Just how big is AR when it comes to retail? While we see its use becoming increasingly extensive in that sector, do you know just how much impact it is having? Is it a fad or the next evolution of the shopping experience?
At this point, it is almost certain that AR technology will be a mainstay of online retail for the foreseeable future. To help you understand its impact and reach, here are a few statistics that you have to know about AR!
1. A $50B Market
The AR market is growing frighteningly; it is a rapidly growing industry estimated to be worth a market value of $50 billion by 2024.
It is a hugely lucrative technology with the potential to impact every corner of the economy. As more and more companies invest, it will become increasingly integrated into everyday life, adding to its value.
2. 1% of retailers use AR
According to reports, at the start of 2022, only 1% of retailers used AR in their buying experience. It seems they were adopting the technology, albeit at a slow pace.
For retailers that bring in most of their sales, online AR can boost their business, but some are too slow to realize that.
BUT…
3. 5% of AR use will be in retail by the end of 2022
The slow adoption will not last long; it has already picked up through the year. While most people see AR as a tool for entertainment (think Pokémon GO and other games). By 2022, the retail sector will account for 5% of AR usage.
That is a significant shift in a short time, with a lot more space to expand worldwide. That means tremendous growth that will only increase as AR is used by more of the consumer base
4. 1B people worldwide use AR
Since the introduction of AR through mobile applications and features, tens of thousands of AR apps are being used daily by over 1 billion people.
Engagement with AR has become an everyday event, and as people become more comfortable using AR, retailers will have to innovate to keep up with how the market changes.
5. 100M people used AR to shop in 2020
In 2020 approximately 100 million people used AR to shop. While this number may have been much more significant than projected due to the 2020 pandemic, now that it has risen, it isn’t going to go back down.
While in a traditional retail space, most of those 100 million people would have had a similar shopping experience, AR can customize how each user experiences a product for a more personal feel.
A more impactful and personal shopping experience leads to more excellent conversion rates, and with so many people already experiencing it, the numbers will only get bigger.
6. 32% of consumers use AR while shopping
While 100m people may have used AR to shop in 2020, that still does not represent a majority. 32% of consumers use AR while shopping; although it is large, there is still room for growth.
AR is particularly good at focusing the customer on the selling points of a retailer’s product, giving them a more accurate picture of what they are purchasing and increasing satisfaction levels. This will, in turn, lead to more and more users utilizing AR in their online shopping.
7. 61% of consumers prefer retailers with AR experiences
Knowing that their purchasing product will fit their needs has always hindered online shopping. The uncertainty of being unable to physically see the product led to the high return rates in that sector.
Now that AR has given consumers the capability to undergo a more informed shopping experience, many of them are unwilling to go back, with 61% saying they prefer to shop using an AR experience, a number that continues to rise.
8. 71% of consumers say they would shop more often with AR
Online shopping is usually grounded more in necessity than frivolity. Most people will shop as and when they need something, with fewer browsing and impulse purchases than in traditional brick-and-mortar-and-mortar retail shopping.
With AR, customers are more confident in making buying decisions and less hesitant about completing a purchase. Because of this, they will visit more often and spend more time shopping rather than getting what they came for and leaving the site.
9. Up to 40% higher conversion rates
Studies have shown that using AR technologies to enhance the online shopping experience can increase conversion rates by up to 40%.
AR gives customers the confidence to buy, increases their purchase satisfaction, and reduces the chance of returns.
10. 52% of retailers are not prepared to integrate AR into their retail.
52% of retailers said they were unprepared to use AR and other new technologies. For most retailers, the photogrammetry, 3D modeling, and photography needed for all their inventory can be a severe undertaking. Finding the right partner is essential for having a triumphant return on investment post-adoption.
We can help
This last point is a big sticking point for many large or small retailers. ARize has the technology and the expertise to propel you into the next stage of online retail, helping you to integrate AR technology into your market offering, bringing you into the future, and giving your customers a more satisfying shopping experience.
