Augmented Reality (AR) Shopping Market Outlook for 2024 to 2034

The augmented reality (AR) shopping market is estimated to be valued at USD 4.9 billion in 2024. The augmented reality (AR) shopping is predicted to rise at a CAGR of 28% from 2024 to 2034. The global augmented reality (AR) shopping market is anticipated to reach USD 58 billion by 2034.

The widespread use of smartphones and other mobile devices makes AR shopping solutions accessible to a large audience. Consumers can easily engage with AR experiences without the need for specialized hardware, contributing to the broad adoption of these solutions.

As online shopping continues to grow, AR solutions are integrated into e-commerce platforms and mobile applications. This integration allows consumers to access AR features seamlessly, making it convenient for them to experience augmented reality while browsing products online.

The integration of AI technologies with AR shopping can enhance personalization and recommendation systems. AI algorithms can analyze user preferences, behaviors, and purchase history to deliver more accurate and tailored AR shopping experiences.

Continued advancements in AR technology, including more sophisticated tracking, rendering, and object recognition capabilities, will contribute to enhanced AR shopping experiences. The technology's ability to seamlessly integrate with the real world is expected to improve.

Attributes Key Insights
Estimated Market Size in 2024 USD 4.9 billion
Projected Market Value in 2034 USD 58 billion
Value-based CAGR from 2024 to 2034 28%

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2019 to 2023 Historical Analysis vs. 2024 to 2034 Market Forecast Projections

From 2019 to 2023, the augmented reality (AR) shopping market experienced a CAGR of 30.8% in market value. The progress in AR technology, specifically in the domains of enhanced tracking, rendering capabilities, and user interfaces, has played a pivotal role in creating smoother and seamless AR shopping experiences.

The prevalent use of smartphones and the existence of advanced digital infrastructure further enhance the favorable conditions for the integration of AR in the shopping landscape. Fashion and beauty brands increasingly adopted virtual try-on solutions, allowing users to try on clothing, accessories, and makeup virtually. E-commerce platforms and major retailers integrated AR features into their apps and websites to differentiate themselves and attract tech-savvy consumers.

AR shopping is likely to extend beyond fashion and furniture to encompass a broader range of product categories. Virtual try-on experiences and product visualization will likely become more prevalent in areas such as electronics, home appliances, and even groceries. Projections indicate that the global augmented reality (AR) shopping market is expected to experience a CAGR of 28% from 2024 to 2034.

Historical CAGR from 2019 to 2023 30.8%
Forecast CAGR from 2024 to 2034 28%

 Augmented Reality (AR) Shopping Market Growth Driver

  • The increasing demand for virtual try-on solutions in the fashion and beauty industries to boost market growth.
  • The growing trend of online shopping.
  • The growing demand for personalized shopping experience.
  • The growing integration of AR features by e-commerce platforms and retailers in their websites and apps.
  • The concept of virtual retail experiences, where users can explore digital stores and products in a virtual environment, contributes to the rapid growth of AR shopping.
Sudip Saha
Sudip Saha

Principal Consultant

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Augmented Reality (AR) Shopping Market Key Challenges

  • Implementing AR solutions, especially for smaller businesses, can be costly. The initial expenses may hinder widespread adoption, particularly among smaller retailers.
  • Issues such as accurate object recognition, real-time rendering, and seamless integration with various devices can impact the overall effectiveness of AR shopping experiences.
  • Not all consumers are aware of or comfortable with AR shopping experiences.
  • The AR market is characterized by a variety of platforms, devices, and software solutions. This fragmentation can pose challenges for developers and retailers aiming to create a seamless and standardized AR shopping experience across different platforms and devices.
  • Retailers may face challenges in creating engaging and accurate AR experiences for their entire product catalog.

Country-wise Analysis

The following table shows the top five countries by revenue, led by South Korea and the United Kingdom. The growing demand for personalized and immersive shopping experiences in the United Kingdom contributing to the growth of AR in Shopping.

The widespread use of smartphones and advanced digital infrastructure creates a favorable environment for the adoption of AR shopping experiences in South Korea.

Countries The Forecast CAGRs from 2024 to 2034
The United States 28.4%
The United Kingdom 29.3%
China 28.6%
Japan 28.7%
South Korea 31.3%

Growing Number of Tech-Savvy Consumers Drives the Growth of the Market in the United States

The augmented reality (AR) shopping market in the United States is expected to grow with a staggering CAGR of 28.4% from 2024 to 2034. The growth of the market in the country is attributed to the presence of tech-savvy consumers who are early adopters of new technologies.

