The augmented reality (AR) in retail market is predicted to reach $1.15bn in 2018 and expected to reach nearly $8bn by 2023, representing a CAGR of more than 47% during the forecast period, according to a report by Research and Markets.
The report found that the AR in retail growth will be driven by the increasing use of online shopping, especially by consumers using smartphones and other Internet of Things (IoT) connected devices. Fierce online competition among retailers has meant that companies have had to innovate and using AR has proven to be a successful strategy to sustain and grow a consumer base today.
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Among the early adopters of AR technology are furniture retailers, such as Ikea or Wayfair, who use AR to showcase products in a way that appeals to younger customers. Smart AR mirrors are used increasingly for virtual apparel as a try-before-you-buy option, particularly in jewelry stores where the technology has experienced substantial growth.
According to Research and Markets, North America is anticipated to lead the AR in retail market in 2018, as more than 95% of investments into the technology have been made in the region, while APAC is expected to experience the highest growth during the forecast period.
Commenting on the trend, ResearchAndMarkets stated: "Conventional strategies of advertising and marketing, as well as transactional sales, have been greatly revolutionized with the addition of innovative technological advancements; together, these progressions have uplifted the retail industry."