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The augmented shopping market size is estimated to grow by USD 11.01 billion at a CAGR of 39.87% between 2022 and 2027. The use of augmented reality (AR) technology to make advertising more effective is creating new opportunities for businesses to engage with customers and enhance their marketing campaigns. The rising market penetration in developing economies is opening up new markets for businesses, allowing them to reach a larger customer base and drive growth. The ease of handling customer-front operations, such as customer service and sales, is improving the overall customer experience and helping businesses attract and retain customers.
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This market report extensively covers market segmentation by component (software and services), application (automotive, home goods and furniture, beauty, and cosmetics, apparel fittings, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The software segment is estimated to witness significant growth during the forecast period. The global augmented shopping market is a rapidly growing industry that combines augmented reality (AR) technology with shopping experiences. Augmented shopping software plays a crucial role in enabling these immersive and interactive experiences for users. Here are some key segments within the software aspect of the global augmented shopping market such as Augmented Reality (AR) Platforms, Mobile Applications, E-commerce Integration Software, and Computer Vision and Image Recognition. The above-mentioned segments represent various aspects of augmented shopping software, each playing a crucial role in delivering immersive, interactive, and personalized shopping experiences to consumers worldwide, which will drive the growth of the segment of the global augmented shopping market in the forecasted period.
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The software segment was the largest segment and was valued at USD 359.04 million in 2017. In addition, E-Commerce Integration is also helpful as it incorporates AR/VR features into popular e-commerce platforms, helping companies to enhance their online platforms. This could involve giving a more realistic preview of goods and services. 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. All of these factors are likely to have a positive impact on the growth of the software segment of the augmented shopping market during the forecast period.
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North America is estimated to contribute 32% 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. The North American market for augmented shopping had the largest share of the global market in 2022 and had the highest growth rate compared to other regions. The region is witnessing an increase in demand for the market due to highly advanced technological infrastructure particularly in the US and Canada, increasing urbanization, and higher levels of disposable income. The demand for a realistic and superior quality consumer experience along with retail companies following this trend has increased the adoption of AR technology into the shopping experience.
Additionally, there is a presence of tech-savvy consumers and an increasing number of retail companies such as Nike and Guccio Gucci S.p.A (Gucci) that adopts technology for consumer awareness and for more engaging consumer interaction. There is also the collaboration of fashion brands and application developers such as Nike partnering with AR platform providers 8th Wall and BDRG Studios in Jan 2022 for a prize giveaway for participating in web-based AR games in their stores. Such innovative strategies are likely to further drive the growth of the regional augmented shopping market during the forecast period.
The market is evolving with the integration of AR technology into the retail sector, offering innovative solutions for product sales and enhancing the shopping experience. AR glasses and devices enable virtual try-on solutions and virtual demonstrations, allowing customers to visualize products in their physical reality. With AR-enabled navigation and smart mirrors, shoppers can access sensory information and interact with digital objects in stores. This technology is driving M-commerce and reducing queuing time, making shopping more engaging and efficient. Our researchers analyzed the data with 2022 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.
The use of AR technology to make advertising more effective is significantly driving market growth. The utilization of augmented reality (AR) enables companies to bridge the gap between the physical and digital worlds. This offers companies the opportunity to facilitate real-time interactions between consumers and the brand, fostering a deeper connection. Additionally, AR opens avenues for engaging advertisements that cater to customer preferences and needs more effectively.
With AR technology, consumers can simply point their smartphone towards a product to access all relevant information, enhancing their shopping experience. This seamless integration of digital components into the physical world is poised to drive the growth of the global market in the forecast period.
The growing number of smartphones and tablets fueling the growth of is a key trend in the market. Integration of mobile devices with inbuilt AR technologies for enhanced user experience and the increasing penetration of smartphones and tablets will increase the growth of the augmented shopping market during the forecast period. For example, Android phones that use a Google lens are integrated with AR technology that provides the option to generate a 3D view of an object in the smartphone.
Moreover, it also has additional enhanced features including the ability to set the object in a home setting in a room of preference before purchase of the product, and also gives more product information. Additionally, other features like increasing disposable income, higher rates of urbanization, and higher Internet penetration are also likely to contribute to the growth of the market during the forecast period.
The privacy and security concerns over AR are challenging the market growth. Despite companies advancing IT security and privacy, concerns regarding private data collection of users are a critical challenge. This is most emphasized in the retail industry where access to large-scale personal data, including social media and networking data can leave users feeling a threat to their privacy.
Moreover, AR devices such as Sony PlayStation VR, HTC Vive Series, etc by default screen and process the user’s environment which directly violates consumer privacy. These factors may pose a hindrance to the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Microsoft Corp. - The company offers augmented shopping through custom-tailored virtual try-on store in Microsoft Istanbuls Technology Center.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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 market 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.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing significant growth with the rise of AR solutions in retail. Retailers are leveraging AR content and application developers and AR device manufacturers to enhance the shopping experience. Companies like Fynd and GlamAR are leading the way as E-commerce AR solution providers, offering cost-efficient benefits. 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. Despite challenges like high set-up costs, the market continues to expand, driven by investment and the desire for virtual tours and space visualization.
This technology revolutionizes shopping, offering immersive experiences like virtual images and visual elements. Consumers can now explore products like furniture and lighting in a real-world context using head-mounted displays. Despite high set-up and installation costs, investments continue to pour in due to the market's potential. Grocery shopping is also being transformed, with AR enabling innovative information overlay and layering techniques. The Augmented Shopping Market integrates head-mounted displays to position market players in the real world of various retail types, although there are some restraints to overcome, especially in terms of sound integration.
Augmented Shopping Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 39.87% |
Market growth 2023-2027 |
USD 11.01 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
39.05 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 32% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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., and Zugara Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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