Augmented Shopping Market Size, Share & Trends Analysis Report By Component (Solutions, Services), By Application (Home Goods & Furniture, Beauty & Cosmetics), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global augmented shopping market size was valued at USD 1.24 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 47.1% from 2020 to 2027. The need for improved engagement and interaction with the consumers while providing higher customer experience is surging the adoption of augmented reality shopping across various industries. The increasing importance of AR in the retail industry as it helps increase the perceived value of products and brands and thereby improves product sales has driven the preference for AR shopping. Furthermore, the need for a virtual demonstration of products and enhance enterprise brand awareness to reach a wider audience is driving market growth. More significant customer experience and higher customer satisfaction are some of the major factors which help retailers to increase their brand sales.

To improve branding and customer satisfaction, retailers often customize and filter out their contents to provide relatable products to customers with reduced efforts. The personalization of products and product enhancements has gained importance with the application of augmented reality. Furthermore, the increasing adoption of smartphones and growing m-commerce has become one of the major sources for implementing augmented technology to provide an augmented shopping experience to the customers.

Retailers are increasingly implementing AR technology in mobile applications to deliver personalized augmented navigation and greater customer engagement in stores. The integration of technologies in applications helps consumers to search and identify products according to their individual needs. In addition to the personalized product identification features, the application further helps shoppers to navigate from the product search option to the product shelf location with ease. Using such AR-enabled navigation features it helps shoppers to shop products based on their preferences and shopping lists. This, in turn, allows consumers to discover and experience products with ease, thus increasing product sales.

The implementation of AR technology also offers ample opportunities for retailers and automobiles to augment their product characteristics and provide virtual try-on solutions to the customers. The increased queuing time before the trial rooms reduce customer buying experience and retail sales. As a result, retailers have begun implementing AR technology in the smart mirrors or virtual mirrors wherein; it provides shoppers with a screen to try-out products easily without waiting in the queue. The AR virtual mirrors are the digital screens that provide product characteristics such as dress sizes, colors, and many more. One can check their apparel fittings for the surrounding environment. Thus, reduction in queuing time with improved try-on features is anticipated to augment the market growth.

The popularity of augmented shopping applications surged into the limelight as the pandemic impact of COVID-19 forced consumers to confine within their homes. With the increasing cases of coronavirus infected patients, retailers have been forced to implement zero-touch experience so as to increase their sales. As a result, retailers adopt augmented reality technology to provide consumers with a touch-free try-on shopping experience. For instance, in June 2020, Fynd, a fashion e-commerce portal, introduced GlamAR, a virtual try-on beauty solution where it allows consumers to personalize their shopping as per their skin tone and facial features. According to research published by Vertebrae Inc., a web-based 3D AR product visualization platform, retailers that use AR technology have received a growth in 19% of customer engagement and a 90% conversion rate in 2020 in comparison to 2019.

Component Insights

The solutions segment held the largest market in 2019, accounting for over 59.7% of the overall revenue share. The growing demand for virtual mirrors, AR headsets, smart glasses, and AR-enabled applications to view and try-in products is surging the segment growth. Furthermore, the growing need to personalize AR contents and develop 3D content to improve catalogs and marketing applications to drive sales uplifts the segment growth.

The services component segment is expected to gain traction over the forecast period and expand at a CAGR of 48.3% over the forecast period. The need for required consulting and training services on implementing solutions is driving the growth. Furthermore, the AR technology vendors conduct feasibility and assess the infrastructure requirements for implementing technology across offline and online stores. The vendors also offer support services to retailers to ensure the effective utilization of technology.

Application Insights

The home goods and furniture segment held the largest share, accounting for over 22.9% revenue share in 2019. The segment is expected to grow at a significant rate over the forecast period. The growing adoption of augmented reality for online furniture shopping experience is the major factor contributing to the segment growth. With the application of AR apps, consumers could place furniture virtually at their desired location, thus providing a personalized experience.

The beauty and cosmetics segment is expected to expand at a higher CAGR of 48.4% over the forecast period. The increasing implementation of AR technologies to provide real-time and live try-in solutions is surging the segment growth. The technology allows shoppers to try new looks and thereby, enhances consumer buying experiences. The beauty retailers are continuously investing in technologies to match appropriate colors digitally and overcome the challenges of color fidelity and facial recognition and thus, the segment is anticipated to witness significant growth over the forecast period.

Regional Insights

The North America region held the largest revenue share of 37.8% in 2019. The region exhibits the largest investment in AR technology as compared to other regions. Furthermore, growth in e-commerce sectors and the presence of large retailers in the U.S. and Canada is the other factor that contributes to the growth of the overall segment. Additionally, growing trends towards digital transformation in the retail industry in the region are expected to drive the market growth.

Asia Pacific is anticipated to expand at the fastest CAGR of 50.2% over the forecast period. The growing adoption of smartphones and mobile commerce is one of the factors contributing to regional growth. Furthermore, the growing implementation of AR technology across e-commerce portals to drive sales and boost customer experience is the other factor responsible for regional growth. Additionally, the presence of a large retail industry in China and investments in AR technology in countries such as Japan and South Korea is projected to proliferate the market growth over the forecast period.

Key Companies & Market Share Insights

The market is fragmented in nature owing to the presence of various types of players operating across the value chain. The market comprises vendors including AR device manufacturers, AR software vendors, AR content and application developer, and larger and smaller e-commerce AR solution provider. These vendors are actively involved in research and development of AR technology for the applications of retail branding, marketing, and promotions to boost shopping experiences. The retail vendors implement technologies to improve product searches and viewing experiences before buying. As a result, drives higher consumer traffic over shops and online sites. The need to drive consumers from product selection to product purchasing efficiently is driving the retailers to adopt AR solutions. To maintain their competitiveness in the market, retail vendors are collaborating with technology partners to integrate AR across the platforms. For instance, in 2017, Sephora, a France based personal beauty and care store in collaboration with Modiface Inc., an AR technology developer for the retailers introduced Sephora Virtual Artist. The solutions allow shoppers to try-on beauty and makeup products using the smartphone camera virtually. Some of the prominent players in the augmented shopping market include:

• Apple Inc.

• Augment

• Blippar Ltd

• Google LLC

• Holition Ltd.

• Imaginate Technologies

• Marxent Labs LLC

• Microsoft

• PTC

• ViewAR GmbH

• Wikitude GmbH

• Zugara, Inc.

Augmented Shopping Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global augmented shopping market report on the basis of component, application, and region:

• Component Outlook (Revenue, USD Million, 2016 - 2027)

  • Solutions

  • Services

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Automotive

  • Home Goods & Furniture

  • Beauty & Cosmetics

  • Apparel Fittings

  • Grocery Shopping

  • Footwear

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

  • Latin America

  • MEA