According to a new report, published by KBV research, The Global Augmented Reality In E-Commerce Market size is expected to reach $61.47 billion by 2032, rising at a market growth of 35.3% CAGR during the forecast period.

The rapid growth of AR adoption is also fueled by its alignment with broader market trends, such as the rise of mobile commerce and the shift toward experiential shopping. As consumers increasingly shop via mobile devices, AR provides a seamless way to enhance the mobile shopping experience without requiring additional hardware. Moreover, the COVID-19 pandemic accelerated the shift to online shopping, prompting retailers to invest in technologies like AR to replicate in-store experiences virtually. This trend is particularly evident in markets like the United States, where major retailers have embraced AR to differentiate themselves in a crowded digital landscape.

The Hardware segment is experiencing a CAGR of 34.7 % during the forecast period. This significant share can be attributed to the increasing adoption of AR-enabled devices such as smart glasses, head-mounted displays, AR sensors, and mobile AR devices that enable immersive shopping experiences. Retailers are investing in advanced hardware to create interactive and lifelike digital environments for customers, especially in sectors like fashion, furniture, and cosmetics.

The HMD (Head-Mounted Display) segment led the maximum revenue in the Global Augmented Reality In E-Commerce Market by Display in 2024, thereby, achieving a market value of $31.7 billion by 2032. This dominance is driven by the rising consumer preference for immersive and hands-free virtual shopping experiences. HMDs offer highly interactive environments that allow users to explore products in 3D, enhancing engagement and product visualization. Their growing adoption in fashion, furniture, and automotive e-commerce segments is helping brands differentiate themselves by delivering more engaging experiences.

The Virtual Try-On Solutions segment is growing at a CAGR of 34.2 % during the forecast period. This dominance is fuelled by high demand in the fashion, beauty, and eyewear industries, where customers can visualize how clothing, makeup, or accessories look on them without physically trying them on. AR-powered virtual try-ons significantly reduce product return rates, improve customer confidence in purchasing decisions, and enhance user engagement.

The North America region dominated the Global Augmented Reality In E-Commerce Market by Region in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $21.5 billion by 2032. The Asia Pacific region is anticipated to grow at a CAGR of 35.6% during (2025 - 2032). Additionally, The Europe region would witness a CAGR of 35% during (2025 - 2032).

Augmented Reality In E-Commerce Market Report Segmentation

By Geography

Rest of Asia Pacific

LAMEA

• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA