of consumer engagement and happiness. Chatbots struggle with remote troubleshooting, which is a difficult component of customer care to get correctly. However, when both sides can perceive what the other is seeing and feeling, even basic and difficult issues can be resolved in less time. There is no better way for businesses to demonstrate how much they respect their customers than by implementing great customer service initiatives, and virtual reality is the most advanced type of technology that is assisting the retail industry in doing so. Virtual reality creates a totally immersive experience with a powerful sensory effect and a strong emotional connection with users. Businesses are making use of this connection to engage with customers in new and relevant ways. Customers are more likely to make repeat purchases and become lifelong brand loyalists when they are emotionally connected with a brand. Customers can have an immersive purchasing experience that makes them feel as if they are physically and emotionally engaged with a brand. Furthermore, virtual reality provides consumers with a highly realistic level of experience. To display items in new ways, marketers can create a variety of exciting, exhilarating, scary, and even emotional VR ads. For example, The North Face offered an immersive virtual reality experience of the Nepal landscape to help customers connect with the brand's identity. As a result, the growing use of virtual reality solutions across retail brands is propelling the Virtual Reality and Augmented Reality in Retail market forward.

Impact of COVID-19 Pandemic on North America Virtual Reality and Augmented Reality in Retail Market

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 number of 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 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.

Lucrative Regions for Virtual Reality and Augmented Reality in Retail Providers

Get more information on this report : Request Free Sample PDF

Virtual Reality and Augmented Reality in Retail Market Insights

Rising Investments by Retailers on AR and VR Technologies Fuels Growth of Virtual Reality and Augmented Reality in Retail Market

Mixed reality technologies such as AR and VR, provide a lot of promise for businesses to give customers new ways to interact with their brands, whether it is through taking them to another world or enriching the one they are in right now. Due to developments in mobile technology, augmented reality has grown in popularity in recent years, allowing customers to visualize and test things before purchasing them. Various retail brands are thereby investing in the technologies.

• In 2020, Burberry launched their new augmented reality feature enabling customers to view 3D renders of its items in the real world via Google Search.
• Apple, Inc. improved its augmented reality Quick Look app in 2020, allowing shoppers to buy things in-app with a single tap.
• In 2019, Lululemon invested in Mirror, a fitness tech firm that uses smart mirrors to deliver exercise sessions in their clients' homes.
• In 2019, GOAT introduced its innovative augmented reality "Try-On" function, which allows customers to digitally try on rare and exclusive shoes before making a purchase.

Thus, the rise in investment by global retail businesses in AR and VR technologies in expected to fuel the growth of the AR and VR in retail market over the forecast period.

Type - Based Market Insights

Based on type, the virtual reality and augmented reality in retail market is segmented into AR and VR. In 2020, the AR segment led the virtual reality and augmented reality in retail market, accounting for a larger share in the market.

Virtual Reality and Augmented Reality in Retail Market, by Type, 2020 and 2028 (%)

Get more information on this report : Request Free Sample PDF

Application-Based Market Insights

Based on application, the virtual reality and augmented reality in retail market is segmented into online retail and offline retail. In 2020, the online retail segment accounted for a larger market share.

Strategic Insights

The players operating in the virtual reality and augmented reality in retail market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:

• In March 2021, Epson, a global leader in imaging and projection technology, had 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.
• In May 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.

The Global Virtual Reality and Augmented Reality in Retail Market has been Segmented as Mentioned Below:

By Type

• AR
• VR

By Application

• Online Retail
• Offline Retail

By Geography

• North America
  • US
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • Italy
  • UK
  • Russia
  • Rest of Europe
• Asia Pacific (APAC)
  • China
  • India
  • South Korea
  • Japan
  • Australia
  • Rest of APAC
• Middle East & Africa (MEA)
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA
• South America (SAM)
  • Brazil
  • Argentina
  • Rest of SAM

Company Profiles

• Epson America, Inc.
• Marxent
• Google LLC
• Infosys Ltd
• Intel Corporation
• Microsoft Corporation
• PTC Inc.
• Qualcomm Technologies, Inc.
• Retail VR
• Samsung Electronics Co., Ltd.