Top 10 Augmented Reality Future Trends 2023 – Power Omni-channel Growth

What are the top 10 augmented reality future trends in 2023? Is augmented reality just a trend, or will it become a dominating factor in business? You’ve probably seen similar questions multiple times on Quora. The world evolves towards more sustainability and immersion, businesses are pondering some emerging trends in AR. We will analyze this in detail today.

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Witness the Augmented Reality Future Trends with 10 Insights

With Gen Z especially demanding for innovative shopping experiences, they want to digitally interact with your products before buying. Through AR technology, they can immerse themselves in a digital world that revolutionizes their experiences. Enterprises can also benefit from it, resulting in a highly popular but competitive industry. As the Metaverse accelerates, the augmented reality future trends are inevitable. Here are top 10 insights that will witness the future of AR.

• Grand View Research reports that the global augmented reality market size is expected to reach $597.54 billion by 2030, expanding at a CAGR of 40.9%
• Kommando Tech says that 70% of consumers believe AR can deliver multiple benefits
• There will be 1.73 billion AR users on smartphones by 2024, based on Statista report
• According to Insider Intelligence, 28.1% of the U.S. population use AR monthly 
• Upskill predicts 6 million pairs of smart glasses will equip U.S. workers in two years
• IDC reports that $4.1 billion will be invested in AR/VR/MR training usage
• The global AR and VR app downloads are expected to reach the 5.5 billion threshold in 2023, according to Statista
• AR advertising revenue is expected to exceed 2 billion by the end of 2022
• Crunchbase reports that AR startups raised about $1.9 billion in 2021
• MarketingDive notes that 15% of retailers use AR in their business, including giants like Macy’s, IKEA, and Adidas, and a further 32% are planning to implement it

10 Augmented Reality Future Trends to Reshape Growth in Metaverse

The global shift to online shopping since the pandemic has led to thousands of store closures. Digitalization has helped some brands survive these turbulent times. No wonder, businesses are exploring new AR ideas to become the flag bearers of revolution. As of now, AR technologies are adopted in various end-use industries and verticals, including fashion, automotive, gaming, healthcare, education, and more. Here are top 10 trends in augmented reality, and how we can expect them to continue to shape our lives:

1. Omni-channel AR Try-on for Fashion Industry – 3.5X Sales Growth

AR-integrated luxury shopping is a win-win trend for both customers and brands during the pandemic. Research shows that AR can keep customers engaged for an average of 75 seconds, compared to 2.5 seconds for regular engagement. Virtual try-ons are no longer limited to social media filters, and brands are slowly investing in WebAR and in-store AR.

WebAR Virtual Try-on for Online Shopping

From Chanel to Dior, many DTC brands have curated immersive digital experiences to connect with their customers. They can virtually try on jewelry, clothing, handbags, shoes, and accessories online for a more personalized, gamified experience before purchasing. As a result, businesses can reduce returns, achieve higher repurchase rates and brand loyalty along with 3.5X sales growth.

In-store Smart Mirrors

In the U.S. and UK, about a quarter of shoppers have felt unsafe while shopping in stores during the COVID-19. Retailers have to rethink the in-store experience to get customers back, and smart mirrors are one of the safest options. Fortune Business Insights reports the market value of virtual fitting rooms is expected to increase from $2.4 billion today to $10 billion by 2027. Snapchat also says that about a fifth of consumers go out of their way to stores with smart mirrors and interactive screens. It means that virtual AR mirrors will become increasingly important.

2. Wearable NFTs: Bring Your Digital Collectibles to Real Life

Would you really buy an NFT if the real world couldn’t see it? Bringing digital collectibles to real life has become an emerging trend, according to David Cash, blockchain advisor and curator at Decentraland Foundation. AR NFT allows consumers to not only wear fashion, but also interact with it in the real world. Some of the world’s biggest fashion companies are keen to use it to market their businesses. For instance, Burberry created branded wearable NFT for Mythical Games’ Blankos Block Party. Dolce & Gabbana released “Collezione Genesi”, an AR wearable NFT collection that netted nearly $6 million.

