PUBLISHER: The Business Research Company | PRODUCT CODE: 1849609
PUBLISHER: The Business Research Company | PRODUCT CODE: 1849609
Augmented reality (AR) shopping leverages AR technology to enhance the consumer shopping experience by merging virtual elements with the real world. It enables users to visualize products in 3D, try on items virtually, and interact with digital features through smartphones or AR glasses, creating a more immersive, personalized, and engaging shopping journey, particularly in eCommerce and retail settings.
The key offerings in AR shopping include hardware, software, and services. Hardware encompasses devices such as headsets, smart mirrors, and handheld devices that facilitate AR experiences. The technology is categorized into marker-based AR and markerless AR and is applied across various industries, including automotive, home goods and furniture, beauty and cosmetics, apparel fittings, grocery shopping, and footwear. AR shopping is utilized in both retail and in-store settings as well as in eCommerce and out-of-store experiences.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The augmented reality (AR) shopping market research report is one of a series of new reports from The Business Research Company that provides augmented reality (AR) shopping market statistics, including augmented reality (AR) shopping industry global market size, regional shares, competitors with a augmented reality (AR) shopping market share, detailed augmented reality (AR) shopping market segments, market trends and opportunities, and any further data you may need to thrive in the augmented reality (AR) shopping industry. This augmented reality (AR) shopping market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The augmented reality (ar) shopping market size has grown exponentially in recent years. It will grow from $6.11 billion in 2024 to $8.03 billion in 2025 at a compound annual growth rate (CAGR) of 31.4%. The growth in the historic period can be attributed to government investments in augmented reality, consumer demand for immersive shopping experiences, rising e-commerce adoption globally, growth of online social commerce, need for personalized shopping solutions.
The augmented reality (ar) shopping market size is expected to see exponential growth in the next few years. It will grow to $24.05 billion in 2029 at a compound annual growth rate (CAGR) of 31.6%. The growth in the forecast period can be attributed to increase in millennial and gen z spending power, growth of ai for augmented reality shopping personalization, increasing importance of sustainable shopping, surge in direct-to-consumer retail channels, increase in smart phone penetration. Major trends in the forecast period include partnerships between tech firms and retail brands, integration of augmented reality in e-commerce platforms, development of augmented reality glasses for hands-free shopping, introduction of gamification in augmented reality shopping, development of 3d product catalogs with augmented reality.
The forecast of 31.6% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. U.S. AR shopping applications may encounter setbacks as tariffs push up the cost of real-time rendering engines and AI-based personalization modules sourced from global providers. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growing accessibility of smartphones is anticipated to drive the expansion of the augmented reality (AR) shopping market. High smartphone adoption is attributed to their affordability, multifunctionality, and seamless connectivity, catering to diverse consumer needs within a single compact device. Smartphones facilitate AR shopping by enabling users to visualize products in real-time, enhancing online shopping experiences with interactive and immersive features. For example, in February 2024, Uswitch Limited, a UK-based provider of comparison and switching services, reported that the UK had 71.8 million mobile connections at the start of 2022, surpassing the population by 4.2 million and reflecting a 3.8% increase (approximately 2.6 million) from 2021. By 2025, the UK population is projected to reach 68.3 million, with an estimated 95% (around 65 million people) expected to be smartphone users. As a result, the increasing availability of smartphones will continue to drive growth in the AR shopping market.
Leading companies in the AR shopping market are focusing on the development of advanced technological solutions, such as AR shopping tools, to enhance immersive and interactive shopping experiences. AR shopping tools leverage augmented reality to overlay digital information or virtual product representations onto real-world environments, allowing for interactive visualization and customization. For instance, in June 2022, Burberry, a UK-based luxury fashion house, introduced an AR viewer as part of its augmented reality shopping experience. The AR feature on Burberry.com enables customers to engage with the brand's signature bag by virtually placing a true-to-scale 3D model within their surroundings. Using a smartphone, shoppers can scan their environment to position the bag in real-world settings, such as on a table next to personal items for size comparison or against an outfit to assess color contrast, replicating an in-store shopping experience.
In November 2022, Snap Inc., a US-based technology company, partnered with Amazon to enhance AR shopping through the Snapchat app. This collaboration brings augmented reality-powered Virtual Try-On to Snapchat's 363 million daily active users, allowing them to digitally try on eyewear from brands such as Maui Jim, Persol, Oakley, Ray-Ban, and Costa Del Mar. Leveraging Snap's Lens Web Builder and Amazon's 3D models, the partnership enables scalable AR asset creation, improving the shopping experience for Amazon Fashion within Snapchat. Amazon Inc. is a US-based provider of augmented reality (AR) shopping solutions.
Major players in the augmented reality (ar) shopping market are Amazon.com Inc., Apple Inc., Google LLC, Microsoft Corporation, Meta Platforms Inc., Inter Ikea Systems BV, Qualcomm Technologies, Inc., Wayfair Inc., Seiko Epson Corporation, Burberry Group Plc, PTC Inc., Converse Inc., Warby Parker Inc., Houzz Inc., Magic Leap Inc., Rebecca Minkoff LLC, StayinFront Inc., 3D Cloud by Marxent (Marxent Labs LLC), Blippar Ltd., Vuzix Corporation, Wikitude GmbH, Holition Ltd., ViewAR GmbH, Zugara Inc., and Imaginate Technologies.
North America was the largest region in the augmented reality (AR) shopping market in 2024. The regions covered in augmented reality (AR) shopping report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the augmented reality (AR) shopping market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The augmented reality (AR) shopping market consists of revenues earned by entities by providing services such as personalized recommendations, customer support, and gamification of shopping experiences. The market value includes the value of related goods sold by the service provider or included within the service offering. The augmented reality (AR) shopping market also includes sales of interactive product customization tools, shopping apps, advertising displays, and navigation tools for retail stores. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Augmented Reality (AR) Shopping Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on augmented reality (ar) shopping market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for augmented reality (ar) shopping ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The augmented reality (ar) shopping market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.