The global market for Augmented Reality (AR) in retail was valued at US$19.9 billion in 2024 and is projected to reach US$64.4 billion by 2030, growing at a CAGR of 21.6% from 2024 to 2030.
The growth of AR in retail is driven by technological advancements, changing consumer expectations for personalised shopping and the need for retailers to differentiate themselves in a competitive market. Advances in mobile technology, faster Internet speeds and the widespread adoption of smartphones have made AR more accessible and functional for consumers.
Today’s customers expect a seamless, engaging shopping experience and AR fulfils this by offering personalised interactions, whether they are shopping online or in-store. The rise in e-commerce has further accelerated the adoption of AR, as retailers seek innovative ways to bring interactivity and customer engagement to online platforms.
Additionally, AR’s ability to reduce product returns by helping customers make more informed purchases has made it a valuable tool in cost savings and customer satisfaction. Retailers are increasingly using AR as a branding tool as well, offering unique, interactive experiences that set them apart from competitors, attract a younger audience and create memorable brand interactions.
The COVID-19 pandemic has also fuelled the growth of AR, as it prompted retailers to innovate and provide virtual shopping alternatives during periods of restricted in-store access.
