1.73 Billion
By the end of 2024, there will be an estimated 1.73 billion AR user devices worldwide.
It’s not just about software.
AR is a software capability, but it requires hardware to use. Tech companies will increasingly invest in products that bring AR experiences to life. Perhaps the most anticipated tool has been Apple's Vision Pro AR/VR headset. A more affordable version is expected to debut in 2025. In the meantime, smartphones are the primary conduit for AR product experiences.
88%
of medium-sized business are using or testing AR for things like sales, collaboration, and product development.
AR trumps VR.
Virtual reality (VR), which is fully immersive and requires a headset, has long been used by consumers, particularly in the gaming space. However, it is largely impractical for retail use because of the extensive hardware requirements. Because AR is accessible from a smartphone, something the majority of shoppers already own, it is poised to become far more ubiquitous than VR.
200%
AR product experiences are 200% more engaging as they deliver double the levels of interactivity compared to their non-AR equivalent.
Max Out Engagement
When brands offer AR experiences–the ability to put a product in one’s space virtually or do virtual try-on–shoppers are exponentially more likely to engage with the products. And the more time they invest in customizing and experiencing the product in immersive ways, they more likely they are to buy.
1%
of retailers in 2020 said they are using AR.
Innovate with AR.
According to a report from Mobile Marketer, retailers have been slow to adopt AR in the buying process. Only 1% of retailers in 2020 were currently using AR or VR in their customer buying experience. For retailers that bring in most of their sales online, AR can help customers to have a more accurate understanding of how a product is going to look and feel in their space. Being able to communicate the details about a product through AR can help customers understand what they’re buying, making it easier to meet customer expectations, which leads to higher post-purchase satisfaction. AR is easier than ever to implement, with the widespread use of WebAR in mobile phones.
"I do think that a significant portion of the population of developed countries, and eventually all countries, will have AR experiences every day, almost like eating three meals a day. It will become that much a part of you."
TIM COOK
52%
of retailers say they are not prepared to integrate AR into their retail.
Find the right partner.
In the same report from Mobile Marketer, 52% of retailers said that they were just not prepared to start using AR and other new technologies. For most retailers, the photogrammetry, 3D modeling, and photography needed for all of their inventory can be a serious undertaking. Finding the right partner is important for having a successful ROI post-adoption. Threekit’s Virtual Photographer platform can empower your team to generate tens of thousands of photorealistic images from a single design file, on demand.
61%
of consumers say they prefer retailers with AR experiences.
Ease consumer doubts and accelerate sales.
Customers want to know that the product they're purchasing will fit their needs. For furniture, that means customizing a product to match existing decor. IKEA released the IKEA Place app, which uses LiDAR to measure a customer's room and suggest furniture for it, enabling the consumer to see that furniture in their space in real-time. With AR enabling this level of personalization, retailers are seeing a decrease in product returns and logistics costs.
$198B
is the estimated AR market value by 2025.
It’s only just beginning.
The AR market is a rapidly growing industry with an estimated market value of $198 billion by 2025. AR has the potential to impact every corner of the economy, ranging from medicine to automotive to entertainment and more. Facebook recently acquired Scape, an AR company that’s building a digital 3D map of the physical world. As big tech continues to invest more and more in AR, we can expect to see AR becoming a more integrated element of life.
66%
of consumers in Japan want AR experiences in physical stores.
Offer AR in-store.
AR is quickly being adopted by some of the world’s largest markets. In Japan, 66% of consumers want offline stores to offer AR experiences. AR has been integrated into the in-store shopping experience in Japan since 2009. With AR, consumers can have an enriched shopping experience in which additional product information can be superimposed onto the retail space. For big box retailers and department stores, consumers can navigate through a shopping list or see potential product pairings.
71%
of consumers say they would shop more often if AR was an option.
Increase buyer confidence.
AR has the unique ability to communicate details about the look and feel of a product that traditional photos just can’t match. With AR, customers are better able to make confident buying decisions, which leads to increased satisfaction and strong customer loyalty.
40%
of consumers say they would pay more for a product that they could customize in AR.
Customers will pay more for convenience.
Online shopping accounts for 19.4% of all retail sales. When customers shop in-store, they’re able to see and touch your product selection. This experience tends to become flattened online, which can lead to less confidence in the product and more frequent returns. Using AR, however, customers who are shopping online can not only regain elements of the in-store shopping process, but are able to go a step further by experiencing how a product will appear in their house or on their person. For online retail, that means higher margins on existing spend and a higher quality, more hands-on experience for customers.
55%
of AR use is in B2C retail.
AR is informing the future of retail.
Most people tend to associate AR solely with the entertainment industry. But the reality is that AR is becoming more integral to daily life. In 2024, retail accounts for 55% of AR use. Threekit’s AR can help retailers increase conversions by up to 40%. That can mean tremendous growth for your business that will only increase as AR is used by more of the consumer base.
$10.9B
is the projected market volume of AR in the U.S. this year.
Investment in AR is growing.
Businesses across the globe are trying to find ways to stay competitive as consumers are looking for richer engagement points in the shopping experiences. The United States is the leading revenue generator in AR markets.
