Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Augmented Reality in Retail Market size was over USD 5.32 billion in 2024 and is poised to exceed USD 521.89 billion by 2037, growing at over 42.3% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of augmented reality in retail is evaluated at USD 7.23 billion.
The growth of the augmented reality in retail market can be attributed to the rapid evolution in the technology of augmented reality (AR), after the successful adoption virtual reality (VR) amongst various end-user industries. Augmented reality provides a virtual interactive experience by computer-generated perceptual information, in the real world, by targeting multiple sensory features, including visual, auditory, haptic, somatosensory, and olfactory experiences. Augmented reality in retail is used to provide virtual sale opportunities to the sellers by letting the consumers experience the product digitally, at their home, which is estimated to boost the market growth. Moreover, the COVID-19 pandemic had negatively affected the sales of automobiles, electronics, and other end-use products, as people could not go to retail store or showrooms to check-out the product before buying. According to the data by the International Energy Agency (IEA), the global sale of automotive dropped 16% between 2019 and 2020, due to the COVID-19 crisis. Along with this, the growing investment in the advancement of technology, and the adoption of advanced technologies to encourage sales of products, are anticipated to boost the augmented reality in retail market growth. According to the Technology and Innovation Report 2021 by The United Nations Conference on Trade and Development (UNCTAD), frontier technologies, including AI, IoT, and AR innovation hold a share of USD 350 billion, as of 2018, which is estimated to reach USD 3.2 trillion by 2025.
