Augmented Shopping: Everything You Need to Know

Posted by Mrudula Anil Karmarkar on January 20th, 2022

The global augmented shopping market size is expected to reach USD 28.68 billion by 2027, registering a Compound Annual Growth Rate (CAGR) of 47.1% from 2020 to 2027, according to the new study conducted by Grand View Research, Inc. The introduction of augmented reality and the application of 3D technologies is revolutionizing the way consumer shops across online and in-store retail environments. The use of interactive technology is gradually replacing the product catalogs, where earlier consumers select their products from the catalogs. Currently, with the help of AR and 3D technology, consumers could choose, interact, and achieve dimensions of the product types ranging from the pairing of apparel to furniture and automotive while buying. Thus, the adaptation of augmented reality technology is revolutionizing the way of personalized consumer shopping experience.

The augmented shopping experience is gaining popularity with the rise in adoption of smartphones and endpoint devices. Currently, more than billions of smartphones can deliver augmented experiences virtually and in-store. According to a survey of retail executives, it was observed that more than 46% of the retail executives are planning to implement immersive technologies to improve customer experiences and provide higher customer satisfaction. Furthermore, recent advancement in AR technologies is expanding the capabilities of the shopping experience. For instance, in April 2020, NexTech AR Solutions Inc., an augmented reality technology solution provider, introduced sentiment analysis capabilities within its “Try-it-On” solution developed for the e-commerce industry. The updated solution uses computer vision technology to analyze shopper’s reactions by reading their facial expressions as they try on different products and further helps them provide recommendations based on sentiments.

Much like the retail and e-commerce vendors, automotive dealers, and auto OEMs have begun experimenting with AR technologies to boost sales. With the implementation of technology, automotive dealers could bridge the gap of displaying their full range of products and configurations in one platform. Using technology, consumers can interact with models by clicking on the banner ad and understanding vehicle parts and features better. For instance, in February 2020, Toyota (GB) PLC introduced an augmented reality app developed in partnership with Brandwidth, a U.K. based digital technology service provider. The application allows its customers to explore the insides of its model. Thus, the integration of technology helps in augmenting sales and improves the consumer shopping experience.

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.

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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.

Augmented Shopping Market Report Highlights

• The solution component segment held the largest market in 2020 with a revenue share of 59.7%, owing to the need to implement featured AR contents and applications across the online and offline store
• The service component segment is projected to register a higher CAGR over the forecast period, owing to the need for effective implementation, training, and support services
• The home goods and furniture application segment accounted for 22.9% market share in 2020, owing to the rise in the digitization of offline stores and the need to showcase their products while providing similar consumer experience digitally
• The North American region dominated the market, accounting for 37.8% revenue share in 2020 and is anticipated to continue its dominance over the forecast period

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.