XR in retail will drive $1.6 billion in revenue globally by 2025. This is projected in a new infographic from Lumus (see our interview with Lumus here).
There’s little detail on what the $1.6B includes but it’s presumably revenue from apps and advertising. A separate figure is the transaction value of commerce that AR and VR drives. That will be larger, given the addressable market of “O2O” commerce we examined last week.
What we’re talking about specifically is XR-assisted retail shopping. It could be VR headsets in car dealerships to get immersive tours and dynamically visualize optionality (colors, features, etc.). Or with AR, it could be wayfinding like Google VPS, or installed hardware (magic mirror).
Also notable is that 71 percent of consumers would shop at a retailer more often if AR were offered. 61 percent prefer to shop in stores that offer AR. And 40 percent would be willing to pay more for a product if AR were part of the experience. These are strong demand signals.
Yet, surprisingly, retail ranks lower among verticals where XR will have an economic impact. According to the Lumus data, it’s seventh on the list, following areas like real estate, healthcare and video games. The last two aren’t surprising but we believe retail will be higher.
eMarketer also pegs retail XR as opportune but further down the list of verticals that will be impacted most. Based on survey data it pulled from a VR Intelligence report, retail actually shows up last among projected areas where enterprise executives think XR will drive revenue.
These are decent signals, but like all projections they should be taken with a grain of salt, and as a directional indicator of possible outcomes. We’ll continue to examine all the data out there (including our own) to present the most well-rounded position for XR strategy development.
Meanwhile, More data points from the Lumus infographic can be seen below.
Disclosure: ARtillry has no financial stake in the companies mentioned in this post, nor received payment for its production. Disclosure and ethics policy can be seen here.
Header image credit: Aisle411