Augmented Shopping Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Germany, UK, Canada - Size and Forecast 2024-2028

Augmented Shopping Market Size 2024-2028

The augmented shopping market size is forecast to increase by USD 27.19 billion at a CAGR of 54.26% between 2023 and 2028.

• The market is experiencing significant growth, driven by the increasing use of augmented reality (AR) technology to enhance advertising effectiveness. With the widespread adoption of smartphones and tablets, consumers are increasingly engaging with augmented reality experiences, providing a new avenue for retailers to engage with customers. However, privacy and security concerns surrounding AR technology pose challenges that must be addressed to ensure consumer trust. As AR becomes more prevalent in shopping, it is essential for businesses to prioritize user privacy and implement security measures to mitigate risks. The market is expected to continue growing as technology advances and consumer acceptance increases.
• Retailers that can effectively leverage AR to create engaging shopping experiences while addressing privacy and security concerns will be well-positioned to succeed in this dynamic market.

What will be the Size of the Augmented Shopping Market During the Forecast Period?

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• The market is experiencing significant growth as consumer engagement and customer experience continue to be prioritized In the retail sector. Augmented reality (AR) technology is revolutionizing product sales by enabling virtual demonstrations, personalized recommendations, and touch-free experiences. AR applications are transforming home goods shopping with virtual try-on features, smart mirrors, and interactive product displays. Retailers are leveraging AR to enhance the shopping experience, providing tech-savvy consumers with a more engaging and convenient online shopping experience. It is also driving innovation in product identification, navigation, and visualization. Object recognition and recommendation systems are improving the shopping experience by realising user preferences and suggesting relevant products.
• AR glasses and mobile applications are becoming increasingly popular components of the digital infrastructure, enabling augmented navigation and touch-free interaction with products. Historically, AR has been used primarily In the fashion industry, but its applications are expanding to other sectors, including home goods and e-commerce. Smartphone penetration and the increasing availability are fueling the growth of this market. The future of shopping is becoming more interactive, personalized, and convenient, with AR technology at the forefront of the trend.

How is this Augmented Shopping Industry segmented and which is the largest segment?

The augmented shopping industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Component
  • Software
  • Services
• Application
  • Automotive
  • Home goods and furniture
  • Beauty and cosmetics
  • Apparel fittings
  • Others
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
  • Europe
    • Germany
    • UK
  • South America
  • Middle East and Africa

By Component Insights

The software segment is estimated to witness significant growth during the forecast period.The market represents a significant segment of the retail industry's digital transformation. This sector integrates augmented reality (AR) technology into shopping experiences, enhancing consumer engagement and personalization. Key components of the augmented shopping software market include AR platforms, virtual demonstrations, product identification, and navigation. AR platforms serve as the foundation for creating engaging shopping experiences, offering features such as 3D modeling, tracking, rendering, and interaction capabilities. Virtual demonstrations enable customers to test products in a touch-free environment, while product identification and augmented navigation assist users in locating items. Home goods, beauty and cosmetics, and fashion industries have embraced this technology, driving growth in consumer traffic and brand awareness.

AR technology companies, such as Sephora Virtual Artist, have developed innovative solutions to cater to tech-savvy consumers. The market's expansion is fueled by increasing smartphone penetration, online shopping experience preferences, and the availability of advanced tracking and rendering capabilities. Despite challenges related to adoption and fragmentation, the potential for engaging experiences and improved customer satisfaction continues to propel the industry forward. Lastly, the options of computer vision and image recognition algorithms for detection, tracking, and recognition of products, facilitating seamless integration with augmented shopping applications also give the consumer further information regarding the production with a greater level of convenience.

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The Software segment was valued at USD 448.50 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American market holds the largest share In the market, fueled by advanced technology infrastructure and digitalization. In the US, Canada, and Mexico, retail spending growth and increasing urbanization are key drivers for the adoption in retail. Consumer engagement and experience are enhanced through virtual demonstrations, product identification, and touch-free navigation using mobile applications and smart mirrors. Augmented reality technology companies, such as Sephora Virtual Artist, are transforming industries like home goods, beauty and cosmetics, and fashion. AR glasses and smart eyewear offer engaging experiences for consumers, leading to increased customer satisfaction, conversion rates, and brand awareness.

Retailers catering to tech-savvy consumers are embracing digital innovation, providing virtual retail experiences and advanced tracking capabilities. Despite fragmentation and adoption challenges, the future of shopping is expected to be more personalized, interactive, and convenient.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise In the adoption of Augmented Shopping Industry?

Use of AR technology to make advertising more effective is the key driver of the market.

• Augmented reality (AR) technology is revolutionizing the shopping experience for consumers by bridging the gap between the physical and digital worlds. AR enables retailers to offer personalized and interactive product demonstrations, virtual try-ons, and smart navigation, enhancing consumer engagement and brand awareness. Consumers can use mobile applications to scan products for detailed information, virtual visualization, and touch-free interactions. AR technology companies, such as Sephora Virtual Artist, provide advanced tracking and rendering capabilities to create engaging experiences for tech-savvy consumers. It is transforming various industries, including home goods and beauty and cosmetics, by offering virtual demonstrations and product visualization.
• The digital infrastructure supporting AR technology allows for recommendation systems based on user preferences and historical analysis. AR glasses and smart eyewear are the latest innovations in this field, offering a more seamless and convenient shopping experience. Despite the adoption challenges and fragmentation In the market, the potential for increased customer satisfaction, conversion rates, and digital innovation is significant. It provides retailers with valuable component insights and interactive product displays, enhancing the overall shopping experience. The high smartphone penetration and increasing popularity of online shopping are further driving the growth of the market during the forecast period.

