Virtual Reality Retail Market

Increasing penetration of smartphones is driving the market growth

Market CAGR for virtual reality in retail is being driven by the rising usage of smartphones. Technology advancements have allowed consumers to view virtual images immersed in real-world circumstances, and smartphone usage is rising. For instance, Wikitude, a provider of

mobile augmented reality

technology, predicts that by May 2021, 32% of consumers will frequently use augmented reality, while 73% of smartphone AR users will be extremely satisfied with their experiences. 

These statistics on augmented reality in retail show how the market has accepted the technology and is growing quickly. Also, features like space visualization and virtual tours, which enable customers to experience a store or a property virtually before visiting it in person, contribute to the expanding use of smartphones for augmented reality in retail. Moreover, color-matching augmented reality shopping apps are frequently used to combine colors and develop the best palette for a space or a look.

Businesses have much to gain from the potential of mixed reality technologies like AR and VR to provide customers with new ways to interact with their brands, whether by transporting them to a different world or enhancing the one they are in now. Augmented reality, which enables shoppers to see and try out products before buying them, has been more well-liked in recent years due to developments in mobile technology. Hence, numerous retail brands are investing in the technologies. For instance, GOAT debuted their ground-breaking "Try-On" augmented reality feature, which enables buyers to virtually try on rare and expensive shoes before making a purchase.

Thus, the increased investment in AR and VR technologies by global retail enterprises is anticipated to fuel the growth of virtual reality in the retail market over the forecast period. Thus, driving the virtual reality in retail market revenue.

The Global Virtual Reality in Retail Market Industry is witnessing expansion into emerging markets, which serves as a significant driver for growth. Retailers are increasingly recognizing the potential of VR to reach new customer segments in diverse geographical locations. As internet penetration and smartphone usage rise globally, the accessibility of VR technology improves, allowing retailers to tap into previously underserved markets. This expansion is likely to contribute to the overall market growth, as evidenced by the increasing number of VR applications tailored for different cultural contexts. The global nature of this trend indicates a promising future for VR in retail.

The Global Virtual Reality in Retail Market Industry is experiencing rapid growth due to continuous technological advancements. Innovations in VR hardware and software are enhancing user experiences, making virtual shopping more immersive and interactive. For instance, companies are integrating augmented reality features that allow customers to visualize products in their own environments. This trend is likely to attract more retailers to adopt VR solutions, as evidenced by the projected market size of 3.97 USD Billion in 2024. As technology evolves, the potential for creating personalized shopping experiences increases, thereby driving consumer engagement and satisfaction.

Enhanced customer engagement is a pivotal driver for the Global Virtual Reality in Retail Market Industry. Retailers are utilizing VR to create captivating experiences that draw customers into their stores, both physical and virtual. By offering interactive product demonstrations and immersive storytelling, brands can forge deeper connections with consumers. This approach not only boosts brand loyalty but also encourages repeat purchases. As the market evolves, the integration of VR into marketing strategies is likely to become more prevalent, further solidifying its role in enhancing customer engagement and satisfaction across various retail sectors.

Consumer preferences are shifting towards more engaging and personalized shopping experiences, which is a key driver for the Global Virtual Reality in Retail Market Industry. Shoppers increasingly seek unique experiences that traditional retail cannot provide. Virtual reality offers an innovative solution, allowing customers to explore products in a virtual environment before making a purchase. This trend is evident as retailers leverage VR to enhance customer interaction and satisfaction. The market is expected to grow significantly, reaching 34.1 USD Billion by 2035, indicating a strong demand for immersive shopping experiences that align with evolving consumer expectations.

Investment in retail technology is a crucial factor propelling the Global Virtual Reality in Retail Market Industry. Retailers are allocating substantial budgets to integrate VR solutions into their operations, recognizing the potential for increased sales and customer loyalty. This trend is supported by the anticipated compound annual growth rate of 21.6% from 2025 to 2035, reflecting a growing commitment to adopting cutting-edge technologies. Companies are increasingly collaborating with tech firms to develop tailored VR applications that enhance the shopping experience. Such investments not only improve operational efficiency but also position retailers competitively in a rapidly evolving market.

By Region, the report provides market insights into Asia-Pacific, Europe, North America, and Rest of the World. North American virtual reality in the retail area will dominate this market. The increasing market revenue in the U.S. is the primary cause of the market expansion in North America. The United States is home to many technologically advanced companies, like Apple, Inc., Microsoft, Magic Leap, and Google LLC, and it conducts considerable VR research. Also, the American government is investing in virtual technology, which will help the market.

For instance, the US government and army committed USD 11 billion to train its officials in virtual, augmented, and mixed reality.

Further, the leading countries studied in the market report are U.S., Canada, German, UK, France, Spain, Italy, Japan, China, Australia, India, South Korea, and Brazil.

Figure 4: VIRTUAL REALITY IN RETAIL MARKET SHARE BY REGION 2022 (%)

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Europe's virtual reality in the retail market accounts for the fastest market share. This results from the wide use of VR technology across different industry sectors, particularly in the gaming and automotive sectors. The regional market expansion has been hastened by the quick development and adoption of potent VR hardware targeted at the gaming community in European nations. Further, German virtual reality in the retail market held the major market share, and the UK virtual reality in the retail market was the fastest-growing market in the European region

The Asia-Pacific Virtual Reality in Retail Market is estimated to expand at a rapid rate from 2023 to 2032. China, a prominent distributor of HMDs and other VR-related hardware, saw a considerable increase in virtual reality in retail. The market is growing in Southeast Asian nations due to technological developments. The commercial launch of 5G in Japan in 2019 prompted telecom firms to apply creative thinking to provide platforms for augmented reality (AR) and virtual reality viewing that use 5G connectivity.

Moreover, China’s virtual reality in the retail market held the largest market share, and Indian virtual reality in the retail market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help virtual reality in the retail market, grow even more. Market participants are also undertaking different strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, virtual reality in the retail industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global virtual reality in the retail industry to benefit clients and increase the market sector. In recent years, virtual reality in the retail industry has offered some of the most significant advantages to medicine. Major players in the virtual reality in the retail market, including Microsoft (US), Unity Technologies (US), HTC Corporation (Taiwan), Google (US), and others, are attempting to increase market demand by investing in research and development operations.

Seiko Epson Corp is a printer and image equipment manufacturer based in Japan. Dot matrix, inkjet, laser printers, desktop computers, scanners, multimedia, business, and home theatre projectors, robots and industrial automation equipment, large home theatre televisions, point of sale docket printers and cash registers, laptops, integrated circuits, and associated electronic components comprise the company's product portfolio. In March 2021, Epson introduced the Moverio BT-40 and BT-40S, next-generation award-winning Moverio augmented reality (AR) smart glasses designed to give a high-quality AR viewing experience while remaining comfortable.

Nike, Inc. is a multinational firm based in the United States specializing in design, development, manufacturing, and global marketing and sales of footwear, clothes, equipment, accessories, and services. With revenue exceeding US$46 billion in the fiscal year 2022, it is the world's largest supplier of athletic shoes and gear and a significant manufacturer of sports equipment. In August 2022, Nike, while celebrating its 50th anniversary, announced a unique augmented reality (AR) experience at Nike retail outlets worldwide. Visitors can use their smartphones to scan QR codes at participating venues to uncover 11 unique stories packed within a single virtual box.

This augmented reality container has a frosted glass appearance and conceals a wide range of digital objects.