The willingness of consumers to embrace innovative shopping experiences, including AR, contributes to the growth of the market. The well-established and highly competitive e-commerce market drives the market growth in the United States.

Many retailers and e-commerce platforms in the country are integrating AR features to enhance the online shopping experience, providing consumers with virtual try-on options and interactive product visualizations. Prominent retailers and brands in the United States are increasingly adopting AR shopping solutions to differentiate themselves and stay competitive.

High Mobile Penetration in China to Boost the Market Demand

The augmented reality (AR) shopping market in China is expected to grow with a CAGR of 28.6% from 2024 to 2034. High smartphone penetration in China provides a favorable environment for the adoption of mobile AR applications. Consumers can easily access AR shopping features on their mobile devices, contributing to widespread adoption.

China has a massive and rapidly growing e-commerce market, with platforms like Alibaba's Taobao and JD.com leading the way. These platforms have been quick to adopt AR shopping features to enhance the online shopping experience, including virtual try-on and product visualization.

Rising Application in the Fashion Industry propels Market Growth in the United Kingdom

The augmented reality (AR) shopping market in the United Kingdom is expected to grow with a CAGR of 29.3% from 2024 to 2034. The United Kingdom is a major hub for fashion and retail, and the industry's influence contributes to the adoption of AR shopping solutions. Virtual try-on experiences for clothing, accessories, and beauty products are particularly popular in the country.

The United Kingdom government's support for innovation and technology adoption can create an environment conducive to the growth of AR shopping. Policies and initiatives that promote digital innovation may contribute to the market's expansion.

Increasing Demand in the Retail Industry Drives Market Growth in Japan

The augmented reality (AR) shopping market in Japan is expected to grow with a CAGR of 28.7% from 2024 to 2034. E-commerce platforms and retailers in Japan are integrating AR features to enhance the online shopping experience. Virtual try-ons, product visualizations, and AR-powered advertisements are becoming more common in Japan.

Japan has a dynamic retail industry that values innovation. Retailers in the country are increasingly adopting technology, including AR, to enhance the customer experience and stay competitive.

Growing Popularity of E-Commerce to Drive Market Growth in South Korea

The popularity of e-commerce in South Korea, along with the presence of major e-commerce platforms, has led to the integration of AR features. AR shopping solutions, including virtual try-ons and interactive product displays, enhance the online shopping experience. The augmented reality (AR) shopping market in South Korea is expected to grow with a CAGR of 31.3% from 2024 to 2034.

Developments in AR glasses and smart eyewear contribute to the demand for AR shopping experiences. The potential adoption of AR glasses in South Korea may open up new possibilities for immersive and hands-free shopping interactions.

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Category-wise Insights

The below section shows the leading segment. The solutions segment accounts for a CAGR of 27.8% from 2024 to 2034. Based on application, the automotive segment is anticipated to hold a dominant share through 2034. It is set to exhibit a CAGR of 27.5% from 2024 to 2034.

Category CAGR
Solutions 27.8%
Automotive 27.5%

Solutions Segment to Remain Prominent Throughout the Forecast Period

Based on components, the solutions segment is anticipated to thrive at a CAGR of 27.8% from 2024 to 2034. AR shopping solutions provide a highly engaging and interactive experience for customers. Shoppers can visualize products in their real-world environment, try them virtually, and interact with digital content, leading to a more immersive and enjoyable shopping experience.

Virtual try-on solutions, particularly in the fashion and beauty industries, allow customers to see how clothing, accessories, or makeup will look on them before making a purchase. This feature addresses uncertainties related to size, fit, and style, increasing confidence in online shopping.

By offering virtual try-on experiences, AR shopping solutions help reduce the likelihood of returns due to mismatched expectations. Customers are more likely to make informed decisions, leading to higher conversion rates and improved overall customer satisfaction.

Automotive Segment to Account for High Revenue Share

Based on application, the automotive segment is projected to rise at a 27.5% CAGR through 2034. AR shopping in automotive applications provides an immersive and interactive user experience. It allows drivers and passengers to access real-time information, navigation guidance, and contextual data, making the driving experience more engaging and enjoyable.