Want to learn more about Augmented Reality?
3.7M
people are projected to use AR by 2029.
Consumers are using AR more.
The customer’s path to purchasing changes constantly. AR presents a unique opportunity to engage customers and to focus the consumer on the selling points of your product. Every opportunity to engage a customer also presents opportunities that can lower the overall customer’s satisfaction, but 73% of mobile AR users reporting high satisfaction.
1.06B
people worldwide use AR on a regular basis.
Mobile AR opens the door.
Since Apple and Google launched their respective ARKit and ARCore platforms, tens of thousands of AR apps are being used every day by over 1 billion people. As Tim Cook said, engagements with AR will become everyday events. As people become more comfortable using AR, retailers have to innovate and keep up with how the market is changing.
52.8%
is the user penetration rate for AR in 2024.
Cater to every customer.
Gartner estimated that over 100 million consumers used AR to shop in 2020. In a traditional retail space, if 100 million people walked through the store, most would have a similar shopping experience. With AR, retailers can customize how each user experiences a product. With targeted offering in the retail space, AR shoppers are able to have a more impactful, personalized shopping experience.
"AR is going to become ubiquitous to the point of becoming an integrated expectation of the buying experience. Brands that want to connect with customers today and tomorrow need to move now on AR."
Ben Houston - Founder, Threekit
67%
of advertising agencies say they are making greater use of AR.
Advertisers know that AR sells.
According to Vibrant Media, AR ads are enabling brands to bring their products to life right in front of consumers. The travel, automotive, and entertainment industries are seeing big benefits from AR campaigns.
83.1M
of consumers in the US used AR monthly in 2020.
American consumers are beginning to expect AR.
In 2020, 83.1 million consumers in the US used AR monthly. That accounts for 15% of the population. With AR usership increasing, it’s a perfect time to start capitalizing on the growing AR user base for both marketing and point-of-sale product engagement.
51%
of smartphone users shopped with AR in 2024.
AR usership is growing.
AR is a thrilling way to see and interact with rich information about the world, and the user base is expected to continue growing as more companies adopt AR.
75%
of consumers aged 16-44 years are aware of AR.
Key demographics understand AR.
75% of consumers between ages 16 and 44 are aware of AR. What’s impressive about this figure is that AR has just become available to most consumers only a few years ago. We’re seeing an adoption rate that is allusive to the early days of ecommerce.
Want to see how Augmented Reality works?
3.6B
smartphones are AR-compatible.
No installation required.
With ARKit and ARCore becoming available to most smartphone owners, AR has been quickly integrated into many apps, including Google and TikTok. What many brands don’t know is that most web browsers ship with WebVR and other 3D technologies. That means integrating an AR or VR experience into your online store doesn’t require users to have any additional software installed other than their browser. With Threekit’s 3D Configurator, your online store can offer 3D product customizations that work on every device, everywhere.
39%
of AR retailers use AR for the consideration phase.
AR helps consumers understand a product.
AR is a great medium for showing highly detailed 3D models of your products. Compelling imagery is a must-have for selling products online. With 3D models of your products in AR, consumers can know exactly how their product will work for them, with their specific needs and space.
16%
of retailers use AR for the sales phase.
AR helps consumers make buying decisions.
After consumers have selected which products will work for them, making the choice of what product to purchase is an area that AR can significantly influence. For brands that have an in-person onboarding process for their customers, using AR and VR can compel customers with real-life, vivid imagery that drives them toward buying.
40%
higher conversion rates have been seen with AR.
Grow your conversions with AR.
Using 3D technologies in your online shopping experience can increase your conversion rates by up to 40%. Using AR can give customers the confidence to buy, increase their post-purchase satisfaction, and reduce product return rates.
33%
of smartphone users use AR in retail stores.
AR is ubiquitous.
AR use in brick-and-mortar stores includes overlays containing additional product information, items that involve gamification, complementary products, and more. AR can readily be used in all phases of the buying journey, making it a more flexible retail tool than similar technologies.
21.35%
annual growth rate on global mobile AR revenue is expected from 2022-2027.
AR-based purchases are gaining popularity.
Although many people associate AR with gaming and entertainment, most AR revenue is generated by mobile retail. Products shown with greater detail and dimension, especially to camera-native Gen Zers, has a proven higher conversion rate.
91.75%
of Gen Z members show a strong interest in AR-based shopping.
Target the right audience.
This popularity is largely due to users having "zero-cost hardware"—given the number of smartphones and browsers that are currently AR compatible—as well as the flexibility of AR to be used in a variety of industries.
$11.90
is the expected average B2C revenue per user in 2024.
AR plus AI drives increased revenue.
With the number of retailers adopting AR growing slowly, and the number of consumers doing AR-based shopping, the market is ripe to be an early adopter of this popular technology. Generative AI is driving a more personalized experience within the AR sphere, which gives users even more control and personalization. Threekit's AI Visual Discovery complements our Augmented Reality offering, making it easier than ever to utilize guided selling techniques to increase profit margins.