Key Trends Influencing the Growth of the Augmented Reality In Marketing Market in 2025: Tech Advancements Driving Augmented Reality In Marketing Market

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What Is the Expected CAGR for the Augmented Reality In Marketing Market Through 2025?
In recent times, the market size of augmented reality in marketing has seen swift growth. The projection shows an increase from $5.23 billion in 2024 to $5.84 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 11.7%. Factors contributing to this historical growth include improved consumer engagement, the allure of originality and innovation, strategies for brand differentiation, a surge in smartphone usage, and the use of interactive product visualization.

What's the Projected Size of the Global Augmented Reality In Marketing Market by 2029?
The market for augmented reality in marketing is projected to experience a significant upswing in the coming years, escalating to "$10.23 billion by 2029 with a compound annual growth rate (CAGR) of 15.1%. The expansion during this forecast period is credited to the increased integration of e-commerce, broadened applications of social media, usage in event marketing, and improved data analytics and interpretations. Main advancements during this predicted timeline will involve the incorporation of virtual try-on experiences, evolution of AR-imbued packaging, application in location-specific marketing, growth in event marketing, and leveraging AR analytics to evaluate performance.

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Top Growth Drivers in the Augmented Reality In Marketing Industry: What's Accelerating the Market?
The progression of the augmented reality marketing market is predicted to be driven by an increasing need for AR in retail and e-commerce industries. Retail involves the selling of goods from people or businesses to the end consumers, while e-commerce refers to the online buying and selling of products and services. The integration of augmented reality in retail will compel businesses to devise smart retail experiences that shape shoppers' buying decisions. This also extends to e-commerce, where customers can virtually trial a product at home, or even on their own skin using AR filters, an approach that assists brands in minimizing return rates. For example, the retail conversion rates for companies that incorporated augmented reality spiked by nearly 250% in July 2022, as reported by Shopify, a Canadian e-commerce firm. Additionally, Houzz, a US-based online platform for architecture and other users who used AR, demonstrated that these users were engaged with the app for 2.7 times longer and made 11 times more frequent purchases. As such, the escalating need for AR in the retail and e-commerce spaces is expected to fuel the expansion of the augmented reality marketing market.

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What Trends Will Shape the Augmented Reality In Marketing Market Through 2029 and Beyond?
The major players in the augmented reality marketing space are embracing advanced technologies to develop unique solutions such as AR out-of-home campaigns. These are intended to boost customer engagement and provide a more immersive brand interaction. AR out-of-home campaigns utilize augmented reality in publicly accessible areas to offer consumers interactive and captivating experiences. A case in point is the TakeATaste Now campaign launched by American beverage giant, Coca-Cola, in September 2023. This campaign ingeniously integrates AR and digital out-of-home (DOOH) advertising, enabling consumers to engage with digital displays through their smartphones. By simply scanning QR codes on billboards, enthusiasts can virtually access a Coca-Cola Zero Sugar bottle, subsequently redeeming a coupon for a free 500ml actual Coca-Cola Zero Sugar bottle at any Tesco stores, inclusive of the Cherry flavor variant.

What Are the Main Segments in the Augmented Reality In Marketing Market?
The augmented reality in marketing market covered in this report is segmented -

1) By Component: Hardware, Software
2) By Device Type: Head-Mounted Display & Smart Glass, Head-Up Display, Handheld Devices, Stationary AR systems, Smart Glasses, Other Types
3) By Technology: Marker-Based AR Technology, Markerless AR Technology, Anchor-Based AR Technology
4) By Application: Consumer, Commercial, Enterprise, Healthcare, Aerospace And Defense, Energy, Automotive, Other Applications

Subsegments:
1) By Hardware: AR Glasses, Smartphones And Tablets, Head-Mounted Displays (HMDs), AR Kiosks, Sensors And Cameras
2) By Software: AR Development Platforms, AR Content Creation Tools, AR marketing Solutions, Analytics And Reporting Tools, AR Applications And SDKs

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Which Top Companies are Driving Growth in the Augmented Reality In Marketing Market?
Major companies operating in the augmented reality in marketing market include Microsoft Corporation, Google LLC, Sony Corporation, Magic Leap Incorporated, Wikitude GmbH, Zugara Inc., Apple Inc., Blippar Limited, Infinity Augmented Reality Limited, Niantic Inc., Zappar Limited., PTC Inc., Daqri LLC, Lenovo, Seiko Epson, Vuzix, Alphabet Inc., Meta Platforms Inc., Snapchat, HP Autonomy, Augment, Marxent, Catchoom, Vuforia (PTC), ViewAR, Upskill, Scope AR, Adtile Technologies, Inlighten, Total Immersion, Re'Flekt, Vertebrae, 8th Wall Inc., Mirum Agency, INDEstry, Third Aurora

Which Regions Will Dominate the Augmented Reality In Marketing Market Through 2029?
North America was the largest market share in the augmented reality in marketing market in 2024. The regions covered in the augmented reality in marketing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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