AR Shopping Market Size, Share & Industry Analysis, By Device Type (AR Head Mounted Displays, Smart AR Mirror, and Handheld Devices), By Application (Try on Solution, Planning & Designing, Marketing & Advertisement, and Information Systems), By Market Type (Apparel, Furniture & Lightning, Footwear, Groceries, and Others), By End Use (Retail/In-Store and E-Commerce/Out of Store), and Regional Forecast till 2032

The global AR shopping market is experiencing significant growth due to the rising focus on enhancing the shopping experience to increase product sales. Augmented reality technology improves shopping experiences for various products such as furniture, fashion, and cosmetics. Increasing customer interest in convenient shopping experiences further drives market growth.

The COVID-19 pandemic hampered the expansion of the AR retail market, as prohibitions across countries decreased in-store shopping, declining AR shopping technology's demand. However, following the pandemic, online and offline shopping has increased, which fuels market growth.

AR Shopping Market Driver

Rising Focus on Retail Innovations to Drive Market Growth

Increasing focus on retail innovation is a major driver for the market. Key retailers are increasingly focusing on AR to provide distinctive shopping experiences. Consumer interest in digital solutions is also driving market growth, as tech-savvy individuals are willing to adopt AR technologies. Thus, as AR technology enhances, key market players are making it more accessible to shops, escalating growth in this industry. Rising environmental sustainability trends further drive market growth as virtual try-ons eliminate product samples and returns.

AR Shopping Market Restraint

Requirement for AR-capable Devices and High-Speed Internet to Impede Market Growth

Numerous customers worldwide do not use AR-capable devices, particularly those individuals who use older phones, due to budget limitations or lack of awareness. This factor limits the technology's reach among individuals and impedes market expansion.

Furthermore, AR applications require high-speed internet connectivity for efficient performance. Thus, underdeveloped or rural areas with inefficient internet infrastructure affect market growth.

AR Shopping Market Opportunities

Easy Availability of 5G Connection to Offer New Growth Opportunities

The easy availability of 5G connection presents a significant opportunity for market players. 5G connection improves AR application performance, making it more accessible to users. Furthermore, digital payment growth supports AR buying and virtual try-ons provide retailers with better methods to engage customers. In addition, as physical retail stores focus on new technologies, augmented reality, providing interactive shopping experiences, including 3D renderings will increase.

Segmentation

Key Insights

The report covers the following key insights

• Overview of the Parent/Related Market
• Supply Chain Analysis
• Industry SWOT Analysis
• Porter's Five Forces Analysis
• Recent Technological Advancements 

Analysis by Device Type

Based on device type, the AR shopping market is segmented into AR head-mounted displays, smart AR mirrors, and handheld devices.

The handheld devices segment dominates the market due to the portability and the widespread usage of smartphones with AR applications, improving the purchasing experience for customers.

The smart AR mirrors segment is likely to grow at the fastest CAGR over the forecast period. This is due to the increasing product adoption by fashion and cosmetics retailers for virtual try-ons and appeal to consumers seeking personalized purchasing solutions.

Analysis by Application

Based on application, the AR shopping market is classified into try-on solutions, planning & designing, marketing & advertisement, and information systems.

The try-on solution segment dominates the market due to its high adoption in the fashion, cosmetics, and eyeglasses markets.

The marketing & advertising segment holds the second-largest market share as companies increasingly adopt AR to enhance customer engagement and brand exposure.

Analysis by Market Type

Based on market type, the AR shopping market is categorized into apparel, furniture and lighting, footwear, groceries, and others.

The apparel segment dominates the market, owing to high customer demand for virtual try-ons in clothing markets, where fitting determines buying decisions.

The furniture and lighting segment held the second-largest market share in 2023 as AR allows customers to view products in their preferred settings and is highly useful for home décor.

Analysis by End Use

Based on end use, the AR shopping market is bifurcated into retail/in-store and e-commerce/out-of-store.

The retail/in-store segment accounts for the largest market share, as physical store retailers are increasingly adopting AR to enhance shopping experiences via interactive displays and AR mirrors, hence increasing customer engagement.

The e-commerce/out-of-store segment is expected to grow at the fastest CAGR over the forecast period backed by the rapid rise of e-commerce and increased customer inclination toward comfortable shopping from home.

Regional Analysis

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Based on region, the market is divided into North America, Europe, Asia Pacific, South America, and the Middle East and Africa.

North America holds the largest share of the market due to widespread acceptance of advanced technologies and a strong retail presence. Consumers throughout the region are also very interested in digitally purchasing various products, which provides growth opportunities.

Europe held the second-largest market share in 2023, due to digital transformation in retail and customer focus on convenient shopping experiences. Furthermore, numerous European retailers are increasingly adopting new technologies to remain competitive. Moreover, growing smartphone usage and high internet connections contribute to the regional growth.

In the Asia Pacific region, India’s electronic production surged from USD 37.1 billion in 2015 to USD 67.3 billion in 2020-2021. China and India, leading smartphone and ICT hardware production hubs, are fueling mobile-based AR commerce. India’s 290 million phones are enhancing AR accessibility.

Key Market Players

• Google LLC (U.S.)
• Apple Inc. (U.S.)
• Amazon.com, Inc. (U.S.)
• IKEA (Inter IKEA Systems B.V.) (Netherlands)
• Zara (Inditex Group) (Spain)
• Alibaba Group Holding Limited (China)
• Sephora (LVMH Moët Hennessy Louis Vuitton) (France)
• Snap Inc. (U.S.)
• H&M Group (Sweden)
• Walmart Inc. (U.S.)

Key Industry Development

• In September 2023, Shopify, an e-commerce platform, announced its incorporation of Apple's iOS 17 Object Capture, which assists in AR shopping. This incorporation will assist both companies in building shopper confidence and limiting product returns.