Wearable NFTs are pieces of virtual clothing or digital accessories such as limited-edition sneakers, dresses, shirts, or bags that can make your virtual avatar be a fashionista. These are made possible through blockchain technology and smart contracts, proving the uniqueness, authenticity and ownership of each garment. It creates digital scarcity while promoting numerous benefits. By some estimates, it could reach $56 billion by 2030. We can expect more brands to launch AR NFTs in 2023 as the metaverse gets closer to reality.

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3. Latest Augmented Reality Future Trends in Automotive Industry

AR in the automotive industry is expected to be worth $673 billion by 2025. A number of automakers are investing in AR in new cars. Porsche invested $80 million in AR windshield technology. Tesla Motors has also demonstrated the possibilities of AR on the road. Drivers can see how the vehicle’s advanced camera suite continuously analyzes the world around them through object detection and scene analysis.

AR technology can also provide drivers with a head-up display (HUD) via headphones, accessing safety information without obstructing their field of view. The Volvo Varjo XR-1 headset is used in the proof-of-concept AR driver education system, helping drivers react defensively to obstacles that appear on the road.

Augmented Reality future trends will also be a Gen Z marketing game-changer in 2023. Users can view a 3D car model in the driveway to check details, change colors, and even watch it move around. Furthemore, users can enjoy virtual test drives in showrooms. Fast-forward to 2030 or even 2040, you may even have your own in-car AR personal assistant that can handle all the chores while you stream your favorite movie.

4. Augmented Reality Is Reshaping the Online Furniture Industry

ReAnIn reported that the global online furniture market was valued at $96.4 billion in 2021 and is expected to reach $261.8 billion by 2028, growing at a CAGR of 15.3%. Thanks to new technologies like AR, 3D rendering and computer vision, the furniture industry is undergoing a rapid wave of digital transformation. According to Statistics, 60% of online customers in the United States like exploring 3D furniture before buying. Furniture World also reported a 600% increase in AR usage, a 150% growth in conversions, and a 25% decrease in returns through their customers’ websites. Top brands like IKEA, Wayfair, Target, and Houzz are all driving more sales with AR furniture placement.

In simple terms, AR in the furniture industry provides consumers with try-before-you-buy shopping experiences through product visualizations. Shoppers can point their devices at any space in their home or office and select the item they want to place there. Hyper-realistic 3D models will be superimposed onto their real-life surroundings. They can play with its colors and patterns or move it around to gauge style, fit and size.

5. Enhance Marketing Campaigns with Digital Human

The global digital human avatar market size is expected to reach $527.58 billion by 2030, registering a revenue CAGR of 46.4%, according to Emergen Research. Because of the better reliability of digital human influencers in achieving intended goals, many companies are pouring money into marketing campaigns. As more virtual influencers emerge, such as Noonoouri, Imma, Lil Miquela, etc., various industries are eager to embrace them to embody the personality and voice of the brand, and boost omni-channel sales.

The application of digital humans in AR technology will be one of the popular trends in the metaverse. They can seamlessly transition across multiple environments, from Instagram posts to video games. With SLAM World tracking, consumers can also place digital models in the real world. Virtual Imma has been chosen as the ambassador of Watsons’ new carbonated drink, X Soda. In this case, consumers can freely immerse themselves in mysterious space-time signals and build deep emotional connections with the brand.

6. Augmented Reality Smart Glasses- Worth $17.72 Bn by 2025

Augmented reality smart glasses are rapidly becoming one of the most exciting new trends in augmented reality in 2023. The smart eyewear market will be potentially worth $17.72 billion by 2025, and it’s attracting the attention of a variety of tech market leaders from Apple to Meta. One of the latest devices to come out is Meta’s planned mixed reality headset, called Cambria, a new product line that is different from their Meta Quest 2. Apple is also expected to launch consumer-focused AR headset or glasses in the future.

Higher quality glasses displays have long been a focus for AR hardware creators. Innovators in the A/V space have introduced a range of products ranging from micro displays to ultra-thin lenses for the glasses of the future. We should expect future smart glasses with displays that are lighter than ever and capable of delivering high-fidelity images.