What are the market trends shaping the Augmented Shopping Industry?

Growing smartphones and tablets will fuel growth of augmented shopping is the upcoming market trend.

• The integration of augmented reality (AR) technology in mobile devices is revolutionizing consumer engagement and enhancing the shopping experience. With the increasing penetration of smartphones and tablets, AR technology is becoming a key differentiator for retailers seeking to provide engaging and personalized experiences. AR technology enables virtual demonstrations, product identification, and touch-free interaction, fostering customer satisfaction and conversion rates. AR technology companies such as Sephora Virtual Artist offer virtual try-on features for beauty and cosmetics, allowing consumers to visualize how products look on them before making a purchase. AR technology also facilitates advanced tracking and rendering capabilities, enabling interactive product displays and smart mirrors.
• Moreover, AR technology is transforming the digital infrastructure of retailers, enabling component insights and product visualization. Recommendation systems based on user preferences and historical analysis are also becoming more common, enhancing the overall shopping experience. Despite the adoption challenges, the market for AR technology in retail is expected to grow significantly during the forecast period, driven by the fragmented nature of the retail industry and the increasing demand for innovative digital solutions. AR glasses and smart eyewear are also gaining popularity, offering a more engaging shopping experience. Thus, AR technology is a game-changer for retailers seeking to engage tech-savvy consumers and provide a seamless and personalized shopping experience. By integrating AR technology into their digital infrastructure, retailers can offer virtual retail experiences, enhance brand awareness, and improve customer engagement growth.

What challenges does the Augmented Shopping Industry face during its growth?

Privacy and security concerns over AR is a key challenge affecting the industry growth.

• Augmented reality (AR) technology is revolutionizing the retail industry, enhancing consumer engagement and improving the customer experience. AR enables virtual demonstrations of home goods, beauty and cosmetics, and fashion items, allowing for personalized product recommendations based on user preferences. Mobile applications and smart mirrors facilitate touch-free product identification and virtual try-on, while advanced tracking and rendering capabilities provide engaging experiences. AR technology companies, such as Sephora Virtual Artist, are driving digital transformation in retail, increasing consumer traffic and brand awareness. However, privacy concerns persist, as AR collects and processes vast amounts of user data. Retailers must address these challenges through digital infrastructure improvements, user preference-based recommendation systems, and object recognition technology.
• AR glasses and smart eyewear offer further opportunities for innovation, but require careful consideration of privacy and security concerns. The adoption of AR technology in retail is a key component of digital innovation, providing virtual retail experiences that cater to tech-savvy consumers and enhance customer satisfaction, ultimately driving conversion rates.

Exclusive Customer Landscape

The augmented shopping market forecasting report includes the adoption lifecycle of the market, market growth and forecasting, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the augmented shopping market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, augmented shopping market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the industry.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• 3DLOOK Inc.
• Adidas AG
• Alphabet Inc.
• Amazon.com Inc.
• Apple Inc.
• Autumn Rock Ltd.
• Blippar Ltd.
• Carl Zeiss Stiftung
• Else Corp. SRL
• Holition Ltd.
• Houzz Inc.
• Marxent Labs LLC
• Microsoft Corp.
• PTC Inc.
• Qualcomm Inc.
• Samsung Electronics Co. Ltd.
• Shopify Inc.
• VIEWAR GmbH
• Walmart Inc.
• Zugara Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market is experiencing significant growth as retailers seek to enhance consumer engagement and improve the overall customer experience. Augmented reality (AR) technology plays a pivotal role in this digital transformation, offering virtual demonstrations, personalized product recommendations, and touch-free experiences. AR technology enables consumers to visualize products in a more engaging way, leading to increased brand awareness and customer traffic. Home goods and beauty and cosmetics industries have been early adopters of AR, with virtual try-on features and interactive product displays becoming increasingly popular. AR technology companies have developed mobile applications that allow consumers to use their smartphones as AR devices.

These applications offer advanced tracking capabilities, object recognition, and product visualization, making the shopping experience more convenient and engaging. Retailers are also investing in digital infrastructure to support AR technology, including smart mirrors and AR glasses or smart eyewear. These technologies offer virtual try-on capabilities, enabling consumers to see how products look on them before making a purchase. The use of AR technology in retail is not just about product sales but also about enhancing the customer experience. By providing personalized recommendations based on user preferences, retailers can increase customer satisfaction and conversion rates. The adoption of AR technology in retail is not without challenges, however. Consumers can now visualize products like footwear and furniture in real contexts through head-mounted displays and other viewing devices, reducing the need for physical stores.

Fragmentation In the market and the need for advanced rendering capabilities can make implementation complex and costly. Retailers must also consider the needs of tech-savvy consumers, who expect a seamless and intuitive user experience. Historically, the retail industry has been slow to adopt new technologies, but the trend towards digital innovation is accelerating. AR technology offers retailers a way to differentiate themselves and provide engaging experiences that cannot be replicated online. The use of AR technology in retail is not limited to physical stores. E-commerce platforms are also incorporating AR features to enhance the online shopping experience. Recommendation systems that use AR technology can help consumers find products that match their preferences, while virtual retail experiences offer a more engaging and interactive way to shop.

Thus, the market is experiencing significant growth as retailers seek to enhance consumer engagement and improve the overall customer experience. AR technology offers a way to provide engaging experiences, personalized recommendations, and touch-free interactions, making shopping more convenient and engaging for consumers. However, retailers must navigate the challenges of implementation and ensure a seamless user experience to fully realize the potential of this technology.

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What are the Key Data Covered in this Augmented Shopping Market Research and Growth Report?

• CAGR of the Augmented Shopping industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the augmented shopping market growth of industry companies

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