AR is commonly used in Head-Up Displays, where relevant information is projected onto the windshield, allowing drivers to receive crucial data without taking their eyes off the road. This includes navigation instructions, speed, and other important vehicle information.

Automotive manufacturers leverage AR for virtual showrooms and product customization. Customers can use AR apps to visualize different car models, explore interior options, and even virtually test-drive vehicles, enhancing the pre-purchase experience.

Competitive Landscape

The market players are investing in the development of advanced AR features, such as virtual try-ons, interactive product visualizations, and AR-powered navigation, to provide users with compelling and immersive experiences.

The leading players are collaborating with retailers, e-commerce platforms, and fashion brands to integrate AR shopping solutions directly into their platforms, enhancing the overall shopping experience for consumers.

  • 3D Cloud by Marxent is thrilled to unveil the early access program for the much-anticipated 3D Cloud Room Scanner. Retailers can now apply for early access and become pioneers in adopting this groundbreaking technology.
  • Leveraging LiDAR, our 3D Cloud Room Scanner accurately captures room measurements and seamlessly integrates them into our 3D Cloud Room Planner. This empowers retailers to design spaces with real, purchasable products, revolutionizing the way they approach room planning and enhancing the overall customer experience.

Report Scope

Attributes Details
Estimated Market Size in 2024 USD 4.9 billion
Projected Market Valuation in 2034 USD 58 billion
Value-based CAGR 2024 to 2034 28%
Forecast Period 2024 to 2034
Historical Data Available for 2019 to 2023
Market Analysis Value in USD billion
Key Regions Covered North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East and Africa
Key Market Segments Covered Component, Application, Region
Key Countries Profiled The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Key Companies Profiled Apple Inc.; Augment; Blippar Ltd; Google LLC; Holition Ltd.; Imaginate Technologies; Marxent Labs LLC; Microsoft; PTC; ViewAR GmbH; Wikitude GmbH; Zugara Inc.

Augmented Reality (AR) Shopping Market - Key Segments

By Component:

  • Solution
  • Services

By Application:

  • Automotive
  • Home Goods & Furniture
  • Beauty & Cosmetics
  • Apparel Fittings
  • Grocery Shopping
  • Footwear
  • Others

By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • South Asia and Pacific
  • East Asia
  • Middle East and Africa

Frequently Asked Questions

What is the expected worth of the augmented reality (AR) shopping market in 2024?

As of 2024, the market for augmented reality (AR) shopping is expected to be valued at USD 4.9 billion.

What is the anticipated market value for augmented reality (AR) shopping in 2034?

By 2034, the market value of augmented reality (AR) shopping is expected to reach USD 58 billion.

What is the projected forecast CAGR for the augmented reality (AR) shopping market from 2024 to 2034?

From 2024 to 2034, the augmented reality (AR) shopping market is expected to flourish at a CAGR of 28%

Based on the component, which segment dominates the augmented reality (AR) shopping market?

The solutions segment is expected to account for a CAGR of 27.8% from 2024 to 2034.

Which country is likely to be at the pinnacle of the market?

South Korea is likely the top-performing market, with a CAGR of 31.3%.

Table of Content
	1. Executive Summary
	2. Market Overview
	3. Market Background
	4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
	5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Component
		5.1. Solutions
		5.2. Services
	6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
		6.1. Automotive
		6.2. Home Goods & Furniture
		6.3. Beauty & Cosmetics
		6.4. Apparel Fittings
		6.5. Grocery Shopping
		6.6. Footwear
		6.7. Others
	7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
		7.1. North America
		7.2. Latin America
		7.3. Western Europe
		7.4. Eastern Europe
		7.5. South Asia and Pacific
		7.6. East Asia
		7.7. Middle East and Africa
	8. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
	9. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
	10. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
	11. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
	12. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
	13. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
	14. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
	15. Key Countries Market Analysis
	16. Market Structure Analysis
	17. Competition Analysis
		17.1. Apple Inc.
		17.2. Augment
		17.3. Blippar Ltd
		17.4. Google LLC
		17.5. Holition Ltd.
		17.6. Imaginate Technologies
		17.7. Marxent Labs LLC
		17.8. Microsoft
		17.9. PTC
		17.10. ViewAR GmbH
		17.11. Wikitude GmbH
		17.12. Zugara Inc.
	18. Assumptions & Acronyms Used
	19. Research Methodology
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