Furthermore, many companies are taking significant steps in the field of AR hand and eye tracking. In June 2022, Mojo Vision Labs in Saratoga, California hosted the first demonstration of augmented reality smart contact lenses. Through eye tracking, communications and software, AR lenses are integrated with user interfaces to enable augmented reality experiences. The Mojo Lens features custom-adjusted accelerometers, gyroscopes, and magnetometers that continuously track eye movements to ensure that the AR image remains stationary as the eye moves. With more accurate AR tracking, users will have a closer connection to what they see through their smart glasses.

7. Augmented Reality in Healthcare – Value at $4.64 Bn by 2025

The North American healthcare AR and VR industry is expected to grow dramatically to $4.64 billion by 2025. With AR, doctors and professionals can provide patients with the best health care. AR has been used in education for patients and physicians, as well as simulation of surgery and disease. AccuVein uses projection-based AR to scan the patient’s body and show the doctor the exact location of the vein. It increases the injection of the vein on the first stick by 3.5 times and reduces the need for assistance by 45%.

With the restriction of COVID-19, AR is becoming increasingly important to address issues such as the complexity of remote patient support and increased burden on hospitals.

8. AR Live Shopping Will Seize the West

Imagine TV shopping, such as HSN, QVC, etc., done over the Internet, with products and their features highlighted and purchased with a click. It’s modern live shopping, which naturally combines with elements like AR try-on. The following three advantages make it so popular.

• Combines the convenience of online shopping with the personal touch of the in-store shopping experience

• Allows companies with a significant social media presence to turn subscribers into customers without leaving the platform

• Easy integration of influencer marketing

On Instagram, 44% of weekly users shop on the live streaming platform. This is where it outperforms TikTok, as users generally see Instagram as a more convenient option. Overall, annual live shopping sales are expected to reach $25B in the U.S. alone by 2023. By 2026, they could account for 20% of all e-commerce sales there.

9. Visual Content is Driving the Future of AR Gaming

When users talk about augmented reality gaming, the first thing that probably comes to their minds is the hugely popular Pokemon Go. Since the release of AR kits from Google and Apple, developers have continued to create games with AR elements in the hope of replicating the success of Pokemon Go. AR gaming has become popular among gamers. According to Verified Market Research, this industry is set to reach $31.7 billion in revenues by 2028, representing a compound annual growth rate of 21.98%. This interactive visual content is driving the future of augmented reality gaming market.

These numbers are likely to continue to rise in the near future due to the increasing availability and accessibility of AR technology, including more integration of AR into mobile devices, and many innovations in the gaming community that can easily accommodate AR technology. We can expect to see more mobile AR games on the market, including Temple Treasure Hunt, Sharks in the Park, WallaMe, and more.

In addition, based on geography, the global augmented reality gaming market is divided into North America, Europe, Asia-Pacific, and the Rest of the world. North America is expected to become the world’s leading AR gaming market in the overall gaming business. This growth has been driven by rising consumer disposable income and constant technological innovation. Globally, factors such as AR or VR technological breakthroughs are foreseen to drive the huge growth of this market.

10. 5G Accelerates the Growth of AR/VR Trends

The widespread deployment of 5G networks has accelerated the adoption of AR. The industry analysts confirmed that 5G will provide a promising approach to regional applications and the future of AR. By integrating AR with 5G, users can get a better experience in terms of low-end delay times, as 5G can improve cloud transmission and processing speeds, and provide a more stable connection to create better virtual images.

Augmented Reality Trends Play a Role in Digital Transformation

Companies seeking to accelerate business growth and other key metrics like conversion rates, retention rates, and margins will see measurable gains from digital transformation. AR is demonstrating business benefits, from helping increase productivity to connecting with customers in digital ways for sales growth. It can also help companies reduce costs and improve their environmental credentials.

In the next few decades, advances in AR and immersive technology will significantly improve our lives. Our means of interacting with digital information will no longer be hardware or screens, but more emotions and gestures in the future. We will see a rise in the adoption of AR across various industries, such as fashion, automotive and retail markets.

Bottom Line

Augmented reality is still far from its peak, as innovations happen almost every week, and more businesses are turning to it. Moreover, WebAR can be accessed through a browser, meaning it can run on almost any connected device. Industrial AR, used through smart glasses, will also become increasingly popular among large manufacturers and government organizations. The augmented reality future trends are expected to be one of the most influential technologies in 2023 and beyond.