The VR Retail market is expected to rise to $1.6B by 2025, and AR could reach $30B in sales
Industry Insights - June 05, 2019
The Value of VR/AR in retail is set to grow exponentially over the next 3 years.
Augmented reality (AR) and virtual reality (VR) technologies are developing across multiple industries and are even more commonplace in certain countries. The leap from the novelty VR headset, to testing high-level technology, the VR world has expanded largely into retail, where more customers are getting used to the AR/VR world, one example is using AR to try on new clothes instead of doing it physically, saving the customer valuable time.
Today’s technology is a far cry from the ‘Pokemon Go’ phase. Retailers are looking to develop AR/VR in their stores competing for their customers' attention in order to provide a next level customer experience.
The possibilities are endless for retailers from the marketing department to the customer services team in-store. The combination of 5G connectivity, smartphones/devices and AR/VR solutions, the retail market is bound to be an exciting place for technological developments.
According to the VR/AR Association – The VRARA, 2019...
“The VR retail market is expected to rise to $1.6B by 2025, and AR could reach $30B in sales. The retail industry was expected to spend $1B in 2017 on VR/AR solutions. Driven by a 5-year CAGR of 240%, forecasts show that retail could become the top industry for VR/AR spending by 2020.”
In retail, for example, AR and VR technologies are being implemented across the entire industry. Self-scanning, click & collect and RFID technology are still leading developments within retail but nothing can slow down the popularity of the smartphone and VR/AR. It’s no secret that the mobile market accounts for a vast majority of retail purchases, especially in the US.
"1 trillion—of total U.S. retail sales at some point in the process of buying something in 2018, including research, price comparisons and purchases were done via the smartphone."
While AR/VR are great technologies in themselves, it is truly the combination of multiple devices and retail technology that can transform the retail experience.
With the struggles and the demand for physical retail stores, could VR/AR technology be its saviour for bringing customers back into stores?
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RETAIL & E-COMMERCE — VR/AR ASSOCIATION - THE VRARA
VR/AR Association - The VRARA. (2019). Retail & eCommerce — VR/AR Association - The VRARA. https://www.thevrara.com/retail-ecommerce [Accessed 5 Jun. 2019].