Virtual Reality In Retail Market 2030: Why Retailers Are Betting on HMDs

Global Virtual Reality in Retail Market Overview

The global virtual reality (VR) in retail market was valued at USD 3.25 billion in 2022 and is projected to reach USD 23.69 billion by 2030, growing at a compound annual growth rate (CAGR) of 28% between 2023 and 2030. The increasing adoption of VR headsets within the retail sector is transforming the customer shopping experience, fueling rapid market expansion during the forecast period.

Retailers are actively integrating VR shopping experiences into both physical outlets and online platforms to enhance user engagement and improve the buying process. For example, in August 2022, Hugo Boss AG introduced a virtual reality try-on dressing room that allows online shoppers to test clothing using personalized avatars. Such innovations by industry leaders are driving market growth significantly.

The incorporation of advanced technologies such as Artificial Intelligence (AI), machine learning, and the Internet of Things (IoT) within virtual reality solutions is expected to further boost demand. In February 2023, Procter & Gamble Company announced plans to launch a supply chain platform for retail partners across North America, leveraging VR tools, proprietary algorithms, and AI to enhance business insights and operational efficiency—factors that will stimulate the VR retail market.

The COVID-19 pandemic has notably accelerated VR adoption in retail. As consumers increasingly turned to online shopping, retailers sought immersive ways to replicate the in-store experience. VR enables interactive product visualization, virtual try-ons, and simulated store visits, effectively bridging the gap between physical and digital shopping. This shift in consumer behavior and the growing demand for enhanced online experiences have catalyzed the VR retail market’s expansion.

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Key Market Trends & Insights

• Regional Insights: North America accounted for a substantial 29% revenue share in 2022 and is expected to maintain its leadership through 2030. This dominance is driven by technological advancements, higher disposable incomes, and the decreasing cost of VR headsets equipped with advanced screens and processors.
• Europe is projected to record the fastest CAGR between 2023 and 2030. The region’s growth is supported by the presence of prominent fashion brands adopting VR to elevate customer experiences and increase brand visibility. Additionally, a rising preference for personalized remote shopping experiences with expansive product portfolios is propelling VR adoption.
• By Component: The software segment is expected to grow at the highest CAGR of 29.7% during the forecast period. Continuous technological innovation is enabling VR software to offer customers realistic and immersive product visualization before purchase decisions.
• By Device: Head-Mounted Devices (HMDs) led the market with a 64.0% revenue share in 2022, a trend set to continue. Popular VR headsets like Oculus Rift, HTC Vive, and PlayStation VR are widely used for retail applications such as virtual product demonstrations, try-ons, and store visits, driving this segment’s growth.
• By Vertical: The food and beverage sector is forecasted to register a CAGR of 33.0% from 2023 to 2030, driven by virtual dining experiences. Customers can immerse themselves in virtual restaurant environments, explore menus, and interact with virtual waitstaff, providing an engaging way to preview dining options prior to reservations or ordering.
• By Application: The planning and designing segment is anticipated to achieve the highest CAGR of 29.2% over the forecast period. VR technologies assist retailers in designing store layouts, prototypes, and visual merchandising strategies by allowing virtual visualization before physical implementation.

Market Size & Forecast

• 2022 Market Size: USD 3.25 Billion
• 2030 Projected Market Size: USD 23.69 Billion
• CAGR (2023–2030): 28%
• Largest Market in 2022: North America
• Fastest Growing Market: Europe

Key Companies & Competitive Landscape

The VR in retail market is highly competitive, with numerous players employing strategic alliances, mergers and acquisitions, market expansion, and product innovation to stay ahead.

For instance, in April 2023, Obsess, Inc., a virtual store platform for experiential e-commerce, launched a self-service virtual store solution that enables brands to build customizable 3D e-commerce environments. Such initiatives are expected to further stimulate market growth.

Leading companies in the global VR retail market include:

• Visualise Creative Ltd.
• VREI
• Panedia Pty Ltd
• Fieback Medien
• FireBirdVR
• FXGear Inc.
• Koncept VR
• Matterport, Inc.
• Subvrsive, Inc.
• VIAR
• WeMakeVR
• Scapic Innovations Pvt. Ltd.

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Conclusion

The virtual reality in retail market is poised for exceptional growth, driven by technological innovation, increasing consumer demand for immersive shopping experiences, and the ongoing digital transformation of retail operations. The integration of AI, machine learning, and IoT with VR is enabling retailers to offer personalized, interactive, and engaging customer journeys.

With a projected market size of USD 23.69 billion by 2030 and a robust CAGR of 28%, VR technology is set to become a fundamental component of retail strategies worldwide. Regions such as North America and Europe will continue to lead this growth, fueled by rising digital adoption and innovative retail solutions. This transformative trend will redefine the future of retail, bridging physical and digital commerce seamlessly.